Definition : Investments presumed sound

The purpose of which is to remunerate  the sums accumulated in the contingency fund through various types of securities, such as shares or bonds, in order to derive income from them later, such as dividends or interest.  These sums  must be the subject of an investment that must be presumed secure within the meaning of article 1339 of the Civil Code of Québec. The capital invested must be guaranteed for the entire duration of the investment and not just at maturity.

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In the case of contingency funds, a syndicate of co-owners must have guidelines for the investment of the sums accumulated in the fund. It must  clearly define the return and risk objectives for a given period while taking into account constraints such as liquidity needs, the legal context and exceptional circumstances. This task is delicate, because a syndicate of co-owners acts as administrator of the property of others. That is why  it must submit to restrictive and precautionary rules on placement. The syndicate is thus subject to the rules of presumed safe investments  provided for in articles 1339 to 1344 of the Civil Code of Quebec.
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