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Bill C-19

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    (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

81. (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

82. (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) Subject to the regulations, the Authority shall withhold 5% of the amount of any loan to a borrowing member and deposit that amount in the debt reserve fund.

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 80(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) Where payments from the debt reserve fund reduce its balance

    (a) by less than 50% of the total amount contributed by borrowing members, the Authority may, in accordance with the regulations, require all borrowing members to pay amounts sufficient to replenish the debt reserve fund; and

    (b) by 50% or more of the total amount contributed by borrowing members,

      (i) the Authority shall, in accordance with the regulations, require all borrowing members to pay without delay amounts sufficient to replenish the debt reserve fund, and

      (ii) the borrowing members shall recover those amounts under their property taxation laws.

Repayment

(6) Money contributed by a borrowing member to the debt reserve fund and investment income received on it shall be repaid by the Authority to the borrowing member when all obligations in respect of the security in respect of which the money was contributed have been satisfied.

Credit enhancement fund

83. (1) The Authority shall establish a fund for the enhancement of the Authority's credit rating.

Investments

(2) The funds of the credit enhancement fund may be invested only in securities, investments or deposits referred to in paragraph 80(3)(a), (c) or (d) that mature or are callable within five years, 25% of which must be callable within 90 days.

Investment income

(3) Investment income from the credit enhancement fund may be used

    (a) to temporarily offset any shortfalls in the debt reserve fund;

    (b) to defray the Authority's costs of operation; and

    (c) for any other purpose prescribed by regulation.

Default by first nation

84. (1) Where a borrowing member fails to make a payment to the Authority, to fulfil any other obligation under a borrowing agreement with the Authority or to pay a charge imposed by the Authority under this Part, the Authority shall

    (a) notify the borrowing member of the failure; and

    (b) send a notice of the failure to the First Nations Financial Management Board and the First Nations Tax Commission, together with evidence of the failure and a copy of any relevant documents and records.

Requirement for report

(2) Where a failure referred to in subsection (1) relates to an obligation other than payment, the Authority may require that the First Nations Financial Management Board review and report on the reasons for the failure.

Report

(3) On receipt of a notice referred to in paragraph (1)(b) in respect of a failure related to an obligation other than payment, the First Nations Financial Management Board shall advise the Authority in writing of its opinion on the reasons for the failure and recommend any intervention under section 50 or 51 that it considers appropriate.

Required intervention

(4) The Authority may, by notice in writing, require the First Nations Financial Management Board to either - at the Board's discretion - impose a co-management arrangement on a borrowing member or assume third-party management of the first nation's local revenues

    (a) where the borrowing member fails to make a payment to the Authority under a borrowing agreement with the Authority, or to pay a charge imposed by the Authority under this Part; or

    (b) on receipt of a report of the Board under subsection (3) in respect of the borrowing member.

Short-term pooled investment funds

85. (1) The Authority may establish short-term pooled investment funds.

Investments

(2) Funds in a short-term pooled investment fund may be invested only in

    (a) securities issued or guaranteed by Canada, a province or the United States;

    (b) fixed-term deposits, notes, certificates or other short-term paper of, or guaranteed by, a bank, trust company or credit union, including swaps in United States currency;

    (c) securities issued by the Authority or by a local, municipal or regional government in Canada;

    (d) commercial paper issued by a Canadian company that is rated in the highest category by at least two recognized security-rating institutions;

    (e) any class of investments permitted under an Act of a province relating to trustees; or

    (f) any other investments or class of investments prescribed by regulation.

General

Annual report

86. (1) The Chairperson shall, within four months after the end of each fiscal year, submit to the Authority's members and the Minister a report of the operations of the Authority for that fiscal year.

Contents

(2) The annual report shall include the financial statements of the Authority and its auditor's opinion on them.

Regulations

Regulations

87. The Governor in Council may, on the recommendation of the Minister after consultation by the Minister with the Authority, make regulations

    (a) prescribing anything that is to be prescribed under subsection 10(3), paragraphs 30(c) and 72(b), sections 78 and 79, subsection 80(1) and paragraphs 83(3)(b) and 85(2)(f);

    (b) increasing or decreasing the amount to be withheld from a loan under subsection 82(2);

    (c) respecting the imposition of charges under subsection 82(5), including the manner of calculating those charges and the share of those charges to be paid by each borrowing member; and

    (d) extending the application of this Part to any non-profit organization established to provide social welfare, housing, recreational or cultural services to first nations or their members on reserve lands and making such adaptations to the provisions of this Act as are necessary for that purpose.

PART 5

FIRST NATIONS STATISTICAL INSTITUTE

Interpretation

Definitions

88. The following definitions apply in this Part.

``Institute''
« Institut »

``Institute'' means the First Nations Statistical Institute.

``other aboriginal group''
« autre groupe autochtone »

``other aboriginal group'' means an aboriginal group that was formerly a band under the Indian Act and that is a party to a treaty, land claim agreement or self-government agreement with Canada.

``respondent''
« intéressé »

``respondent'' means a person in respect of whom, or in respect of whose activities, a report or information is sought or provided under this Part.

Establishment and Organization of Institute

Institute

89. There is hereby established an institute, to be known as the First Nations Statistical Institute, which may carry on business under the name of ``First Nations Statistics''.

Crown Corporation

90. The Institute is a Crown corporation and is governed by Part X of the Financial Administration Act, but to the extent that any provisions of this Part are inconsistent with sections 105 and 121 of that Act, the provisions of this Part prevail.

Not an agent of Her Majesty

91. The Institute is not an agent of Her Majesty.

Board of directors

92. (1) The Institute shall be managed by a board of directors, consisting of 10 to 15 directors, including the Chairperson and Vice-Chairperson.

Ex officio director

(2) The Chief Statistician of Canada shall be a member of the board of directors.

Appointment of Chairperson

93. On the recommendation of the Minister, the Governor in Council shall appoint a Chairperson to hold office during pleasure for a term not exceeding five years.

Appointment of other directors

94. On the recommendation of the Minister, the Governor in Council shall appoint a minimum of eight, and a maximum of 13, additional directors to hold office during pleasure for a term not exceeding five years.

Staggered terms

95. (1) In determining the term of appointment of directors, the Governor in Council shall endeavour to ensure that the terms of no more than three directors expire in any one calendar year.

Qualifications

(2) The board of directors shall be composed of men and women from across Canada, including members of first nations, who are committed to improving first nations statistical information and analysis and who have the experience or capacity to enable the Institute to fulfil its mandate.

Status

96. The Chairperson and other directors shall hold office on a part-time basis.

Election of Vice-Chairper son

97. (1) The board of directors shall elect a Vice-Chairperson from among the directors.

Functions

(2) In the event of the absence or incapacity of the Chairperson, or if the office of Chairperson is vacant, the Vice-Chairperson shall assume the duties and functions of the Chairperson.

Re-appointme nt

98. A director may be re-appointed for a second or subsequent term of office.

Head office

99. The head office of the Institute shall be at a location determined by the Governor in Council.

First Nations Chief Statistician

100. (1) On the recommendation of the Minister, the Governor in Council shall appoint a First Nations Chief Statistician to hold office during pleasure on a full-time basis for a term not exceeding five years.

Remuneration

(2) The First Nations Chief Statistician shall be paid such remuneration as is determined by the Governor in Council.

Staff

(3) The board of directors shall determine the duties of other officers and employees and the conditions of their employment.

Staff

(4) The First Nations Chief Statistician may employ any other officers and employees that are necessary to conduct the work of the Institute.

Salaries and benefits

(5) Persons employed under subsection (4) shall be paid salaries and benefits fixed by the board of directors.

Oath of office

101. The First Nations Chief Statistician, every person employed by the Institute, every person retained under contract by the Institute and every employee and agent of a person retained under contract by the Institute shall, before commencing their duties, swear or solemnly affirm that he or she will comply with section 106 and will not without authority disclose any information acquired in the course of his or her duties that can be related to any identifiable individual, first nation, business or organization.

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