Debt Reserve Funds Replenishment Regulations

The Debt Reserve Funds Replenishment Regulations, made under the First Nations Fiscal and Statistical Management Act, outline the procedures for replenishing debt reserve funds among First Nations.

These regulations apply to borrowing members who have received financing for which a debt reserve fund was established, but have failed to make payments or repay loans. The regulations require the Authority to determine the amount of each defaulting member's share of the shortfall in the fund and to calculate charges based on property tax revenues or other revenues.

At least 90 days before requesting payment from borrowing members to replenish a debt reserve fund, the Authority must send a notice setting out the amount of the shortfall and the Authority's intention to require repayment. The notice identifies all defaulting members and their respective shares of the shortfall.

Defaulting members are liable for the repayment of their share of the shortfall in the debt reserve fund, despite any amount set out in a notice sent under paragraph 4(a) or 4.1(a). The regulations also provide for calculating charges based on formulas related to property tax revenues or other revenues.

These Regulations came into force on the day they were registered.