189. The Community may, by by-law submitted to the Minister for approval, constitute a working fund the purpose, constitution and administration of which must be consistent with the following rules :
(1) To constitute the working fund, the Community may authorize the treasurer of the Community to borrow through the issue and sale of treasury bills, notes or other securities, the amounts which the treasurer considers necessary, provided the current nominal value of such treasury bills, notes or other securities does not at any time exceed 20% of the appropriations provided for in its budget.
(2) Such treasury bills, notes or other securities may bear no nominal interest rate, shall be payable to bearer or to the holder registered according to their conditions, and shall mature no more than 365 days after the date of their issue. They may bear the mention that they are redeemable in advance, without any other formalities and conditions than those mentioned in them, and must indicate that they are issued for the purposes of the working fund of the Community.
(3) The sale of the treasury bills, notes or other securities shall be carried out by agreement or by tender. Sale by agreement shall be made on behalf of the Community by the treasurer with the approval of the Community.
In the case of sale by tender, the tenders shall not be subject to section 106, but they shall be addressed to and opened by the treasurer. The treasurer, on behalf of the Community, shall make the sale to the tenderer who submitted the tender which the treasurer considers to be the most advantageous to the Community. The treasurer is not bound to accept any tender.
(4) A loan may be granted from such working fund
(a) for a purpose for which the Community is authorized to borrow temporarily ;
(b) for the purposes of capital expenditures ;
(c) in anticipation of the collection of revenue of the Community or of a sum owing to it ; or
(d) for the purchase of pending securities of the Community that may meet the requirements of a sinking fund, at a price not exceeding their par value.
The term of the loan may not exceed five years or, in the case provided for in subparagraph b of the first paragraph, 10 years.
However, in the case of loans granted pending the payment of advances on loans to be granted by the Canada Mortgage and Housing Corporation, the loans granted out of such fund may be for a term of more than five years and apply until any such loan is made to the Community by the Canada Mortgage and Housing Corporation.
(5) Moneys out of the working fund may be invested in treasury bills or in other short-term bonds or securities provided for in paragraphs 2, 3 and 4 of article 1339 of the Civil Code. Such moneys may also be invested on a short-term basis in a chartered bank or other financial institution authorized to receive deposits.
(6) The Community may authorize the treasurer of the Community to invest in the fund, for periods not to exceed 90 days, the available balance of the administrative budget fund or the temporarily unused balance of the proceeds from long term loans.
(7) At the end of a fiscal year of the Community, any operating surplus of the working fund shall be transferred to the general fund of the Community, and any deficit shall be made good out of such fund if need be.