The government, as part of this legislation, will be offering a 90% guarantee to backstop the failure. If there were to be a failure in a private mortgage insurer, the government would provide a 90% backstop for the mortgage insurance that had been guaranteed by that company. That would be the outstanding liability.
To back that liability, the government, through the Office of the Superintendent of Financial Institutions, requires every financial institution in Canada to hold capital against its risks. That capital is required from the private mortgage insurers.
In addition, this legislation provides for the Minister of Finance to require an additional layer of capital to be held by the private mortgage insurers that recognizes explicitly the guarantee the government is providing.
So there are a number of different layers of protection, if you will, or buffers. There is never a guarantee, but it would provide buffers so that if that financial institution were under pressure from the market, it would have that level of capital to eat through, effectively, before it went into failure.