First Nations Fiscal Management Act

Marginal note:Credit enhancement fund

• 85 (1) The Authority shall establish a fund for the enhancement of the Authority’s credit rating.

• Marginal note:Investments

  (2) The funds of the credit enhancement fund may be invested only in securities, investments or deposits referred to in paragraph 82(3)(a), (c) or (d) that mature or are callable within five years, 25% of which must be callable within 90 days.

• Marginal note:Investment income

  (3) Investment income from the credit enhancement fund may be used

  • (a) to temporarily offset any shortfalls in the debt reserve fund;

  • (b) to defray the Authority’s costs of operation; and

  • (c) for any other purpose prescribed by regulation.

• Marginal note:Capital

  (4) The capital of the credit enhancement fund may be used

  • (a) to temporarily offset any shortfalls in the debt reserve fund; and

  • (b) for any other purpose prescribed by regulation.

• Marginal note:Repayment to credit enhancement fund

  (5) Any funds that are paid from the credit enhancement fund to offset a shortfall in the debt reserve fund shall be repaid by that debt reserve fund within 18 months after the day on which the funds are paid or, if more than one payment of funds is made, within 18 months after the day on which the first payment is made. After the expiry of that 18-month period, no further funds shall be paid from the credit enhancement fund to that debt reserve fund unless it has been fully replenished under section 84.