Letters of credit – criteria
1A letter of credit provided under section 42.001 of this Regulation must be an irrevocable and unconditional standby letter of credit made in accordance with the rules set out in International Standby Practices ISP98, International Chamber of Commerce Publication No. 590, and must meet the following requirements:
(a)
it must be made payable to the prescribed trustee, in trust for the pension plan;
(b)
it must be payable in Canadian currency;
(c)
it must make the issuer contractually liable to pay out money under its terms if payment is demanded under it by the prescribed trustee;
(d)
it must be subject to a trust agreement described in section 4 of this Schedule between the issuer, the administrator and the prescribed trustee.