Marginal note:Default by first nation
86. (1) If a borrowing member fails to make a payment to the Authority, to fulfil any other obligation under a borrowing agreement with the Authority or to pay a charge imposed by the Authority under this Part, the Authority shall
(a) notify the borrowing member of the failure; and
(b) send a notice of the failure to the First Nations Financial Management Board and the First Nations Tax Commission, together with evidence of the failure and a copy of any relevant documents and records.
Marginal note:Requirement for report
(2) If a failure referred to in subsection (1) relates to an obligation other than payment, the Authority may require that the First Nations Financial Management Board review and report on the reasons for the failure.
(3) On receipt of a notice referred to in paragraph (1)(b) in respect of a failure related to an obligation other than payment, the First Nations Financial Management Board shall advise the Authority in writing of its opinion on the reasons for the failure and recommend any intervention under section 52 or 53 that it considers appropriate.
Marginal note:Required intervention
(4) The Authority may, by notice in writing, require the First Nations Financial Management Board to either — at the Board’s discretion — impose a co-management arrangement on a borrowing member or assume third-party management of the first nation’s local revenues
(a) where the borrowing member fails to make a payment to the Authority under a borrowing agreement with the Authority, or to pay a charge imposed by the Authority under this Part; or
(b) on receipt of a report of the Board under subsection (3) in respect of the borrowing member.
Marginal note:Short-term pooled investment funds
87. (1) The Authority may establish short-term pooled investment funds.
(2) Funds in a short-term pooled investment fund may be invested only in
(a) securities issued or guaranteed by Canada, a province or the United States;
(b) fixed-term deposits, notes, certificates or other short-term paper of, or guaranteed by, a bank, trust company or credit union, including swaps in United States currency;
(c) securities issued by the Authority or by a local, municipal or regional government in Canada;
(d) commercial paper issued by a Canadian company that is rated in the highest category by at least two recognized security-rating institutions;
(e) any class of investments permitted under an Act of a province relating to trustees; or
(f) any other investments or class of investments prescribed by regulation.
Marginal note:Annual report
88. (1) The Chairperson shall, within four months after the end of each fiscal year, submit to the Authority’s members and the Minister a report of the operations of the Authority for that fiscal year.
(2) The annual report shall include the financial statements of the Authority and its auditor’s opinion on them.
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