Regulations (Amending) the Debt Reserve Funds Replenishment Regulations, pursuant to the First Nations Fiscal Management Act
On this page
- Title or working title of the regulatory initiative
- Enabling act(s)
- Description
- Regulatory cooperation efforts (domestic and international)
- Potential impacts on Canadians, including businesses
- Consultations
- Further information
- Departmental contact information
- The date the regulatory initiative was first included in the Forward Regulatory Plan
- Find out more
Title or working title of the regulatory initiative
Regulations (Amending) the Debt Reserve Funds Replenishment Regulations
Enabling act(s)
First Nations Fiscal Management Act
Description
The Debt Reserve Fund is one of several risk management measures in place to provide additional security for First Nations who obtain loans for capital projects through the First Nations Finance Authority. All loans that have been obtained through the First Nations Finance Authority were subject to a 5% holdback, which was placed in a Debt Reserve Fund that can be called upon in the event that borrowing members default on their loans. The Debt Reserve Fund can be replenished in the event it ever falls below a certain amount, subject to the Debt Reserve Funds Replenishment Regulations. The proposed amendments to the Debt Reserve Funds Replenishment Regulations will implement several changes, including:
- ensuring only borrowing members who currently have funds in the Debt Reserve Fund would receive a notice to replenish the Debt Reserve Fund if needed. In addition, the notice would be modified to the actual demand for payment to avoid any debtors being able to pay the debt in full between the issuance of the notice and payment demand to avoid making the replenishment payment
- changes to how the amount each borrowing member has to pay to replenish the Debt Reserve Fund is calculated
Potential impacts on Canadians, including business
The proposed changes would impact First Nations who have obtained loans through the First Nations Finance Authority.
Regulatory cooperation efforts (domestic and international)
The department will work with the First Nations Finance Authority, the First Nations Financial Management Board, and the First Nations Tax Commission on the content of the proposed amendments.
Consultations
The department will collaborate with the First Nations Finance Authority, the First Nations Financial Management Board, and the First Nations Tax Commission on the content and form of the proposed amendments. Consultations began in 2018 with the First Nations fiscal institutions.
Further information
Not applicable.
Departmental contact information
Andrea Dykstra
Director
Fiscal Policy and Investment Readiness Directorate
Indigenous Institutions and Governance Modernization Branch
Resolution and Partnerships Sector
Tel.: 343-596-4150
Email: andrea.dykstra@rcaanc-cirnac.gc.ca
The date the regulatory initiative was first included in the Forward Regulatory Plan
March 2021
Find out more
Consult Crown-Indigenous Relations and Northern Affairs Canada's Laws and Regulations web page for:
- a list of acts and regulations administered by Crown-Indigenous Relations and Northern Affairs Canada
- further information on Crown-Indigenous Relations and Northern Affairs Canada's implementation of government-wide regulatory management initiatives
Consult the following for links to the Cabinet Directive on Regulation and supporting policies and guidance, and for information on government-wide regulatory initiatives implemented by departments and agencies across the Government of Canada:
To learn about upcoming or ongoing consultations on proposed federal regulations, visit: