EMD00-07 (This letter supersedes E93-22, dated 93 08 23)
TITLES DIVISION
SUBJECT: PERFORMANCE AND SECURITY DEPOSITS
Acceptable Deposits
The following securities are acceptable as security drilling deposits, refundable cash-in-lieu of work deposits or other deposits that may be required under the Drilling and Production Regulation and the Petroleum and Natural Gas Act by the Ministry of Energy and Mines:
- Cash (Please make cheque payable to "Minister of Finance")
NOTE: Interest is not paid on cash deposits.
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- Short-term deposits with a chartered bank, trust company or credit union, registered in the name of British Columbia Minister of Finance.
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- Assignable bond or note in fully registered form, together with an executed Power of Attorney, to the Minister of Finance.
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- Term deposits and assignable bonds or notes in bearer form, guaranteed by the Government of Canada or the Government of any Province of Canada, with a maturity date of not longer than three years. These forms of deposits are to be held by a financial institution and an executed copy of a Safekeeping Agreement is to be submitted to the Titles Division of the Ministry of Energy and Mines.
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- Irrevocable Letters of Credit that are issued by a chartered bank, trust company or credit union and are payable to the Ministry of Finance. The letters must contain a clause allowing for automatic renewals, on an annual basis, and must state that, if the financial institution elects not to extend the term, the financial institution will notify the government of its decision at least thirty days prior to the expiry date.
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- NOTE: Surety bonds are not acceptable.
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Signing Procedures
In the case of assignable securities, certificates of deposit or term deposits, the following additional procedures apply:
- If the bond or note is registered in an individual’s name, the instrument of transfer must be signed exactly as the security is registered and the signature must be guaranteed by a chartered bank or trust company.
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- If the bond or note is registered in the name of a limited company, corporation, joint venture entity or association, the instrument of transfer must be signed by two authorized signing officers. The signatures and authority to sign must be guaranteed by a chartered bank of trust company.
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- If the authority to sign cannot be guaranteed by a chartered bank of trust company, a notarized or sealed resolution from the company, corporation, joint venture entity or association appointing the signing officers must accompany the instrument of transfer. The signatures of the signing officers must be guaranteed by a chartered bank or trust company.
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PLEASE ENSURE THESE GUIDELINES ARE FOLLOWED WHEN REPLACING EXPIRED DEPOSITS.
Generic Letter of Credit
For further information contact:
Debbie Fischer, Director
Compliance & Administration Branch
Titles Division
PO Box 9326, Stn Prov Gov't
6th floor, 1810 Blanshard Street
Victoria, BC V8W 9N3
Phone: 250-952-0336
Fax: 250-952-0331
Endorsed by the
Assistant Deputy Minister
01 01 23
