Debt Reserve Fund Replenishment Regulations (SOR/2006-244)

Interpretation

Marginal note:Definitions

1 The following definitions apply in these Regulations.

Act

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

defaulting member

defaulting member means a borrowing member whose failure to make a payment payable under a borrowing agreement with the Authority has led to a reduction in the debt reserve fund. (membre en défaut)

Replenishment of Fund

Marginal note:Debt reserve fund balance

1.1 For the purposes of paragraphs 84(5)(a) and (b) of the Act, the amount is equal to the balance of the debt reserve fund immediately before the first of the payments from that fund were made, not taking into account any payments that previously led the Authority to require replenishment of the fund under those paragraphs.

Marginal note:Notice

• 2 (1) At least 90 days before the day on which a payment is to be made to replenish the debt reserve fund, the Authority must send to the council of every borrowing member with an unpaid loan a notice setting out the amount of the shortfall in the debt reserve fund and the amount required to be paid by that borrowing member as determined under section 3.

• Marginal note:Content of notice

  (2) The notice must identify all defaulting members and the amount of the shortfall attributable to each of them.

Marginal note:Amount to pay

3 The amount to be paid under subsection 2(1) is

• (a) in the case of a defaulting member, an amount that is determined by the Authority that must not exceed the amount of the shortfall attributable to that defaulting member; and

• (b) in the case of any other borrowing member with an unpaid loan, the amount determined by the formula

  [A ÷ (B – C)] × (D – E)

  where

  A

  is the aggregate amount of the borrowing member’s unpaid loans,

  B

  is the aggregate amount of all borrowing members’ unpaid loans,

  C

  is the aggregate amount of all defaulting members’ unpaid loans,

  D

  is the amount of the shortfall in the debt reserve fund, and

  E

  is the aggregate of the amounts payable by the defaulting members under paragraph (a).

Marginal note:Liability

4 For greater certainty, despite the payment of an amount under paragraph 3(a), a defaulting member remains liable for the payment to the Authority of all amounts required to be paid under a borrowing agreement with the Authority.

4.1 [Repealed, SOR/2024-255, s. 5]

Coming into Force

Marginal note:Coming into force

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