First Nations Fiscal Management Act

Marginal note:Imposed co-management — local revenues

• 52 (1) The Board may, on giving notice to the council of a First Nation, require the First Nation to enter into a co-management arrangement in respect of the First Nation’s local revenues, including its local revenue account,

  • (a) if, in the opinion of the Board, there is a serious risk that the First Nation will default on an obligation to the First Nations Finance Authority relating to a loan secured by local revenues; or

  • (b) if the Board has received a notice under paragraph 33(3)(b) or subsection 86(4).

• Marginal note:Powers

  (2) Under the co-management arrangement, the Board may

  • (a) recommend amendments to a law of the First Nation made under any of paragraphs 5(1)(a) to (f) or subsection 9(1);

  • (b) recommend changes to the First Nation’s expenditures or budgets with respect to its local revenues;

  • (c) recommend improvements to the First Nation’s financial management system with respect to its local revenues;

  • (d) recommend changes to the delivery of programs and services paid for out of the First Nation’s local revenues;

  • (e) order that expenditures of local revenues of the First Nation be approved by, or paid with cheques co-signed by, a manager appointed by the Board; and

  • (f) with respect to local revenues, exercise any powers delegated to the Board under a law of the First Nation or under an agreement between the First Nation and the Board or the First Nation and the First Nations Finance Authority.

• Marginal note:Termination by Board

  (3) The Board may terminate the co-management arrangement on giving notice to the council of the First Nation that the Board is of the opinion that

  • (a) there is no longer a serious risk that the First Nation will default on an obligation to the First Nations Finance Authority relating to a loan secured by local revenues;

  • (b) in the case of a First Nation that was in default of a payment obligation to the First Nations Finance Authority relating to a loan secured by local revenues, the First Nation has remedied the default;

  • (c) the co-management arrangement is no longer required; or

  • (d) third-party management of the First Nation’s local revenues is required.

• Marginal note:Opinion final

  (4) An opinion given by the Board under this section is final and conclusive and is not subject to appeal.

• Marginal note:Notice

  (5) The Board shall advise the First Nations Finance Authority and the First Nations Tax Commission of the commencement or termination of the co-management arrangement.