In February 2012, the FNTC approved Borrowing Agreement Laws for the Tzeachten First Nation, Songhees Nation, and Osoyoos Indian Band.
The Borrowing Agreement Law authorizes a First Nation to enter into a borrowing member agreement with the First Nations Finance Authority, and is a prerequisite to accessing debenture financing through the First Nations Fiscal and Statistical Management Act (FSMA).
The approval of these laws follows each First Nation’s recent Financial Management Certification from the First Nations Financial Management Board. This Certification is important as it instills confidence in the First Nation financial management and reporting systems that ultimately support economic and community development.
Over the course of the next few months, it is expected that these First Nations will begin work on their borrowing laws to finance capital infrastructure with their property tax revenue. Pooling their borrowing needs with other First Nations waiting to be certified, they will form the initial First Nation bond.