Section 6 Liquidity risk

A mortgage credit institution shall not assume greater liquidity risk on each cover pool than is prudent at any and all times.

A mortgage credit institution shall establish limits on divergence between future receipts and future payments.

A mortgage credit institution shall carry out periodic stress tests to document a satisfactory liquidity reserve and that the requirement of the Financial Institutions Act section 2-31 is met.

In calculating liquidity risk, account may be taken of committed drawing rights if the counterparties qualify for credit quality step 2 or better.