First Nations Fiscal Management Act Adaptation Regulations — 53.2
Third-party management — other revenues of an Indigenous group 53.2 (1) The Board may, on giving notice to an Indigenous group, assume management of the Indigenous group’s other revenues, including those that have not been used as security for a loan from the First Nations Finance Authority, (a) if, in the opinion of the Board, the co-management arrangement entered into under section 52.2 has not been effective; (b) if, in the opinion of the Board, there is a serious risk that the Indigenous group will default on an obligation to the First Nations Finance Authority relating to a loan secured by other revenues; or (c) if the Board has received a notice under subsection 86(5). Powers (2) If the Board assumes third-party management of the other revenues of an Indigenous group, the Board has the exclusive authority to (a) act in the place of a governing body of the Indigenous group to make borrowing laws or laws respecting financial administration or the expenditure of other revenues; (b) act in the place of a governing body of the Indigenous group to (i) with respect to other revenues, exercise any powers and fulfil any obligations of the governing body under this Act, including under the regulations made under this Act, or under the Indigenous group’s borrowing laws or its laws respecting financial administration or the expenditure of other revenues, (ii) manage the Indigenous group’s other revenues, (iii) manage assets of the Indigenous group that are generating other revenues, including by exercising any powers of the governing body to terminate an agreement, or enter into a new agreement, in respect of those assets, (iv) undertake any necessary borrowing for the purpose of remedying the situation for which third-party management was required, and (v) provide for the delivery of programs and services that are paid for out of the Indigenous group’s other revenues, manage assets related to those programs and services and enter into or terminate agreements in respect of those programs, services and assets; and (c) with respect to other revenues, exercise any powers or fulfil any obligations delegated to the Board under a law of the Indigenous group or an agreement between the Indigenous group and the Board or between the Indigenous group and the First Nations Finance Authority. Law-making (3) If the Board makes a law under paragraph (2)(a) in relation to an Indigenous group named in Schedule 2 to the First Nations Fiscal Management Act Adaptation Regulations , (a) the Board is not required to comply with the Indigenous group’s laws respecting the requirements regarding the making of such a law; and (b) the law comes into force on the day set out in the law. Scope of power — (2)(b)(ii) (4) In exercising the authority referred to in subparagraph (2)(b)(ii), the Board may manage other revenues of an Indigenous group that were received before, or that are received after, the Board assumes management of the Indigenous group’s other revenues, including those that are comingled with other moneys of the Indigenous group. However, the Board may not manage the Indigenous group’s other revenues that are in a secured revenues trust account or an intermediate account. Restriction on power — (2)(b)(iii) and (v) (5) In exercising the authority referred to in subparagraph (2)(b)(iii) or (v), the Board may not cause the disposition of real property or immovables without written approval of the Indigenous group. Board not agent or mandatary (6) For greater certainty, the Board is not an agent or mandatary of the First Nations Finance Authority while exercising its exclusive authority under subsection (2). Review every six months (7) If the Board has assumed third-party management of an Indigenous group’s other 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 Indigenous group of the results of its review. Termination