Alberta Regulation 286/96

Insurance Act

DEFINITION OF CAPITAL REGULATION

Filed: December 5, 1996

Made by the Lieutenant Governor in Council (O.C. 582/96) pursuant to

section 22 of the Insurance Act.

Capital

1(1) For the purposes of sections 34, 43, 94.07, 184, 541 and 545 of the

Act, capital means

(

a) shares that are non-cumulative, non-retractable, non-redeemable

and, if convertible, are only convertible into common shares, and that have

been issued and paid for,

(

b) contributed surplus, and

(

c) retained earnings.

(2) The definition of capital does not apply to references to "capital

stock" in the provisions referred to in subsection (1).

Expiry

2 For the purpose of ensuring that this Regulation is reviewed for

ongoing relevancy and necessity, with the option that it may be re-passed

in its present or an amended form following a review, this Regulation

expires on December 31, 2001.

------------------------------

Alberta Regulation 287/96

Insurance Act

EXEMPTION REGULATION

Filed: December 5, 1996

Made by the Lieutenant Governor in Council (O.C. 583/96) pursuant to

sections 1.1 and 24 of the Insurance Act.

Table of Contents

Warranties on household appliances 1

Mutual aid plan 2

Licensing exemptions 3

Repeal 4

Expiry 5

Warranties on household appliances

1(1) In this section,

(a) "household appliance" includes home entertainment equipment and

personal computers, but does not include

(

i) furnaces,

(ii) air conditioners,

(iii) hot water tanks, or

(iv) swimming pool heating units;

(b) "household appliance insurance" means a contract of insurance

that indemnifies a person who has an interest in a household appliance

against the appliance's malfunction, failure or breakdown.

(2) The Insurance Act does not apply to household appliance insurance if

the total consideration payable for the insurance is $200 or less.

Mutual aid plan

2 The Insurance Act does not apply to the mutual aid plan operated by the

Mennonite Aid Union if

(

a) the constitution and by-laws of the Mennonite Aid Union and any

amendments to the constitution or by-laws are filed with the Superintendent

of Insurance within a time period acceptable to the Superintendent,

(

b) the constitution and by-laws of the Mennonite Aid Union remain

in force and the plan is operated in accordance with the constitution and

by-laws, and

(

c) each member who is a resident of Alberta is notified within 15

days of the member's making, varying or renewing a property valuation that

(

i) the plan is exempt from the Act, and

(ii) the plan is not covered by the Property and

Casualty Insurance Compensation Association.

Licensing exemptions

3 Pursuant to

section 24(2) of the Insurance Act, the following need not

be licensed as an insurer:

(

a) Asbestos Workers' Insurance Benefit Trust Fund of Alberta;

(

b) Bricklayers and Allied Craftsmen Insurance Benefit Trust Fund

of Alberta;

(

c) CHQR Sick Benefit Society;

(

d) Ironworkers Health and Welfare Trust Fund of Canada;

(

e) Labourers' Health and Welfare Trust Fund of Western Canada.

Repeal

4 The Regulations Exempting Organizations From Licensing (Alta. Reg.

303/70) are repealed.

Expiry

5 For the purpose of ensuring that this Regulation is reviewed for

ongoing relevancy and necessity, with the option that it may be re-passed

in its present or an amended form following a review, this Regulation

expires on December 31, 2001.

------------------------------

Alberta Regulation 288/96

Insurance Act

INSURANCE COUNCILS AMENDMENT REGULATION

Filed: December 5, 1996

Made by the Lieutenant Governor in Council (O.C. 584/96) pursuant to

section 22 of the Insurance Act.

1 The Insurance Councils Regulation (Alta. Reg. 323/88) is amended by

this Regulation.

Section 1 is amended

(

a) by renumbering it as

section 1(1);

(

b) in subsection (1)

(

i) by adding the following after clause (a):

(a.1) "Appeal Board" means the Insurance

Councils Appeal Board established under

section 14;

(ii) by adding the following after clause (e):

(f) "panel" means a panel of the Appeal

Board.

(

c) by adding the following after subsection (1):

(2) In this Regulation, a reference to a certificate or licence in

relation to an eligibility requirement or condition to be a member of a

council or the Appeal Board or to be a voter in an election is a reference

to a certificate or licence that is not suspended.

3 Sections 2 to 8 are repealed and the following is substituted:

Insurance Councils

Composition of Alberta Insurance Council

2 The Alberta Insurance Council consists of the following 5

members:

(a) 2 individuals appointed by the Lieutenant Governor

in Council who are resident in Alberta and are neither licensed nor

employed by a licensed insurer or person;

(

b) one individual appointed by the Life Insurance

Council who is licensed or employed by a licensed insurer or person and is

a member of the Life Insurance Council;

(

c) one individual appointed by the General Insurance

Council who is licensed or employed by a licensed insurer or person and is

a member of the General Insurance Council;

(

d) one individual appointed by the Insurance

Adjusters' Council who is licensed or employed by a licensed insurer or

person and is a member of the Insurance Adjusters' Council.

Composition of Life Insurance Council

3 The Life Insurance Council consists of the following 6

members:

(a) 2 individuals appointed by the Lieutenant Governor

in Council who are resident in Alberta and are neither licensed nor

employed by a licensed insurer or person;

(b) 2 individuals appointed by the Canadian Life and

Health Insurance Association Inc. who are resident in Alberta, engaged in

the life insurance business and employed by an insurer licensed to

undertake life insurance;

(c) 2 individuals elected in accordance with this

Regulation who are resident in Alberta, are not employed by an insurer

licensed to undertake life insurance, are engaged in the life insurance

business and

(

i) hold certificates to act as life

insurance agents or are designated to act as life insurance agents in

certificates under

section 508(3) of the Act, and

(ii) have held the certificates or been

designated in the certificates for the 5 years before the election.

Composition of General Insurance Council

4 The General Insurance Council consists of the following 8

members:

(a) 2 individuals appointed by the Lieutenant Governor

in Council who are resident in Alberta and are neither licensed nor

employed by a licensed insurer or person;

(

b) one individual appointed by the Insurance Bureau of

Canada who is resident in Alberta, is engaged in the general insurance

business and is employed by a licensed insurer that does not restrict its

agents from acting as general insurance agents for other insurers;

(c) 3 individuals elected in accordance with this

Regulation who are resident in Alberta, are not employed by a licensed

insurer, are engaged in the general insurance business, are not restricted

by contract or otherwise from acting as agents for more than one insurer

and

(

i) hold certificates to act as general

insurance agents or are designated to act as general insurance agents in

certificates under

section 508(3) of the Act, and

(ii) have held the certificates or been

designated in the certificates for the 5 years before the election;

(d) 2 individuals appointed by the Insurance Bureau of

Canada who are resident in Alberta, engaged in the general insurance

business and employed by a licensed insurer that restricts its agents from

acting as general insurance agents for any other insurer for the same class

of insurance.

Composition of Insurance Adjusters' Council

5 The Insurance Adjusters' Council consists of the following 4

members:

(

a) one individual appointed by the Lieutenant Governor

in Council who is resident in Alberta and is neither licensed nor employed

by a licensed insurer or person;

(b) 2 individuals elected in accordance with this

Regulation who are resident in Alberta, are engaged in the general

insurance business, hold adjusters' certificates and have held the

certificates for the 5 years before the election and are not employed by a

licensed insurer;

(

c) one individual appointed by the Insurance Bureau of

Canada who is resident in Alberta, is engaged in the general insurance

business and is employed by an insurer licensed to undertake general

insurance.

Chair of councils

6(1) The members of the Alberta Insurance Council shall appoint one

of the members referred to in

section 2(b), (

c) or (

d) as chair.

(2) The members of the Life Insurance Council shall appoint one of

the members referred to in

section 3(

b) or (

c) as chair.

(3) The members of the General Insurance Council shall appoint one

of the members referred to in

section 4(b), (

c) or (

d) as chair.

(4) The members of the Insurance Adjusters' Council shall appoint

one of the members referred to in

section 5(

b) or (

c) as chair.

Becoming ineligible

7 If an individual who is a member of a council no longer meets the

conditions or eligibility requirements for that individual to be a member,

the individual is no longer a member of the council.

Term

8(1) The term of office of an appointed member of a council is not

to exceed 3 years.

(2) The term of office of an elected member of a council is 3 years.

(3) An individual may not serve more than 2 consecutive terms as a

member of a council.

(4) An individual who serves 2 consecutive terms must wait 3 years

before the individual is eligible to be a member of a council.

Section 13 is repealed.

5 The following is added at the end of the Regulation:

Appeals

Appeal Board

14(1) The Insurance Councils Appeal Board is established.

(2) The Appeal Board consists of the following 15 members:

(a) 3 individuals appointed by the Minister who are

resident in Alberta and are neither licensed as agents or adjusters nor

employed by a licensed insurer or person;

(b) 3 individuals elected in accordance with this

Regulation who are resident in Alberta, are engaged in the general

insurance business, hold certificates to act as general insurance agents or

are designated to act as general insurance agents in certificates under

section 508(3) of the Act and are employed by a licensed insurer that

restricts its agents from acting as general insurance agents for other

insurers;

(c) 3 individuals elected in accordance with this

Regulation who are resident in Alberta, are not employed by a licensed

insurer, are engaged in the general insurance business, hold certificates

to act as general insurance agents or are designated to act as general

insurance agents in certificates under

section 508(3) of the Act and are

not restricted by contract or otherwise from acting as agents for more than

one insurer;

(d) 3 individuals elected in accordance with this

Regulation who are resident in Alberta, are not employed by a licensed

insurer, are engaged in the life insurance business and hold certificates

to act as life insurance agents or are designated to act as life insurance

agents in certificates under

section 508(3) of the Act;

(e) 3 individuals elected in accordance with this

Regulation who are resident in Alberta, are not employed by a licensed

insurer, are engaged in the general insurance business and hold adjusters'

certificates.

(3) The Superintendent shall maintain a list of members of the

Appeal Board.

Becoming ineligible

15 If an individual who is a member of the Appeal Board no longer

meets the conditions or eligibility requirements for that individual to be

a member, the individual is no longer a member of the Appeal Board.

Term

16(1) The term of office of an appointed member of the Appeal Board

is not to exceed 3 years.

(2) The term of office of an elected member of the Appeal Board is 3

years.

(3) An individual may not serve more than 2 consecutive terms in

office as a member of the Appeal Board.

(4) An individual who serves 2 consecutive terms must wait 3 years

before the individual is eligible to be a member of the Appeal Board.

Notice of appeal

17(1) A person who is adversely affected by a decision of a council

may appeal the decision by submitting a notice of appeal to the

Superintendent within 30 days after the council has mailed the written

notice of the decision to the person.

(2) The notice of appeal must contain the following:

(

a) a copy of the written notice of the decision being

appealed;

(

b) a description of the relief requested by the

appellant;

(

c) the signature of the appellant or the appellant's

lawyer;

(

d) an address for service in Alberta for the

appellant;

(

e) an appeal fee of $100 payable to the Provincial

Treasurer.

(3) The Superintendent shall notify the Minister and the council

whose decision is being appealed when a notice of appeal has been

submitted.

(4) If the appeal involves a suspension or revocation of a

certificate or a levy of a penalty, the council's decision is suspended

until after the disposition of the appeal by a panel of the Appeal Board.

Panels

18(1) The Minister shall, within 30 days of the Superintendent's

receiving a notice of appeal, select members of the Appeal Board to form a

panel that will decide the appeal.

(2) A panel consists of one individual selected from the appointed

members of the Appeal Board and 2 individuals selected from the elected

members of the Appeal Board.

(3) The individual selected from the appointed members is the chair

of the panel.

(4) No member of the Appeal Board who has an interest in the

subject-matter raised in a notice of appeal, whether directly or because of

the member's position, affiliation or involvement in or with an

organization, firm or business, may participate in the panel that will

decide the appeal.

Remuneration, fees and expenses

19(1) The remuneration, fees and expenses payable to panel members

shall be in accordance with

Schedule 1, Part A of the Committee

Remuneration Order made by O.C. 769/93.

(2) The Alberta Insurance Council shall pay to panel members the

remuneration, fees and expenses referred to in subsection (1).

Hearing and notice of hearing

20(1) The panel shall fix a date for a hearing of the appeal, which

date must be not more than 30 days after the last member of the panel is

selected.

(2) The time period for the date of the hearing may be extended

(

a) by the Minister on the request of the panel, or

(

b) by the panel on the request of the appellant or the

council whose decision is being appealed.

(3) The panel shall give written notice of the date of the hearing

to the appellant and to the council whose decision is being appealed.

(4) The written notice must contain

(

a) the date, time and place of the hearing, and

(

b) the mailing address of the panel.

Evidence - council's decision

21 The council whose decision is being appealed must file with the

panel and serve on the appellant

(

a) the evidence submitted to the council or that the

council obtained for the purposes of making its decision,

(

b) all other papers and documents in the possession of

the council relating to the decision, and

(

c) a certificate of the council certifying that all

the material referred to in clauses (

a) and (

b) is being filed.

Written submissions

22(1) If a written submission is made to the panel by the appellant

or the council whose decision is being appealed, the submission must be

filed with the panel and served on the other party at least 7 days before

the date of the hearing.

(2) A written submission must contain the following:

(

a) a

summary of the facts and evidence to be relied on

by the party;

(

b) a list of any witnesses to be called by the party;

(

c) the name, address and telephone number of any

lawyer acting on behalf of the party.

(3) The written submission must be signed by the party or the lawyer

of the party.

(4) A panel may allow a party to introduce evidence or call

witnesses at a hearing even though the party did not comply with this

section and, if the panel allows the introduction of evidence or the

calling of witnesses, the panel shall provide the other party with an

opportunity to review and to respond to the evidence, including the

evidence of the witnesses.

Procedural fairness

23(1) Every panel is subject to the principles of procedural

fairness.

(2) A panel is not bound by the rules of evidence applicable to

courts of civil or criminal jurisdiction.

(3) A panel is confined in making its decision to the submissions

and evidence submitted to it.

Panel orders

24 A panel may by order

(

a) confirm the refusal to issue a certificate, confirm

the suspension or cancellation of a certificate or confirm the levy of a

penalty,

(

b) direct that a certificate be issued,

(

c) cancel the revocation of a certificate or

substitute a period of suspension,

(

d) cancel or vary the suspension of a certificate, or

(

e) cancel the levy of a penalty or vary the time for

its payment.

Disposition of appeal fee

25(1) If the panel makes an order under

section 24(a), the amount of

the appeal fee must be paid to the Alberta Insurance Council.

(2) If the panel makes an order under

section 24(

b) or (

c) or

cancels the suspension of a certificate under

section 24(d), the amount of

the appeal fee must be refunded to the appellant.

(3) If the panel varies the suspension of a certificate under

section 24(

d) or makes an order under

section 24(e), the panel shall

determine whether the amount of the appeal fee is to be paid to the Alberta

Insurance Council or refunded to the appellant.

Requirements for order

26(1) The order of the panel must be in writing, be signed by the

chair and contain the following:

(

a) a

summary of the evidence;

(

b) a statement of the issues to be decided;

(

c) the reasons for the decision, including any

dissent.

(2) The panel shall mail copies of its order to the appellant, to

the council whose decision was appealed and to the Superintendent.

Appeal to Court

27(1) The person whose appeal was heard by the panel or the council

whose decision was appealed to the panel may appeal the order of the panel

to the Court by filing in the Court an originating notice within 30 days

after the panel has mailed the order to the person and the council.

(2) The appeal may only be based on a question of law or

jurisdiction.

(3) The originating notice must be served on the other party to the

appeal, the panel and the Superintendent.

(4) The panel's order remains in effect during an appeal to the

Court, unless the Court orders otherwise.

(5) Except for an appeal under this section, no order of a panel may

be questioned, reviewed, restrained or removed by prohibition, injunction,

certiorari or any other process or proceeding in a court.

Evidence

28(1) The panel whose order is being appealed must file with the

Court

(

a) the evidence submitted to the panel for the

purposes of making its order,

(

b) all other papers and documents in the possession of

the panel relating to the order, and

(

c) a certificate of the panel certifying that all the

material referred to in clauses (

a) and (

b) is being filed.

(2) The panel must serve the certificate on the parties to the

appeal, but the panel is not required to serve the material referred to in

subsection (1)(

a) and (

b) on the parties.

(3) The Court is confined in making its order to the evidence

submitted to the panel, unless the Court allows new evidence to be

admitted.

Court orders

29 The Court may

(

a) make any order that the panel may make or refer the

matter back to the panel, and

(

b) make any order that it considers appropriate

respecting the appeal fee referred to in

section 25.

General Provisions and Elections

Eligibility for candidates

30 An individual is not eligible to be a member of a council or the

Appeal Board if

(

a) the individual has ever been convicted of an

offence under the Insurance Act,

(

b) the individual's certificate has ever been

suspended or revoked,

(

c) a penalty under

section 517 or 533 of the Act has

ever been levied against the individual,

(

d) the individual is a dependent adult as defined in

the Dependent Adults Act or is the subject of a certificate of incapacity

under that Act,

(

e) the individual is a formal patient as defined in

the Mental Health Act,

(

f) the individual has been found to be a person of

unsound mind by a court elsewhere than in Alberta, or

(

g) the individual does not meet an eligibility

criterion that has been established by the Alberta Insurance Council and

approved by the Minister.

Nominations

31(1) An individual is nominated as a candidate in an election if

the individual is nominated by at least 5 people who are eligible to vote

in the election of the candidate.

(2) No individual may be nominated to be a candidate for membership

on more than one council at the same time or to be a candidate for

membership on a council and the Appeal Board at the same time.

(3) No individual may be nominated to be a candidate for membership

on a council if the individual is a member of another council or the Appeal

Board.

(4) No individual may be nominated to be a candidate for membership

on the Appeal Board if the individual is a member of a council.

Voter eligibility - council elections

32(1) An individual is eligible to vote in an election for members

to the Life Insurance Council if the individual, when the ballot is mailed

to the individual,

(

a) is engaged in the life insurance business, and

(

b) holds a certificate to act as a life insurance

agent or is designated to act as a life insurance agent in a certificate

under

section 508(3) of the Act.

(2) An individual is eligible to vote in an election for members to

the General Insurance Council if the individual, when the ballot is mailed

to the individual,

(

a) is not employed by a licensed insurer,

(

b) is engaged in the general insurance business,

(

c) is not restricted by contract or otherwise from

acting as agent for more than one insurer, and

(

d) holds a certificate to act as a general insurance

agent or is designated to act as a general insurance agent in a certificate

under

section 508(3) of the Act.

(3) An individual is eligible to vote in an election for members to

the Insurance Adjusters' Council if the individual, when the ballot is

mailed to the individual,

(

a) is not employed by a licensed insurer,

(

b) is engaged in the general insurance business, and

(

c) holds an adjusters' certificate.

Voter eligibility - Appeal Board elections

33(1) An individual is eligible to vote in an election for a member

of the Appeal Board if the individual meets the requirements under

section

14(2) to be a candidate for that election when the ballot is mailed to the

individual.

(2) Despite subsection (1), an individual who is not a resident of

Alberta is eligible if the individual meets all of the other requirements

under

section 14(2).

Election process

34(1) The Alberta Insurance Council is responsible for conducting an

election under this Regulation.

(2) An election and request for nominations must be advertised.

(3) Nominations must be received by the Council by a date specified

by the Council and that date must be at least 30 days after the

advertisement is published.

(4) Elections are to be by a mail vote and ballots must be returned

by voters by a date that the Council specifies.

(5) The Council must

(

a) declare the winners of the election within 5 days,

excluding Saturdays and holidays, after the date that all ballots are to be

returned by voters, and

(

b) notify the Superintendent of each declaration.

(6) An elected member's term commences when the Council declares the

member to be elected.

(7) The Council may make rules respecting elections under this

Regulation.

(8) The rules and any amendments to them do not come into force

unless they have been approved by the Minister.

Alternate elected members

35(1) In this section,

(a) "former member" means an elected member of a

council or the Appeal Board who ceases to be a member for a reason other

than the expiration of the member's term;

(b) "runner up" means a candidate in an election who

did not receive enough votes to be declared elected;

(c) "vacancy" means a vacancy in a council or the

Appeal Board created by a former member.

(2) When a vacancy occurs in a council or the Appeal Board, the

Alberta Insurance Council shall declare elected the runner up having the

highest number of votes in the most recent election held for the category

of the former member who created the vacancy if the runner up

(

a) wishes to fill the vacancy, and

(

b) still meets the eligibility requirements to be a

candidate.

(3) When a vacancy occurs in a council or the Appeal Board and the

runner up referred to in subsection (2) does not wish to fill the vacancy

or no longer meets the eligibility requirements to be a candidate or when a

vacancy occurs and there are no runners up in the most recent election held

for the category of the former member who created the vacancy, the Alberta

Insurance Council may

(

a) conduct an election to fill the vacancy,

(

b) declare, from any remaining runners up in the most

recent election held for the category of the former member, the runner up

with the highest number of votes who wishes to fill the vacancy and still

meets the eligibility requirements to be a candidate to be elected, or

(

c) if there is still a quorum in the council or Appeal

Board, choose not to fill the vacancy.

(4) If the Alberta Insurance Council declares a runner up to be

elected under this

section to fill a vacancy, the term of the runner up is

the remainder of the former member's term.

(5) If, as a result of conducting an election under this

section to

fill a vacancy, the Alberta Insurance Council declares an individual to be

elected and the declaration occurs with more than 187 days remaining in the

term of the former member, the term of the individual is the remainder of

the former member's term.

(6) If, as a result of conducting an election under this

section to

fill a vacancy, the Alberta Insurance Council declares an individual

elected and the declaration occurs with 187 days or less remaining in the

term of the former member, the term of the individual is the remainder of

the former member's term plus 3 years.

(7) The term of the runner up or individual referred to in

subsection (4), (5) or (6) is deemed to be one full term for the purposes

of sections 8 and 16.

(8) Despite anything in this section, the Alberta Insurance Council

is not required to fill a vacancy in a council or the Appeal Board if there

are 60 days or less remaining in the term of the former member when the

vacancy occurs.

Transitional

Membership of Councils continued

36(1) A person who is a member of the Alberta Insurance Council, the

Life Insurance Council, the General Insurance Council or the Insurance

Adjusters' Council on December 8, 1996 continues to be a member of the

Council.

(2) The Lieutenant Governor in Council may rescind the appointment

of a member referred to in subsection (1).

Jurisdiction of Appeal Board

37 No appeal to the Appeal Board may be dealt with under this

Regulation until

section 1(12) of the Financial Institutions Statutes

Amendment Act, 1996 comes into force.

6 This Regulation comes into force on December 9, 1996.

Alberta Regulation 289/96

Insurance Act

PROVINCIAL COMPANIES REGULATION

Filed: December 5, 1996

Made by the Lieutenant Governor in Council (O.C. 585/96) pursuant to

sections 22, 94.14 and 99 of the Insurance Act.

Table of Contents

Division 1

Protection and Maintenance of Assets

Definitions 1

Safeguarding of assets 2

Record of securities 3

Safeguarding of securities 4

Accounts 5

Registration of securities 6

Bonds and insurance 7

Division 2

Investments

Interpretation 8

Method of valuation 9

International agencies 10

Connected 11

Financial institutions 12

Meaning of investment 13

Substantial interest 14

Exceptions to prohibited investments 15

Leasing and related agreements 16

Limitation on shareholding 17

Real property interests 18, 19

Exception to

section 94.06 20

Prescribed subsidiaries 21

Limits on equity acquisitions 22

Division 3

Repeal, Commencement and Expiry

Repeal 23

Coming into force 24

Expiry 25

Division 1

Protection and Maintenance of Assets

Definitions

1 In this Division,

(a) "bond" means a contract of insurance by which one party agrees

to indemnify another party for loss arising out of the act of a third

party;

(b) "security" means a security within the meaning of that term in

the Securities Act.

Safeguarding of assets

2 The board of directors of a provincial company shall ensure that there

are written procedures in place to safeguard assets owned or held by the

company and that the procedures are followed by the company.

Record of securities

3 A provincial company shall maintain an up-to-date record that

identifies securities owned or held by the company.

Safeguarding of securities

4(1) Subject to subsections (2) and (3), a provincial company shall ensure

that securities owned or held by the company

(

a) are kept securely, and in a manner that prevents unauthorized

access to them, and

(

b) are in the custody of

(

i) the company, or

(ii) an entity that is authorized to act as a custodian

or as a depositary or clearing agency for securities by a law of the

jurisdiction in which the entity is carrying on business.

(2) Subsection (1) does not apply in respect of a security that is

(

a) under the control of the government of a jurisdiction in which

the company is carrying on business,

(

b) pledged as collateral for the indebtedness or potential

indebtedness of the company, or

(

c) in transit.

(3) A provincial company shall not place a security in the custody of an

entity referred to in subsection (l)(

b) unless the company has entered into

a written custodial agreement with that entity.

Accounts

5 A provincial company shall, on a daily basis, hold any net amount

received by the company as a result of any security transaction in an

account in Canada kept by the company

(

a) in the company,

(

b) with a bank or treasury branch,

(

c) with any of the following that are incorporated, constituted or

continued by or under

an Act of Canada or a province:

(

i) a loan or trust corporation,

(ii) a credit union,

(iii) an entity that is primarily engaged in dealing in

securities, including portfolio management and investment counselling,

(

d) with a trust corporation that is incorporated, constituted or

continued by or under

an Act of Canada or a province and that is authorized

to hold money in trust by a law of that jurisdiction,

(

e) with the government of the province in which the company is

carrying on business, or with an agency of the government, that is

authorized to act as a custodian, or

(

f) with The Canadian Depository for Securities Limited.

Registration of securities

6(1) Subject to subsections (2) and (3), a provincial company shall ensure

that every security it owns or holds is registered in the company's name in

the register of the entity that issued the security.

(2) Subsection (1) does not apply in respect of a security that

(

a) cannot be registered in the company's name for any reason that

is beyond the control of that company,

(

b) is under the control of the government of a jurisdiction in

which the company is carrying on business,

(

c) is held by the company as collateral or for safekeeping,

(

d) is registered in the name of a nominee of the company or of an

entity referred to in

section 4(1)(b)(ii),

(

e) is held under a book entry system or a certificateless or

immobilization system, or

(

f) is held temporarily by an agent of the company, a liquidator, a

trustee or the issuer of the security for purposes of reorganization,

amalgamation, liquidation or voting.

(3) Where a security owned or held by a provincial company is otherwise

protected against loss, fraud, theft and destruction, the company may hold

the security

(

a) in bearer form, or

(

b) in registered form in a name other than the company's name.

Bonds and insurance

7(1) A provincial company shall acquire and at all times maintain one or

more bonds issued by an entity that is licensed under this Act to indemnify

the company for any loss in respect of assets owned or held by that company

arising out of a dishonest or criminal act of an officer or employee of

that company.

(2) A provincial company shall, in respect of assets owned or held by the

company, acquire and at all times maintain one or more insurance policies

to indemnify that company for

(

a) loss arising out of damage to, or the destruction or mysterious

disappearance of, those assets, or

(

b) loss arising out of any other usual contingency.

(3) A bond or an insurance policy referred to in subsection (1) or

(2) must provide that the bond or insurance policy may not be cancelled or

terminated by the insurer or the insured until at least 30 days after the

receipt by the Superintendent of a written notice from the insurer or the

insured, as the case may be, of its intention to cancel or terminate the

bond or insurance policy.

(4) A bond or an insurance policy referred to in subsection (1) or (2) may

be in an amount that is established by the directors of the provincial

company, having regard to

(

a) the nature and value of the assets owned or held by the

company,

(

b) the arrangements and procedures applicable to the handling and

safeguarding of the assets owned or held by the company, and

(

c) any other factors that might affect the extent of any loss that

the company might sustain.

Division 2

Investments

Interpretation

8(1) In this Division,

(a) "generally accepted accounting principles" means the generally

accepted accounting principles of the Canadian Institute of Chartered

Accountants set out in the Handbook published by that Institute, as amended

from time to time;

(b) "real property corporation" means a real property corporation

described in

section 17(i);

(c) "real property holding vehicle" means a real property holding

vehicle described in

section 17(j);

(d) "securities dealer" means a body corporate that is registered

as a dealer under the Securities Act or in a similar capacity under

comparable legislation in another jurisdiction in Canada.

(2) In addition to the

definitions in

section 1 of the Act, the

definitions in

section 93.1 of the Act, other than

section 93.1(

a) and (e),

apply to this Division.

(3) For the purposes of this Division,

(

a) a person is affiliated with another person if one of them is

controlled by the other or both of them are controlled by the same person,

and

(

b) the affiliates of a person are deemed to be affiliated with all

other persons with which the person is affiliated.

(4) For the purposes of this Division,

(

a) a person controls a body corporate if securities of the body

corporate to which are attached more than 50% of the votes that may be cast

to elect directors of the body corporate are held or beneficially owned by

the person and the votes attached to those securities are sufficient, if

exercised, to elect a majority of the directors of the body corporate;

(

b) a person controls a trust, partnership, fund or other

unincorporated entity if more than 50% of the beneficial interest, however

designated, into which the entity is divided is held or beneficially owned

by that person and the person is able to direct the affairs of the entity;

(

c) notwithstanding clauses (

a) and (b), a person controls an

entity if the person has, in relation to the entity, any direct or indirect

influence that, if exercised, would result in control in fact of the

entity.

Method of valuation

9(1) For the purposes of the Act, the method of valuation of a provincial

company's investments is governed by the generally accepted accounting

principles.

(2) Without restricting the generality of subsection (1), the method of

valuation of a provincial company's securities is, for the purposes of the

annual statement referred to in

section 99 of the Act, governed by the

generally accepted accounting principles.

International agencies

10 For the purposes of sections 93.1(c)(i)(

B) and 93.1(c)(ii)(

B) of the

Act, the following are prescribed as international agencies:

(

a) Asian Development Bank;

(

b) Inter-American Bank;

(

c) International Bank for Reconstruction and Development;

(

d) International Finance Corporation;

(

e) European Bank for Reconstruction and Development.

Connected

11(1) For the purposes of

section 93.1(

d) of the Act, a person is

"connected" to another person if

(

a) one person is an affiliate of the other person, or

(

b) in respect of a loan to or other investment in those persons,

(

i) the loan or investment is for the same purpose,

(ii) the expected source of repayment on the loan or

investment is the same, or

(iii) the security for the loan or investment is the

same.

(2) Notwithstanding subsection (1), persons that are financially

independent of each other to a material extent are not connected for the

purposes of

section 93.1(

d) of the Act.

Financial institutions

12 For the purposes of

section 93.1(

g) of the Act, the following are

prescribed to be financial institutions:

(

a) a treasury branch;

(

b) a foreign financial institution, being a body corporate that

(

i) is engaged in the business of banking, the trust or

insurance business, the business of a credit union or the business of

dealing in securities, and

(ii) is incorporated, constituted or continued otherwise

than by or under

an Act of Canada or a province;

(

c) a securities dealer.

Meaning of investment

13(1) For the purposes of

section 93.1(h)(

i) of the Act, interests in

real property that, under the generally accepted accounting principles, are

required to be shown as interests in real property in financial statements

are prescribed as investments.

(2) In addition to the interests in real property described in subsection

(1), "investments" in

section 94.06 of the Act includes interests in real

property described in

section 18 of this Regulation.

Substantial interest

14(1) For the purposes of

section 93.1(

o) of the Act, this

section defines

"substantial interest".

(2) A person has a substantial interest in a body corporate where

(

a) the voting rights attached to the aggregate of any voting

shares of the body corporate beneficially owned by the person and by any

entities controlled by the person exceed 10% of the voting rights attached

to all of the outstanding voting shares of the body corporate, or

(

b) the aggregate of any shares of the body corporate beneficially

owned by the person and by any entities controlled by the person represents

ownership of greater than 25% of the shareholders' equity of the body

corporate.

(3) A person has a substantial interest in an unincorporated entity where

the aggregate of any ownership interests, however designated, into which

the entity is divided, beneficially owned by the person and by any entities

controlled by the person exceeds 25% of all of the ownership interests into

which the entity is divided.

Exceptions to prohibited investments

15 The following are prescribed investments for the purpose of

section

94.02(2)(

d) of the Act:

(

a) any deposit, debt obligation or acceptance, that has a residual

maturity of less than one year, with or of a bank or treasury branch, or

any of the following that are incorporated, constituted or continued by or

under

an Act of Canada or a province:

(

i) a loan or trust corporation;

(ii) a credit union;

(

b) any deposit with any of the following that control the

provincial company:

(

i) a bank;

(ii) a loan or trust corporation incorporated,

constituted or continued by or under

an Act of Canada or a province;

(

c) foreign exchange, interest rate, equity or commodity contracts,

that have a residual maturity of less than one year, with a bank or

treasury branch, or any of the following that are incorporated, constituted

or continued by or under

an Act of Canada or a province:

(

i) a loan or trust corporation;

(ii) a credit union;

(

d) foreign exchange, interest rate, equity or commodity contracts,

in the normal course of business, with a financial institution that

controls the provincial company or is affiliated with the provincial

company;

(

e) direct obligations of and that portion of obligations fully and

unconditionally guaranteed by

(

i) a municipality or Metis settlement,

(ii) a government that is a member of the Organization

of Economic Development and Cooperation,

(iii) an agency of a government referred to in subclause

(

i) or (ii), or

(iv) an international agency referred to in

section 10.

Leasing and related agreements

16(1) In this section,

(a) "agreement" means a security agreement within the meaning of

the Personal Property Security Act or a financial lease agreement, being an

agreement for a lease of personal property in which credit is extended by

the lessor to the lessee for the purpose of enabling the lessee to meet the

lessee's obligations under the lease;

(b) "property" means the personal property to which an agreement

relates.

(2) A provincial company shall not beneficially own shares in a financial

leasing corporation as permitted under

section 94.04(4) of the Act unless

(

a) the aggregate of

(

i) the book value of all of the property that is

subject to agreements held by the financial leasing corporation, and

(ii) all amounts owing as receivables in respect of such

agreements

is equal to at least 80% of the assets of the subsidiary, and

(

b) the financial leasing corporation meets the requirements of the

agreements.

(3) A provincial company may enter into or acquire agreements only if the

following requirements are met:

(

a) the company must not direct its customers or potential

customers to particular dealers in the property;

(

b) at no time may the aggregate of the estimated residual values

of all the property of the company, excluding motor vehicles, leased under

the financial lease agreements exceed 10% of the aggregate of the costs of

acquisition of that leased property to the company;

(

c) the estimated residual value of property leased under a

financial lease agreement must not exceed,

(

i) in the case of motor vehicles, 50% of their cost of

acquisition, and

(ii) in the case of any other property, 20% of its cost

of acquisition

to the company;

(

d) the agreement must be entered into or acquired for the purpose

of extending credit to the lessee or purchaser;

(

e) the property that is the subject of the agreement must be

selected by the lessee or buyer and

(

i) must be acquired by the company at the request of

the lessee or buyer, or

(ii) must have been acquired by the company through the

operation of an earlier agreement;

(

f) the agreement must yield a return that

(

i) will compensate the company for not less than its

full investment in the property,

(ii) is reasonable, taking into account

(

A) the term of the agreement and the other

(

B) the technological obsolescence of the

property, and

(

C) the rate of return sought by other

lessors in respect of similar agreements in respect of similar property and

and

(iii) is calculated by taking into account

(

A) rental charges paid by the lessee or

purchaser,

(

B) estimated tax benefits of the agreement

to the company, including tax credits and capital cost allowance claims,

and

(

C) the amount of,

(

I) where the lessee or

purchaser or a third party who is dealing at arm's length with the company

has, on or before the commencement of the agreement, contracted to purchase

the property or unconditionally guaranteed the resale value of the property

at the date of expiry of the agreement, the purchase price or the resale

value so guaranteed, or

(II) in any other case, but

subject to clause (c), the estimated residual value of the property;

(

g) the agreement must contain a provision

(

i) assigning and conveying to the lessee or purchaser

the benefit of all warranties, guarantees or other undertakings made by a

manufacturer or supplier relating to the property, or

(ii) setting out the responsibilities of the company

with regard to the warranties, guarantees or other undertakings referred to

in subclause (i);

(

h) the agreement must substantially transfer to the lessee or

purchaser the benefits and risks incidental to the operation of the

property and must not place responsibility on the part of the company to

install, promote, service, clean, maintain or repair the property;

(

i) where the lessee or purchaser defaults in the manner set out in

the agreement and the default is not waived or the agreement, including any

renewals or extensions of it, expires, the company must

(

i) liquidate its interest in the property, or

(ii) enter into a new agreement in respect of that

property within 2 years of that default or expiry or, where proceedings in

respect of that property have prevented the company from complying with

that requirement within that period, within 2 years of the completion of

those proceedings;

(

j) an agreement may be renewed on its expiry and may be extended

during its term.

Limitation on shareholding

17 The following are prescribed as bodies corporate for the purpose of

section 94.04(4)(

e) of the Act:

(

a) a factoring corporation, being a body corporate whose

activities are limited to acting as a factor in relation to accounts

receivable, including the lending of money and the raising of money for the

purpose of financing those activities;

(

b) a financial leasing corporation, being a body corporate that

enters into or acquires agreements as defined in

section 16(1)(

a) of this

Regulation;

(

c) an information management corporation, being a body corporate

that carries on the business of

(

i) the collection, manipulation and transmission of

information that is primarily financial or economic in nature, or

(ii) the sale of related software;

(

d) an investment counselling corporation, being a body corporate

that is registered as an investment counsel under the Securities Act or in

a similar capacity under comparable legislation in another jurisdiction in

Canada;

(

e) a mutual fund corporation, being a body corporate the

activities of which are limited to the investing of the funds of the body

corporate and includes a body corporate that is an issuer of securities

that entitle the holder to receive, on demand or within a specified period

after demand, an amount computed by reference to the value of a

proportionate interest in the whole or in a part of the net assets,

including a separate fund or trust account, of the issuer of those

securities;

(

f) a mutual fund distribution corporation, being a body corporate

that is registered as a mutual fund dealer under the Securities Act or in a

similar capacity under comparable legislation in another jurisdiction in

Canada;

(

g) a portfolio management corporation, being a body corporate that

is registered as a portfolio manager under the Securities Act or in a

similar capacity under comparable legislation in another jurisdiction in

Canada;

(

h) a real property brokerage corporation, being a body corporate

whose activities are limited to acting as an agent for vendors or

purchasers of real estate;

(

i) a real property corporation, being a body corporate that is

primarily engaged in holding, managing or otherwise dealing with

(

i) real property, or

(ii) shares of a body corporate or ownership interests

in an unincorporated entity that is primarily engaged in holding, managing

or otherwise dealing with real property, including another real property

corporation or a real property holding vehicle;

(

j) a real property holding vehicle, being a limited partnership or

a trust that is primarily engaged in holding, managing or otherwise dealing

with

(

i) real property, or

(ii) shares of a body corporate or ownership interests

in an unincorporated entity that is primarily engaged in holding, managing

or otherwise dealing with real property, including a real property

corporation or another real property holding vehicle;

(

k) a securities dealer;

(

l) a service corporation, being a body corporate whose activities

are limited to the provision of management services to

(

i) a provincial company,

(ii) a financial institution that is affiliated with a

provincial company, or

(iii) a body corporate in which a provincial company or

financial institution that is affiliated with a provincial company holds or

beneficially owns, separately or in the aggregate, more than 50% of the

issued and outstanding voting shares;

(

m) a specialized financing corporation, being a body corporate

that is primarily engaged in providing specialized business management in

making investments or providing financing or advisory services.

Real property

interests

18(1) For the purposes of sections 94.09 and 94.11 of the Act, an interest

in real property owned by

(

a) a financial institution, or

(

b) an entity controlled by the financial institution,

where the financial institution is controlled by the provincial company, is

not an interest in real property.

(2) For the purposes of sections 94.09 and 94.11 of the Act, the following

are interests in real property:

(

a) real property that, under the generally accepted accounting

principles, would be shown as real property owned by the provincial company

in its financial statements;

(

b) ownership interests, including shares, in a real property

corporation or a real property holding vehicle that is not a joint venture

and in which the provincial company or a subsidiary of the company that is

not a financial institution has a substantial interest;

(

c) debt obligations issued by a real property corporation or a

real property holding vehicle that is not a joint venture and in which the

provincial company or a subsidiary of the company that is not a financial

institution has a substantial interest, and beneficially owned by the

company or a subsidiary of the company that is not a financial institution;

(

d) loans to a real property corporation or a real property holding

vehicle that is not a joint venture and in which the provincial company or

a subsidiary of the company that is not a financial institution has a

substantial interest, where the loan is made by the company or a subsidiary

of the company that is not a financial institution;

(

e) loans to

(

i) a real property corporation or a real property

holding vehicle in which a financial institution controlled by the

provincial company has a substantial interest, where the loan is made by

the company or a subsidiary of the company that is not a financial

institution, and

(ii) a real property corporation or a real property

holding vehicle that is controlled by a real property corporation or a real

property holding vehicle described in subclause (

i) where the loan is made

by the provincial company or a subsidiary of the company that is not a

financial institution;

(

f) debt obligations issued by a real property corporation or a

real property holding vehicle described in clause (

e) and beneficially

owned by the provincial company or a subsidiary of the company that is not

a financial institution;

(

g) debt obligations issued by a real property corporation or a

real property holding vehicle that is not a joint venture and in which the

provincial company or a subsidiary of the company that is not a financial

institution has a substantial interest, and are beneficially owned by a

third party and guaranteed by the company or a subsidiary of the company

that is not a financial institution;

(

h) a loan made by a third party to a real property corporation or

a real property holding vehicle and guaranteed by the provincial company or

a subsidiary of the company that is not a financial institution.

Real property

interests

19(1) In this section,

(a) "designated entity" means an entity other than

(

i) a joint venture,

(ii) a financial institution, or

(iii) an entity that is controlled by a financial

institution;

(b) "related real property entity", in respect of a provincial

company, means

(

i) a real property corporation or a real property

holding vehicle, other than a designated entity controlled by the company,

in which the company or a designated entity controlled by the company

beneficially owns sufficient shares or ownership interests to cause the

company or designated entity to have a substantial interest in the real

property corporation or real property holding vehicle, or

(ii) a real property corporation or a real property

holding vehicle that is controlled by a real property corporation or a real

property holding vehicle described in subclause (i).

(2) For the purposes of sections 94.09 and 94.11 of the Act, where a

provincial company or a designated entity controlled by a company makes a

loan to, or beneficially owns or guarantees the debt obligation of, a third

party, the loan or debt obligation is an interest of the company in real

property if it is secured by

(

a) real property beneficially owned by a third party in

conjunction with

(

i) the company,

(ii) the designated entity,

(iii) a related real property entity of the company,

(iv) a financial institution controlled by the company,

(

v) an entity controlled by a financial institution

referred to in subclause (iv), or

(vi) a real property entity described in

section

18(2)(e),

(

b) shares or ownership interests beneficially owned by a third

party in

(

i) an entity that beneficially owns real property in

conjunction with the company, a related real property entity of the company

or a designated entity that is controlled by the company, or

(ii) a related real property entity of the company.

Exception to

section 94.06

Section 94.06(1) of the Act does not apply to interests in real

property described in

section 19 of this Regulation that are acquired by a

provincial company or any of its subsidiaries as a result of a realization

of a security interest.

Prescribed subsidiaries

21 For the purposes of sections 94.08, 94.09, 94.1 and 94.11 of the Act,

every subsidiary of a provincial company is a prescribed subsidiary, other

than

(

a) a subsidiary that is a financial institution, or

(

b) a subsidiary of a financial institution.

Limits on equity acquisitions

22 For the purposes of

section 94.1 of the Act, the prescribed

percentage of the total assets of the provincial company is 20%.

Division 3

Repeal, Commencement and Expiry

Repeal

23 The Reciprocal Deposit Regulation (Alta. Reg. 441/83) and the

Securities Valuation Regulations (Alta. Reg. 118/76) are repealed.

Coming into force

24 This Regulation comes into force on January 1, 1997.

Expiry

25 For the purpose of ensuring that this Regulation is reviewed for

ongoing relevancy and necessity, with the option that it may be re-passed

in its present or an amended form following a review, this Regulation

expires on December 31, 2001.

Alberta Regulation 290/96

Insurance Act

REPLACEMENT OF LIFE INSURANCE CONTRACTS

AMENDMENT REGULATION

Filed: December 5, 1996

Made by the Lieutenant Governor in Council (O.C. 586/96) pursuant to

section 22 of the Insurance Act.

1 The Replacement of Life Insurance Contracts Regulation (Alta. Reg.

63/90) is amended by this Regulation.

Section 5(1)(

a) is amended by striking out "the form set out in the

Schedule" and substituting "a form approved by the Minister".

3 The

Schedule is repealed.

4 This Regulation comes into force on January 1, 1997.

------------------------------

Alberta Regulation 291/96

Public Sector Pension Plans Act

LOCAL AUTHORITIES PENSION PLAN AMENDMENT REGULATION

Filed: December 5, 1996

Made by the Lieutenant Governor in Council (O.C. 587/96) pursuant to

Schedule 1,

section 4 of the Public Sector Pension Plans Act.

1 The Local Authorities Pension Plan (Alta. Reg. 366/93) is amended by

this Regulation.

Section 2(1)(w.2)(ii) is amended by adding "or the entity that operates

a charter school within the meaning of the School Act" after "Alberta".

Section 2(1)(rr) is amended by striking out "other than death" and

substituting the following:

other than

(

i) death, or

(ii) where the person becomes an employee again without

experiencing any break whatsoever in his pensionable service resulting from

the cessation

------------------------------

Alberta Regulation 292/96

Public Sector Pension Plans Act

PUBLIC SERVICE PENSION PLAN AMENDMENT REGULATION

Filed: December 5, 1996

Made by the Lieutenant Governor in Council (O.C. 588/96) pursuant to

Schedule 2,

section 4 of the Public Sector Pension Plans Act.

1 The Public Service Pension Plan (Alta. Reg. 368/93) is amended by this

Regulation.

Section 2(1)(

p) is amended by adding "or a person to whom the

Management Employees Pension Plan applied by virtue of

section 118 of that

Plan and who ceased to be a participant of the Management Employees Pension

Plan at the end of 1996 on the expiry of that provision" after "Legislative

Assembly".

3 This Regulation comes into force on January 1, 1997.

------------------------------

Alberta Regulation 293/96

Public Sector Pension Plans Act

PUBLIC SECTOR PENSION PLANS (LEGISLATIVE

PROVISIONS) AMENDMENT REGULATION

Filed: December 5, 1996

Made by the Lieutenant Governor in Council (O.C. 589/96) pursuant to

Schedule 3, sections 12, 14 and 15 of the Public Sector Pension Plans Act.

1 The Public Sector Pension Plans (Legislative Provisions) Regulation

(Alta. Reg. 365/93) is amended by this Regulation.

Section 8.1 is amended by adding the following subsection:

(6) To the extent that the payment of damages or legal and other

expenses incurred in defending any claim against the Universities Academic

Pension Board, or its members, is covered by the indemnity given by

section

20 or 34 of

Schedule 3 to this Regulation, an indemnification by this

section only applies

(

a) if all remedies reasonably available for the

enforcement of that first-mentioned indemnity have been exhausted, and

(

b) to the extent of any shortfall not recoverable

under those reasonably available remedies.

Schedule 3 is amended

(

a) by adding the following before

section 1:

PART 1

GENERAL PROVISIONS

(

b) by adding the following after

section 8:

PART 2

EMPLOYER WITHDRAWALS

Application

9 This Part establishes, in addition to

section 14 of the Act

Schedule, the general bases for the apportionment of the Plan's liabilities

and assets on the withdrawal of employers from the Plan and for the

transfer of those apportioned liabilities and assets from the Plan under

that section, and related matters.

General

definitions

10 In this Part,

(a) "actuarial valuation methods and assumptions" means

the actuarial cost methods and assumptions used by the Plan's actuary in

the actuarial valuation report for funding purposes, but with assets being

valued at market value, that is coincident with or that most recently

precedes the time of withdrawal;

(b) "additional contributions" means additional

contributions paid or payable to the other plan under the order made under

section 14(8)(

b) of the Act Schedule;

(c) "market value" means the amount that the Provincial

Treasurer, using generally accepted accounting principles, including the

accounting recommendations of the Canadian Institute of Chartered

Accountants set out in the Handbook published by that Institute, as amended

from time to time, determines to represent the value of the assets or

investments that would be agreed on in an arm's length transaction between

knowledgeable and willing parties who are under no compulsion to act;

(d) "other plan" means one of the other pension plans

within the meaning of

section 14(1)(

a) of the Act Schedule;

(e) "post-1991 assets" means the Plan's assets in

respect of the post-1991 liability;

(f) "post-1991 liability" means the Plan's liabilities

in respect of all service recognized as pensionable service and all

benefits in place, less the pre-1992 liability;

(g) "pre-1992 assets" means the Plan's assets in

respect of the pre-1992 liability;

(h) "pre-1992 liability" means the Plan's liabilities

in respect of all service that was recognized as pensionable service, and

all the benefits that were in place, as at December 31, 1991;

(i) "time of withdrawal" means the effective time of a

withdrawal specified in the notice referred to in

section 14(1) or, if

applicable, agreed under

section 13(1);

(j) "withdrawal" has the meaning assigned to it in

section 14(1)(

b) of the Act Schedule;

(k) "withdrawing employer" means an employer who has

given notice under

section 14(6)(

b) of the Act Schedule;

(l) "withdrawing participant" means a person who is a

participant and an employee of the withdrawing employer immediately before

the time of withdrawal and who does not terminate or become a participant

of the related plan with effect as at, or die at, the time of withdrawal;

(m) "withdrawing person" means a person falling within

section 12(1)(a), (b), (

c) or (d).

Required characteristics of other plan

11(1) The other plan must, in addition to meeting the requirements

section 14(1)(

a) of the Act Schedule,

(

a) provide for the benefits and entitlements provided

for by

Part 5 of the plan rules to withdrawing participants or for benefits

and entitlements that are not less favourable for those persons in respect

(

i) service performed before the time of

withdrawal and

(

A) that was acquired as

pensionable service before then, or

(

B) which, immediately before

the time of withdrawal, was in the course of being purchased over time

under the plan rules, on payment for the service,

and

(ii) pensionable salaries earned during

participation in the Plan and in the other plan,

(

b) provide in effect that all service of or with

respect to withdrawing persons that counts as combined pensionable service

for the purposes of determining eligibility for benefits under the Plan is

to count for the same purposes in effect under the other plan,

(

c) in the case of withdrawing persons who made

arrangements to acquire service as pensionable service before the time of

withdrawal and have not fully paid for the service being acquired, the

arrangements made by them with the Plan are to continue to have full effect

with the other plan as if they had been originally entered into with the

(

d) put into effect

section 14(7)(

c) and (

d) of the Act

Schedule.

(2) The other plan must also provide in effect that

(

a) the other plan's trustee is to hold all the assets

transferred from the Plan to the other plan, all additional contributions

paid and all investment income and capital appreciation derived from those

assets and contributions in trust, and to use them, for the sole purposes

of providing benefits and entitlements under the other plan and to meet the

other plan's administration costs, and

(

b) those assets, additional contributions, investment

income and capital appreciation belong beneficially to the persons entitled

to benefits under the other plan.

(3) To avoid any doubt, benefits and entitlements are not less

favourable, for the purposes of subsection (1)(a), by reason only of their

being provided by means of defined contribution provisions within the

meaning of the Employment Pension Plans Act if

(

a) the arrangements under those defined contribution

provisions are agreed to in writing by each withdrawing participant who

elects to participate in the other plan under those defined contribution

arrangements, and

(

b) the benefits and entitlements provided to each such

withdrawing participant are of equivalent value to those benefits and

entitlements to which the participant would be entitled if he did not agree

to those arrangements.

Employees, etc. withdrawn

12(1) Subject to this section, on a withdrawal, the withdrawing

employer withdraws from the Plan only in relation to

(

a) persons who were employees of that employer

immediately before the time of withdrawal,

(

b) persons who, immediately before the time of

withdrawal, were former participants with remaining entitlements to

benefits under the Plan and who had been employees of the withdrawing

employer immediately before their most recent termination,

(

c) persons who, immediately before the time of

withdrawal, were entitled to benefits which had arisen on the death of, or

from an assignment under a matrimonial property order relating to, a person

who had been an employee of the withdrawing employer immediately before

death or his most recent termination, as the case may be, and

(

d) persons currently, prospectively or potentially

entitled to benefits under the Plan accrued to the time of withdrawal

through persons referred to in clause (a), (

b) or (c).

(2) A person who

(

a) falls within subsection (1)(a), and

(

b) was, immediately before the time of withdrawal,

also accruing pensionable service with another employer who is not a

withdrawing employer,

remains a participant of the Plan as well as becoming a member of the

other plan.

(3) A former employee

(

a) who falls within subsection (1)(

b) or through whom

a person falls within subsection (1)(

c) or (d), and

(

b) who was, immediately before the most recent

termination or death, as the case may be, referred to in that clause, also

accruing pensionable service with another employer who is not a withdrawing

employer,

is to be treated as having accrued pensionable service with the

withdrawing employer and the employer remaining in the Plan to the

respective extents decided by the Board.

(4) A person referred to in subsection (2)

(

a) withdraws from the Plan in relation to service

performed or treated by the Board as performed before the time of

withdrawal with the withdrawing employer, and

(

b) remains in the Plan in relation to service

performed or treated by the Board as performed before the time of

withdrawal with the employer remaining in the Plan.

(5) Where there are 2 or more withdrawing employers involved

withdrawing to 2 or more other plans, a person who was an employee of 2 or

more of those employers immediately before the time of withdrawal becomes a

member of, and that person or a former employee, as regards any such

employer, referred to in subsection (3) is to be treated as having accrued

pensionable service that counts for the purposes of, both or all of the

other plans to the respective extents decided by the Board.

(6) The Board shall make any decisions required by subsection (3),

(4) or (5) on the basis which, in its opinion, most closely reflects the

overall intent of this Part.

Timing

13(1) The time of withdrawal must occur as at the end of a calendar

year unless the Board and the withdrawing employer agree in writing that it

is to occur as at the end of another day specified in the agreement.

(2) Subject to

section 12, withdrawing participants cease to be

participants immediately before the time of withdrawal and become members

of the other plan immediately after that time, and other withdrawing

persons cease to have their current, prospective or potential entitlements

under this Plan and assume their respective entitlements under the other

plan at those respective times.

Information and disclosure

14(1) A withdrawing employer must, in the notice required by

section

14(6)(

b) of the Act Schedule, specify when the withdrawal is intended to

become effective.

(2) At least 9 months before the time of withdrawal, the Board must

report in writing to all employers the Board's estimation, as at the time

of withdrawal, of the apportionments between the withdrawing employer and

the other employers of

(

a) the pre-1992 and post-1991 assets that will be

determined on the basis set out in

section 17, and

(

b) the pre-1992 and post-1991 liabilities.

(3) At least 3 months before the time of withdrawal, the withdrawing

employer must submit to the Board and the Minister, in writing,

(

a) confirmation by the employer of the decision to

withdraw,

(

b) certification by the other plan's actuary that the

other plan meets the requirements of

section 11,

(

c) a copy of the indemnity for the Crown given by that

employer under

section 14(6)(

d) of the Act Schedule, and

(

d) copies of the written consent of the academic staff

association, if any, required by

section 14(6)(

a) of the Act Schedule.

(4) At the earliest practicable time, the Board must

(

a) report in writing to the withdrawing employer and

to the other employers the final apportionment of the pre-1992 and

post-1991 assets under

section 17 and of the pre-1992 and post-1991

liabilities, and

(

b) provide to them copies of the actuarial valuation

referred to in

section 16(1),

and, as soon as practicable thereafter, the withdrawing

employer must provide to the Minister and the Board a certificate agreeing

to that apportionment.

(5) If the withdrawing employer so requests, the Board must

forthwith provide to that employer the data and working papers used for

calculating the apportionments of assets and liabilities referred to in

subsections (2) and (4).

(6) For the purposes of subsections (2) and (4), the pre-1992 and

the post-1991 liabilities following the provisional and final

apportionments are to be taken as the amounts "B" and "D", as defined in

section 16(1)(

b) and (d), respectively.

(7) At the earliest practicable time, but before the final transfer

of assets,

(

a) the withdrawing employer must submit to the Board

and the Minister a copy of the indemnity for the Crown given by the legal

owner of the pension fund of the other plan, and the acceptances given by

the employer and that fund owner, under

section 14(6)(

d) and (

e) respectively of the Act Schedule, and

(

b) the Board must send the Minister a copy of its

acceptance given under that

section 14(6)(e).

Withdrawal costs

15(1) The Provincial Treasurer may charge the plan fund for all

reasonable costs, excluding any plan costs, incurred by the Minister, the

Board and the Provincial Treasurer before the completion or withdrawal of

the withdrawal, with respect to the withdrawal or proposed withdrawal.

(2) The withdrawing employer is liable to the plan fund for any

costs charged to the plan fund under subsection (1).

(3) The costs for which the withdrawing employer is liable under

subsection (2) are to be deducted from the assets apportioned to the

withdrawing employer under

section 17 in accordance with

section 17(4) and

(5).

(4) If the withdrawal is withdrawn, instead of the employer having

sole liability under subsection (2), the withdrawing employer and the

corresponding academic staff association, if any, become liable, on a joint

and several basis, to reimburse the plan fund for any costs incurred with

respect to the examination of the proposed withdrawal for which the

employer is made liable by subsection (2), in which case the withdrawing

employer and that association must pay those costs on and within 30 days of

being charged for them or for a portion of them by the Provincial

Treasurer.

(5) Transactions under this

section involving the plan fund must be

applied to its post-1991 assets.

Definitions for calculation purposes

16(1) The following letters designate the amounts used in the

calculations under

section 17 as determined in a written actuarial

valuation that is prepared for the purposes of the withdrawal as at the

time of withdrawal on the basis of the actuarial valuation methods and

assumptions and that is approved by the Board:

(a) "A" means the pre-1992 liability;

(b) "B" means the pre-1992 liability, so far as it

relates to the withdrawing persons;

(c) "C" means the post-1991 liability;

(d) "D" means the post-1991 liability, so far as it

relates to the withdrawing persons;

(e) "E" means the market value of the pre-1992 assets;

(f) "F" means the market value of the post-1991 assets;

(g) "G" means the decimalized fraction (rounded to 5

decimal places) representing the ratio, determined immediately before the

time of withdrawal, of the aggregate annualized salaries of the

withdrawing participants to those of all withdrawing participants and other

participants who do not terminate or become participants of and under the

related plan with effect as at, or die at, the time of withdrawal.

(2) For the purposes of subsection (1),

(

a) a pre-1992 liability includes the amount, if any,

by which liabilities in respect of service for which a written application

to purchase it was made before 1992 and that is in the course of being

purchased over time and that, at the time of withdrawal, has not yet been

paid for exceed the present value of the outstanding contributions in

respect of that service, and

(

b) a post-1991 liability includes the amount, if any,

by which liabilities in respect of other service that is in the course of

being purchased over time and that, at the time of withdrawal, has not yet

been paid for exceed the present value of the outstanding contributions in

respect of that service.

(3) Section 9(8) of the Act

Schedule applies to the extent that the

actuarial valuation referred to in subsection (1) applies with respect to

the Plan's unfunded liability referred to in

section 9(1) of the Act

Schedule.

Formulas for apportionment of assets

17(1) The assets to be apportioned to the withdrawing employer as at

the time of withdrawal are equal to the sum of the results of the

apportionments under this section.

(2) If A exceeds E, the pre-1992 assets to be apportioned to the

withdrawing employer as at the time of withdrawal are

or, if A is less than or equal to E, they are

(3) If C exceeds F, the post-1991 assets to be apportioned to the

withdrawing employer as at the time of withdrawal are

or, if C is less than or equal to F, they are

(4) The post-1991 assets to be apportioned to the withdrawing

employer under subsection (3) are to be reduced by an amount equal to the

costs referred to in

section 15(2).

(5) If the costs referred to in subsection (4), when finalized,

exceed the post-1991 assets to be apportioned to the withdrawing employer

under subsection (3), no post-1991 assets are to be apportioned to the

withdrawing employer, and the withdrawing employer must pay an amount equal

to the excess to the plan fund within 30 days of being charged for them by

the Provincial Treasurer.

Apportionment and transfer

18(1) Before the time of withdrawal, the Board shall estimate the

assets to be apportioned to the withdrawing employer as at the time of

withdrawal on the basis set out in

section 17.

(2) The Lieutenant Governor in Council shall order an initial

transfer to the pension fund of the other plan, as at the time of

withdrawal, of an amount equal to 90% of the estimated apportionment.

(3) At the earliest practicable time after the finalization of data,

the Board shall determine the final apportionment of assets to the

withdrawing employer, as at the time of withdrawal, on the basis set out in

section 17 and, once the withdrawing employer has provided the certificate

under

section 14(4), the order under subsection (4) or the return of excess

under subsection (5) shall be made forthwith.

(4) If the amount determined under subsection (3) exceeds the amount

transferred under subsection (2), the Lieutenant Governor in Council shall

order the transfer of the remainder of the apportionment, with interest

from the time of withdrawal to the date of payment, from the plan fund to

the pension fund of the other plan.

(5) If the amount determined under subsection (3) is less than the

amount transferred under subsection (2), the legal owner of the other

plan's pension fund shall return the excess, with interest from the time of

withdrawal to the date of payment, from the pension fund of the other plan

to the plan fund in the form of cash or, with the consent of the Provincial

Treasurer, specific assets equal in market value to the amount required, or

a combination of both.

(6) Interest under subsection (4) or (5) is payable on the basis of

the market rate of return earned by the plan fund, net of those investment

costs that are specified by the Provincial Treasurer for that purpose, from

the time of withdrawal until the latest date up to which that rate is

available, and on the basis of the rate of return earned by the

Consolidated Cash Investment Trust Fund for the remainder of the period to

the date of payment.

(7) The transfers from the plan fund under subsections (2) and

(4) are to consist of such specific assets and to be in such of the following

forms as is decided by the Provincial Treasurer after consulting with the

Board, namely

(

a) in cash,

(

b) on the basis of a prorated interest in the

investments of the plan fund valued at market value, or

(

c) as a combination of the forms set out in clauses

(

a) and (b),

and where the transfer would require a significant liquidation of the

assets in a pooled fund, the transfer may include securities held by the

pooled fund.

(8) Where any assets transferred under subsection (2) or (4) are

interests in a pooled fund, the other plan must redeem those interests in

accordance with the guidelines established for the pooled fund within one

year of the date of the transaction under subsection (4) or (5) or within

such longer period as is agreed in writing between the withdrawing employer

and the Provincial Treasurer.

(9) The guidelines referred to in subsection (8) are exempt from the

Regulations Act.

(10) The assets and liabilities attributable to the withdrawing

employer become final when, and may not change after, the transaction

described in subsection (4) or (5) is completed.

Application to withdrawing persons accruing multiple service

19 Where

(a) subsections (2) and (4) or subsection (3) or (5) of

section 12 apply, or

(

b) any other similar circumstances that give rise to

doubt as to a person's pension coverage or potential coverage under this

Part arise,

any apportionment or other separation or division that needs to be

done under this Part as between the Plan and the other plan or plans or

between the other plans must be done on a basis that is approved by the

Board and that most closely reflects the overall intent of this Part.

Indemnifica-tion

20(1) The withdrawing employer and the legal owner of the pension

fund of the other plan indemnify

(

a) the Board and the members of the Board for any

damages or legal and other expenses incurred in defending any claim against

the Board, or any Board member that arises directly or indirectly from the

withdrawal, and

(

b) the Plan fund and the Plan's administrator and

trustee for any claim made after completion of the withdrawal.

(2) Subject to subsection (1), an indemnification by subsection

(1)(

a) covers anything done by the Board or Board member, as the case may

be, in good faith in the exercise of powers, duties and functions under

section 14 of the Act

Schedule or this Part.

Agreement to alter time limits

21 Notwithstanding anything in this Part, where a provision of this

Part requires anything to be done within a certain period or by a specified

time prior to the time of withdrawal, the Minister, the Board and the

withdrawing employer may enter into a written agreement altering the time

before which that thing must be done.

Transitional -predecessor plan benefits

22 For the purposes of

section 16(1), pre-1992 liabilities must be

reduced to reflect benefit reductions described in

section 113.1(1) and (2)

of the plan rules.

PART 3

TERMINATION OF THE WHOLE PLAN

Application

23 This Part establishes, in addition to

section 15 of the Act

Schedule, the general bases for the apportionment of the Plan's liabilities

and assets on the termination of the whole Plan and for the transfer of

those apportioned liabilities and assets from the Plan under that section,

and related matters.

General

definitions

24 In this Part,

(a) "actuarial valuation methods and assumptions" means

the actuarial cost methods and assumptions used by the Plan's actuary in

the actuarial valuation report for funding purposes, but with assets being

valued at market value, that is coincident with or that most recently

precedes the time of wind-up;

(b) "additional contributions" means additional

contributions paid or payable to the other plan under the order made under

section 15(7)(

c) of the Act Schedule;

(c) "market value" means the amount that the Provincial

Treasurer, using generally accepted accounting principles, including the

accounting recommendations of the Canadian Institute of Chartered

Accountants set out in the Handbook published by that Institute, as amended

from time to time, determines to represent the value of the assets or

investments that would be agreed on in an arm's length transaction between

knowledgeable and willing parties who are under no compulsion to act;

(d) "employers" means the employers, within the meaning

of the plan rules, participating in the Plan as such immediately before the

time of wind-up;

(e) "other pension plans" has the meaning assigned to

it in

section 15(1)(

a) of the Act Schedule, and "other plan" means any one

of the other pension plans;

(f) "other plan's member" means, with reference to the

other plan or plans referred to in

section 26, a person falling within

section 26(1)(a), (b), (

c) or (d);

(g) "post-1991 assets" means the Plan's assets in

respect of the post-1991 liability;

(h) "post-1991 liability" means the Plan's liabilities

in respect of all service recognized as pensionable service and all

benefits in place, less the pre-1992 liability;

(i) "pre-1992 assets" means the Plan's assets in

respect of the pre-1992 liability;

(j) "pre-1992 liability" means the Plan's liabilities

in respect of all service that was recognized as pensionable service, and

all the benefits that were in place, as at December 31, 1991;

(k) "time of wind-up" means the effective time of the

wind-up, being the effective time of the declaration under

section 15(7)(

d) of the Act Schedule;

(l) "transferring participant" means a person who was a

participant and an employee of an employer immediately before the time of

wind-up and who did not terminate or become a participant of and under the

related plan with effect as at, or die at, the time of wind-up;

(m) "wind-up" means termination as defined in

section

15(1)(

b) of the Act Schedule.

Required characteristics of other pension plans

25(1) Each of the other pension plans must, in addition to meeting

the requirements of

section 15(1)(

a) of the Act Schedule,

(

a) provide for the benefits and entitlements provided

for by

Part 5 of the plan rules to transferring participants who are to be

members of the other plan or for benefits and entitlements that are not

less favourable for those persons in respect of

(

i) service performed before the time of

wind-up and

(

A) that was acquired as

pensionable service before then, or

(

B) which, immediately before

the time of wind-up, was in the course of being purchased over time under

the plan rules, on payment for the service,

and

(ii) pensionable salaries earned during

participation in the Plan and in that other plan,

(

b) provide in effect that all service of or with

respect to any other plan's member that counts as combined pensionable

service for the purposes of determining eligibility for benefits under the

Plan is to count for the same purposes in effect under the other plan in

which that person will participate or have coverage or potential coverage,

(

c) in the case of any other plan's member who made

arrangements to acquire service as pensionable service before the time of

wind-up and has not fully paid for the service being acquired, the

arrangements so made with the Plan are to continue to have full effect with

the other plan in which that person will participate or have coverage or

potential coverage as if they had been originally entered into with that

(

d) put into effect

section 15(6), as it incorporates

section 14(7)(

c) and (d), of the Act Schedule.

(2) The other plan must also provide in effect that

(

a) that other plan's trustee is to hold all the assets

transferred from the Plan to the other plan, all additional contributions

paid and all investment income and capital appreciation derived from those

assets and contributions in trust, and to use them, for the sole purposes

of providing benefits and entitlements under the other plan and to meet the

other plan's administration costs, and

(

b) those assets, additional contributions, investment

income and capital appreciation belong beneficially to the persons entitled

to benefits under the other plan.

(3) To avoid any doubt, benefits and entitlements are not less

favourable, for the purposes of subsection (1)(a), by reason only of their

being provided by means of defined contribution provisions within the

meaning of the Employment Pension Plans Act if

(

a) the arrangements under those defined contribution

provisions are agreed to in writing by each withdrawing participant who

elects to participate in the other plan under those defined contribution

arrangements, and

(

b) the benefits and entitlements provided to each such

withdrawing participant are of equivalent value to those benefits and

entitlements to which the participant would be entitled if he did not agree

to those arrangements.

Effect on employees, etc.

26(1) Subject to this section, on a wind-up an employer commences

participation as such in, and the following persons commence participation

in, or coverage or potential coverage by, the other plan into which that

employer is transferring:

(

a) persons who were employees of that employer

immediately before the time of wind-up;

(

b) persons who, immediately before the time of

wind-up, were former participants with remaining entitlements to benefits

under the Plan and who had been employees of that employer immediately

before their most recent termination;

(

c) persons who, immediately before the time of

wind-up, were entitled to benefits which had arisen on the death of, or

from an assignment under a matrimonial property order relating to, a person

who had been an employee of that employer immediately before death or his

most recent termination, as the case may be;

(

d) persons currently, prospectively or potentially

entitled to benefits under the Plan accrued to the time of wind-up through

persons referred to in clause (a), (

b) or (c).

(2) Where, in respect of any other plan's member, there are 2 or

more employers involved transferring to 2 or more other plans,

(

a) a person referred to in subsection (1)(

a) becomes a

member of, and

(

b) that person or a former employee who falls within

subsection (1)(

b) or through whom a person falls within subsection (1)(

c) or (

d) is to be treated as having accrued pensionable service that counts

for the purposes of,

both or all of the other plans to the respective extents decided by

the Board.

(3) The Board shall make any decision required by subsection (2) on

the basis which, in its opinion, most closely reflects the overall intent

of this Part.

Timing

27 Transferring participants become members of the other plan, and

the other plan's members who are not transferring participants assume their

respective entitlements under the other plan, immediately after the time of

wind-up.

Information and disclosure

28(1) The Minister must, in the notice required by

section 15(5)(

a) of the Act Schedule, specify when the wind-up is intended to become

effective.

(2) At least 9 months before the projected time of wind-up, the

Board must report in writing to the employers the Board's estimation, as at

the projected time of wind-up, of the apportionments between the employers

(

a) the pre-1992 and post-1991 assets that will be

determined on the basis set out in

section 31, and

(

b) the pre-1992 and post-1991 liabilities.

(3) At least 3 months before the projected time of wind-up, each

employer must submit to the Board and the Minister, in writing,

(

a) certification by the other plan's actuary that the

other plan meets the requirements of

section 25, and

(

b) a copy of the indemnity for the Crown given by that

employer under

section 15(5)(c), as it incorporates

section 14(6)(d), of

the Act Schedule.

(4) At the earliest practicable time, the Board must

(

a) report in writing to the employers the final

apportionment of the pre-1992 and post-1991 assets under

section 31 and of

the pre-1992 and post-1991 liabilities, and

(

b) provide to them copies of the actuarial valuation

referred to in

section 30(1),

and, as soon as practicable thereafter, the employers must provide to

the Minister and the Board certificates agreeing to that apportionment.

(5) If an employer so requests, the Board must forthwith provide to

that employer the data and working papers used for calculating the

apportionments of assets and liabilities referred to in subsections (2) and

(4).

(6) For the purposes of subsections (2) and (4), the pre-1992 and

the post-1991 liabilities following the provisional and final

apportionments are to be taken as the amounts "B" and "D", as defined in

section 30(1)(

b) and (d), respectively.

(7) At the earliest practicable time, but before the final transfer

of assets,

(

a) each employer must submit to the Board and the

Minister a copy of the indemnity for the Crown given by the legal owner of

the pension fund of the other plan, and the acceptances given by the

employer and that fund owner, under

section 15(5)(c), as it incorporates

section 14(6)(

d) and (

e) respectively, of the Act Schedule, and

(

b) the Board must send the Minister a copy of its

acceptance given on the wind-up with reference to that

section 14(6)(e).

Wind-up costs

29(1) The Provincial Treasurer may charge the plan fund for all

reasonable costs, excluding any plan costs, incurred by the Minister, the

Board and the Provincial Treasurer with respect to the wind-up or proposed

wind-up.

(2) Transactions under this

section involving the plan fund must be

applied to its post-1991 assets.

Definitions for calculation purposes

30(1) The following letters designate the amounts used in the

calculations under

section 31 as determined in a written actuarial

valuation that is prepared for the purposes of the wind-up as at the time

of wind-up on the basis of the actuarial valuation methods and assumptions

and that is approved by the Board:

(a) "A" means the pre-1992 liability;

(b) "B" means the pre-1992 liability, so far as it

relates to the other plan's members relative to each employer;

(c) "C" means the post-1991 liability;

(d) "D" means the post-1991 liability, so far as it

relates to the other plan's members relative to each employer;

(e) "E" means the market value of the pre-1992 assets;

(f) "F" means the market value of the post-1991 assets,

reduced by costs to be charged under

section 29;

(g) "G" means the decimalized fraction (rounded to 5

decimal places) representing the ratio, determined immediately before the

time of wind-up, of the aggregate annualized salaries of the transferring

participants relative to each employer to those of all transferring

participants relative to all employers.

(2) For the purposes of subsection (1),

(

a) a pre-1992 liability includes the amount, if any,

by which liabilities in respect of service for which a written application

to purchase it was made before 1992, that is in the course of being

purchased over time and that, at the time of wind-up, has not yet been paid

for exceed the present value of the outstanding contributions in respect of

that service, and

(

b) a post-1991 liability includes the amount, if any,

by which liabilities in respect of other service that is in the course of

being purchased over time and that, at the time of wind-up, has not yet

been paid for exceed the present value of the outstanding contributions in

respect of that service.

(3) Section 9(8) of the Act

Schedule applies to the extent that the

actuarial valuation referred to in subsection (1) applies with respect to

the Plan's unfunded liability referred to in

section 9(1) of the Act

Schedule.

Formulas for apportionment of assets

31(1) The assets to be apportioned to each employer as at the time

of wind-up are equal to the sum of the results of the apportionments under

this section.

(2) If A exceeds E, the pre-1992 assets to be apportioned to each

employer as at the time of wind-up are

or, if A is less than or equal to E, they are

(3) If C exceeds F, the post-1991 assets to be apportioned to each

employer as at the time of wind-up are

or, if C is less than or equal to F, they are

Apportionment and transfer

32(1) Before the time of wind-up, the Board shall estimate the

assets to be apportioned to each employer and to each of the other pension

plans, if more than one, as at the time of wind-up, on the basis set out in

section 31.

(2) The Lieutenant Governor in Council shall, pursuant to

section

15(7) of the Act Schedule, order the initial transfer to the pension fund

of each of the other pension plans, as at the time of wind-up, of an amount

equal to at least 90% of the estimated apportionment applicable to that

other plan.

(3) At the earliest practicable time after the finalization of data,

the Lieutenant Governor in Council shall determine the final apportionment

of assets to each employer, as at the time of wind-up, on the basis set out

section 31 and, once all the employers have provided the certificates

under

section 28(4), the order under subsection (4) or the return of excess

under subsection (5) shall be made forthwith.

(4) If the sum of the amounts determined under subsection (3) that

are transferable to any of the other pension plans exceeds the amount

transferred to that plan under subsection (2), the Lieutenant Governor in

Council shall, pursuant to

section 15(7) of the Act Schedule, order the

transfer of the remainder of the apportionment, with interest from the time

of wind-up to the date of payment, from the plan fund to the pension fund

of that other plan.

(5) If the sum of the amounts determined under subsection (3) that

are transferable to any of the other pension plans is less than the amount

transferred to that plan under subsection (2), the legal owner of that

other plan's pension fund shall return the excess, with interest from the

time of wind-up to the date of payment, from the pension fund of the other

plan to the plan fund in the form of cash or, with the consent of the

Provincial Treasurer, specific assets equal in market value to the amount

required, or a combination of both.

(6) Interest under subsection (4) or (5) is payable on the basis of

the market rate of return earned by the plan fund, net of those investment

costs that are specified by the Provincial Treasurer for that purpose, from

the time of wind-up to the date of payment.

(7) The transfers from the plan fund under subsections (2) and

(4) are to consist of such specific assets and to be in such of the following

forms as is decided by the Provincial Treasurer after consulting with the

Board, namely

(

a) in cash,

(

b) on the basis of a prorated interest in the

investments of the plan fund valued at market value, or

(

c) as a combination of the forms set out in clauses

(

a) and (b),

and where the transfer would require a significant liquidation of the

assets in a pooled fund, the transfer may include securities held by the

pooled fund.

(8) Where any assets transferred under subsection (2) or (4) are

interests in a pooled fund, the other plan must redeem those interests in

accordance with the guidelines established for the pooled fund within one

year of the date of the transaction under subsection (4) or (5) or within

such longer period as is agreed in writing between the employers and the

Provincial Treasurer.

(9) The guidelines referred to in subsection (8) are exempt from the

Regulations Act.

(10) The assets and liabilities attributable to each employer become

final when, and may not change after, the transactions described in

subsection (4) or (5) are completed.

Application to other plan's members accruing multiple service

33 Where

(a)

section 26(2) applies, or

(

b) any other similar circumstances that give rise to

doubt as to a person's pension coverage or potential coverage under this

Part arise,

any apportionment or other separation or division that needs to be

done under this Part as between 2 or more of the other pension plans must

be done on a basis that is approved by the Board and that most closely

reflects the overall intent of this Part.

Indemnifica-

tion

34(1) The employers and the legal owners of the pension funds of the

other plans indemnify

(

a) the Board and the members of the Board for any

damages or legal and other expenses incurred in defending any claim against

the Board or any Board member that arises directly or indirectly from the

plan termination, and

(

b) the Plan fund and the Plan's administrator and

trustee for any claim made after the wind-up.

(2) Subject to subsection (1), an indemnification by subsection

(1)(

a) covers anything done by the Board or Board member, as the case may

be, in good faith in the exercise of powers, duties and functions under

section 15 of the Act

Schedule or this Part.

Agreement to alter time limits

35 Notwithstanding anything in this Part, where a provision of this

Part requires anything to be done within a certain period or by a specified

time prior to the time of wind-up, the Minister, the Board and the

employers may enter into a written agreement altering the time before which

that thing must be done.

Transitional -predecessor plan benefits

36 For the purposes of

section 30(1), pre-1992 liabilities must be

reduced to reflect benefit reductions described in

section 113.1(1) and (2)

of the plan rules.

Alberta Regulation 294/96

Optometry Profession Act

OPTOMETRY PROFESSION GENERAL AMENDMENT REGULATION

Filed: December 5, 1996

Approved by the Lieutenant Governor in Council (O.C. 604/96) pursuant to

section 9 of the Optometry Profession Act.

1 The Optometry Profession General Regulation (Alta. Reg. 388/85) is

amended by this Regulation.

2 The heading preceding

section 12.1 is repealed and the following is

substituted:

PART 2.1

DESIGNATION

Section 12.2(3)(

b) is amended by adding "topical" before "therapeutic".

Section 12.2(4)(

b) is amended by adding ", including topical

therapeutic medications," before "in an academic setting".

------------------------------

Alberta Regulation 295/96

Optometry Profession Act

OPTOMETRY PROFESSION STANDARDS OF PRACTICE

AMENDMENT REGULATION

Filed: December 5, 1996

Approved by the Lieutenant Governor in Council (O.C. 605/96) pursuant to

section 9 of the Optometry Profession Act.

1 The Optometry Profession Standards of Practice Regulation (Alta. Reg.

389/85) is amended by this Regulation.

Section 33.2(

a) is amended by adding "topical" before "therapeutic

medications".

Section 33.2(a)(

v) is amended by adding a comma after "non-steroidal".

Section 33.3(2) is amended by adding "topical" before "anti-glaucoma

medications".

Section 33.4(1)(

a) is amended by adding "topical

before "therapeutic medications".

------------------------------

Alberta Regulation 296/96

Government Organization Act

DESIGNATION AND TRANSFER OF RESPONSIBILITY

AMENDMENT REGULATION

Filed: December 5, 1996

Made by the Lieutenant Governor in Council (O.C. 606/96) pursuant to

section 16 of the Government Organization Act.

1 The Designation and Transfer of Responsibility Regulation (Alta. Reg.

398/94) is amended by this Regulation.

Section 5 is amended by adding the following after subsection (2):

(3) The Minister of Labour is designated as the Minister responsible

for the Employment Standards Code, SA 1996 cE-10.3.

------------------------------

Alberta Regulation 297/96

Regulations Act

DEPARTMENT OF CULTURE GUARANTEED LOAN REGULATION

REPEAL REGULATION

Filed: December 5, 1996

Made by the Lieutenant Governor in Council (O.C. 609/96) pursuant to

section 10 of the Regulations Act.

1 The Department of Culture Guaranteed Loan Regulation (Alta. Reg. 14/81)

is repealed.

Alberta Regulation 298/96

Animal Protection Act

ANIMAL PROTECTION REGULATION

Filed: December 5, 1996

Made by the Lieutenant Governor in Council (O.C. 612/96) pursuant to

section 15 of the Animal Protection Act.

Table of Contents

Definition 1

Application 2

Approval 3

Suspension and revocation 4

Notice of seizure 5

Repeal 6

Expiry 7

Coming into force 8

Schedule

Definition

1 In this Regulation, "Act" means the Animal Protection Act.

Application

2(1) An organization incorporated under the laws of Alberta may apply in

writing to the Minister for approval as a humane society for the purposes

of the Act.

(2) An application under this

section must contain the following

information:

(

a) evidence that the organization has been incorporated under the

laws of Alberta including a copy of its constitutional documents;

(

b) the names of its directors and officers;

(

c) the addresses of its principal headquarters and its registered

office in Alberta;

(

d) the general geographical area within which its activities are

carried on;

(

e) a copy of its most recent financial statements;

(

f) its sources of revenue;

(

g) information relating to any organization affiliated with or

sponsored by it;

(

h) a description of the facilities, if any, in which animals may

be kept;

(

i) further information as required by the Minister.

Approval

3(1) If the Minister is satisfied as to the suitability of an applicant

under

section 2, the Minister may approve it as a humane society.

(2) Within 120 days after the end of its fiscal year, a humane society

must file with the Minister an annual return containing the following

information:

(

a) a

summary of its activities during the previous fiscal year;

(

b) a copy of its financial statements for the previous fiscal

year;

(

c) changes to the information provided under

section 2 or in a

previous annual return;

(

d) any other information required by the Minister.

Suspension and revocation

4(1) The Minister may suspend or revoke an approval if the humane society

(

a) fails to file an annual return in accordance with

section 3,

(

b) is no longer incorporated under the laws of Alberta, or

(

c) fails to comply with a provision of the Act.

(2) If the Minister suspends or revokes the approval of an organization as

a humane society, the Minister must provide the humane society with at

least 10 days' written notice of the suspension or revocation setting out

the reasons for the suspension or revocation.

(3) If the humane society, within the time referred to in subsection (2),

desires that the Minister review the suspension or revocation, the

Minister must give the applicant an opportunity to give reasons why the

suspension or revocation should not be effected.

(4) Until the Minister makes a decision after a review under subsection

(3), the decision of the Minister under subsection (2) is stayed.

Notice of seizure

5(1) If a peace officer takes custody of an animal under

section 3 of the

Act, the peace officer must give to the owner or person in charge of the

animal a notice in the form set out in the Schedule.

(2) If the owner or person in charge of the animal cannot be found, the

peace officer must post the notice in a prominent place where the animal

was found.

Repeal

6 The Animal Protection Regulation (Alta. Reg. 206/89) is repealed.

Expiry

7 For the purpose of ensuring that this Regulation is reviewed for

ongoing relevancy and necessity, with the option that it may be re-passed

in its present or an amended form following a review, this Regulation

expires on December 31, 1999.

Coming into force

8 This Regulation comes into force on January 1, 1997.

SCHEDULE

Form

NOTICE OF SEIZURE OF ANIMAL

Take notice that on under the Animal Protection Act

(date) the following animal(

s) was (were) taken into custody:

(describe animal(s))

by (Insert name of peace officer, the name of the service that employs the

peace officer and the service's address and telephone number) and pursuant

section 3(2) of the Act the animal(

s) was (were) delivered to

a humane society, or

a caretaker.

If the animal is not claimed or the payment of expenses is not made, the

animal may be sold, given away or, in accordance with

section 8 of the

Animal Protection Act, destroyed.

Signature of peace officer

Alberta Regulation 299/96

Fur Farms Act

FUR FARMS REGULATION

Filed: December 5, 1996

Made by the Lieutenant Governor in Council (O.C. 613/96) pursuant to

section 16 of the Fur Farms Act.

Fur-bearing animals

1 For the purposes of the Act and this Regulation, the following animals

are prescribed as fur-bearing animals:

(

a) arctic fox Alopex lagopus;

(

b) badger Taxidea taxus;

(

c) beaver Castor canadensis;

(

d) bobcat Felis rufus;

(

e) coyote Canis latrans;

(

f) ermine Mustela erminea;

(

g) fisher Martes pennanti;

(

h) lynx Felis lynx;

(

i) marten Martes americana;

(

j) mink Mustela vison;

(

k) muskrat Ondatra zibethicus;

(

l) raccoon Procyon lotor;

(

m) red fox Vulpes vulpes;

(

n) river otter Lutra canadensis;

(

o) skunk Mephitis mephitis;

(

p) wolf (grey wolf) Canis lupus;

(

q) wolverine Gulo gulo.

Forms

2 The forms for the purposes of the Act are

(

a) an application for a licence in the form set out in Form 1 of

the Schedule,

(

b) a fur farmer's annual report under

section 6(2) of the Act in

the form set out in Form 2 of the Schedule, and

(

c) a fur farm export permit in the form set out in Form 3 of the

Schedule.

Repeal

3 The Fur Farm Regulation (Alta. Reg. 12/88) is repealed.

Expiry

4 For the purpose of ensuring that this Regulation is reviewed for

ongoing relevancy and necessity, with the option that it may be re-passed

in its present or an amended form following a review, this Regulation

expires on December 31, 1999.

SCHEDULE

FORM 1

APPLICATION FOR FUR FARM LICENCE

I/we (full name)

of (address)

make application for a licence to operate a fur farm under the Fur Farms

Act. The application is for a new licence */

renewal of an existing licence *.

The fur farm is described as:

Name of farm:

Address:

Postal Code: _________________ Telephone # ________________

Quarter: _____ Sec _____ Township ____ Range ____ W of _____

I intend to keep the following number and species of fur-bearing animals at

the fur farm:

There is accommodation for (number) fur-bearing animals at the fur

farm.

I HAVE READ THE FUR FARMS ACT AND REGULATIONS

Signature: ____________________________ Date ______________

* Tick whichever is appropriate.

FORM 2

FUR FARMER'S ANNUAL REPORT

Name of fur farm

Name of owner

Mailing address

Town or city Postal code Telephone number

Legal land

location

Qtr

Sec

Twp

Rge

W of

Return this information

in August.

Mink

Red Fox

Arctic Fox

Lynx

Other fur-bearing

animals (specify)

How many animals were on your farm on August 1 last year?

+ How many animals were born between August 1 last year and July 31

this year?

+ How many animals did you buy between August 1 last year and July 31

this year?

- How many animals did you pelt between August 1 last year and July 31

this year?

- How many animals did you sell alive between August 1 last year and

July 31 this year?

- How many animals died (unpelted) or escaped between August 1 last

year and July 31 this year?

= Total animals on farm on August 1 this year

How many animals do you expect to pelt this season?

Signature

Date

FORM 3

FUR FARM EXPORT PERMIT

Number of permit _______________

(Name) of (Address)

Fur Farm Licence Number , is authorized to export the

pelts of the following fur-bearing animals:

Fur-bearing Animals Number of Pelts

Red Fox ______________

Arctic Fox ______________

Mink ______________

Lynx ______________

______________

Other (specify)

(Signature of Fur Farm Supervisor) (Date)

This permit expires 30 days after the date of issue.

Alberta Regulation 300/96

Marketing of Agricultural Products Act

ALBERTA SHEEP AND WOOL COMMISSION PLAN REGULATION

Filed: December 5, 1996

Made by the Lieutenant Governor in Council (O.C. 614/96) pursuant to

section 54.1 of the Marketing of Agricultural Products Act.

Table of Contents

Definitions 1

Designation of agricultural products 2

Part 1

General Operation of Plan

Division 1

Plan

Plan continued 3

Termination of Plan 4

Application of Plan 5

Purpose of Plan 6

Zones 7

Division 2

Administration of Plan by Commission

Commission continued 8

Functions of Commission 9

Regulations to operate Plan 10

Financing of the Plan 11

Service charges not refundable 12

Collection of service charges 13

Indemnification fund 14

Licensing of dealers 15

Honorary memberships 16

Auditor 17

Part 2

Governance of Plan

Division 1

Commission

Composition of Commission 18

Chairperson 19

Term of office 20

Removal from office 21

Meetings of directors 22

Quorum re meetings of directors 23

Division 2

General Meetings of Producers

Annual zone meetings 24

Annual Commission meeting 25

Special zone meetings 26

Calling of meetings 27

Quorum re zone meetings 28

Division 3

Eligibility, Voting and Elections

Eligible producers 29

Producers who are individuals 30

Producers who are not individuals 31

Eligibility to vote 32

Eligibility to be a director 33

Election of directors 34

Returning officer 35

Controverted election 36

Part 3

Transitional, Review and Repeal

Transitional 37

Review 38

Repeal 39

Schedule

Definitions

1 In this Regulation,

(a) "Act" means the Marketing of Agricultural Products Act;

(b) "annual Commission meeting" means an annual Commission meeting

provided for under

section 25;

(c) "annual zone meeting" means an annual general meeting of the

eligible producers of a zone;

(d) "Canada Act" means

(

i) the Farm Products Marketing Agencies Act (Canada);

(ii) the Agricultural Products Marketing Act (Canada);

(e) "Commission" means the Alberta Sheep and Wool Commission;

(f) "Council" means the Alberta Agricultural Products Marketing

Council;

(g) "dealer" means a person who is in the business of buying and

selling the regulated product and includes

(

i) a livestock dealer under the Licensing and Bonding

of Livestock Dealers and Livestock Dealers Agents Regulation (Alta. Reg.

450/83) or any successor to that Regulation;

(ii) a person who acts as an agent in the buying or

selling of the regulated product and in respect of buying makes direct

payment to the producer;

(iii) a person who is a feedlot operator or agent of a

feedlot operator, including a person who is in the business of

(

A) buying sheep;

(

B) feeding sheep for the purposes of

adding value;

(

C) marketing sheep;

(h) "director" means a director of the Commission;

(i) "eligible producer" means a producer who qualifies as an

eligible producer under

section 29;

(j) "marketing"

(

i) means buying or selling the regulated product, and

(ii) includes any other function or activity designated

as marketing by the Lieutenant Governor in Council;

(k) "person" means a person as defined in the

Interpretation Act

and includes

(

i) a partnership as defined in the Partnership Act;

(ii) an unincorporated organization that is not a

partnership referred to in subclause (i);

(iii) any group of individuals who are carrying on an

activity for a common purpose and are neither a partnership referred to in

subclause (

i) nor an unincorporated organization referred to in subclause

(ii);

(l) "Plan" means the Plan referred to in

section 3;

(m) "processing" means changing the nature or form of the regulated

product;

(n) "processor" means a person who is in the business of

(

i) buying sheep for the purpose of slaughtering or

otherwise processing the regulated product, or

(ii) buying wool for the purpose of processing;

(o) "producer" means a person who

(

i) breeds, raises, feeds or owns sheep, or

(ii) sells wool that is sheared from sheep owned by that

person

and markets the regulated product;

(p) "regulated product" means

(

i) live sheep;

(ii) the whole or any part of a sheep carcass;

(iii) wool;

(q) "sale" means any contract, bargain, arrangement, consignment or

agreement under which the beneficial title to or beneficial ownership of

the regulated product transfers from a seller to a buyer, whether with or

without the involvement of agents for either the seller or buyer;

(r) "sheep" means domestic rams, wethers, ewes and lambs of genus

Ovis;

(s) "special zone meeting" means a special general meeting of the

eligible producers of a zone;

(t) "wool" means shorn grease wool that comes from sheep;

(u) "zone" means those areas designated in the

Schedule as zones.

Designation of agricultural products

2 Sheep and wool are designated as agricultural products for the purposes

of the Act.

PART 1

GENERAL OPERATION OF PLAN

Division 1

Plan

Plan continued

3 The Alberta Sheep and Wool Commission Plan, 1972 established under

Alberta Regulation 23/72 is hereby revised and continued under this

Regulation with the name "Alberta Sheep and Wool Commission Plan".

Termination of Plan

4 This Plan does not terminate at the conclusion of a specific period of

time and shall remain in force unless otherwise terminated pursuant to the

Act.

Application of Plan

5(1) This Plan applies

(

a) to all of Alberta,

(

b) to producers who produce or market the regulated product other

than those producers who are exempted under this Plan, and

(

c) to dealers for the purpose of sections 10(a), (b), (c), (d),

(e), and (f), 11 and 13.

(2) Where a person carries out the functions of a producer, dealer and

processor or carries out any one or more of those functions, this Plan

applies to that person in respect of each of those functions that the

person carries out.

(3) A person or any class of persons or any class of the regulated product

may be exempt from this Plan or any portion of this Plan where permitted by

a majority vote of the eligible producers conducted at an annual Commission

meeting.

Purpose of Plan

6(1) The purposes of this Plan are to do the following:

(

a) to provide for the initiation, support or conduct of programs

for stimulating, increasing and improving the economic well-being of the

sheep and wool industry in Alberta;

(

b) to provide for the initiation, support or conduct of studies

and research in connection with

(

i) production of the regulated product,

(ii) processing and marketing of the regulated product,

and

(iii) consumer needs and demands with respect to the

regulated product;

(

c) to provide assistance in the education of producers and dealers

of the regulated product in respect of the proper methods of production,

marketing and processing of the regulated product;

(

d) to provide for the initiation, support or conduct of

promotional activities in respect of the production, marketing and

processing of the regulated product;

(

e) to provide funds to any organization for programs that have

objectives similar to those of the Commission.

(2) Under this Plan neither the production nor the marketing of the

regulated product shall be controlled or regulated.

Zones

7(1) For the purpose of this Plan, Alberta is divided into 7 zones.

(2) The area included in each zone is as set out in the Schedule.

(3) With the approval of the Lieutenant Governor in Council, the

Commission may

(

a) alter the area that is included within a zone, or

(

b) increase or decrease the number of zones by one or more zones,

for the purposes of providing equitable representation to the eligible

producers.

Division 2

Administration of Plan by Commission

Commission continued

8 The Alberta Sheep and Wool Commission is hereby continued.

Functions of Commission

9(1) The Commission

(

a) shall be responsible for the operation, regulation, supervision

and enforcement of this Plan;

(

b) shall

(

i) open one or more accounts in a bank, trust company,

treasury branch, credit union or other depository, and

(ii) designate those officers, employees and other

persons as are necessary to sign cheques and transact the Commission's

business with its bank, trust company, treasury branch, credit union or

other depository;

(

c) may

(

i) enter into an operating line of credit or other

loan agreement with its bank, trust company, treasury branch, credit union

or other lending institution, and

(ii) designate those officers, employees and other

persons as are necessary to transact the Commission's business;

(

d) shall cause books and records, including financial records, to

be maintained

(

i) from time to time as may be required under the Act,

the regulations or by order of the Council, or

(ii) as may be determined by the Commission;

(

e) shall maintain an office, the location of which shall at all

times be made known to each eligible producer;

(

f) may appoint officers, employees and agents, prescribe their

duties and fix their remuneration;

(

g) subject to the Act, the regulations and any orders of the

Council, may issue general orders governing its internal operation as it

may from time to time determine;

(

h) may become a member of any agricultural organization or any

organization that promotes the interest of Alberta sheep and wool

producers;

(

i) may contribute funds to any agricultural organization or any

organization that promotes the interest of Alberta sheep and wool

producers;

(

j) may, in accordance with

section 50 of the Act, be authorized to

perform any function or duty and exercise any power imposed or conferred on

the Commission by or under the Canada Act.

(2) The books and records referred to in subsection (1)(

d) shall be open

for inspection at the office of the Commission at all reasonable times.

Regulations to operate Plan

10 For the purposes of enabling the Commission to operate this Plan, the

Commission may be empowered by the Council, pursuant to

section 26 of the

Act, to make regulations

(

a) requiring any person who produces, markets or processes the

regulated product to furnish to the Commission any information or record

relating to the marketing or processing of the regulated product that the

Commission considers necessary;

(

b) requiring persons, other than an eligible producer, to be

licensed under this Plan before they become engaged in the marketing or

processing of the regulated product;

(

c) prohibiting persons, other than an eligible producer, from

engaging in the marketing and processing, as the case may be, of a

regulated product except under the authority of a licence issued under this

Plan;

(

d) governing the issuance, suspension or cancellation of a licence

issued under this Plan;

(

e) providing for

(

i) the assessment, charging and collection of service

charges from producers from time to time as required for the purpose of

this Plan, and

(ii) the taking of legal action to enforce payment of

the service charges and licence fees as the case may be;

(

f) requiring any person who receives the regulated product from a

producer

(

i) to deduct from the money payable to the producer

any service charges payable by the producer to the Commission, and

(ii) to forward the