Marginal note:Adaptation to paragraph 86(1)(b)

21. Paragraph 86(1)(b) of the Act is adapted to be read without reference to the First Nations Tax Commission.

Marginal note:General adaptations

22. The Debt Reserve Fund Replenishment RegulationsFootnote ¹ are adapted as follows:

• Return to footnote ¹SOR/2006-244

• (a) in relation to a default on financing secured by other revenues,

  • (i) a reference to the debt reserve fund is to be read as a reference to the debt reserve fund established for financing secured by other revenues;

  • (ii) a reference to a borrowing member is to be read as a reference to a borrowing member that has received financing secured by other revenues; and

  • (iii) a reference to a defaulting member is to be read as a reference to a defaulting member in receipt of financing secured by other revenues.

• (b) in relation to a default on financing secured by property tax revenues,

  • (i) a reference to the debt reserve fund is to be read as a reference to the debt reserve fund established for financing secured by property tax revenues;

  • (ii) a reference to a borrowing member is to be read as a reference to a borrowing member that has received financing secured by property tax revenues; and

  • (iii) a reference to a defaulting member is to be read as a reference to a defaulting member in receipt of financing secured by property tax revenues.

Marginal note:Adaptation to section 4

23. Section 4 of the Regulations is adapted as follows:

Marginal note:Calculation of charges

4. On the expiry of the period referred to in subsection 2(1), the Authority shall send

• (a) to the council of each defaulting member, a notice requiring that member to pay the charge determined under section 3; and

• (b) to the council of each borrowing member that is not a defaulting member, a notice requiring that member to pay a charge equal to the amount determined by the formula

  [A / (B - C)] × (D - E)

  where

  A 

  is the amount initially contributed by the borrowing member to the debt replenishment fund at the time the loan was made,

  B 

  is the total amount initially contributed by all borrowing members to the debt replenishment fund at the time the loan was made,

  C 

  is the sum of the amounts initially contributed by all defaulting members to the debt replenishment fund at the time the loan was made,

  D 

  is the amount of the shortfall in the debt reserve fund set out in the notice referred to in section 2, and

  E 

  is the amount charged to defaulting members under section 3.