Section 89 (property seizure protection)
Indigenous RightsThe section of the Indian Act that protects the real and personal property of a Status Indian situated on a reserve from seizure by non-Indigenous creditors. This is why standard mortgages do not work on-reserve — the lender cannot foreclose. It protects you, but it also limits access to certain financial products.
Related terms
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Section 87
The section of the Indian Act that exempts the personal property of a Status Indian situated on a reserve from taxation. In practice, this can apply to employment income, investment income, and purchases — but only when specific conditions (the connecting factors test) are met. It does not mean all income is automatically tax-free.
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Ministerial Loan Guarantee
A federal guarantee that backs loans for on-reserve housing when land cannot be used as collateral (because reserve land cannot be seized under Section 89). Without this guarantee, most banks will not lend for on-reserve homes. Your band council must pass a BCR to support the application.
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On-reserve
Living or working on land designated as a reserve under the Indian Act. Your location matters for finances because it affects tax exemptions (Section 87), access to housing programs (Ministerial Loan Guarantees), and property protections (Section 89).