First Nations Fiscal Management Act

Marginal note:Sinking fund

• 82 (1) The Authority shall establish a sinking fund, or any other system of repayment prescribed by regulation, to fulfil its repayment obligations to the holders of each security issued by the Authority.

• Marginal note:Separate accounts

  (2) Where a sinking fund is established, a separate sinking fund account shall be kept for each borrowing member participating in a security issued by the Authority.

• Marginal note:Sinking fund investments

  (3) Funds in a sinking fund may be invested only in

  • (a) securities issued or guaranteed by Canada or a province;

  • (b) securities of a local, municipal or region­al government in Canada;

  • (b.1) securities of the Authority or of a municipal finance authority established by a province, if the day on which they mature is not later than the day on which the security for which the sinking fund is established matures;

  • (c) investments guaranteed by a bank, trust company or credit union; or

  • (d) deposits in a bank or trust company in Canada or non-equity or membership shares in a credit union.