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Note All persons making use of this consolidation are reminded that it has no legislative sanction, that amendments have been embodied for convenience of reference only. The official Statutes and Regulations should be consulted for all purposes of interpreting and applying the law.

(Consolidated up to 199/2025) ALBERTA REGULATION 149/2022 Municipal Government Act MUNICIPAL INVESTMENT REGULATION Table of Contents 1

Definitions 2 Rating agencies 3 Municipalities 4 Major cities 5 MuniSERP 6 MUNI Funds 7 Limitations on municipality 8 Repeal 9 E x p i r y

Definitions 1 In this Regulation, (a) “Act” means the Municipal Government Act; (b) “major city” means any of the following: (

i) The City of Calgary; (ii) the City of Edmonton; (iii) the City of Medicine Hat; (c) “MUNI Funds” means the pooled investment funds operated by the Alberta Municipal Services Corporation; (d) “MuniSERP” means th e supplemental employee retirement plan for municipal employees operated by the Alberta Municipal Services Corporation; (e) “rating agencies” means the rating agencies referred to in

section 2; (f) “securities” has the meaning given to it in

section 250(1) of the Act.

Section 2 AR 149/2022 MUNICIPAL INVESTMENT REGULATION 2 Rating agencies 2 For the purposes of this Regulation, the rating agencies are (

a) DBRS Limited, (

b) Fitch Ratings, Inc., (

c) Moody’s Canada Inc., and (

d) S&P Global Ratings Canada. Municipalities 3 In addition to the investments referred to in

section 250(2) of the Act, a municipality may invest its money in (

a) securities issu ed by a corporation incorporated or continued under the laws of Canada or of a province if the securities are rated as follows: (

i) subject to subclause (ii), if the municipality is not a major city, the securities must be rated by at least one of the rating agencies with (

A) a minimum R-1 or A- or equivalent rating for securities with a maturity date that is less than one year from the securities’ issue, and (

B) a minimum of A- or equivalent rating for securities with a maturity date that is one year or more from the securities’ issue; (ii) if the investment is permitted by

section 5 or 6, the securities must be rated by at least one of the rating agencies with (

A) a minimum R-1 or BBB- or equivalent rating for securities with a maturity date that is less than one year from the securities’ issue, and (

B) a minimum of BBB- or equivalent rating for securities with a maturity date that is one year or more from the securities’ issue, (

b) securities of the municipality, (

c) exchange agreements, futures agreements, option agreements or rate agreements, in respect of interest, dividends, rates, currencies, indices or mediums of exchange if

Section 4 AR 149/2022 MUNICIPAL INVESTMENT REGULATION 3 (

i) the instrument is used in connection with and for the purpose of reducing the risk of another investment referred to in

section 250(2) of the Act or in clause (

a) or (

b) of this section, or (ii) the instrument is used to protect the municipality from exposure to a loss resulting from an interest, currency or rate fluctuation in connection with an amount owing to the municipality or an amount owed by the municipality, a n d (

d) units in pooled funds of all or any of the investments described in

section 250(2)(

a) to (

c) of the Act and in clauses (

a) to (

c) of this section. Major cities 4 In addition to the investments referred to in

section 250(2) of the Act and

section 3, a major city may invest its money in (

a) securities issued or guaranteed by a credit union or trust corporation established or continued under the laws of Canada or a province other than Alberta, (

b) securities of any of the following entities, or of a body that is the equivalent of any of the following entities, established under the laws of Canada or a province other than Alberta: (

i) a municipality; (ii) a school division; (iii) an approved hospital under the Provincial Health Agencies Act; (iii.1) a provincial health agency under the Provincial Health Agencies Act; (iv) a regional health authority under the Provincial Health Agencies Act; (

v) a regional services commission, (

c) securities, including securities denominated in foreign currencies, issued or guaranteed by (

i) the government of a jur isdiction outside Canada or an agent of that government,

Section 5 AR 149/2022 MUNICIPAL INVESTMENT REGULATION 4 (ii) a corporation with its head office located in a jurisdiction outside Canada or an agent of that corporation, or (iii) a bank incorporated in a jurisdiction outside Canada or an agent of that bank, (

d) securities issued o r guaranteed by supranational agencies, (

e) trust capital securities, (

f) private equity placemen ts, including placements denominated in foreign currencies, (

g) private debt placements, including placements denominated in foreign currencies, of any corporation, (

h) common stocks, partially paid shares, convertible debentures, preferred shares, warrants or rights or other equity instruments that are publicly traded on a recognized stock exchange in or outside Canada, (

i) income trusts that are publicly traded on a recognized stock exchange in or outside Canada, (

j) real estate, in the form o f direct property ownership, (

k) derivatives, (

l) hedge funds, and (

m) units in pooled funds of all or any of the investments described in

section 250(2)(

a) to (

c) of the Act,

section 3(

a) to (

c) and clauses (

a) to (

l) of this section. AR 149/2022 s4;125/2024;199/2025 MuniSERP 5 In addition to the investments referred to in

section 250(2) of the Act and

section 3, a municipality that participates in MuniSERP, other than The City of Calgary or the City of Edmonton, may invest its money designated to fund MuniSERP in (

a) securities issued or guaranteed by a credit union or trust corporation established or continued under the laws of Canada or a province other than Alberta, (

b) securities of any of the following entities, or of a body that is the equivalent of any of the following entities, established under the laws of Canada or a province other than Alberta:

Section 5 AR 149/2022 MUNICIPAL INVESTMENT REGULATION 5 (

i) a municipality; (ii) a school division; (iii) an approved hospital under the Provincial Health Agencies Act; (iii.1) a provincial health agency under the Provincial Health Agencies Act; (iv) a regional health authority under the Provincial Health Agencies Act; (

v) a regional services commission, (

c) securities, including securities denominated in foreign currencies, issued or guaranteed by (

i) the government of a jur isdiction outside Canada or an agent of that government, (ii) a corporation with its head office located in a jurisdiction outside Canada or an agent of that corporation, or (iii) a bank incorporated in a jurisdiction outside Canada or an agent of that bank if the securities are rated by at least one of the rating agencies with a rating that is equivalent to (iv) a minimum of R-1 or BBB- for investments with a maturity date that is less than one year after the date the investment is issued, and (

v) a minimum of BBB- for investments with a maturity date that is one year or more after the date the investment is issued, (

d) common stocks, partially paid shares, convertible debentures, preferred shares, warrants or rights or other equity instruments that are publicly traded on a recognized stock exchange in or outside Canada, (

e) real estate, in the form of direct property ownership, in Canada, and (

f) units in pooled funds of all or any of the investments described in

section 250(2)(

a) to (

c) of the Act,

section 3(

a) to (

c) and clauses (

a) to (

e) of this section. AR 149/2022 s5;125/2024;199/2025

Section 6 AR 149/2022 MUNICIPAL INVESTMENT REGULATION 6 MUNI Funds 6 In addition to the investments referred to in

section 250(2) of the Act and sections 3 and 5, a municipality, other than The City of Calgary or the City of Edmonton, may invest its money in the MUNI Funds if the investments held by the MUNI Funds are restricted to the following: (

a) the investments described i n

section 250(2)(

a) to (

c) of the Act and

section 3(

a) to (c); (

b) securities issued or guaranteed by a credit union or trust corporation established or continued under the laws of Canada or a province other than Alberta; (

c) securities of any of the following entities, or of a body that is the equivalent of any of the following entities, established under the laws of Canada or a province other than Alberta: (

i) a municipality; (ii) a school division; (iii) an approved hospital under the Provincial Health Agencies Act; (iii.1) a provincial health agency under the Provincial Health Agencies Act; (iv) a regional health authority under the Provincial Health Agencies Act; (

v) a regional services commission; (

d) securities, including securities denominated in foreign currencies, issued or guaranteed by (

i) the government of a jur isdiction outside Canada or an agent of that government, (ii) a corporation with its head office located in a jurisdiction outside Canada or an agent of that corporation, or (iii) a bank incorporated in a jurisdiction outside Canada or an agent of that bank if the securities are rated by at least one of the rating agencies with a rating that is equivalent to

Section 7 AR 149/2022 MUNICIPAL INVESTMENT REGULATION 7 (iv) a minimum of R-1 or BBB- for investments with a maturity date that is less than one year after the date the investment is issued, and (

v) a minimum of BBB- for investments with a maturity date that is one year or more after the date the investment is issued; (

e) units in pooled funds of all or any of the investments described in clauses (

a) to (

d) of this section. AR 149/2022 s6;125/2024;199/2025 Limitations on municipality 7 In making investments under sections 4, 5 and 6, the municipality must at all times be governed (

a) by the prudent person rule as understood generally by the investment community in Canada and Alberta, and (

b) by the investment policy approved by its council. Repeal 8 The following regulations are repealed: (

a) Investment Regulation (AR 66/2000); (

b) Major Cities Investment Regulation (AR 249/2000); (

c) Muni Funds Investment Regulation (AR 22/2010); (

d) MuniSERP Investment Regulation (AR 210/2006). Expiry 9 For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be repassed in its present or an amended form following a review, this Regulation expires on June 30, 2032.

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