Rules Part 6 – Financial
Division 1 - Revenue of the Association
34 Accounts and Records
The Association must ensure that proper accounts and records of its transactions and affairs and other appropriate records are kept so that its financial operations and financial position can be adequately explained at any time.
35.1 amount of the biennial subscription to be paid by participating member councils;
35.2 date on which annual instalment notices are to be sent to participating member councils; and
35.3 date by which annual instalments of the biennial subscription must be paid
will be determined by the Board and notified to participating member councils in writing.
The Association may, in accordance with any Investment Policy adopted by the Board from time to time, invest in any of the funds that councils may invest in under section 103 of the Local Government Act 2020 or the Trustee Act 1958.
Division 2 – Municipal Officers’ Fidelity Guarantee Fund
37 Members of the Fund
For the purposes of this Division, ‘Authority’ includes the bodies referred to in section 5 of the Act contributing to the fund.
38 Management of the Fund
Subject to these Rules, the Board is responsible for the management and operation of the Municipal Officers’ Fidelity Guarantee Fund.
39 The Municipal Officers’ Fidelity Guarantee Fund
39.1 The Municipal Officers’ Fidelity Guarantee Fund consists of:
39.1.1 all premiums received by the Association by way of premiums on guarantees;
39.1.2 all monies received by the Association under section 7 of the Act;
39.1.3 all monies received by the Association by way of interest on moneys invested under these Rules; and
39.1.4 all other moneys received by the Association in connection with the activities of the Fund.
40 Decisions of the Board
40.1 The Board will from time to time determine:
40.1.1 the manner and form of an application for a guarantee;
40.1.2 the form of the policies to be issued;
40.1.3 the level of premium payable; and
40.1.4 the level of cover available.
41 Expiration of Policies
Unless renewed, all policies will terminate on the 30th June next following the date of their issue.
42 Application for Guarantee
Any Authority may make application for a guarantee in respect of its employees. Upon acceptance of any application and upon acceptance and payment of the appropriate premium fixed by the Board, the Association will issue to the Authority a policy in the appropriate form determined by the Board.
43 Renewal of Policies
Before becoming entitled to the renewal of any policy, the Authority in the name of which the policy has been issued must submit to the Board a statement of its revenue from general rates and charges during the preceding financial year and the Board will fix the premium payable on the basis of such revenue and such other information as the Board may determine from time to time; including, without limitation, claims history and risk management practices.
44 Cancellation of Policies
44.1 Any policy may be cancelled:
44.1.1 at any time at the written request of the Authority, in which case the Association will be entitled to retain the premium for the period during which the policy has been in force; and
44.1.2 by the Association in the event of the Authority;
188.8.131.52 failing to comply with its duty of absolute good faith;
184.108.40.206 failing to comply with its duty of disclosure;
220.127.116.11 making a misrepresentation to the Association during negotiations for the policy before it was entered into;
18.104.22.168 failing to comply with a condition or other provision of the policy, including the provision with respect to payment of the premium; or
22.214.171.124 making a fraudulent claim under the policy.
45 Notice of Cancellation
45.1 The Association may give written notice to the Authority that it has cancelled the policy and that the cancellation will take effect 14 calendar days from the date of the written notice.
45.2 Where the Association cancels the policy of an Authority the Association will refund to the Authority an amount of premium proportionate to the unexpired term of the policy.
46 Liability of the Association
The liability of the Association under any blanket policy to pay out of the Municipal Officers’ Fidelity Guarantee Fund any loss sustained by the Authority will be based on the absolute good faith of the application and of the truth and completeness of any information supplied by and on behalf of the Authority and will depend upon the due payment of the premium.
47 Investment of Funds
The Board may, in accordance with any Investment Policy adopted by the Board from time to time, invest the fund or any part of it in the funds in which councils may invest under section 103 of the Local Government Act 2020 or the Trustee Act 1958.
All expenses incurred in the management of the Fund will be paid out of the Funds and the Fund will contribute from time to time an amount determined by the Board towards the overall cost of management and administration of the Association.