First Nations Fiscal Management Act

Marginal note:Imposed co-management

• 52 (1) The Board may, on giving notice to the council of a first nation, require the first nation to enter into a co-management arrangement in respect of the first nation’s local revenues, including its local revenue account,

  • (a) 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

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

• Marginal note:Powers

  (2) Under a co-management arrangement, the Board may

  • (a) recommend amendments to a law of the first nation made under this Act;

  • (b) recommend changes to the first nation’s expenditures or budgets;

  • (c) recommend improvements to the first nation’s financial management system;

  • (d) recommend changes to the delivery of programs and services;

  • (e) order that expenditures of local revenues of the first nation be approved by, or paid with cheques co-signed by, a manager appointed by the Board; and

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

• Marginal note:Termination by Board

  (3) The Board may terminate a co-management arrangement with a first nation on giving notice to its council that the Board is of the opinion that

  • (a) there is no longer a serious risk that the first nation will default on an obligation to the First Nations Finance Authority;

  • (b) where the first nation was in default of a payment obligation to the First Nations Finance Authority, the first nation has remedied the default;

  • (c) a co-management arrangement requested or demanded under paragraph 33(3)(b) or subsection 86(4) is no longer required; or

  • (d) third-party management of the first nation’s local revenues is required.

• Marginal note:Opinion final

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

• Marginal note:Notice

  (5) The Board shall advise the First Nations Finance Authority and the First Nations Tax Commission of the commencement or termination of a co-management arrangement.