CHAPTER 19 CAPITAL TRANSFER AND NEGOTIATION LOAN REPAYMENT

19.1 CAPITAL TRANSFER
19.2 ECONOMIC DEVELOPMENT FUND
19.3 NEGOTIATION LOAN REPAYMENT
  SCHEDULE 19-A – CAPITAL TRANSFER AND ECONOMIC DEVELOPMENT FUND PAYMENT PLANS
  SCHEDULE 19-B – NEGOTIATION LOAN REPAYMENT PLAN

19.1  CAPITAL TRANSFER

19.1.1  Subject to 19.3.2, the Capital Transfer from Canada and British Columbia to Yale First Nation will be paid in accordance with the Capital Transfer Payment Plan.

19.2  ECONOMIC DEVELOPMENT FUND

19.2.1  Canada will pay $1.1 million in 3rd quarter 2008$ to Yale First Nation in accordance with the Economic Development Fund Payment Plan.

19.2.2  The Parties acknowledge that British Columbia agrees to pay $1.1 million in 3rd quarter 2008$ to Yale First Nation for economic development under the initial Fiscal Financing Agreement.

19.3  NEGOTIATION LOAN REPAYMENT

19.3.1  Yale First Nation will make a negotiation loan repayment to Canada in accordance with the Negotiation Loan Repayment Plan.

19.3.2  Canada may set off and deduct from a payment made by Canada under 19.1.1 or 19.2.1 the amount of a repayment to be made under 19.3.1 on the same date, except to the extent that the negotiation loan repayment amount has been prepaid.

SCHEDULE 19-A – CAPITAL TRANSFER AND ECONOMIC DEVELOPMENT FUND PAYMENT PLANS

Part 1 - Capital Transfer Payment Plan

PAYMENT DATE PROVISIONAL PAYMENT AMOUNT
  CANADA WILL PAY BRITISH COLUMBIA WILL PAY
Effective Date $8,239,000 $2,461,000

Part 2 - Economic Development Fund Payment Plan

FUND PAYMENT DATE PROVISIONAL PAYMENT AMOUNT
    CANADA WILL PAY
Economic Development Fund Effective Date $1,100,000

NOTES FOR FINALIZING SCHEDULE 19-A

The purpose of these notes is to enable the Parties to calculate on the Revision Date the amounts to be shown in the final version of the Capital Transfer Payment Plan and Economic Development Payment Plan. The provisional payment amounts are expressed in third quarter 2008$.

These notes will be deleted, and will no longer form part of this Agreement, when this Schedule is completed in accordance with these notes and the Effective Date occurs.

1. In these notes:

"FDDIPI" means the Final Domestic Demand Implicit Price Index for Canada, series D100466, published regularly by Statistics Canada in Matrix 10512: Implicit Price Indexes, Gross Domestic Product, or its replacement series as specified by Statistics Canada;

"Revision Date" means the date 30 days before the Effective Date, or another date if the Parties agree;

"Signing Date" means the date on which this Agreement is signed by the Parties; and

"Transition Date" is the date that is 15 months after the Signing Date.

2. If the period between the Signing Date and the Effective Date is less than 15 months, on the Revision Date the provisional payment amounts in the Capital Transfer Payment Plan and the Economic Development Fund Payment Plan will be adjusted as follows:

provisional payment amount * M/L

where,

"/" means divided by;

"*" means multiplied by;

"L" is the value of FDDIPI for the third quarter of 2008 published by Statistics Canada at the same time that the values used in M are published; and

"M" is the first published value of FDDIPI for the latest calendar quarter for which Statistics Canada has published a FDDIPI before the Revision Date.

3. If the period between the Signing Date and the Effective Date is greater than 15 months, on the Revision Date the provisional payment amounts in the Capital Transfer Payment Plan and the Economic Development Fund Payment Plan will be adjusted as follows:

provisional payment amount * [(P/Q) * (1 + C)Y * (1+C*D/365)]

where:

"Q" is the value of FDDIPI for the third quarter of 2008 published by Statistics Canada at the same time that the values used in P are published;

"P" is the first published value of FDDIPI for the latest calendar quarter for which Statistics Canada has published a FDDIPI before the Transition Date;

"Y" means the number of complete years between the Transition Date and the Effective Date;

"D" is the number of days remaining in the period between the Transition Date and the Effective Date, after deducting the complete years in that period that have been taken into account in the determination of Y; and

"C" is 3.335% per year.

The purpose of this paragraph is to limit the period for which the Capital Transfer and the Economic Development Fund are adjusted by FDDIPI to the period that ends on the Transition Date, and to lengthen the period for which the Capital Transfer and Economic Development Fund payments are adjusted by the calculation rate to the period between the Transition Date and the Effective Date.

4. On the Revision Date, following the adjustment performed in accordance with either paragraph 2 or 3 of these notes, as applicable, the Capital Transfer Payment Plan will be amended to incorporate the adjusted figures and the headings in the Capital Transfer Payment Plan above will be replaced by the following headings:

  PAYMENT AMOUNT
PAYMENT DATE CANADA WILL PAY BRITISH COLUMBIA WILL PAY

5. On the Revision Date, following the adjustment performed in accordance with either paragraph 2 or 3 of these notes, as applicable, the Economic Development Fund Payment Plan will be amended to incorporate the adjusted figures and the headings in the Economic Development Fund Payment Plan will be replaced by the following headings:

FUND PAYMENT DATE PAYMENT AMOUNT
    CANADA WILL PAY

SCHEDULE 19-B – NEGOTIATION LOAN REPAYMENT PLAN

PAYMENT DATE PROVISIONAL NEGOTIATION LOAN REPAYMENT AMOUNT
Effective Date $6,487,714.40

NOTES FOR FINALIZING SCHEDULE 19-B

The purpose of these notes is to enable the Parties to calculate on the Revision Date the amount to be shown in the final version of this Schedule. These notes will be deleted, and will no longer form part of this Agreement, when this Schedule is completed in accordance with these notes and the Effective Date occurs.

The provisional loan repayment amount is based on total outstanding negotiation loans and interest accrued as of November 1, 2009. The final loan repayment amount, including any further negotiation loans made and interest accrued after November 1, 2009, will be calculated and included in the final Negotiation Loan Repayment Plan in accordance with the following notes.

1. In these notes:

"Revision Date" has the same meaning as "Revision Date" in the notes to Schedule 19-A; and

"C" is 3.335%.

2. On the Revision Date, the provisional negotiation loan repayment amount in the Negotiation Loan Repayment Plan will be adjusted to the final negotiation loan repayment amount by incorporating the amount of additional negotiation loans made by Canada to Yale First Nation that were not included in the calculation of the provisional negotiation loan repayment amount and any additional interest accrued since the provisional negotiation loan and interest amounts were calculated; and any prepayment of negotiation loans made by Yale First Nation to Canada.

3. Canada will calculate the final negotiation loan repayment amounts based on a document that Canada and Yale First Nation will produce jointly before the Revision Date, setting out the final negotiation loan and interest amounts, and the relevant terms and conditions of the loans as at the Effective Date.

4. On the Revision Date, following the adjustment performed in accordance with paragraph 2 of these notes, the headings in the Negotiation Loan Repayment Plan will be amended to incorporate the adjusted figures and the headings in the Negotiation Loan Repayment Plan will be replaced by the following headings:

PAYMENT DATE NEGOTIATION LOAN REPAYMENT AMOUNT

[ Previous | Next ]