Her Excellency the Governor General in Council, on the recommendation of the Minister of Indian Affairs and Northern Development, pursuant to subsection 84(5) and paragraph 89(c) of the First Nations Fiscal and Statistical Management Act a, hereby makes the annexed Debt Reserve Fund Replenishment Regulations. S.C. 2005, c. 9
Interpretation
The following definitions apply in these Regulations.
Act means the First Nations Fiscal Management Act. (Loi)
defaulting member means a borrowing member whose failure to make a payment payable under a borrowing agreement with the Authority has led to a reduction in the debt reserve fund. (membre en défaut)
Replenishment of Fund
For the purposes of paragraphs 84(5)(a) and (b) of the Act, the amount is equal to the balance of the debt reserve fund immediately before the first of the payments from that fund were made, not taking into account any payments that previously led the Authority to require replenishment of the fund under those paragraphs.
At least 90 days before the day on which a payment is to be made to replenish the debt reserve fund, the Authority must send to the council of every borrowing member with an unpaid loan a notice setting out the amount of the shortfall in the debt reserve fund and the amount required to be paid by that borrowing member as determined under section 3.
The notice must identify all defaulting members and the amount of the shortfall attributable to each of them.
The amount to be paid under subsection 2(1) is
in the case of a defaulting member, an amount that is determined by the Authority that must not exceed the amount of the shortfall attributable to that defaulting member; and
in the case of any other borrowing member with an unpaid loan, the amount determined by the formula[A ÷ (B – C)] × (D – E) where A is the aggregate amount of the borrowing member’s unpaid loans, B is the aggregate amount of all borrowing members’ unpaid loans, C is the aggregate amount of all defaulting members’ unpaid loans, D is the amount of the shortfall in the debt reserve fund, and E is the aggregate of the amounts payable by the defaulting members under paragraph (a).
For greater certainty, despite the payment of an amount under paragraph 3(a), a defaulting member remains liable for the payment to the Authority of all amounts required to be paid under a borrowing agreement with the Authority.
[Repealed]
Coming into Force
These Regulations come into force on the day on which they are registered.