Financing Secured by Other Revenues Regulations

Marginal note:Adaptation to section 79

17 Section 79 of the Act is adapted as follows:

Marginal note:Limitations

79 The Authority shall not make a loan to a borrowing member that is to be secured by other revenues unless

• (a) the borrowing member has made a borrowing law under paragraph 5(1)(d) 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 acceptable to 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 the Authority 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 payors of other revenues being used to secure the loan to deposit those other revenues into the secured revenues trust account or an intermediate account throughout the period of the loan.