The short answer is "yes," Mr. Speaker. I would be naive to think that that is going to satisfy the nature of what is really being asked here. Surety bonds are a little bit different. A lot of times, securities are held with what is called an irrevocable letter of credit, but in this particular case, these surety bonds are more like an irrevocable letter of credit than what they might be in some other circumstances. Most importantly, Mr. Speaker, the GNWT has the ability to call in the bond if we had concerns about it. In addition, if, in fact, the bond were to be cancelled, again different from many situations with a surety bond would be, the GNWT has protection because there is notice of cancellation. Again, in such circumstances, the GNWT would have the ability to call in the bond. The Department of Finance takes it quite seriously. The Department of Finance monitors these insurance companies. These are not small companies. These are very, very large companies. Just as much as we would have confidence in a large banking organization, Mr. Speaker, we have confidence that these large insurance organizations are not going anywhere and that the bonds are secure. Thank you.
Caroline Wawzonek on Question 290-19(2): Dominion Diamond Mine Creditor Protection
In the Legislative Assembly on June 3rd, 2020. See this statement in context.
Question 290-19(2): Dominion Diamond Mine Creditor Protection
Oral Questions
June 3rd, 2020
Page 1024
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