First Nations Fiscal Management Act

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.