If a First Nation defaults on a First Nations Finance Authority (FNFA) Borrowing Agreement or fails to comply with local revenues laws as governed by the First Nations Tax Commission, the FMB has the authority under the First Nations Fiscal Management Act (FMA) to step in to provide support.
When does Intervention happen?
Intervention is a support process that enables the FMB to investigate, understand, manage, and resolve any problems relating to:
- Non-compliance with taxation laws.
- Risk or actual default of debt service payment(s) to FNFA.
We do this for the benefit and protection of all parties involved in the FMA framework, including the First Nation. Everyone involved needs to have confidence in the ability of borrowing First Nations to manage their financial management system properly and to repay their debt service payments to the FNFA.
What is the value of Intervention?
If the public, investors, and First Nations are confident in the integrity and quality of FMB Standards , the certification process, and procedures in place under the FMA, investors are more likely to invest in First Nations. They are also more likely to invest larger amounts, and under better terms and lending rates than traditional financing.