Marginal note:Third-party management

• 53. (1) The Board may, on giving notice to the council of a first nation and to the Minister, assume management of the first nation’s local revenues, including its local revenue account,

  • (a) if, in the opinion of the Board, a co-management arrangement under section 52 has not been effective;

  • (b) if, in the opinion of the Board, there is a serious risk that the first nation will default on an obligation to the First Nations Finance Authority; or

  • (c) on receipt of a request or demand to do so under paragraph 33(3)(b) or subsection 86(4).

• Marginal note:Powers

  (2) If the Board assumes third-party management of the local revenues of a first nation, the Board has the exclusive right to

  • (a) subject to subsection (3), act in the place of the council of the first nation to make laws under paragraphs 5(1)(a) to (f);

  • (b) act in the place of the council of the first nation under laws made under paragraphs 5(1)(a) to (e) and manage the first nation’s local revenue account, including any necessary borrowing;

  • (c) provide for the delivery of programs and services that are paid for out of local revenues;

  • (d) assign rights or interests under subsection 5(7); and

  • (e) exercise any powers delegated to the Board under a law of the first nation or an agreement between the first nation and the Board or between the first nation and the First Nations Finance Authority.

• Marginal note:Consent of council required

  (3) The Board shall not make a law under paragraph 5(1)(f) that delegates a power to a person or body to whom a power was not delegated at the time the Board assumed third-party management of the local revenues of a first nation, unless the council of the first nation gives its consent.

• Marginal note:Prohibition

  (4) The council of the first nation shall not, during the time that the board assumes third-party management of the first nation’s local revenues, repeal any law made under paragraph 5(1)(g).

• Marginal note:Review every six months

  (5) Where the Board has assumed third-party management of a first nation’s local revenues, it shall review the need for third-party management at least once every six months and advise the First Nations Finance Authority, the First Nations Tax Commission and the council of the first nation of the results of its review.

• Marginal note:Termination by Board

  (6) The Board may terminate third-party management of a first nation’s local revenues, on giving notice to the council of the first nation, if

  • (a) it is of the opinion that there is no longer a serious risk that the first nation will default on an obligation to the First Nations Finance Authority and the Authority consents to the termination in writing;

  • (b) where the first nation was in default of an obligation to the First Nations Finance Authority, it is of the opinion that the first nation has remedied the default and the Authority consents to the termination in writing; or

  • (c) it is of the opinion that the situation for which third-party management of the first nation’s local revenues was required under paragraph 33(3)(b) or subsection 86(4) has been remedied.

• Marginal note:Opinion final

  (7) An opinion given by the Board under this section is final and conclusive and is not subject to appeal.

• Marginal note:Notice

  (8) The Board shall advise the First Nations Finance Authority and First Nations Tax Commission of the assumption or termination of third-party management of a first nation’s local revenues.

Marginal note:Required information

54. At the request of the Board, a first nation that has made a local revenue law shall provide to the Board any information about the first nation’s financial management system and financial performance that the Board requires for a decision regarding a co-management arrangement or third-party management of the first nation’s local revenues.

Standards and Procedures

Marginal note:Standards

• 55. (1) The Board may establish standards, not inconsistent with the regulations, respecting

  • (a) the form and content of laws made under section 9;

  • (b) approvals of the Board under Part 1;

  • (c) certification of first nations under section 50; and

  • (d) financial reporting under subsection 14(1).

• Marginal note:Procedures

  (2) The Board may establish procedures respecting

  • (a) the submission for approval and approval of laws made under section 9;

  • (b) the issuance of a certificate under subsection 50(3); and

  • (c) the implementation or termination of a co-management arrangement or third-party management of a first nation’s local revenues.

• Marginal note:Statutory Instruments Act

  (3) The Statutory Instruments Act does not apply to a standard established under subsection (1) or a procedure established under subsection (2).

• Marginal note:First Nations Gazette

  (4) All laws made under section 9 and approved by the Board and all standards established by the Board under subsection (1) shall be published in the First Nations Gazette.

Regulations

Marginal note:Regulations

56. The Governor in Council may, on the recommendation of the Minister made having regard to any representations by the Board, make regulations

• (a) respecting the implementation of a co-management arrangement or third-party management of a first nation’s local revenues, including the obligations of affected first nations to provide access to financial records; and

• (b) fixing fees that the Board may charge for services, including fees to first nations for co-management and third-party management services, and the manner in which the fees may be recovered.

PART 4FIRST NATIONS FINANCE AUTHORITY

Interpretation

Marginal note:Definitions

57. The following definitions apply in this Part.

“Authority”

« Administra­tion »

“Authority” means the First Nations Finance Authority.

“investing member”

« membre investisseur »

“investing member” means a first nation that has invested in a short-term investment pool managed by the Authority.

“long-term loan”

« prêt à long terme »

“long-term loan” means a loan the term of which is one year or longer.

“member”

« membre »

“member” means a borrowing member or investing member.

“property tax revenues”

« recettes fiscales foncières »

“property tax revenues” means moneys raised under a law made under paragraph 5(1)(a).

“representative”

« représentant »

“representative”, in respect of a first nation that is a member, means the chief or a councillor of the first nation who is designated as a representative by a resolution of its council.

“security”

« titre »

“security” means a security of the Authority issued under paragraph 75(1)(b).

“short-term loan”

« prêt à court terme »

“short-term loan” means a loan the term of which is less than one year.

Establishment and Organization of Authority

Marginal note:Establishment

58. There is hereby established a non-profit corporation without share capital, to be known as the First Nations Finance Authority.

Marginal note:Membership

59. The members of the Authority shall be its borrowing members and investing members.

Marginal note:Not agent of Her Majesty

• 60. (1) The Authority is not an agent of Her Majesty or a Crown corporation within the meaning of the Financial Administration Act, and its officers and employees are not part of the public service of Canada.

• Marginal note:No guarantees

  (2) No person shall give a guarantee on behalf of Her Majesty for the discharge of an obligation or liability of the Authority.

Marginal note:Board of Directors

• 61. (1) The Authority shall be managed by a board of directors, consisting of from 5 to 11 directors, including a Chairperson and Deputy Chairperson.

• Marginal note:Nomination of directors

  (2) A representative of a borrowing member may nominate

  • (a) a representative of a borrowing member for election as Chairperson or Deputy Chairperson; and

  • (b) any representative for election as a director other than the Chairperson or Deputy Chairperson.

• Marginal note:Election of directors

  (3) Directors shall be elected by representatives of borrowing members.

Marginal note:Function of Deputy Chairperson

62. In the event of the absence or incapacity of the Chairperson, or if the office of Chairperson is vacant, the Deputy Chairperson shall assume the duties and functions of the Chairperson.

Marginal note:Term of office

• 63. (1) Directors shall hold office on a part-time basis for a term of one year.

• Marginal note:Additional terms

  (2) A director is eligible to be re-elected for a second or subsequent term of office.

• Marginal note:Ceasing to be director

  (3) A person ceases to be a director when

  • (a) the person ceases to hold office as a chief or councillor of a first nation that is a borrowing member or investing member;

  • (b) the person’s designation as a representative of a borrowing member or investing member is revoked by a resolution of the council of that first nation; or

  • (c) the person is removed from office before the expiry of the term of the appointment by a special resolution of the board of directors.