Cole Road Co-operative Community Inc. By-Law 2015.04 |
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Investment By-law
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Passed by the Board of Directors on 09 February 2015; Confirmed by the Members on 01 March 2015 | |
ARTICLE 1 - PURPOSE OF THIS
BY-LAW |
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1 |
The purpose of this by-law is to establish the principles and guidelines for the investment of Cole Road Co-operative Community Inc.’s capital reserves and other funds. |
ARTICLE 2 - INTRODUCTION AND
SPECIAL MEANINGS |
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2.1 |
2.1 The Co-op has funds other than the monies it needs for current operations. These funds include the capital reserve fund, member deposits and retained earnings. The Co-op wants to invest these funds for the purpose of
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2.2 |
The Co-op is a non-profit corporation and none of the investment income on the funds is subject to tax of any kind. |
2.3 |
The Co-op must follow the Housing Services Act (HSA) which includes rules about the operation and investment of capital reserve funds. The Co-op will follow those rules when making decisions about its capital reserve investments. |
2.4 |
The Co-op may adopt from time to time other policies and procedures that work with this by-law. |
2.5 |
Certain words have special meanings when used in this by-law.
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ARTICLE 3 - ADMINISTRATION |
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3.1 |
The Co-op’s board of directors will
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ARTICLE 4 -INVESTMENT
OBJECTIVES |
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4.1 Capital Reserve Fund |
The primary objectives for investing the capital reserve fund are
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4.2 Other Funds |
The primary objective for investing other funds which include member deposits and retained earnings is to achieve the best possible rate of return while keeping investment risk to an acceptable level. |
ARTICLE 5 - TYPES
OF INVESTMENT THAT ARE ALLOWED |
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5.1 Capital Reserve Funds
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The board may only invest capital reserve funds in
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5.2 Other Investments |
Other funds, which include member deposits and retained
earnings may only be invested in
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ARTICLE 6 - EXTERNAL
INVESTMENT MANAGER |
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6.1
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SHSC Financial or any other manager chosen by the HSC will manage the Co-op’s capital reserve funds and any other funds the Co-op invests with HSC’s investment program. |
6.2 |
The Co-op’s board of directors may hire a professionally accredited investment manager to manage any other investments. The board must consult with an investment manager before making any investments other than bank or credit union deposits or investments in SHSC Financial’s funds. |
6.3 |
The Co-op’s board of directors will make sure that any investment manager, or other agent or advisor providing investment services to the Co-op, is aware of and follows this by-law. |
6.4 |
Every year the Co-op’s board of directors will review the performance of any investment manager, agent or advisor it is using. |
ARTICLE 7 - CAPITAL
PLANNING AND INVESTMENT ALLOCATION |
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7.1 Capital Planning |
The Co-op’s board of directors will have a capital plan prepared and updated from time to time to help guide its decisions about when cash from its capital reserve funds will be needed for capital replacements and repairs. |
7.2 Investment allocation |
The board will decide how to allocate capital reserve and other funds among the investment alternatives based on
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