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

Marginal note:Head office

72. The head office of the Authority shall be on reserve lands at a location determined by the board of directors.

Marginal note:Annual budget

73. At the beginning of every year, the President shall prepare an annual budget of the Authority and present it to the board of directors for approval.

Marginal note:Mandate

74. The purposes of the Authority are to

• (a) secure for its borrowing members, through the use of property tax revenues,

  • (i) long-term financing of capital infrastructure for the provision of local services on reserve lands,

  • (ii) lease financing of capital assets for the provision of local services on reserve lands, or

  • (iii) short-term financing to meet cash-flow requirements for operating or capital purposes under a law made under paragraph 5(1)(b), or to refinance a short-term debt incurred for capital purposes;

• (b) secure for its borrowing members, through the use of other revenues prescribed by regulation, financing for any purpose prescribed by regulation;

• (c) secure the best possible credit terms for its borrowing members;

• (d) provide investment services to its members and first nations organizations; and

• (e) provide advice regarding the development of long-term financing mechanisms for first nations.

Marginal note:Powers of board of directors

• 75. (1) For the purposes of this Part, the board of directors may by resolution

  • (a) borrow money in an amount authorized by the resolution;

  • (b) issue securities of the Authority;

  • (c) lend securities to generate income, if the loan is fully secured;

  • (d) enter into agreements for risk management purposes, including swaps; and

  • (e) provide for

    • (i) payments related to the issuance of securities,

    • (ii) the registration, transfer, management and redemption of securities,

    • (iii) the re-issuance, reinstatement or other disposition of lost, stolen, destroyed or damaged securities or interest coupons,

    • (iv) the examination, cancellation or destruction of securities and of materials used in their production, or

    • (v) the timing of the issuance of securities.

• Marginal note:Security issuance requirements

  (2) A resolution respecting the issuance of securities shall set out

  • (a) the rate of interest;

  • (b) the time and place of repayment of principal and interest; and

  • (c) the currency in which repayment of principal and interest will be made.

• Marginal note:Security issuance resolutions

  (3) A resolution respecting the issuance of securities may provide that

  • (a) the securities are to be redeemable in advance of maturity at a time and price set out in the resolution;

  • (b) all or any part of the securities may be paid, refunded or renewed;

  • (c) the securities are to be issued in an amount sufficient to realize the amount of any securities called in and paid before maturity, for a term not longer than the remainder of the term of the securities called in and paid; or

  • (d) the securities and any interest coupons attached to them are to be in the form set out in the resolution, and are to be exchangeable for other securities of the same issue on any terms and conditions set out in the resolution.

• Marginal note:Amount of issue

  (4) The Authority may issue securities the principal amounts of which, after payment of any discount and the costs of issue and sale, will realize the net amount authorized by the board of directors in a resolution made under paragraph (1)(a).

• Marginal note:Declaration conclusive

  (5) A declaration in a resolution authorizing the issuance of securities that it is necessary to issue securities in the principal amount authorized in order to realize the net amount authorized is conclusive evidence of that fact.

• Marginal note:Sale price

  (6) The board of directors may sell securities at their par value or at other than par value.

• Marginal note:Delegation

  (7) The board of directors may delegate its powers under this section to a committee of directors and officers of the Authority, subject to any limitations that the board of directors may impose.