Debt Reserve Funds Replenishment Regulations

Marginal note:Calculation of charges for property tax revenues

4 With respect to the debt reserve fund solely for financing secured by property tax revenues, at the end of the period referred to in subsection 2(1), the Authority must send

• (a) to the council of each defaulting member, a notice requiring that member to pay the charge determined under subsection 3(1); and

• (b) to the council of each borrowing member who is not a defaulting member, a notice requiring that member to pay a charge equal to the one determined by the formula

  [A/(B – C)] × (D – E)

  where

  A

  is the gross annual property tax revenue of the borrowing member,

  B

  is the aggregate gross annual property tax revenue of all the borrowing members,

  C

  is the aggregate gross annual property tax revenue of the defaulting members,

  D

  is the amount of the shortfall in the debt reserve fund that is set out in the notice referred to in section 2, and

  E

  is the total amount charged to the defaulting members under section 3.