S.L. 370.9 Art. 10Source and application of funds.

(1) In terms of regulation 4, the Scheme shall establish and maintain a fund or a number of funds out of which payments to investors shall be made in accordance with these regulations.

(2) The sources of funding shall include:

(a) contributions levied from participants of the Scheme by the Management Committee;

(b) money paid as administrative fees by all participants, as may be prescribed;

(c) money received as income from the investment of the assets of the fund;

(d) money borrowed by the Management Committee for the purposes of the Scheme;

(e) money received by the Management Committee on any insurance policy it takes out; and

(f) any other money required to be paid in to the fund or funds, received or recovered by the Management Committee for the purposes of the Scheme.

(3) There shall be paid out of the fund or funds:

(a) money determined by the Management Committee as compensation for investors;

(b) money required for the repayment of (or interest on or charges in connection with) any money borrowed or for the payment of premia on any insurance policies taken out, for the purposes of the Scheme;

(c) the costs incurred in administering and managing the Scheme; and

(d) any other money paid out by the Management Committee for the purposes of the Scheme.

(4) The Management Committee shall hold, manage and apply the fund or funds in accordance with these regulations.