First Nations Fiscal and Statistical Management Act (S.C. 2005, c. 9)

Marginal note:Surpluses

• 83. (1) The Authority may declare a surplus in a sinking fund and use the surplus, in order of priority, to

  • (a) replenish any amounts paid out of the debt reserve fund; and

  • (b) make a distribution to borrowing members who are participating in that fund.

• Marginal note:Recovery from sinking fund

  (2) The Authority may recover fees payable by a borrowing member from any surplus to be distributed to that member under paragraph (1)(b).

Marginal note:Debt reserve fund

• 84. (1) The Authority shall establish a debt reserve fund to make payments or sinking fund contributions for which insufficient moneys are available from borrowing members.

• Marginal note:Provisioning of fund

  (2) Subject to the regulations, the Authority shall withhold 5% of the amount of any long-term loan to a borrowing member for financing capital infrastructure for the provision of local services on reserve lands and deposit that amount in the debt reserve fund.

• Marginal note:Separate account

  (3) A separate account shall be kept for each security issued and for each borrowing member contributing to the debt reserve fund.

• Marginal note:Investments

  (4) The funds of the debt reserve fund may be invested only in securities, investments or deposits referred to in paragraph 82(3)(a), (c) or (d) that mature or are callable within five years, 25% of which must be callable within 90 days.

• Marginal note:Liability for shortfall

  (5) If payments from the debt reserve fund reduce its balance

  • (a) by less than 50% of the total amount contributed by borrowing members, the Authority may, in accordance with the regulations, require all borrowing members to pay amounts sufficient to replenish the debt reserve fund; and

  • (b) by 50% or more of the total amount contributed by borrowing members,

    • (i) the Authority shall, in accordance with the regulations, require all borrowing members to pay without delay amounts sufficient to replenish the debt reserve fund, and

    • (ii) the borrowing members shall recover those amounts under their property taxation laws.

• Marginal note:Repayment

  (6) Money contributed by a borrowing member to the debt reserve fund and investment income received on it shall be repaid by the Authority to the borrowing member when all obligations in respect of the security in respect of which the money was contributed have been satisfied.

Marginal note:Credit enhancement fund

• 85. (1) The Authority shall establish a fund for the enhancement of the Authority’s credit rating.

• Marginal note:Investments

  (2) The funds of the credit enhancement fund may be invested only in securities, investments or deposits referred to in paragraph 82(3)(a), (c) or (d) that mature or are callable within five years, 25% of which must be callable within 90 days.

• Marginal note:Investment income

  (3) Investment income from the credit enhancement fund may be used

  • (a) to temporarily offset any shortfalls in the debt reserve fund;

  • (b) to defray the Authority’s costs of operation; and

  • (c) for any other purpose prescribed by regulation.

• Marginal note:Capital

  (4) The capital of the credit enhancement fund may be used

  • (a) to temporarily offset any shortfalls in the debt reserve fund; and

  • (b) for any other purpose prescribed by regulation.