# Condo Board Reserve Fund



## Fain (Oct 11, 2009)

Hi,

Anyone know off-hand the eligble investments for a condo reserve fund?

Thanks,


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## Just a Guy (Mar 27, 2012)

GICs

You can't "gamble" with other people's money.


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## Newby1983 (Apr 9, 2015)

On the condo board at my previous home we only invested in GICs as we were told by our property manager that the investment must be guaranteed. Check out section 115(5) to (8) of the Condo Act: https://www.ontario.ca/laws/statute/98c19


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## NorthKC (Apr 1, 2013)

It can only be held in GICs. No market investment is allowed.


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## Fain (Oct 11, 2009)

NorthKC said:


> It can only be held in GICs. No market investment is allowed.


No treasuries, Canadian Savings Bonds, HISAs?


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## NorthKC (Apr 1, 2013)

Fain said:


> No treasuries, Canadian Savings Bonds, HISAs?


Yes, anything that is not market-sensitive meaning no equities whatsoever. 

My apologies. I was a little too quick with my reply.


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## GreatLaker (Mar 23, 2014)

You did not say where you are located. Condo regulations vary by province.

On Ontario the following are allowed:

Securities issued or guaranteed by the Canadian federal government or a Canadian provincial government. Typically federal or provincial bonds.
Deposits to an Ontario institution that are guaranteed by CDIC or DICO (DICO guarantees Ontario credit union deposits, similar to CDIC). Typically bank deposits or GICs, with a max term of 5 years and a max of $100k per institution. The $100k limit is a pain, because if you have a $2M reserve, that's 20 different institutions to stay within the limit.
In my condo we typically use a 3 or 5 year GIC ladder for most investments, because GIC rates are currently higher than bond yields. We also always keep some bonds for liquidity, in case we have unanticipated expenses that cannot be funded through maturing GICs.

If there is any doubt, contact your property manager, lawyer or auditor. Your financial statements must be audited annually.


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## Fain (Oct 11, 2009)

GreatLaker said:


> You did not say where you are located. Condo regulations vary by province.
> 
> On Ontario the following are allowed:
> 
> ...


I live in Ontario. . . And i appreciate the information.


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