First Nations Fiscal Management Act Adaptation Regulations — 5
ther revenues into the secured revenues trust account or an intermediate account during the period of the loan. Maintenance of registry and publication 79.1 The Authority shall maintain a registry of every law that is forwarded to it under paragraph 79(2)(a) or (3)(a) and shall publish a copy of each law on an Internet website to be maintained by the Authority within 30 days after the day on which it is received. Restriction 80 A borrowing member that has obtained a loan from the Authority that is secured by property tax revenues and has a term of one year or longer shall not subsequently obtain such a loan from any other person as long as the loan from the Authority remains unpaid. Limitations — short-term loans 81 The Authority shall not make a loan that has a term of less than one year to a borrowing member for a purpose described in subparagraph 74(a)(ii) unless the loan is made in anticipation of local revenues set out in a law made by the borrowing member under paragraph 5(1)(b). 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. 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. 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. Surpluses 83 (1) The Authority may declare a surplus in a sinking fund and use the surplus, in order of priority, to (a) replenish any amounts paid out of the debt reserve fund; and (b) make a distribution to borrowing members who are participating in that fund. Recovery from sinking fund (2) The Authority may recover fees payable by a borrowing member from any surplus to be distributed to that member under paragraph (1)(b). Debt reserve fund 84 (1) The Authority shall establish a debt reserve fund to make payments or sinking fund contributions for which insufficient moneys are available from borrowing members. Provisioning of fund (2) The Authority shall withhold — and deposit in the debt reserve fund — 5% of the amount of any loan. Percentage withheld may be reduced by board (2.1) However, the board of directors may, by resolution, reduce the percentage to be withheld from a loan under subsection (2) to a percentage that is not less than 1%, if the board of directors is satisfied that doing so would not have a negative impact on the Authority’s credit rating. Separate account (3) A separate account shall be kept for each security issued and for each borrowing member contributing to the debt reserve fund. Investments (4) The funds of the debt reserve 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. Liability for shortfall (5) The following rules apply if payments from the debt reserve fund reduce its balance: (a) if the balance is reduced by less than 50% of an amount determined in any manner prescribed by regulation, the Authority may, in accordance with the regulations, require borrowing members with unpaid loans to pay without delay amounts sufficient to replenish the debt reserve fund; and (b) if the balance is reduced by 50% or more of an amount determined in any manner prescribed by regulati