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"Point in Time" Regulation Content

Bonding Act

Bonding Regulations

B.C. Reg. 11/68

NOTE: Links below go to reg content as it was prior to the changes made on the effective date. (PIT covers changes made from September 19, 2009 to present)
SECTIONEFFECTIVE DATE
Division 7 April 1, 2010
Section 7.104 July 1, 2012
Division 7.1 September 20, 2016
Section 7.403 July 1, 2012
Division 7.5 Section 7.501 to 7.502 January 1, 2017
April 1, 2019
Section 8 July 1, 2012
Section 9 July 1, 2010
October 4, 2010
April 1, 2013
January 1, 2017
April 1, 2019
Schedule April 1, 2010

 Division 7, sections 7.01 and 7.02 BEFORE repealed by BC Reg 412/2008, effective April 1, 2010.

Division 7 - Bonds under Hearing Aid Act

[s. 21 (f) of Hearing Aid Act]

 Who must deliver bond

7.01  Every applicant for registration as a hearing aid dealer and consultant under the Hearing Aid Act shall deliver, and every holder of a licence shall maintain, a bond in the amount of $2 500, in the form of bond captioned 'Bond —Hearing Aid Act' set out in the Schedule to these regulations, for the faithful, honest, and lawful conduct of his business as a hearing aid dealer and consultant.

[en. B.C. Reg. 128/72.]

 Board is obligee

7.02  The obligee in whose favour a bond under this Division shall be given and who shall hold the bond shall be the Board of Hearing Aid Dealers and Consultants constituted under the Hearing Aid Act.

[en. B.C. Reg. 128/72.]

 Section 7.104 (e) BEFORE amended by BC Reg 204/2011, effective July 1, 2012.

(e) surety bonds, issued by a surety licensed under the Insurance Act.

 Division 7.1 BEFORE repealed by BC Reg 221/2016, effective September 20, 2016.

Division 7.1 — Bonds under Independent School Act

[s. 18 (2) (e) of Independent School Act]

Definitions

7.101   In this Division:

"authority" has the meaning given it in section 1 of the Independent School Act;

"fees" means any money received by an authority for any purposes from or on behalf of a student or a person applying to become a student other than money paid for post-secondary education;

"post-secondary education" has the meaning given it in section 1 of the Private Post-Secondary Education Act.

[en. B.C. Reg. 260/93, Sch. 1.]

Amount of bond

7.102   (1) An authority that applies for or is granted a certificate of group 4 classification under the Independent School Act shall furnish and maintain one of the following bonds:

(a) up to and including the 45th day after the first day of instruction of the first year of the school's operation, a bond in the minimum amount of $100 000;

(b) after the 45th day after the first day of instruction of the first year of the school's operation, a bond in the minimum amount of the greater of

(i) $100 000, and

(ii) $5 000 per student based on the number of students enrolled on the 30th day after the first day of instruction;

(c) subject to subsections (2) and (3), for a school that operated in the previous school year a bond in a minimum amount equal to 75% of the total of all fees received by the authority operating the school during the 6 month period of either July 1 through December 31 or January 1 through June 30, of the previous school year — whichever period generated the most fees.

(2) On the request of an authority the minimum amount of a bond is decreased in accordance with subsection (3) if the inspector is satisfied that the fees for the current school year will decrease by 20% or more compared to the previous school year based on enrollment on September 30 of the current school year.

(3) The adjusted bond will be in the amount of 75% of 1/2 of the sum of

(a) the projected income for the current year, and

(b) half of the difference between the projected income and the previous year's income.

(4) A bond must be furnished no later than September 1 of the school year to which it applies unless it is a bond under subsection (1) (b) in which case it must be provided before the 45th day referred to in subsection (1) (b).

(5) An authority shall provide a new bond on September 1 of each school year.

(6) The bond must provide for the pro rata repayment to students of all fees when courses are not taken or completed by students as a result of

(a) the authority closing the independent school, or

(b) the inspector suspending or cancelling the certificate.

[en. B.C. Reg. 260/93, Sch. 1.]

Minimum amount of bond

7.103   Despite section 7.102 (1) to (3), the minimum amount of a bond may not be less than $100 000.

[en. B.C. Reg. 260/93, Sch. 1.]

Acceptable security

7.104   Despite section 8 of this regulation, acceptable security for a bond for the purposes of the Independent School Act must consist of one or more of the following types of security:

(a) short term deposits, not to exceed 3 years, issued by a savings institution and registered in the name of the minister;

(b) registered marketable bonds that are

(i) in fully registered form, issued or guaranteed by the government of Canada or the government of any province, with a maturity date of not longer than 3 years away, and

(ii) accompanied by a duly executed, irrevocable power of attorney that authorizes the minister to realize the security;

(c) treasury bill notes issued by the government of Canada or the government of any province;

(d) irrevocable letters of credit, issued by a savings institution, with a termination date beyond the required term of security and containing a promise to pay the minister a specified sum on written demand;

(e) surety bonds, issued by a person authorized under the Financial Institutions Act to carry on insurance business.

[en. B.C. Reg. 304/2007; am. B.C. Reg. 204/2011, Sch. B, s. 5.]

 Section 7.403 (e) BEFORE amended by BC Reg 204/2011, effective July 1, 2012.

(e) surety bonds, issued by a surety licensed under the Insurance Act.

 Division 7.5, sections 7.501 and 7.502 were enacted by BC Reg 99/2015, effective January 1, 2017.

 Division 7.5, sections 7.501 and 7.502 BEFORE repealed by BC Reg 66/2019, effective April 1, 2019.

Division 7.5 — Bonds under Liquefied Natural Gas Income Tax Act

Interpretation

7.501   In this Division:

"Act" means the Liquefied Natural Gas Income Tax Act;

"assets" means land and improvements or tangible personal property other than natural gas, liquefied natural gas or natural gas liquids;

"commissioner" has the same meaning as in the Act;

"lending institution" means

(a) a bank as defined in section 2 of the Bank Act (Canada),

(b) a foreign bank as defined in section 95 (1) of the Income Tax Act (Canada),

(c) a credit union as defined in section 1 (1) of the Financial Institutions Act, or

(d) an extraprovincial credit union as defined in section 1 (1) of the Financial Institutions Act.

[en. B.C. Reg. 99/2015, s. 1.]

Acceptable security

7.502   (1) Despite section 8 of this regulation, a bond for the purposes of the Act must consist of one or more of the following types of security:

(a) a type of security set out in section 8 of this regulation;

(b) a guarantee that meets the requirements set out in subsection (2).

(2) The requirements referred to in subsection (1) (b) are as follows:

(a) the guarantee is evidenced by writing signed by, or by the agent of, the guarantor;

(b) the guarantor is

(i) a company within the meaning of paragraph (a) of the definition of "company" in section 1 (1) of the Business Corporations Act,

(ii) an extraprovincial company within the meaning of section 1 (1) of the Business Corporations Act, or

(iii) a corporation as defined in section 2 (1) of the Canada Business Corporations Act;

(c) the guarantee is, in the opinion of the commissioner, adequately secured by assets in British Columbia;

(d) the guarantee includes the following terms:

(i) the guarantee is governed by and to be construed in accordance with the laws of British Columbia;

(ii) with respect to any legal proceeding arising out of or related to the guarantee, the guarantor irrevocably submits and attorns to the jurisdiction of the courts of British Columbia;

(e) the government's right to be paid under the guarantee takes priority over that of all holders of debt, other than a lending institution, secured by the same assets as the guarantee.

[en. B.C. Reg. 99/2015, s. 1.]

 Section 8 (j) BEFORE amended by BC Reg 204/2011, effective July 1, 2012.

(j) surety bonds, issued by a surety licensed under the Insurance Act;

 Section 9, list item "Social Service Tax Act" was repealed by BC Reg 216/2010, effective July 1, 2010.

 Section 9, list item "Oil and Gas Activities Act" was added by BC Reg 269/2010, effective October 4, 2010.

 Section 9, list item "Hotel Room Tax Act" was repealed by BC Reg 91/2013, effective April 1, 2013.

 Section 9, list item "Provincial Sales Tax Act" was added by BC Reg 91/2013, effective April 1, 2013.

 Section 9, list item "Liquefied Natural Gas Income Tax Act" was added by BC Reg 99/2015, effective January 1, 2017.

 Section 9, list item "Liquefied Natural Gas Income Tax Act" was repealed by BC Reg 66/2019, effective April 1, 2019.

 Schedule (part) BEFORE repealed by BC Reg 412/2008, effective April 1, 2010.

Bond

(Hearing Aid Act)

[am. B.C. Reg. 128/72.]

KNOW ALL MEN BY THESE PRESENTS that ............................................................ being a Surety licensed under the Insurance Act of British Columbia, having a registered office in the Province of British Columbia at .......................................... hereinafter called the "Surety", is held and firmly bound unto the Board of Hearing Aid Dealers and Consultants of British Columbia, of Victoria, in the said Province, hereinafter referred to as the "Obligee", in the penal sum of .................. dollars, lawful money of Canada, to be paid to said Obligee, its successors in office and assigns, for which payment, well and truly to be made, the Surety binds itself and its successors firmly by these presents.

SEALED with the Common Seal of the Surety this ............ day of .............................., 20....

WHEREAS .............................................., of ................................................ in the Province of British Columbia, hereinafter called the "Principal", has made application for a hearing aid dealer and consultant's licence pursuant to the provisions of the Hearing Aid Act, chapter 186 of the Revised Statutes of British Columbia, 1996, and amendments thereto, and is required to furnish the said Obligee security pursuant to the Bonding Act and the regulations pursuant thereto by a bond of a Surety in the sum of ........................ dollars for the faithful, honest, and lawful conduct by the Principal and the Principal's employees of the Principal's business of a hearing aid dealer and consultant:

AND WHEREAS by the above-written obligation the Surety has, at the request of the Principal, entered into a bond accordingly:

NOW, THE CONDITION of the above-written obligation is such that if the Principal and the Principal's employees shall, at all times during the term of any licence held by the Principal under the said Act, faithfully, honestly, and lawfully conduct the Principal's business of a hearing aid dealer and consultant, then this obligation shall be void, but otherwise shall be and remain in full force, virtue, and effect.

If the Surety shall at any time give one month's calendar notice in writing to the obligee and to the Principal of its intention to terminate the obligation hereby undertaken, then this obligation and all liability on its part hereunder shall cease and determine so far as concerns any act or omission on the part of the Principal or any employee of the Principal from the date hereof to the date of such termination, and any such notice shall be given by letter personally delivered or by registered letter addressed to the Principal at his last post-office address notified to the Surety, and to the said Obligee at the Law Courts, Victoria, British Columbia.

THE COMMON SEAL of the Surety was affixed hereto in the presence of

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