Eligible investments in BC and Alberta are quite similar. The restriction in BC applies only to the contingency fund.
Generally the eligible investments in both provinces are:
- Securities of the government of Canada, its Provinces or municipalities. Securities of the governments of the United States and of the United Kingdom.
- Any security guaranteed by one of those governments.
- Securities issued by Alberta (BC Strata Reg allows all Provinces) municipal government bodies, such as school divisions, and health regions.
- Bonds issued by a corporation incorporated in Canada, that are fully secured by assets such as real estate, land, plant and equipment and bonds ( Alberta - also the corporation has paid dividends on the preferred shares, and dividends on common shares and at least equal to 4% of the share value AND the bond is fully secured by a first charge on assets)
- Preferred shares of Canadian corporations where the corporation has paid dividends on its preferred shares at the prescribed rate, and had earnings available for common shares, of at least 4% of the share value for each of the past five years.
- Securities issued or guaranteed by certain international development banks
- First mortgage on Canadian real estate where the mortgage does not exceed 75% of fair value, (Alberta - or the loan is CMHC insured).
For the complete description, please see the respective regulations