FN Long-term Capital Borrowing Law

__________= __________ FIRST NATION

[INSERT PROJECT DESCRIPTION]

LONG-TERM CAPITAL BORROWING LAW, 20__

�� WHEREAS:

�� A.= �� Pursuant to paragraph 5(1)(d) of the First Nations Fiscal and Statistical Managem= ent Act, the council of a first nation may make laws respecting the borrowi= ng of money from the Authority;

�� B.= �� The ______________ First Nation is a borrowing member of the Authority and has entered into a borrowing member agreement with the Authority dated ________= __;

�� C.= �� The Authority has as one of its purposes the securing of long-term financing of capital infrastructure for the provision of local services on reserve lands= for its borrowing members, through the use of property tax revenues;=

�� D.= �� The Council of the _______________ First Nation has determined that it is in the interests of the First Nation and those residing on the reserve to undertake the capital infrastructure project;

�� E.= �� The estimated cost of undertaking the proposed capital infrastructure project is ___________ dollars ($______);

�� F.= �� The Council of the ____________ First Nation deems it necessary to borrow the s= um of ____________ dollars ($______) from the Authority to finance all or a portion of the costs of undertaking the capital infrastructure project;

�� G.= �� The amount of the _____________ First Nation�s existing obligations authorized = as of the date of this Law is __________ dollars ($______), and the estimated additional obligations authorized under this Law are ________ dollars ($___= __), as certified by [insert name], [senior financial officer or auditor]= for the First Nation, a copy of which certification is attached as Schedule �A�= to this Law;

�� H.= �� The _____________ First Nation has enacted a financial administration law under paragraph 9(1)(a) of the Act, which law has been approved by the First Nati= ons Financial Management Board, as required by section 4 of the Act;=

�� I.= �� The _____________ First Nation has sufficient unutilized borrowing capacity to undertake the borrowing authorized under this Law; and

�� J.= �� The _____________ First Nation has obtained a certificate from the First Nations Financial Management Board under subsection 50(3) of the Act, as required <= span style=3D'letter-spacing:-.25pt'>by subsection 32(1) of the Act, a copy of w= hich certificate is attached as Schedule �B� to this Law.

�� NOW THEREFORE the Council of the ______________ First Nation duly enacts as follows:

��= �� 1.�� This Law may be cited as the __________= _ First Nation [insert project description] Long-term Capital Borrowing Law,= 20___.

��= �� 2.�� In this Law:

�Act� means the First Nations Fiscal and Statistical Management Act, S.C. 2005, c.9, and the regulations enacted under that = Act;

�Authority� means the First Nations Finance Authority established under the Act;

��capital infrastructure project� means the project generally described as [insert description of the project for which the borrowing will take place], an= d as set out in the plans on file at the First Nation�s offices;

�First Nation� means the _______________ First Nation;

�Law� means this borrowing law;

�promissory note� means a contractual promise to pay that sets out a schedule of repayment of principal and interest, in substantially the form attached as a schedule to the security issuing council resolution;=

�reserve� means any land set apart for the use and benef= it of the First Nation within the meaning of the Indian Act; and

�security issuing council resolution� means a Council resolution in substantially the form attached to this Law as Schedule �C�.<= o:p>

��= �� 3.�� Unless the context otherwise requires, = words and expressions used in the Law and not otherwise defined have the same mea= ning as in the Act.

��= �� 4.�� The Council is hereby authorized and empowered to borrow upon the credit of the First Nation for the capital infrastructure project, and the Authority is requested and authorized to finance from time to time the capital infrastructure project at the sole co= st and on behalf of the First Nation, a sum not exceeding ___________ dollars ($______) in lawful money of Canada (provided that the First Nation may bor= row all or part of such amount in such currency as the Authority determines but= the aggregate amount in lawful money of Canada and in Canadian dollar equivalen= ts so borrowed must not exceed __________ dollars ($_____) CAD), together with such interest and with such discounts or premiums and expenses as the Autho= rity determines appropriate in consideration of the market and economic conditio= ns.

��= �� 5.�� When from time to time the First Nation wishes to borrow all or a portion of the amount authorized under this Law, = the Council shall pass a security issuing council resolution approving the borrowing of the specified amount and requesting the Authority to include t= he requested amount as part of its next bond issue.

��= �� 6.�� On completion by the Authority of the financing undertaken pursuant to this Law and the security issuing council resolution, the First Nation

(a)�� shall execute and deliver to the Author= ity such promissory notes as requested by the Authority; and<= /p>

(b)�� hereby authorizes and directs [insert name/title of authorized signatories] to execute such promissory notes = on behalf of the First Nation when requested by the Authority.

��= �� 7.�� The First Nation shall in each budget y= ear after this Law comes into force provide for payments of all amounts payable= to the Authority during that budget year and reserve such local revenues as are required to ensure that all amounts authorized to be paid to the Authority = are actually paid in that year.

��= �� 8.�� The First Nation shall pay its obligati= ons to the Authority in priority to other creditors of the First Nation in each bu= dget year.

��= �� 9.�� An expenditure law made under paragraph 5(1)(b) of the Act shall not authorize the expenditure of moneys raised und= er a local revenue law unless the First Nation�s budget provides for the payment= of all amounts payable to the Authority during the budget period.

��= �� 10.� The maximum term for which debentures ma= y be issued to secure the debt authorized by this Law is ______ (___) years.

��= �� 11.� Where a provision in this Law is express= ed in the present tense, the provision applies to the circumstances as they arise= .

��= �� 12.� This Law shall be construed as being rem= edial and shall be given such fair, large and liberal construction and interpreta= tion as best ensures the attainment of its objectives.

��= �� 13.� The Schedules attached to this Law form integral parts of this Law.

��= �� 14.� The authority to borrow under this Law e= nds on the earlier of

(a)�� the date that the amount authorized by = this Law has been fully borrowed by the First Nation, as evidenced by security issuing council resolutions passed by Council; and

(b)�� five (5) years from the date that this = Law comes into force for any part of the amount authorized by this Law that has= not been borrowed, as evidenced by security issuing council resolutions passed = by Council.

��= �� 15.� This Law comes into force and effect on = the later of ___________ and the day after it is approved by the First Nations = Tax Commission.

�� THIS LAW IS HEREBY DULY ENACTED by Council on the ___ day of ____________, 20___, at _____________ in the Prov= ince of ______________.

�� A quorum of Council consists of __= ______________ (___) members of Council.

SCHEDULE �A�

CERTIFICATION OF EXISTING OBLIGATIONS

SCHEDULE �B�

FMB CERTIFICATE (FSMA, subsection 50(3)) � to be provided to the First Nation by the FMB

SCHEDULE �C�

FORM OF SECURITY ISSUING COUNCIL RESOLUTION

Council Resolution # ______

��= �� Whereas:

��= �� A.�� The Council has enacted the __________= ____ First Nation Long-term Capital Borrowing Law, No. ____ (the �Borrowing Law�),= to authorize the borrowing of not more than ________ dollars ($_____) from the First Nations Finance Authority (the �Authority);

��= �� B.�� The First Nation wishes to approve the borrowing of [all/a portion] of the moneys authorized under the Borrowing Law; and

��= �� C.�� The First Nation wishes to approve the= form of promissory note attached as a schedule to this resolution, to be signed = and delivered by an authorized signatory of the First Nation as set out in this resolution.

��= �� Now therefore the Council resolves as follows:

��= �� 1.�� That Council approves the borrowing fro= m the Authority, as part of its next issue, the amount of _____ dollars ($____) o= ver a term of _______ (____) years.

��= �� 2.�� That Council requests that the Authority undertake the borrowing of the amount of __________ dollars ($_____) in Canadian dollars or Canadian dollar equivalents on its behalf for the capit= al infrastructure project described in the Borrowing Law together with such interest and with such discounts or premiums and expenses as the Authority determines appropriate in consideration of the market and economic conditio= ns.

�� 3.= �� Upon the completion of any borrowing undertaken by the Authority on behalf of the First Nation in accordance with the Borrowing Law, Council hereby authorizes and directs [insert name of authorized signatories] to execute one or more promissory notes, in the form attached as a Schedule to this resolutio= n, as may be required by the Authority from time to time, providing for paymen= t to the Authority of the amounts required to meet the obligations of the First Nation with respect to the borrowing undertaken pursuant to the Borrowing L= aw and this resolution.

��= �� 4.�� Each promissory note shall be dated and payable in principal amount or amounts of moneys and in Canadian dollars as= the Authority shall determine, and shall set out a schedule of repayment of the principal amount, together with

interest on unpaid amounts accruing from the date specified by the Authority, and at the rate determined by the Authority from time to time.

��= �� This resolution was duly passed by Council on __________ , 20___ .

_______________________<= /span>

Authorized signatory

SCHEDULE

(to the Security Issuing Council Resolution)

PROMISSOR= Y NOTE

The ______ First Nation hereby prom= ises to pay to the First Nations Finance Authority (the �Authority�) the sum of _______ Canadian dollars ($____), together with interest calculated semi-annually in each year during the currency of this Promissory Note, at = such rates of interest as determined by the Authority from time to time.

The First Nation shall make payment= s to the Authority as set out in the table attached to this Promissory Note and commencing on _________ , 20__ , provided that in the event the payments of principal and interest set out in the table are insufficient to satisfy the obligations of the Authority undertaken on behalf of the First Nation, the First Nation shall pay to the Authority such further amounts as are suffici= ent to discharge the obligations of the First Nation to the Authority. These further sums will be calculated by the Authority, communicated in writing to the ______ First Nation and payable by the _____ First Nation at a date specified in writing by the Authority to the _____ First Nation.=

Dated at _______________, ________________ on __________, 20___.

__________ First Nation, by its authorized signatory

__________________________

[insert name & title]

[Attach T= able]