Interpretation

Marginal note:Definitions

1 The following definitions apply in these Regulations.

Act

Loi

Act means the First Nations Fiscal and Statistical Management Act. (Loi)

defaulting member

membre en défaut

defaulting member means a borrowing member whose failure to make a payment under a loan obligation agreement with the Authority or to pay a charge imposed to replenish the debt reserve fund under subsection 84(5) of the Act has led to a reduction in that fund. (membre en défaut)

Replenishment of Fund

Marginal note:Notice of proposed charge

• 2 (1) At least 90 days in advance of imposing charges to replenish the debt reserve fund under paragraph 84(5)(a) or (b) of the Act, the Authority shall send a notice to the council of every borrowing member setting out the amount of the shortfall in the fund and the Authority’s intention to require borrowing members to replenish the fund.

• Marginal note:Content of Notice

  (2) The notice shall identify each defaulting member and the amount of the shortfall attributable to it.

Marginal note:Defaulting member’s charge

3 During the period referred to in subsection 2(1), the Authority shall determine the charge that each defaulting member is able to pay to replenish the debt reserve fund.

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 gross annual property tax revenue of the borrowing member,

  B

  is the aggregate gross annual property tax revenue of all borrowing members,

  C

  is the aggregate gross annual property tax revenue of defaulting members,

  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 total amount charged to all the defaulting members under section 3.

Coming into Force

Marginal note:Coming into force

5 These Regulations come into force on the day on which they are registered.