On November 15th, 2012, FNTC held a borrowing workshop for First Nations anticipating developing borrowing laws under the First Nations Fiscal and Statistical Management Act (FSMA). The workshop was aimed at informing First Nations of the local revenue borrowing process under the FSMA and the types of eligible capital projects.
Approximately 20 delegates attended including representatives from Osoyoos Indian Band, Metlaklata First Nation, Tk’emlúps te Secwépemc, Tsawout First Nation, Tzeachten First Nation and We Wai Kai First Nation. Representatives from the First Nation Finance Authority (FNFA) and the First Nations Financial Management Board also made presentations and discussed their roles in the borrowing process.
Under the FSMA, participating First Nations can use a portion of their property tax revenue to service the cost of financing capital over the long term.
First Nations must develop a borrowing agreement law, borrowing law, and a financial administration law before accessing the local revenue debenture financing system. The borrowing needs of each participating First Nation is pooled together in the form of a bond which is coordinated with the FNFA.