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

Act current to 2020-07-28 and last amended on 2020-07-20. Previous Versions

PART 4First Nations Finance Authority (continued)

Functions and Powers (continued)

Marginal note:Default by first nation

  •  (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.

  • Marginal note:Report

    (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.

  • 2005, c. 9, s. 86
  • 2018, c. 27, s. 414(E)

Marginal note:Short-term pooled investment funds

  •  (1) The Authority may establish short-term pooled investment funds.

  • Marginal note:Investments

    (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.

General

Marginal note:Annual report

  •  (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.

  • Marginal note:Contents

    (2) The annual report shall include the financial statements of the Authority and its auditor’s opinion on them.

Regulations

Marginal note:Regulations

 The Governor in Council may, on the recommendation of the Minister after consultation by the Minister with the Authority, make regulations

  • (a) prescribing anything that is to be prescribed under subsection 82(1) and paragraphs 85(3)(c) and (4)(b) and 87(2)(f);

  • (b) fixing a percentage in respect of an amount to be withheld from a loan under subsection 84(2), which may be a higher or lower percentage than the percentage set out in that subsection and may vary according to whether the loan is secured by property tax revenues or by other revenues; and

  • (c) respecting the imposition of charges under subsection 84(5), including the manner of calculating those charges and the share of those charges to be paid by each borrowing member.

  • (d) [Repealed, 2018, c. 27, s. 407]

  • 2005, c. 9, s. 89
  • 2015, c. 36, s. 201
  • 2018, c. 27, s. 407

PART 5Payment of Moneys

Marginal note:Council resolution

  •  (1) The council of a First Nation may submit to the Minister a resolution of the council requesting the payment to the First Nation of

    • (a) moneys held by Her Majesty for the use and benefit of the First Nation; and

    • (b) moneys to be collected or received in future by Her Majesty for the use and benefit of the First Nation.

  • Marginal note:Information to accompany resolution

    (2) The resolution shall be accompanied by proof that

    • (a) the council has made a law respecting the financial administration of the First Nation under paragraph 9(1)(a) and the law has been approved by the First Nations Financial Management Board;

    • (b) the council has obtained independent legal advice and independent financial advice with respect to the risks of the payment of the moneys to the First Nation; and

    • (c) the payment of the moneys to the First Nation has been approved under section 91.

  • 2005, c. 9, s. 90
  • 2012, c. 19, s. 660
  • 2018, c. 27, s. 408

Marginal note:Approval by members

  •  (1) If the council of a First Nation intends to request the payment of moneys under subsection 90(1), the council shall conduct a vote among the First Nation’s eligible voters on the approval of the payment of the moneys.

  • Marginal note:Eligible voters

    (2) Every First Nation member, whether resident on a reserve of the First Nation or not, is an eligible voter if the member is at least 18 years old on the date of the vote.

  • Marginal note:Independent legal and financial advice

    (3) Before conducting the vote under subsection (1), the council shall obtain independent legal advice and independent financial advice with respect to the risks of the payment of the moneys to the First Nation.

  • Marginal note:Information to be provided

    (4) Before conducting the vote under subsection (1), the council shall also take reasonable measures that are in accordance with the First Nation’s practices to inform eligible voters of

    • (a) their right to vote and the means of exercising that right;

    • (b) the fact that council has obtained the legal and financial advice referred to in subsection (3);

    • (c) the implications of the payment of the moneys and the reasons why the payment is for the benefit of the First Nation; and

    • (d) the fact that the council has made a law respecting the financial administration of the First Nation under paragraph 9(1)(a).

  • Marginal note:Majority approval

    (5) The payment of the moneys to the First Nation is approved if a majority of eligible voters who participated voted to approve the payment.

  • Marginal note:Minimum participation

    (6) Despite subsection (5), the payment is not approved unless at least 25% of all eligible voters participated in the vote.

  • Marginal note:Increased percentage

    (7) The council may, by resolution adopted before the vote, increase the percentage of eligible voters required under subsection (6).

  • 2005, c. 9, s. 91
  • 2012, c. 19, s. 660
  • 2018, c. 27, s. 408

Marginal note:Initial payment of moneys

  •  (1) After the resolution is submitted to the Minister by the council of the First Nation under subsection 90(1), the moneys held by Her Majesty for the First Nation’s use and benefit shall be paid to the First Nation out of the Consolidated Revenue Fund, if the Minister is satisfied that

    • (a) the council has made a law respecting the financial administration of the First Nation under paragraph 9(1)(a) and the law has been approved by the First Nations Financial Management Board;

    • (b) the council has obtained independent legal advice and independent financial advice with respect to the risks of the payment of the moneys to the First Nation; and

    • (c) the payment of the moneys to the First Nation has been approved under section 91.

  • Marginal note:Subsequent payment

    (2) Following a payment of moneys under subsection (1), all moneys subsequently collected or received by Her Majesty for the use and benefit of the First Nation shall be paid out of the Consolidated Revenue Fund to the First Nation.

  • Marginal note:Subsection (2) ceases to apply

    (3) Subsection (2) shall cease to apply if the law referred to in paragraph (1)(a) is repealed, and at the time of its repeal, it is not concurrently replaced by a law respecting the financial administration of the First Nation made under paragraph 9(1)(a) that has been approved by the First Nations Financial Management Board.

  • 2005, c. 9, s. 92
  • 2012, c. 19, s. 660
  • 2018, c. 27, s. 408
 
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