First Nations Fiscal Management Act

Marginal note: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.

• Marginal note: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.