Naskapi and the Cree-Naskapi Commission Act

Marginal note:Borrowing limitations

• 96 (1) A band may not borrow money on either a short-term or long-term basis otherwise than in accordance with section 97 and the regulations made under section 98.

• Marginal note:Short-term and long-term borrowing

  (2) For the purposes of this section and sections 97 and 98,

  • (a) money shall be deemed to be borrowed on a short-term basis only if

    • (i) it is borrowed for the purpose of meeting the normal operating expenditures of the band,

    • (ii) it is to be repaid within one year from the day on which it is borrowed, and

    • (iii) the band has, prior to borrowing the money, identified the source of revenue from which the money is to be repaid; and

  • (b) all borrowing that is not on a short-term basis shall be deemed to be on a long-term basis.

• Marginal note:Repayment of loan

  (3) Where a source of revenue has been identified pursuant to subparagraph (2)(a)(iii), moneys received by the band from that source shall be applied to the repayment of the loan in question.