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Financing Secured by Other Revenues Regulations (SOR/2011-201)

Regulations are current to 2020-10-05 and last amended on 2016-04-01. Previous Versions

Financing Secured by Other Revenues Regulations

SOR/2011-201

FIRST NATIONS FISCAL MANAGEMENT ACT

FIRST NATIONS FISCAL AND STATISTICAL MANAGEMENT ACT

Registration 2011-09-30

Financing Secured by Other Revenues Regulations

P.C. 2011-1105 2011-09-29

His Excellency the Governor General in Council, on the recommendation of the Minister of Indian Affairs and Northern Development, pursuant to paragraph 74(b) and section 142 of the First Nations Fiscal and Statistical Management ActFootnote a, hereby makes the annexed Financing Secured by Other Revenues Regulations.

Interpretation

Marginal note:Definitions

 The following definitions apply in these Regulations.

Act

Act means the First Nations Fiscal Management Act. (Loi)

intermediate account

intermediate account in respect of a first nation, means an account established by the first nation, in which other revenues to be used for financing under these Regulations are deposited and from which the First Nations Finance Authority is authorized to transfer those revenues to a secured revenues trust account. (compte intermédiaire)

other revenues

other revenues means the revenues described in section 3. (autres recettes)

secured revenues trust account

secured revenues trust account, in respect of a first nation, means an account, established by the First Nations Finance Authority and the first nation, in which other revenues to be used for financing under these Regulations are maintained. (compte de recettes en fiducie garanti)

  • SOR/2016-29, s. 30

Marginal note:Adapted references

  •  (1) In these Regulations, a reference to a provision of the Act or any regulations made under it — including a reference that occurs in any provision that is adapted by these Regulations — is to be read as a reference to that provision as adapted or restricted by these Regulations, except if the reference is made for the purpose of specifying the provision that is being adapted or restricted.

  • Marginal note:Adapted references

    (2) In relation to financing secured by other revenues, a reference in the Act or any regulations made under it, or in any notice or other document issued under the Act or any regulations made under it, to the Act, the regulations or any of their provisions, is to be read as a reference to the Act, regulation or provision as adapted or restricted by these Regulations.

Prescribed Revenues and Purposes

Marginal note:Other revenues

 For the purposes of paragraph 74(b) of the Act, the following revenues may be used to secure financing for the purposes set out in section 4:

  • (a) tax revenues and fees imposed or collected by a first nation under a law or a contract, other than

    • (i) local revenues, and

    • (ii) revenues from taxes administered by Her Majesty in right of Canada on the first nation’s behalf;

  • (b) royalties payable to a first nation under the First Nations Land Management Act or the First Nations Oil and Gas and Moneys Management Act;

  • (c) royalties payable to Her Majesty in right of Canada under the Indian Act or the Indian Oil and Gas Act on behalf of a first nation that has assumed control of its moneys under the First Nations Oil and Gas and Moneys Management Act;

  • (d) revenues that are from leases, permits or other instruments authorizing the use of reserve land issued under the Indian Act and that a first nation has assumed control of under the First Nations Oil and Gas and Moneys Management Act;

  • (e) revenues from leases, permits or other instruments authorizing the use of reserve land issued under the First Nations Land Management Act;

  • (f) revenues otherwise payable to a first nation under any contract with a person other than Her Majesty in right of Canada, other than revenues collected by Her Majesty in right of Canada on the first nation’s behalf;

  • (g) revenues, other than local revenues, received by a first nation from businesses wholly or partly owned by it, including dividends from shares owned by it;

  • (h) transfers from a provincial, regional, municipal or local government to a first nation;

  • (i) transfers from Her Majesty in right of Canada to a first nation if the agreement governing the transfer specifically permits such a use and if any other applicable conditions are satisfied; and

  • (j) interest earned by a first nation on deposits, investments or loans, other than interest held by Her Majesty in right of Canada on the first nation’s behalf.

  • SOR/2016-29, s. 31

Marginal note:Other purposes

 For the purposes of paragraph 74(b) of the Act, other revenues of a first nation may be used to secure financing for any purpose that promotes the first nation’s economic or social development, including financing for

  • (a) capital infrastructure that is to be wholly or partly owned by the first nation, including infrastructure for the provision of local services on reserve lands, housing, plants and machinery, buildings and other capital assets;

  • (b) rolling stock that is to be wholly or partly owned by the first nation;

  • (c) land that is to be wholly or partly owned by the first nation;

  • (d) shares or any other ownership interest in a corporation whose purpose includes the ownership, operation, management or sale of products of power generating facilities, waste or wastewater treatment facilities or other public service utilities or facilities;

  • (e) lease financing of capital assets for the provision of local services; and

  • (f) short-term financing to meet cash flow requirements for capital purposes or to refinance a short-term debt incurred for capital purposes.

Application

Marginal note:Adaptations applicable to other revenues

 The Act is adapted so that the provisions of the Act and the regulations made under it apply to the use by a first nation of other revenues to secure financing for a purpose set out in section 4, subject to the adaptations and restrictions set out in these Regulations.

Adaptations to the First Nations Fiscal Management Act

[SOR/2016-29, s. 32]

Marginal note:Inapplicable provisions

 The Act is adapted so that the following provisions do not apply to financing secured by other revenues, to laws made by a first nation to secure that financing or to laws made by a first nation under paragraph 5(1)(b) or (d) of the Act in relation to other revenues:

  • (a) section 6;

  • (b) subsections 8(4) and (5);

  • (c) section 11;

  • (d) section 13;

  • (e) subsections 31(1) to (3);

  • (f) sections 32 and 33;

  • (g) section 35; and

  • (h) subparagraph 84(5)(b)(ii).

Marginal note:Reference to local revenues

  •  (1) The following provisions of the Act are adapted so that a reference to local revenues is to be read as a reference to other revenues:

    • (a) paragraph 5(1)(b);

    • (b) subsection 52(1) and paragraphs 52(2)(e) and (3)(d);

    • (c) subsections 53(1), (2) and (4);

    • (d) section 54;

    • (e) paragraph 55(2)(c); and

    • (f) subsection 86(4).

  • Marginal note:Reference to local revenues

    (2) The following provisions of the English version of the Act are adapted so that a reference to local revenues is to be read as a reference to other revenues:

    • (a) paragraph 5(1)(g); and

    • (b) subsections 53(3), (5), (6) and (8).

Marginal note:Adaptation to subsection 5(2)

 Subsection 5(2) of the Act does not apply to a law made under paragraph 5(1)(b), (d), (f) or (g) of the Act in relation to borrowing by a first nation from the First Nations Finance Authority that is secured by other revenues.

Marginal note:Adaptation to subsection 5(3)

 Subsection 5(3) of the Act is adapted as follows:

  • Marginal note:Coming into force

    (3) A law made under subsection (1) comes into force on the day set out in the law.

Marginal note:Adaptation to section 14

 Section 14 of the Act is adapted as follows:

Marginal note:Reporting of other revenues

14 If a first nation is using other revenues as security for a loan from the First Nations Finance Authority, the first nation shall account for all of its other revenues — including other revenues that have not been used as security for the loan — separately from its other moneys, and must provide that accounting information to the Authority and the First Nations Financial Management Board on request.

 
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