Council must also create a policy on the lending of money and the giving guarantees, indemnities, and securities so that risks will be limited or managed. This policy must include the steps to make sure all money loaned by the First Nation is properly managed and collected.
The policy must also include that:
- money collected and interest owed are provided for
- rules be created for the writing off and waiving of debts
- if the First Nation has a program of lending First Nation money to members, this program must allow everyone access, have published rules and regulations, and be clear to anyone reviewing it
- make sure any money loaned by the First Nation follows any added requirements set by the FAL
- any money loaned by the First Nation must be reported yearly in a special report
This policy must also include the steps for giving a guarantee on money borrowed, including:
- limits on the number of guarantees and the amount of money they can be given for
- the approvals needed to give a guarantee
- making sure any guarantees given by the First Nation follows any added requirements set by the FAL
- any guarantees given by the First Nation must be reported yearly in a special report
This policy must also include the steps for granting indemnities, including:
- limits on the number of indemnities
- the approvals needed to give indemnities
- making sure any indemnities given by the First Nation follow any added requirements set by the FAL
- any indemnities given by the First Nation must be reported yearly in a special report
This policy must also include the steps for the following:
- giving securities
- giving expense and payroll advances
- giving or making leases or lease to buy deals