26. Where the funds held in trust are entrusted to a depositary in the form of a deposit, the term and other conditions are determined in accordance with the agreement between the seller and the depositary. In no case, however, may the term agreed upon exceed five years.
Where the depositary of the funds held in trust is a trust company, the seller may, in addition, reserve for himself the prerogative of selecting the kinds of investments to be made with the funds. In that case, the funds may be invested only by the trust company and only in the form of Treasury bonds or bonds issued or guaranteed by the Government of Canada or of a province or by a municipality or school board or by the Comité de gestion de la taxe scolaire de l’île de Montréal, or in the form of deposit accounts or deposit certificates of a financial institution for a term not exceeding five years or in another form of investment prescribed by regulation.
All the income yielded by the funds held in trust must be paid at least once a year.
1987, c. 65, s. 26; 1988, c. 84, s. 693; 1996, c. 2, s. 74; 2002, c. 75, s. 33.