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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)

Establishment and Organization of Authority (continued)

Marginal note:Remuneration of directors

 Directors shall be paid a fee for attend­ance at meetings of the board of directors, as fixed by the by-laws of the Authority.

Marginal note:Duty of care

  •  (1) The directors and officers of the Authority in exercising their powers and performing their duties shall

    • (a) act honestly and in good faith with a view to the best interests of the Authority; and

    • (b) exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.

  • Marginal note:Limit of liability

    (2) Directors and officers are not liable for a failure to comply with subsection (1) if they rely in good faith on

    • (a) a written report of the auditor of the Authority or financial statements represented by an officer of the Authority as fairly reflecting the financial condition of the Authority; or

    • (b) a report of a lawyer, notary, accountant, engineer, appraiser or other person whose position or profession lends credibility to a statement made by that person.

Marginal note:President

  •  (1) The board of directors shall appoint a President to act as the chief executive officer of the Authority.

  • Marginal note:Other staff

    (2) The President may employ any other officers and employees that are necessary to conduct the work of the Authority.

Marginal note:Annual general meeting

 The Authority shall hold an annual general meeting of representatives for the purpose of

  • (a) presenting the annual report and audited financial statements of the Authority;

  • (b) electing the board of directors; and

  • (c) dealing with any other business of the Authority that may be presented by the board of directors.

Marginal note:By-laws

 The board of directors may make by-laws

  • (a) respecting the calling and conduct of meetings of the board, including the holding of meetings by teleconference;

  • (b) fixing the fees to be paid to directors for attendance at meetings of the board and the reimbursement of reasonable travel and living expenses to directors;

  • (c) respecting the duties and conduct of the directors, officers and employees of the Authority and the terms and conditions of employment and of the termination of employment of officers and employees of the Authority;

  • (d) respecting the signing and sealing of securities and interest coupons issued by the Authority; and

  • (e) generally for the conduct and management of the affairs of the Authority.

Marginal note:Head office

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

Marginal note:Annual budget

 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.

Purposes

Marginal note:Mandate

 The purposes of the Authority are to

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

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

    • (ii) [Repealed, 2018, c. 27, s. 403]

    • (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 First Nations and entities referred to in any of paragraphs 50.1(1)(a) to (e); and

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

  • 2005, c. 9, s. 74
  • 2018, c. 27, ss. 403, 414(E)

Functions and Powers

Marginal note:Powers of board of directors

  •  (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.

Marginal note:Application to become borrowing member

  •  (1) A First Nation may apply to the Authority to become a borrowing member.

  • Marginal note:Criteria

    (2) The Authority shall accept a First Nation as a borrowing member only if the First Nations Financial Management Board has issued to the First Nation a certificate in respect of their financial performance under subsection 50(3) and has not subsequently revoked it.

  • 2005, c. 9, s. 76
  • 2015, c. 36, s. 194
  • 2018, c. 27, s. 414(E)
 
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