Library / Page 1 of 35 MIDSTREAM PETROLEUM HOST COMMUNITIES DEVELOPMENT TRUST REGULATIONS, 2024
Page 1 of 35 MIDSTREAM PETROLEUM HOST COMMUNITIES DEVELOPMENT TRUST REGULATIONS, 2024

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Page 25 of 35 
 
(g) 
exercise due diligence in ensuring the maintenance of 
the reserve fund and shall ensure that there is no avoidable 
deterioration in value;  
(h) 
institute such mechanisms to ensure proper care is 
taken for the collection, monitoring and supervision of the 
reserve fund; 
(i) 
avoid conflict between its interests and the interest of 
the host communities; 
(j) 
disclose the interests of its directors and management 
to the Board of Trustees; and 
(k) 
ensure that it keeps proper and accurate records, 
including recording the details of its decision-making process 
in dealing with any investments together with justifications of 
such decisions and forwarding same to the Board of Trustees. 
 
34 (1) The fund manager shall cease to act as a fund manager where - 
(a) 
its registration with the Securities and Exchange Commission 
is withdrawn or revoked in accordance with the Investments and 
Securities Act; 
(b) 
it becomes bankrupt or makes a compromise with creditors 
or a moratorium is granted on its debt or such other comparable 
measures are taken against the Fund Manager; 
(c) 
it is found guilty of a crime involving fraud or dishonesty or 
any other felony or it is sanctioned for misconduct by Securities and 
Exchange Commission or any professional body or association; or  
(d) 
it resigns its appointment as Fund Manager by a notice to the 
Board of Trustees. 
 
 (2). The licensee shall notify the Authority of the removal or resignation 
of a fund manager within 14 days of the removal or resignation. 
 
3. The licensee shall appoint another fund manager not later than 30 
days after the removal or resignation of the previous fund manager. 
 
Cessation of office 
of 
the 
Fund 
Manager 
 
PART VI - INVESTMENT OF THE RESERVE FUND AND REPORTING 
OBLIGATIONS 
 
35  
(1) Money standing to the credit of the reserve fund may be invested 
by the fund manager on the approval of the Board of Trustees. 
 
 
Criteria for 
investment in 
securities