4Discretionary mutual funds

4 Discretionary mutual funds

(1) For paragraph 5(5)(b) of the Act, a fund meeting the following criteria is declared to be a discretionary mutual fund: (a) 2 or more persons have contributed to the fund; (b) payments have been or may be made out of the fund in respect of liabilities, losses, damages or expenses of the contributors; (c) the fund is governed by rules under which any such payments for the benefit of the contributors are subject to a discretion of a person or body other than the contributors. (2) For paragraph 5(5)(b) of the Act, a fund meeting the following criteria is declared to be a discretionary mutual fund: (a) only 1 person contributes or has contributed to the fund; (b) payments have been or may be made out of the fund in respect of liabilities, losses, damages or expenses of the contributor or another person (the covered person); (c) the fund is governed by rules under which any such payments for the benefit of the contributor or the covered person are subject to a discretion of a person or body other than the contributor or the covered person.