TRANSACTING BUSINESS WITH

FIRST NATIONS

CREDIT CONSIDERATIONS










Special laws that apply to Indians and First Nations the Indian Act and Department of Indian Affairs and Band Controlled corporations:
 
 

Constitution Act 1867
 

Section 91: it is hereby declared that (notwithstanding anything in this Act) the exclusive Legislative Authority of the Parliament of Canada extends to all matters coming within the classes of subjects next hereinafter enumerated; that is to say, -
                          24. Indians, and  Lands reserved for the Indians.

Indian Act sections which are especially relevant:

- Section 28:
 

28.(1) Subject to subsection (2), any deed, lease, contract, instrument, document or agreement of any kind, whether written or oral, by which a band or a member of a band purports to permit a person other than a member of that band to occupy or use a reserve or to reside or otherwise exercise any rights on a reserve is void.
(2) The Minister may by permit in writing, authorize any person for a period not exceeding one year, or with the consent of the council of the band for any longer period, to occupy or use a reserve or to reside or otherwise exercise a  right on a reserve.
- Section 29: Reserve lands are not subject to seizure under legal process.
 
 

-Section 88: Subject to the terms of any treaty and any other Act of Parliament of Canada, all laws of general application from time to time in force in any province are applicable to and in respect of Indians in the province, except to the extent that those  laws are inconsistent with this Act or any order, rule, regulation or bylaw made thereunder, and except to the extent that those taws make provision for any matter for which provision is made by or under the Act.

- Section 89;

89.(l) Restriction on mortgagee, seizure, etc., on property on reserve- Subject to this Act, the real and personal property of an Indian or a band situated on a reserve is not subject to charge, pledge, mortgage, attachment, levy, seizure, distress or execution in favor or at the instance of any person other than an Indian or a band.

(1.1) Exception- Notwithstanding subsection (1), a leasehold interest in designated lands is subject to charge, pledge, mortgage, attachment, levy, seizure, distress and execution.

(2) Conditional sales - A person who sells to a band or a member of a band a chattel under an agreement whereby the right of property or right of possession thereto remains wholly or in part in the seller, may exercise his rights under the agreement notwithstanding that the chattel is situated on a reserve

- Section 90:

90.(l) For the purposes of section 87 and 89, personal property that was:

(a) purchased by Her Majesty with Indian moneys or moneys appropriated by Parliament for the use and benefit of Indians or bands, or
          (b) given to Indians or to a band under a treaty or agreement between a band and Her Majesty, shall be deemed always to be situated on a reserve

(2) Every transaction purporting to pass title to any property that is by this section deemed to be situated on a reserve, or any interest in such property, is void unless the transaction is entered into with the consent of the Minister or is entered into between members of a band or between the band and a member thereof.

(3) Every person who enters into a transaction that is void by virtue of subsection (2) is guilty of an offense, and every person who, without the written consent of the Minister, destroys personal property that is by this section deemed to be situated on a reserve is guilty of an offense.