112.1. An association that acts as surety for its members, in accordance with the third paragraph of section 323 of the Act, must
(a) enter into an agreement with the president specifying the manner in which the security is to be furnished, particularly in respect of the elements provided for in subparagraphs a to c and f to h of section 113;
(b) deposit the amount fixed by the president in accordance with the third paragraph of section 323 of the Act, to the benefit of the president, with a trust company;
(c) give to the president
i. a written document from the trust company attesting to the deposit of the amount fixed;
ii. an annual statement showing that the amount deposited is maintained at the level fixed;
iii. for each member of the association covered by the surety, a member’s certificate attesting that the permit holder is a member of the association and acts as surety;
(d) where the association pays for a judgment, an agreement, a transaction, a claim or a fine in accordance with section 121 or 122.1, make up the difference in the amount deposited in trust so as to maintain it at the level fixed at all times.
An association may terminate the agreement entered into under subparagraph a of the first paragraph only on written notice of at least 90 days to the president. Despite the expiry of the security, the association must maintain the amount deposited in trust for the period determined under the second paragraph of section 119.
O.C. 815-2015, s. 12; O.C. 994-2018, s. 5811.