Osap probation

I did very poorly in my second year, and unfortunately, I am under academic probation & osap probation currently due to low gpa, and thinking to transfer to different university.
Osap is saying that if i want to get a financial aid, i need to submit transcript from the old university that i went, and the another transcript from university that i will be going to.
Does it mean that i need to take some courses from new school and submit the transcripts from new school? If I dont take any courses from new university, transcript will be just blank i guess?
Do they want a transcript from new university just to make sure i am enrolled?

It's also saying that i need to write a letter explaining circumstances(how i can improve my academics, and why i did poorly) and submit to my financial aid office.
I am confused with this as well, if i write a letter and submit to the financial aid office from new university, the financial aid office from new school will read this letter which is my explanation of all bad experiences from my previous university?
Do they just get this letter and forward it to the osap?

Your answer will be greatly appreciated.
Thanks.