A fund can only borrow money in the following situations:

  • The borrowing is for a maximum of 90 days and used to pay a member benefit. It must not exceed 10% of the fund’s total assets.
  • The borrowing is for a maximum of 7 days to cover the settlement of a security. It must not exceed 10% of the fund’s total assets.
  • The borrowing is under an instalment warrant or a limited recourse borrowing arrangement.

Check out our blog on limited recourse borrowing arrangements here.