Sample By-laws under Section 83 of the Indian Act

____________ FIRST NATION SAMPLE FIRST NATION FINANCIAL ADMINISTRATION BY-LAW BY-LAW NO. ____ A by-law to regulate the management and control of First Nation funds and establish the administrative structure of the First Nation which manages the funds.

Table of Contents PART 1 ......................................................................................................................................................................... 3 TITLE ....................................................................................................................................................................... 3 PART 2 ......................................................................................................................................................................... 3 DEFINITIONS ......................................................................................................................................................... 3 PART 3 ......................................................................................................................................................................... 4 APPLICATION ........................................................................................................................................................ 4 PART 4 ......................................................................................................................................................................... 5 COUNCIL ................................................................................................................................................................. 5 Role of Council..................................................................................................................................................... 5 Duties ................................................................................................................................................................... 6 Alternative Arrangements for Funding Agreements............................................................................................. 6

PART 5 ......................................................................................................................................................................... 6 FINANCE AND AUDIT COMMITTEE .................................................................................................................. 6 Role of the Committee .......................................................................................................................................... 6 Appointment of Committee ................................................................................................................................... 7 Terms of Office ..................................................................................................................................................... 7 Election and Role of the Chair ............................................................................................................................. 8 BAND MANAGER .................................................................................................................................................. 8 Role of Band Manager ......................................................................................................................................... 8 CONTROLLER ........................................................................................................................................................ 9 Role of Controller ................................................................................................................................................ 9 Appointment of Controller ................................................................................................................................... 9

PART 6 ....................................................................................................................................................................... 10 FISCAL YEAR ....................................................................................................................................................... 10 ANNUAL BUDGET ............................................................................................................................................... 10 ANNUAL AUDIT .................................................................................................................................................. 10 Public Access ..................................................................................................................................................... 11

PART 7 ....................................................................................................................................................................... 12 FINANCIAL MANAGEMENT: DEPOSITS ......................................................................................................... 12 General Requirements ........................................................................................................................................ 12 Bank Accounts and Tax Account ........................................................................................................................ 12 FINANCIAL MANAGEMENT: RESERVE FUND ............................................................................................. 13 Reserve Fund...................................................................................................................................................... 13

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- 2 - Conditions of Use ............................................................................................................................................... 13 FINANCIAL MANAGEMENT: EXPENDITURES .............................................................................................. 14 Conditions of Expenditures ................................................................................................................................ 14 Authorized Signatories ....................................................................................................................................... 14 Bonding and Insurance Requirements ............................................................................................................... 15 Expenditure Procedures ..................................................................................................................................... 15 Petty Cash .......................................................................................................................................................... 16 Travel Expenses ................................................................................................................................................. 16 FINANCIAL MANAGEMENT: LOANS, BORROWING AND DEBTS ............................................................ 16 Loans .................................................................................................................................................................. 16 Borrowing and Credit Powers of Council .......................................................................................................... 17 Conditions of Borrowing .................................................................................................................................... 17 Collection of Debts ............................................................................................................................................. 18 FINANCIAL REPORTING: INVOICING ............................................................................................................ 19 AWARDING OF CONTRACTS ............................................................................................................................ 19 Tendering Requirements .................................................................................................................................... 19

PART 8 ....................................................................................................................................................................... 21 CONFLICTS OF INTEREST ................................................................................................................................. 21 Definitions .......................................................................................................................................................... 21 General Conflict of Interest Rule ....................................................................................................................... 21 Disclosure by Members of Council and the Committee ..................................................................................... 21 Disclosure by Employees ................................................................................................................................... 22 Liability to Account ............................................................................................................................................ 22 Suspension or Dismissal .................................................................................................................................... 22

PART 9 ....................................................................................................................................................................... 23 NON-COMPLIANCE ............................................................................................................................................ 23 PART 10 ..................................................................................................................................................................... 23 AMENDMENTS AND REPEAL ........................................................................................................................... 23 PART 11 ..................................................................................................................................................................... 23 GENERAL .............................................................................................................................................................. 23

WHEREAS the Indian Act provides that Council may, subject to the approval of the Minister of Indian Affairs and Northern Development, make by-laws for the following purposes:

(a) the appropriation and expenditure of moneys of the First Nation to defray the First Nation expenses;

(b) the appointment of officials to conduct the business of Council; and (c) any matter arising out of or ancillary to the exercise of the powers described in subsection 83(1) of the Act;

AND WHEREAS the Council of the First Nation has determined that it is desirable and necessary that a financial administration by-law be established for the purposes set out in subsection 83(1) of the Act;

NOW THEREFORE the Council of the First Nation, at a duly convened meeting, enacts the following by-law:

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- 3 - PART 1 TITLE 1. This By-law may be called the “ First Nation Financial Administration By-law”.

PART 2 DEFINITIONS 2. In this By-law, “Act” means the Indian Act; “annual audit” means an audit by an auditor of the First Nation’s consolidated financial statements for the preceding fiscal year according to generally accepted auditing standards and including a separate audit of the Tax Account;

“annual budget” means the revenues and expenditures projected and approved by Council under section 32 for the next fiscal year and includes any amendments to the annual budget made under section 31;

“annual audited financial statements” means the consolidated financial statements audited by an auditor as part of conducting the annual audit;

“auditor” means a person or company who is designated as a chartered accountant or certified general accountant and who is a member in good standing with the registered accounting association that regulates his designation;

“band manager” means the employee or contractor appointed by resolution as the administrator of the First Nation;

“capital works” means major physical assets owned or controlled by the First Nation, including roads, bridges, utilities, water supply and septic systems, ditches and water spillways, buildings, waste control facilities, land, landscaping and fencing;

“committee” means the Finance and Audit Committee of the First Nation established pursuant to section 11 of this By-law;

“controller” means the person appointed under section 23; “Council” means the council of the First Nation and includes the Chief of the First Nation; “department” means an administrative division or agency of the First Nation government as established from time to time and includes

(a) internal organizational units of the First Nation administration, (b) any Committee, tribunal, commission or committee of the First Nation, and 333-00.1\00005

- 4 - (c) any corporate entity controlled by the First Nation, including a partnership; “employee” includes, for the purposes of this By-law, any contractors with the First Nation who administer, manage or control First Nation funds;

“Expenditure By-law” means a by-law of the First Nation enacted pursuant to section 83 of the Act, specifying allowable expenditures from Tax Revenue;

“First Nation funds” means all moneys received and managed by Council, or its designate, for the use and benefit of the First Nation, including all revenues, grants, contributions, loans, earnings from business enterprises and, unless otherwise indicated in this By-law, includes Tax Revenue, but does not include

(a) money received by the First Nation on behalf of an individual, corporate entity or partnership, and

(b) any money received and managed by Council for which Council has approved an alternative arrangement under to section 8 of this By-law;

“First Nation” means the __________ First Nation, being a band, as defined under the Indian Act;

“fiscal year-end” means the date specified in section 26. “funding agreement” means any written contract between the First Nation and another party or parties, pursuant to which money is to be paid to the First Nation;

“General Account” means any bank account in the name of the First Nation and created pursuant to section 48;

“resolution” means a decision of Council at a duly held Council meeting and recorded in writing;

“Tax Account” means a single bank account in the name of the First Nation for the purpose of holding all and making expenditures from Tax Revenue;

“Taxation By-law” means a by-law providing for the taxation of real property and enacted by the First Nation pursuant to section 83 of the Act; and

“Tax Revenue” means any revenue collected by the First Nation pursuant to a Taxation By-law. PART 3 APPLICATION 3. This By-law governs the management and control of First Nation funds and the administrative organization of the First Nation to manage and control First Nation funds.

4. This By-law applies to Council and all departments in receipt of First Nation funds. 333-00.1\00005

- 5 - PART 4 COUNCIL Role of Council 5. Council must conduct the business of the First Nation in a manner that ensures sound financial management by, among other things, carrying out the following duties and responsibilities:

(a) ensuring that the annual budget of the First Nation does not have expenditures exceeding revenues;

(b) planning and budgeting financial and other resources for local services and capital works projects;

(c) setting policies and procedures to safeguard the resources of the First Nation and maximize the well-being of the members of the First Nation;

(d) ensuring Council and all employees of the First Nation have full financial accountability at all times to all members of the First Nation;

(e) ensuring the First Nation meets all financial obligations with third parties; (f) ensuring all investments in financial instruments are made in accordance with prudent investor standards;

(g) overseeing the work of all employees of the First Nation, through the band manager, and ensuring that all employees of the First Nation who manage and control First Nation funds are

(i) responsible for maintaining accurate financial records, and (ii) qualified for the position to which they are appointed; (h) permitting access by all members of the First Nation, under the supervision of Council or its designate, to First Nation by-laws, annual budgets, annual audited financial statements and annual audit reports of the First Nation;

(i) ensuring that all financial records of the First Nation, including computer files, are kept in the administration office of the First Nation in a secure and safe condition, and are not removed from the office without the authority of Council, such authority to be evidenced by resolution; and

(j) ensuring the sale of any assets owned by the First Nation is for no less than fair market value.

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- 6 - Duties 6. Each member of Council must, in exercising his powers and performing his functions under this By-law,

(a) act honestly and in good faith and in the best interests of the First Nation; and (b) exercise the care, diligence and skill of a reasonably prudent person. Alternative Arrangements for Funding Agreements [Note to First Nation: sections 7 and 8 are meant to allow flexibility, in case the First Nation obtains financing from a third party (like INAC or a private party), but the financing has ‘strings’ attached – i.e. requirements on how the funds must be processed and spent that are different from the First Nation’s normal procedures in this By-law.]

7. Council may, by resolution, approve any funding agreement. 8. Notwithstanding the provisions of this By-law, Council may by resolution approve an alternative arrangement other than the provisions of this By-law for the management of money received pursuant to the terms of a funding agreement, if the terms of the funding agreement require the alternative arrangement.

PART 5 FINANCE AND AUDIT COMMITTEE Role of the Committee 9. The Committee must ensure the control and management of First Nation funds in a manner that is consistent with prudent financial management practices by, among other things, carrying out the following duties and responsibilities:

(a) manage and control all transactions of First Nations funds, including the receipt, collection, expenditure and disbursement of First Nation funds;

(b) administer and supervise the compilation and preparation of information for the annual budget;

(c) present the annual budget to Council for its review and approval by resolution; (d) ensure the completion and of an annual audit and presentation of the audit to Council for its review and approval by resolution;

(e) administer and supervise the financial records and reporting systems of the First Nation;

(f) ensure financial compliance of the First Nation with all contracts and funding agreements entered into by Council or any department, and report immediately any non-compliance to Council;

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- 7 - (g) report to Council on financial matters; (h) provide advice to Council on financial matters; (i) develop and present a list of candidates to Council for the position of controller;

(j) supervise and oversee the role and responsibilities of the controller; and (k) oversee all other matters relating to the financial affairs of the First Nation. 10. The Committee may prescribe any requirements for the form and content of the financial records and the accounting systems of the First Nation that it deems necessary.

Appointment of Committee [Note to First Nation: this sample by-law establishes a Finance and Audit Committee of five (5) people. You should establish an appropriate sized Finance and Audit Committee for the size of your community. Any Finance and Audit Committee should contain an odd number of people, no less than three (3) members, one (1) of whom should be the band manager. Twenty-five percent (25%) of the members of committee must also be members of council.]

11. Council hereby establishes a Finance and Audit Committee of the First Nation. 12. Council must, by resolution, appoint at least three (3) members to the Committee and those members must include

(a) the band manager; (b) at least ____ ( ) members of Council; and (c) at least ____ ( ) members of the First Nation who are not members of Council. Terms of Office 13. Council must, by resolution, appoint the band manager to be a member of the Committee for as long as he is the band manager.

14. Council must, by resolution, appoint the members of the Committee prescribed under paragraphs 12(b) and (c) for a term of office that is the same duration as a term of office for a member of Council.

15. A member of the Committee may be removed from office (a) by the chair if the member has missed three (3) consecutive scheduled meetings of the Committee;

(b) by a majority of Council and with the recommendation of the chair; or (c) by a unanimous vote of Council. 333-00.1\00005

- 8 - 16. If any position on the Committee is vacated for any reason, including under section 15, then Council must appoint, by resolution, the members needed to fill any vacancies in the Committee that result from that change.

Election and Role of the Chair 17. The Committee must elect from its members one (1) person to serve as chair of the Committee.

18. The term of office for the position of chair must be two (2) years and a person may serve as a chair for one (1) or more consecutive terms.

19. If the chair resigns, the Committee must elect from its members one (1) other person to serve as chair for the balance of the term remaining.

20. The chair must (a) supervise and direct the work of the Committee; (b) undertake administrative duties as necessary to oversee and implement the work of the Committee; and

(c) preside at meetings of the Committee. BAND MANAGER Role of Band Manager [Note to First Nation: the following gives the financial administration responsibilities of the band manager only and is not intended to be a complete job description for a band manager.]

21. (1) The band manager must act as the senior administrative officer of the Committee and must assist the Committee in carrying out its duties.

(2) The duties of the band manager include (a) ensuring the creation and maintenance of adequate records of Committee minutes, resolutions, decisions and other proceedings;

(b) maintaining security of finances and financial documents by (i) establishing safe storage in security boxes or safes, (ii) establishing secure storage with security codes and locks on files, cash and valuable documents, and

(iii) ensuring no more than two (2) people, in addition to himself, have knowledge of the security codes, combinations or possession of keys to locked files;

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- 9 - (c) ensuring all cash is deposited in a drop safe located in the administration office of the First Nation at the end of each business day;

(d) monitoring all contracts and funding agreements entered into by Council or any department for financial compliance and reporting immediately any non­compliance to the Committee; and

(e) completing any other task assigned by the Committee. CONTROLLER Role of Controller 22. The controller reports directly to the Committee and must (a) conduct the administration necessary to discharge the financial administration responsibilities of the Committee, including staff supervision;

(b) maintain records of all information required to facilitate the annual audit; (c) compile and prepare information for the annual budget and any amended annual budget;

(d) administer and maintain adequate and timely financial records and reporting systems that record all financial transactions of the First Nation, including but not limited to copies of all vouchers, financial statements, cancelled cheques and correspondence relating to the financial business of the First Nation and reporting systems;

(e) prepare and present to the Committee by the 20th day of each month, a financial statement for the previous month that includes a balance sheet and a statement of operations showing revenues and expenditures;

(f) receive, record and deposit, or administer the receipt, recording and deposit of all money received by the First Nation in a timely manner;

(g) ensure all accounts payable are paid in accordance with the procedures set out in this By-law;

(h) complete any other task assigned by the Committee; and (i) maintain a detailed inventory of all First Nation assets having a reasonable estimate of fair market value over _________ dollars ($ ). Appointment of Controller 23. The Committee must develop a list of at least three (3) potential candidates for the position of controller and Council must, by resolution, appoint a person as controller from the list.

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- 10 - 24. Subject to the provisions of this By-law, the engagement and removal of any person as controller must be consistent with any personnel policies of the First Nation.

PART 6 FISCAL YEAR 25. [ Note to First Nation: Normally this period is April 1 st of the current year to March 31 st of the following year.] 26. The financial year-end of the First Nation is _____ to _______ ANNUAL BUDGET 27. The Committee must prepare estimates of the projected revenues of the First Nation for the purpose of preparing the annual budget.

28. Each department manager must prepare the department’s annual budget and any amendments thereto for the operation of the department and must submit the budget and any amendments prepared to the Committee.

29. The Committee must prepare an annual budget and submit the annual budget to Council for consideration and approval by resolution.

30. Council is solely responsible for the approval of the annual budget for each fiscal year. 31. Council may, by resolution, direct amendments to the annual budget submitted by the Committee.

32. The annual budget becomes effective upon approval by Council, by resolution. 33. The annual budget must be made available during regular working hours for inspection by any member of the First Nation, and copies are to be provided to First Nation members upon written request to the controller and payment of a fee of twenty-five dollars ($25.00).

ANNUAL AUDIT 34. Council must appoint annually, by resolution, an auditor to conduct the annual audit, and prepare an annual audit report and a separate annual audit report with respect to the Tax Account.

35. The auditor reports to Council. 36. The auditor must be entitled to access any information or records that are held by or in the control of the First Nation and are necessary to complete the annual audit, including but not limited to

(a) all books, records, accounts and vouchers of the First Nation; 333-00.1\00005

- 11 - (b) any information held by or under the control of a department manager or any agent of the First Nation that is necessary for the completion of the audit;

(c) all Council resolutions and First Nation by-laws; and (d) any agreements, contracts, or related documents entered into or in control of the First Nation, Council or any employee of the First Nation.

37. The annual audit must be conducted in accordance with generally accepted auditing standards, must include a general review of the adequacy of the accounting procedures and systems of control employed to preserve and protect the assets of the First Nation, and must be completed in no more than four (4) months after the fiscal year-end.

38. The controller must provide any assistance to the auditor required for the completion of the annual audit.

39. The Auditor shall within 105 days following the fiscal year end provide for review and comment the annual audited financial statements and annual audit reports by the Committee,

40. the auditor must present the statements including comments of the Committee and reports to Council .

41. Council must within 120 days following the end of the fiscal year. consider and vote on the annual audited financial statements and annual audit reports at a duly held meeting of Council and, if approved, must be signed by the Chief and one (1) other person as designated by resolution.

Public Access 42. Once Council signs the annual audited financial statements and annual audit reports, the controller must post copies of the statements and reports in such public places as determined by Council, by resolution.

43. The controller must retain the signed, annual audited financial statements and annual audit reports, and any member of the First Nation may

(a) inspect the statements and reports during regular office hours; and (b) directly or through an agent, make a copy of the statements, the reports or any part thereof, upon payment of a fee of twenty-five cents ($.25) per page.

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- 12 - PART 7 FINANCIAL MANAGEMENT: DEPOSITS General Requirements 44. The Committee must ensure that all operating and savings accounts in the name of the First Nation are established at a chartered bank, trust company or credit union.

45. The controller must ensure the safekeeping of all First Nation funds received and maintain a numbered receipt book for the funds.

46. Upon receipt of any First Nation funds other than Tax Revenue, the controller must (a) stamp all cheques immediately upon receipt with a stamp that designates the moneys for deposit into a General Account;

(b) cause such funds to be deposited into a General Account within five (5) days of receipt; and

(c) promptly issue a receipt in the correct amount to the payor. 47. Upon receipt of any Tax Revenue, the controller must (a) stamp all cheques immediately upon receipt with a stamp that designates the moneys for deposit into the Tax Account;

(b) cause such funds to be deposited into the Tax Account within five (5) days of receipt; and

(c) promptly issue a receipt in the correct amount to the payor, subject to any requirement in the Taxation By-law to issue a receipt.

Bank Accounts and Tax Account 48. The controller must, under the supervision of the Committee, establish at least one (1) bank account held in the name of the First Nation, into which all First Nation funds, other than Tax Revenue, must be deposited.

49. The controller must, under the supervision of the Committee, establish one (1) Tax Account into which all Tax Revenue must be deposited.

50. The Committee may authorize the controller to reallocate funds from one General Account to another General Account for investment purposes or program and services delivery.

51. Funds in any General Account and the Tax Account must be administered by the controller.

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- 13 - 52. The interest earned on First Nation funds, other than the Tax Revenue, must be paid to a General Account.

53. The interest earned on Tax Revenue must be paid to the Tax Account. FINANCIAL MANAGEMENT: RESERVE FUND [Note to First Nation: the Reserve Fund provisions are added for your consideration.] Reserve Fund 54. Subject to the provisions of any funding arrangement, Council may, by resolution, authorize the establishment of a reserve fund, using First Nation funds other than Tax Revenue, called the “Reserve Fund” for the sole purposes of

[Note to First Nation: the following are two examples of reasons you may wish to create a Reserve Fund.]

(a) constructing or upgrading capital works of the First Nation; (b) supplementing operational costs when projected revenues for First Nation administrative, social and educational programs are anticipated to be lower than projected expenditures.

Conditions of Use 55. The following conditions apply to the use of any Reserve Fund created under section 54: (a) the Reserve Fund must be established in a separate bank account with a bank, trust company or credit union;

(b) Council must regularly inform the members of the First Nation about the use of the Reserve Fund;

(c) the members of the First Nation must give prior approval for any withdrawal from the Reserve Fund over _____________ dollars ($_______ ), such approval to be obtained in the same manner as set out in paragraph 72(b) of this By-law;

(d) Council must ensure that contributions are made to the Reserve Fund on an annual basis as part of normal monthly expenditure from First Nation funds and each contribution must be no less than _________ percent ( %) of the total projected annual revenues of the First Nation set out in the annual budget projections;

(e) Council can only withdraw from the Reserve Fund between April 1 and April 15 of each fiscal year and only if a balance of ________ dollars ($________) remains in the Reserve Fund account after the withdrawal, unless Council

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- 14 - receives approval of the members of the First Nation in the same manner as set out in paragraph 72(b) of this By-law;

(f) Council must ensure that contributions to the Reserve Fund are budgeted as part of the annual budget, and are shown in financial statements required under paragraph 22(e) of this By-law; and

(g) the Reserve Fund will be established and maintained on or before April 1, _____ and may not be accessed until after April, 1 _____.

FINANCIAL MANAGEMENT: EXPENDITURES Conditions of Expenditures 56. Prior to any expenditure from a General Account, other than loans under section 70, the following conditions must be met:

(a) funds for the expenditure must be allocated and approved as part of the annual budget; and

(b) the expenditure must be consistent with prudent cash management practices. 57. Any expenditures from the Tax Account must be in accordance with an Expenditure By-law.

Authorized Signatories 58. Council may, by resolution, designate up to four (4) individuals to sign any purchase order, work order, cheque, agreement or other obligation to make an expenditure from First Nation funds, provided that any obligation to make an expenditure must be signed by

(a) at least one (1) councillor; and (b) the band manager or, if the band manager is unavailable, the director of finance.

59. [Note to First Nation: the types of expenditures and pre-approved amounts listed below are given as examples only. Please insert the types of expenditures that you wish to pre-approve, as well as reasonable amounts for your community’s signing authorities. Consider the size of your administration, budget and authority level of personnel.]

Council may, by resolution, designate the individuals described below to sign purchase orders and work orders for up to the following limits:

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- 15 - Employee Title Limit (a) department manager $_____; and (b) band manager $______. Bonding and Insurance Requirements [Note to First Nation: the requirement for bonding is optional. The following provision and the sample amounts are provided for your consideration.]

60. Council must ensure that any individual that is designated under section 58 is bonded to a minimum of ____________ dollars ($_________) [e.g. $50,000], and any individual that is designated under section 59 is bonded to a minimum of dollars ($_________) [e.g. $30,000].

61. Council must ensure that the First Nation obtains a reasonably prudent amount of loss and liability insurance to protect the First Nation and its assets.

Expenditure Procedures 62. The controller may distribute First Nations funds, other than Tax Revenue, among more than one General Account if he determines that it is administratively prudent to do so.

63. Council may, by resolution, authorize an expenditure from the Tax Account if the expenditure has been approved by Council

(a) as part of the annual budget; and (b) as part of the Expenditure By-law. 64. An individual designated under section 59 may sign a purchase order or work order up to the amount specified in section 59 provided the expenditure has been approved by Council as part of the annual budget.

65. The Committee must report to the Council no later than the last day of the month with the following information for the previous month:

(a) a summary of revenues and expenditures for the previous month; (b) a cumulative summary of year-to-date revenues and expenditures; (c) bank balances for all General Accounts and the Tax Account; and (d) a monthly cash flow report showing annual projections for each department and year-to-date revenues and expenditures of each department.

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- 16 - 66. Council must ensure that all expenditures for the First Nation meet the conditions set out in section 56.

Petty Cash 67. Council may, by resolution, establish and maintain a petty cash fund to a maximum of dollars ($_________) [e.g. $500], provided that

(a) the resolution designates an employee of the First Nation who is not an authorized signatory of the First Nation to be responsible for the petty cash fund;

(b) the designated employee must (i) complete a voucher for each disbursement made, (ii) ensure that the total of disbursement vouchers plus the cash on hand equals the total amount of the fund,

(iii) ensure reimbursement of the fund, in accordance with the vouchers, and (iv) charge each expense to the appropriate department account. Travel Expenses 68. All employees of the First Nation must submit travel expenses over _______ dollars ($ ) to the band manager for advance approval and the band manager may approve such expenses, provided that the expenses are within the annual budget.

69. (a) On an annual basis, the Committee must recommend allowable rates of travel expenses and conditions of reimbursement to Council for its consideration and approval, by resolution.

(b) Where there have been no recommended changes the previous existing rates and conditions shall apply until amended by resolution.

FINANCIAL MANAGEMENT: LOANS, BORROWING AND DEBTS Loans [Note to First Nation: is this a power that you wish Council to have? You could prohibit Council from making any types of loans. Or, you could limit the types of loans that Council can make (see below)].

70. Council may make, or allow to be made, a loan from First Nation funds held in a General Account, provided that the following conditions have been met:

(a) the loan must be for 333-00.1\00005

- 17 - [Note to First Nation: if you wish to restrict the types of loans, insert allowable loans here. Restrictions could include:

(i) terms that include a reasonable rate of interest, and (ii) no more than ________ dollars ($______)etc.;] (b) Council must have pre-authorized the loan by resolution; (c) funds for the loan must be allocated and approved as part of the annual budget; and