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

AMENDMENTS NOT IN FORCE

• — 2023, c. 16, s. 3

  • 2018, c. 27, par. 414(c)(E)

    • 3 (1) The definition third-party management in subsection 2(1) of the English version of the Act is repealed.

    • (2) [In force]

    • (3) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:

      intermediate account

      intermediate account means an account established by a First Nation in which other revenues to be used for financing under this Act are deposited and out of which the First Nations Finance Authority is authorized to transfer such revenues to a secured revenues trust account. (compte intermédiaire)

      other revenues

      other revenues means

      • (a) tax revenues and fees imposed or collected by a First Nation under a law or agreement, other than

        • (i) local revenues, and

        • (ii) revenues from taxes administered by His Majesty in right of Canada on the First Nation’s behalf, including under the First Nations Goods and Services Tax Act, unless an agreement between them specifically permits the use of the revenues as security for a loan referred to in paragraph 74(b) and any other applicable conditions are satisfied;

      • (b) royalties payable to a First Nation under the Framework Agreement, as defined in subsection 2(1) of the Framework Agreement on First Nation Land Management Act, or under the First Nations Oil and Gas and Moneys Management Act;

      • (c) royalties payable to His Majesty in right of Canada under the Indian Act or the Indian Oil and Gas Act on behalf of a First Nation that has assumed control of its moneys under the First Nations Oil and Gas and Moneys Management Act;

      • (d) revenues that are from leases, permits or other instruments or acts authorizing the use of reserve land issued under the Indian Act and that a First Nation has assumed control of under the First Nations Oil and Gas and Moneys Management Act;

      • (e) revenues from leases, permits or other instruments or acts authorizing the use of reserve land issued under the Framework Agreement, as defined in subsection 2(1) of the Framework Agreement on First Nation Land Management Act;

      • (f) revenues otherwise payable to a First Nation under any agreement with a person other than His Majesty in right of Canada — with the exception of revenues collected by His Majesty in right of Canada on the First Nation’s behalf unless an agreement between them specifically permits their use as security for a loan referred to in paragraph 74(b) and any other applicable conditions are satisfied;

      • (g) revenues, other than local revenues, received by a First Nation from businesses wholly or partly owned by it, including dividends from shares owned by it;

      • (h) transfers from a provincial, regional, municipal or local government to a First Nation;

      • (i) transfers from His Majesty in right of Canada to a First Nation if the agreement governing the transfer specifically permits the use of the transfer as security for a loan referred to in paragraph 74(b) and if any other applicable conditions are satisfied;

      • (j) interest earned by a First Nation on deposits, investments or loans, other than interest held by His Majesty in right of Canada on the First Nation’s behalf; and

      • (k) revenues prescribed by regulation. (autres recettes)

      secured revenues trust account

      secured revenues trust account means an account established by the First Nations Finance Authority and a First Nation in which other revenues to be used for financing under this Act are maintained. (compte de recettes en fiducie garanti)

    • (4) [In force]

    • (5) Section 2 of the Act is amended by adding the following after subsection (3):

      • Regulations

        (3.1) The Governor in Council may make regulations prescribing anything that is to be prescribed under paragraph (k) of the definition other revenues.

• — 2023, c. 16, s. 4

  • 2018, c. 27, s. 414(E)

    4 Section 4 of the Act is replaced by the following:

    • Financial administration laws

      4 The council of a First Nation may not make a law under paragraph 5(1)(d) or 8.1(1)(a) until the council has made a law respecting the financial administration of the First Nation under paragraph 9(1)(a) and that law has been approved by the First Nations Financial Management Board.

• — 2023, c. 16, s. 5

  • • 5 (1) [In force]

    • (2) Paragraph 5(1)(d) of the Act is replaced by the following:

      • (d) respecting the borrowing of money from the First Nations Finance Authority that is secured by local revenues, including any authorization to enter into a particular borrowing agreement with that Authority;

    • (3) [In force]

    • (4) Paragraph 5(1)(g) of the English version of the Act is replaced by the following:

      • (g) delegating to the First Nations Financial Management Board any of the council’s other powers that are required to give effect to a co-management arrangement entered into under section 52 or to give effect to third-party management under section 53.

    • (5) [In force]

• — 2023, c. 16, s. 6

  • 6 The Act is amended by adding the following after section 8:

    • Other revenues laws

      • 8.1 (1) The council of a First Nation may make laws

        • (a) respecting the borrowing from the First Nations Finance Authority of money that is secured by other revenues, including any authorization to enter into a particular borrowing agreement with that Authority;

        • (b) delegating to any person or body any of the council’s powers to make laws under paragraph (a); and

        • (c) delegating to the First Nations Financial Management Board any of the council’s other powers that are required to give effect to a co-management arrangement entered into under section 52.1 or to give effect to third-party management under section 53.1.

      • Coming into force

        (2) A law made under subsection (1) comes into force on the later of

        • (a) the day of coming into force set out in the law, and

        • (b) the day after the day on which it is made.

      • Judicial notice

        (3) In any proceedings, judicial notice may be taken of laws made under subsection (1).

      • Statutory Instruments Act

        (4) The Statutory Instruments Act does not apply in respect of laws made under subsection (1).

      • Publication

        (5) The First Nation shall publish all laws made under paragraphs (1)(b) and (c) in the First Nations Gazette.

• — 2023, c. 16, s. 9

  • 2018, c. 27, par. 414(m)(E)

    9 Section 15 of the Act is replaced by the following:

    • Reporting of other revenues

      14.1 If a First Nation is using other revenues as security for a loan from the First Nations Finance Authority, the First Nation shall account for all of its other revenues — including other revenues that have not been used as security for the loan — separately from its other moneys, and shall provide that accounting information to the Authority and the First Nations Financial Management Board on request.

    • Non-application of certain provisions

      15 Paragraphs 83(1)(a) and (b) to (g) and section 84 of the Indian Act do not apply to a First Nation and any regulations made under paragraph 73(1)(m) of that Act do not apply to a First Nation in respect of the borrowing of money under a law made under paragraph 5(1)(d) or 8.1(1)(a).

• — 2023, c. 16, s. 15

  • 2018, c. 27, par. 414(q)(E)

    • 15 (1) Paragraph 33(1)(a) of the Act is replaced by the following:

      • (a) is of the opinion that the First Nation has not complied with this Part or a regulation made under this Part or, with respect to local revenues, Part 1 or a regulation made under that Part or that a local revenue law has been unfairly or improperly applied,

    • 2018, c. 27, par. 414(q)(E)

      (2) Subsection 33(2) of the Act is replaced by the following:

      • Independent review

        (2) If the Commission is of the opinion that a First Nation has not complied with this Part or a regulation made under this Part or, with respect to local revenues, Part 1 or a regulation made under that Part or that a local revenue law has been unfairly or improperly applied, it shall conduct a review of the matter in accordance with the regulations.

    • 2018, c. 27, par. 414(q)(E)

      (3) The portion of subsection 33(3) of the Act before paragraph (a) is replaced by the following:

      • Remedying the situation

        (3) If, after conducting a review, the Commission considers that a First Nation has not complied with this Part or a regulation made under this Part or, with respect to local revenues, Part 1 or a regulation made under that Part or that a local revenue law has been unfairly or improperly applied, the Commission

    • 2018, c. 27, par. 414(q)(E)

      (4) Paragraph 33(3)(b) of the Act is replaced by the following:

      • (b) may, if the First Nation does not remedy the situation within the time set out in the order, by notice in writing, require the First Nations Financial Management Board to either — at the Board’s discretion — impose a co-management arrangement on the First Nation under section 52 or assume third-party management under section 53 to remedy the situation.

• — 2023, c. 16, s. 24

  • 2018, c. 27, par. 414(v)(E)

    24 Section 51 of the Act is replaced by the following:

    • Required intervention — local revenues

      • 51 (1) On receipt of a notice from the First Nations Tax Commission under paragraph 33(3)(b) or from the First Nations Finance Authority under subsection 86(4), the Board shall either require the First Nation to enter into a co-management arrangement in accordance with section 52 or assume third-party management in accordance with section 53, as the Board sees fit.

      • Required intervention — other revenues

        (2) On receipt of a notice from the First Nations Finance Authority under subsection 86(5), the Board shall either require the First Nation to enter into a co-management arrangement in accordance with section 52.1 or assume third-party management in accordance with section 53.1, as the Board sees fit.

• — 2023, c. 16, s. 25

  • 2018, c. 27, par. 414(v)(E)

    • 25 (1) Subsection 52(1) of the Act is replaced by the following:

      • Imposed co-management — local revenues

        • 52 (1) The Board may, on giving notice to the council of a First Nation, require the First Nation to enter into a co-management arrangement in respect of the First Nation’s local revenues, including its local revenue account,

          • (a) if, in the opinion of the Board, there is a serious risk that the First Nation will default on an obligation to the First Nations Finance Authority relating to a loan secured by local revenues; or

          • (b) if the Board has received a notice under paragraph 33(3)(b) or subsection 86(4).

    • 2018, c. 27, par. 414(v)(E)

      (2) The portion of subsection 52(2) of the Act before paragraph (e) is replaced by the following:

      • Powers

        (2) Under the co-management arrangement, the Board may

        • (a) recommend amendments to a law of the First Nation made under any of paragraphs 5(1)(a) to (f) or subsection 9(1);

        • (b) recommend changes to the First Nation’s expenditures or budgets with respect to its local revenues;

        • (c) recommend improvements to the First Nation’s financial management system with respect to its local revenues;

        • (d) recommend changes to the delivery of programs and services paid for out of the First Nation’s local revenues;

    • 2018, c. 27, par. 414(v)(E)

      (3) Paragraph 52(2)(f) of the Act is replaced by the following:

      • (f) with respect to local revenues, exercise any powers delegated to the Board under a law of the First Nation or under an agreement between the First Nation and the Board or the First Nation and the First Nations Finance Authority.

    • 2018, c. 27, par. 414(v)(E)

      (4) The portion of subsection 52(3) of the Act before paragraph (d) is replaced by the following:

      • Termination by Board

        (3) The Board may terminate the co-management arrangement on giving notice to the council of the First Nation that the Board is of the opinion that

        • (a) there is no longer a serious risk that the First Nation will default on an obligation to the First Nations Finance Authority relating to a loan secured by local revenues;

        • (b) in the case of a First Nation that was in default of a payment obligation to the First Nations Finance Authority relating to a loan secured by local revenues, the First Nation has remedied the default;

        • (c) the co-management arrangement is no longer required; or

    • 2018, c. 27, par. 414(v)(E)

      (5) Subsection 52(5) of the Act is replaced by the following:

      • Notice

        (5) The Board shall advise the First Nations Finance Authority and the First Nations Tax Commission of the commencement or termination of the co-management arrangement.

• — 2023, c. 16, s. 26

  • 26 The Act is amended by adding the following after section 52:

    • Imposed co-management — other revenues

      • 52.1 (1) The Board may, on giving notice to the council of a First Nation, require the First Nation to enter into a co-management arrangement in respect of the First Nation’s other revenues, including those that have not been used as security for a loan from the First Nations Finance Authority,

        • (a) if, in the opinion of the Board, there is a serious risk that the First Nation will default on an obligation to the First Nations Finance Authority relating to a loan secured by other revenues; or

        • (b) if the Board has received a notice under subsection 86(5).

      • Powers

        (2) Under the co-management arrangement, the Board may

        • (a) recommend amendments to a law of the First Nation made under any of paragraphs 8.1(1)(a) or (b) or subsection 9(1);

        • (b) recommend changes to the First Nation’s expenditures or budgets with respect to its other revenues;

        • (c) recommend improvements to the First Nation’s financial management system with respect to its other revenues;

        • (d) recommend changes to the delivery of programs and services that are paid for out of the First Nation’s other revenues;

        • (e) order that expenditures of other revenues of the First Nation be approved by, or paid with cheques co-signed by, a manager appointed by the Board; and

        • (f) with respect to other revenues, exercise any powers delegated to the Board under a law of the First Nation or under an agreement between the First Nation and the Board or the First Nation and the First Nations Finance Authority.

      • Termination by Board

        (3) The Board may terminate the co-management arrangement on giving notice to the council of the First Nation that the Board is of the opinion that

        • (a) there is no longer a serious risk that the First Nation will default on an obligation to the First Nations Finance Authority relating to a loan secured by other revenues;

        • (b) in the case of a First Nation that was in default of a payment obligation to the First Nations Finance Authority relating to a loan secured by other revenues, the First Nation has remedied the default;

        • (c) the co-management arrangement is no longer required; or

        • (d) third-party management of the First Nation’s other revenues is required.

      • Opinion final

        (4) An opinion given by the Board under this section is final and conclusive and is not subject to appeal.

      • Notice

        (5) The Board shall advise the First Nations Finance Authority and the First Nations Tax Commission of the commencement or termination of the co-management arrangement.

• — 2023, c. 16, s. 27

  • 2018, c. 27, par. 414(w)(E)

    • 27 (1) Subsection 53(1) of the Act is replaced by the following:

      • Third-party management — local revenues

        • 53 (1) The Board may, on giving notice to the council of a First Nation and to the Minister, assume management of the First Nation’s local revenues, including its local revenue account,

          • (a) if, in the opinion of the Board, the co-management arrangement entered into under section 52 has not been effective;

          • (b) if, in the opinion of the Board, there is a serious risk that the First Nation will default on an obligation to the First Nations Finance Authority relating to a loan secured by local revenues; or

          • (c) if the Board has received a notice under paragraph 33(3)(b) or subsection 86(4).

    • 2018, c. 27, par. 414(w)(E)

      (2) The portion of subsection 53(2) of the English version of the Act before paragraph (a) is replaced by the following:

      • Powers

        (2) If the Board assumes third-party management of the local revenues of a First Nation, the Board has the exclusive authority to

    • (3) [In force]

    • (4) Subparagraph 53(2)(b)(iv) of the Act is replaced by the following:

      • (iv) provide for the delivery of programs and services that are paid for out of the First Nation’s local revenues, manage assets related to those programs and services and enter into or terminate agreements in respect of those programs, services and assets;

    • 2018, c. 27, s. 399

      (5) Paragraph 53(2)(d) of the Act is replaced by the following:

      • (d) with respect to local revenues, exercise any powers or fulfil any obligations delegated to the Board under a law of the First Nation or an agreement between the First Nation and the Board or between the First Nation and the First Nations Finance Authority.

    • (6) Section 53 of the Act is amended by adding the following after subsection (5):

      • Board not agent or mandatary

        (5.1) For greater certainty, the Board is not an agent or mandatary of the First Nations Finance Authority or the First Nations Tax Commission while exercising its exclusive authority under subsection (2).

    • 2018, c. 27, par. 414(w)(E)

      (7) Subsection 53(6) of the Act is replaced by the following:

      • Termination by Board

        (6) The Board may terminate third-party management of a First Nation’s local revenues, on giving notice to the council of the First Nation, if

        • (a) it is of the opinion that there is no longer a serious risk that the First Nation will default on an obligation to the First Nations Finance Authority relating to a loan secured by local revenues and the Authority consents to the termination in writing;

        • (b) in the case of a First Nation that was in default of an obligation to the First Nations Finance Authority relating to a loan secured by local revenues, it is of the opinion that the First Nation has remedied the default and the Authority consents to the termination in writing;

        • (c) it is of the opinion that the situation for which third-party management of the First Nation’s local revenues was required has been remedied; or

        • (d) in the case of third-party management that was assumed by the Board following receipt of a notice under subsection 86(4), the First Nations Finance Authority has, in writing, requested the termination and stated its reasons for the request.

• — 2023, c. 16, s. 28

  • 28 The Act is amended by adding the following after section 53:

    • Third-party management — other revenues

      • 53.1 (1) The Board may, on giving notice to the council of a First Nation and to the Minister, assume management of the First Nation’s other revenues, including those that have not been used as security for a loan from the First Nations Finance Authority,

        • (a) if, in the opinion of the Board, the co-management arrangement entered into under section 52.1 has not been effective;

        • (b) if, in the opinion of the Board, there is a serious risk that the First Nation will default on an obligation to the First Nations Finance Authority relating to a loan secured by other revenues; or

        • (c) if the Board has received a notice under subsection 86(5).

      • Powers

        (2) If the Board assumes third-party management of the other revenues of a First Nation, the Board has the exclusive authority to

        • (a) subject to subsection (5), act in the place of the council of the First Nation to make laws under paragraphs 8.1(1)(a) and (b) and subsection 9(1);

        • (b) act in the place of the council of the First Nation to

          • (i) with respect to other revenues, exercise any powers and fulfil any obligations of the council under this Act, including under the regulations made under this Act, or under any laws made under paragraph 8.1(1)(a) or 9(1)(a),

          • (ii) manage the First Nation’s other revenues,

          • (iii) manage assets of the First Nation that are generating other revenues, including by exercising any powers of the council to terminate an agreement, or enter into a new agreement, in respect of those assets,

          • (iv) undertake any necessary borrowing for the purpose of remedying the situation for which third-party management was required, and

          • (v) provide for the delivery of programs and services that are paid for out of the First Nation’s other revenues, manage assets related to those programs and services and enter into or terminate agreements in respect of those programs, services and assets; and

        • (c) with respect to other revenues, exercise any powers or fulfil any obligations delegated to the Board under a law of the First Nation or an agreement between the First Nation and the Board or between the First Nation and the First Nations Finance Authority.

      • Scope of power

        (3) In exercising the authority referred to in subparagraph (2)(b)(ii), the Board may manage other revenues of a First Nation that were received before, or that are received after, the Board assumes management of the First Nation’s other revenues, including those that are comingled with other moneys of the First Nation. However, the Board may not manage the First Nation’s other revenues that are in a secured revenues trust account or an intermediate account.

      • Board not agent or mandatary

        (4) For greater certainty, the Board is not an agent or mandatary of the First Nations Finance Authority while exercising its exclusive authority under subsection (2).

      • Delegation — consent of council required

        (5) The Board shall not make a law under paragraph 8.1(1)(b) or 9(1)(b) that delegates a power to a person or body to whom a power was not delegated at the time the Board assumed third-party management of the other revenues of a First Nation, unless the council of the First Nation gives its consent.

      • Prohibition

        (6) The council of a First Nation shall not, during the time that the Board assumes third-party management of the First Nation’s other revenues, repeal any law made under paragraph 8.1(1)(c).

      • Review every six months

        (7) If the Board has assumed third-party management of a First Nation’s other revenues, it shall review the need for third-party management at least once every six months and advise the First Nations Finance Authority, the First Nations Tax Commission and the council of the First Nation of the results of its review.

      • Termination by Board

        (8) The Board may terminate third-party management of a First Nation’s other revenues, on giving notice to the council of the First Nation, if

        • (a) it is of the opinion that there is no longer a serious risk that the First Nation will default on an obligation to the First Nations Finance Authority relating to a loan secured by other revenues and the Authority consents to the termination in writing;

        • (b) in the case of a First Nation that was in default of an obligation to the First Nations Finance Authority relating to a loan secured by other revenues, it is of the opinion that the First Nation has remedied the default and the Authority consents to the termination in writing;

        • (c) it is of the opinion that the situation for which third-party management of the First Nation’s other revenues was required has been remedied; or

        • (d) in the case of third-party management that was assumed by the Board following receipt of a notice under subsection 86(5), the First Nations Finance Authority has, in writing, requested the termination and stated its reasons for the request.

      • Opinion final

        (9) An opinion given by the Board under this section is final and conclusive and is not subject to appeal.

      • Notice

        (10) The Board shall advise the First Nations Finance Authority and First Nations Tax Commission of the assumption or termination of third-party management of a First Nation’s other revenues.

• — 2023, c. 16, s. 29

  • 2018, c. 27, par. 414(x)(E)

    29 Section 54 of the Act is replaced by the following:

    • Required information

      54 At the request of the Board, a First Nation shall provide to the Board any information about the First Nation’s financial management system and financial performance that the Board requires for a decision regarding a co-management arrangement or third-party management of the First Nation’s local revenues or other revenues.

• — 2023, c. 16, s. 30

  • 2018, c. 27, par. 414(y)(E)

    30 Paragraph 55(2)(c) of the Act is replaced by the following:

    • (c) the implementation or termination of a co-management arrangement or third-party management of a First Nation’s local revenues or other revenues.

• — 2023, c. 16, s. 32

  • 2018, c. 27, par. 414(z)(E)

    • 32 (1) Paragraph 56(a) of the Act is replaced by the following:

      • (a) respecting the implementation of a co-management arrangement or third-party management of a First Nation’s local revenues or other revenues, including the obligations of affected First Nations to provide access to financial records; and

    • 2018, c. 27, par. 414(z)(E)

      (2) Paragraph 56(b) of the French version of the Act is replaced by the following:

      • b) fixer les droits que peut imposer le Conseil relativement à la prestation de services, notamment les droits imposés aux premières nations pour les services de cogestion et de gestion, ainsi que les modalités de leur recouvrement.

• — 2023, c. 16, s. 33

  • 2018, c. 27, s. 400

    33 The portion of section 56.1 of the French version of the Act before paragraph (a) is replaced by the following:

    • Règlements

      56.1 Le gouverneur en conseil peut, afin de donner à une entité visée à l’un des alinéas 50.1(1)a) à e) la possibilité d’obtenir les services du Conseil — autres que des services de cogestion et de gestion —, prendre les règlements qu’il estime nécessaires, et notamment :

• — 2023, c. 16, s. 35(3)

  • • 35 (3) Paragraph 74(b) of the Act is replaced by the following:

      • (b) secure for its borrowing members, through the use of other revenues, loans for any purpose that promotes a First Nation’s economic or social development, including loans for

        • (i) capital assets that are to be wholly or partly owned by the First Nation, including capital assets for the provision of services, housing, plants, machinery, roads and buildings,

        • (ii) rolling stock that is to be wholly or partly owned by the First Nation,

        • (iii) land that is to be wholly or partly owned by the First Nation,

        • (iv) shares or any other ownership interest in a corporation whose purpose includes the ownership, operation, management or sale of the products of power generating facilities, waste or wastewater treatment facilities or other public service utilities or facilities, and

        • (v) short-term financing to meet cash flow requirements for capital purposes or to refinance a short-term debt incurred for capital purposes;

• — 2023, c. 16, s. 36

  • 2015, c. 36, s. 195; 2018, c. 27, par. 414(z.3)(E)

    36 Section 77 of the Act is replaced by the following:

    • Ceasing to be borrowing member

      77 A borrowing member that has obtained a loan from the Authority may cease to be a borrowing member only with the consent of all other borrowing members.

• — 2023, c. 16, s. 38(2)

  • • 38 (2) Section 79 of the Act is replaced by the following:

      • Limitations — loans secured by property tax revenues

        • 79 (1) The Authority shall not make a loan secured by property tax revenues to a borrowing member unless the First Nations Tax Commission has approved a law made by the borrowing member under paragraph 5(1)(d) in respect of that loan.

        • Limitations — loans secured by other revenues

          (2) The Authority shall not make a loan secured by other revenues to a borrowing member unless

          • (a) the borrowing member has made a law under paragraph 8.1(1)(a) in respect of that loan and forwarded a copy of it to the Authority;

          • (b) the Authority is satisfied that the borrowing member has the ability to repay the loan;

          • (c) the borrowing member has obtained a certificate respecting financial performance from the First Nations Financial Management Board under subsection 50(3) and forwarded a copy of it to the Authority;

          • (d) the borrowing member and the Authority have established a secured revenues trust account that is

            • (i) managed by a third party approved by the Authority, and

            • (ii) subject to terms that require the third party managing the account to periodically pay to the Authority the amounts required to be paid to it under the borrowing agreement with the borrowing member, at the times set out in that agreement, before paying any remaining amount to the borrowing member; and

          • (e) the borrowing member has required the payers of the other revenues being used to secure the loan to deposit those other revenues into the secured revenues trust account or an intermediate account during the period of the loan.

      • Maintenance of registry and publication

        79.1 The Authority shall maintain a registry of every law made under paragraph 8.1(1)(a) that is forwarded to it under paragraph 79(2)(a) and shall publish a copy of each law on an Internet website to be maintained by the Authority within 30 days after the day on which it is received.

• — 2023, c. 16, s. 40

  • 2015, c. 36, s. 199

    • 40 (1) Subsection 84(1) of the Act is replaced by the following:

      • Debt reserve fund

        • 84 (1) The Authority shall establish a debt reserve fund to make payments or sinking fund contributions for which insufficient moneys are available from borrowing members.

    • (2) [In force]

    • (3) Subsections 84(2) to (6) of the Act are replaced by the following:

      • Provisioning of fund

        (2) The Authority shall withhold — and deposit in the debt reserve fund — 5% of the amount of any loan.

      • Percentage withheld may be reduced by board

        (2.1) However, the board of directors may, by resolution, reduce the percentage to be withheld from a loan under subsection (2) to a percentage that is not less than 1%, if the board of directors is satisfied that doing so would not have a negative impact on the Authority’s credit rating.

      • Separate account

        (3) A separate account shall be kept for each security issued and for each borrowing member contributing to the debt reserve fund.

      • Investments

        (4) The funds of the debt reserve fund may be invested only in securities, investments or deposits referred to in paragraph 82(3)(a), (c) or (d) that mature or are callable within five years, 25% of which must be callable within 90 days.

      • Liability for shortfall

        (5) The following rules apply if payments from the debt reserve fund reduce its balance:

        • (a) if the balance is reduced by less than 50% of an amount determined in any manner prescribed by regulation, the Authority may, in accordance with the regulations, require borrowing members with unpaid loans to pay without delay amounts sufficient to replenish the debt reserve fund; and

        • (b) if the balance is reduced by 50% or more of an amount determined in any manner prescribed by regulation, the Authority shall, in accordance with the regulations, require borrowing members with unpaid loans to pay without delay amounts sufficient to replenish the debt reserve fund.

      • Repayment

        (6) Money contributed by a borrowing member to the debt reserve fund, and any investment income received on it, that has not already been repaid to the borrowing member by the Authority shall be repaid when all obligations in respect of the security for which the money was contributed have been satisfied.

• — 2023, c. 16, s. 41

  • • 41 (1) Subsection 86(3) of the Act is replaced by the following:

      • 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, in the case of an obligation relating to a loan secured by local revenues, or under section 52.1 or 53.1, in the case of an obligation relating to a loan secured by other revenues, that it considers appropriate. The Board must provide a copy of the report including its opinion and any recommendations to the First Nations Tax Commission.

    • 2018, c.27, par. 414(z.5)(E)

      (2) Subsection 86(4) of the Act is replaced by the following:

      • 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 in respect of its local revenues or assume third-party management of its local revenues

        • (a) if, with respect to a loan secured by local revenues, 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) if, with respect to a loan secured by local revenues, the Authority receives a report of the Board under subsection (3) in respect of the borrowing member.

    • (3) Section 86 of the Act is amended by adding the following after subsection (4):

      • Required intervention

        (5) 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 in respect of its other revenues or assume third-party management of its other revenues

        • (a) if, with respect to a loan secured by other revenues, 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) if, with respect to a loan secured by other revenues, the Authority receives a report of the Board under subsection (3) in respect of the borrowing member.

      • Copy to Commission

        (6) The Authority must provide a copy of the notices referred to in subsections (4) and (5) to the First Nations Tax Commission.

• — 2023, c. 16, s. 42

  • 2015, c. 36, s. 201

    42 Paragraphs 89(a) and (b) of the Act are replaced by the following:

    • (a) prescribing anything that is to be prescribed under subsection 82(1) and paragraphs 84(5)(a) and (b), 85(3)(c) and (4)(b) and 87(2)(f); and

• — 2023, c. 16, s. 51

  • 2018, c. 27, s. 410

    51 Section 136.1 of the Act is replaced by the following:

    • Limit of liability — co-management or third-party management

      136.1 Despite anything in federal or provincial law, if, under this Act, the First Nations Financial Management Board has required a First Nation to enter into a co-management arrangement or has assumed third-party management of a First Nation’s local revenues or other revenues, neither the Board nor any director or employee of the Board or person acting on behalf of the Board is by reason of that fact liable for any liability of the First Nation.

• — 2023, c. 16, s. 52(2)

  • • 52 (2) Subsection 138(1) of the Act is replaced by the following:

      • Conflict with other laws

        • 138 (1) In the event of a conflict between a local revenue law, a law made under subsection 8.1(1) or a law made under subsection 97(1) and an Act of Parliament or any regulations made under an Act of Parliament or a code made by a First Nation under another Act of Parliament, the Act, regulations or code prevails to the extent of the conflict.

• — 2023, c. 16, s. 57

  • 57 Section 142 of the Act is repealed.