The following electronic version is for informational purposes only.
The printed version remains the official version.
CHAPTER 18 –
CAPITAL TRANSFER AND NEGOTIATION LOAN REPAYMENT
1. Subject to clause 4, the Capital Transfer from Canada to Tsawwassen First Nation, including the following funds:
a. the Economic Development Capital Fund referred to in clause 107 of the Lands chapter;
b. the Forest Resources Fund referred to in clause 6 of the Forest Resources chapter;
c. the Commercial Fish Fund referred to in subclause 105.a of the Fisheries chapter;
d. the Commercial Crab Fund referred to in subclause 105.b of the Fisheries chapter;
e. the Wildlife Fund referred to in clause 9 of the Wildlife chapter; and
f. the Reconciliation Fund referred to in clause 30 of the Lands chapter,
will be paid in accordance with the Capital Transfer Payment Plan in Schedule 1.
2. The value in 2006 of the Capital Transfer referred to in clause 1 is approximately $13.9 million.
3. Subject to clause 5, Tsawwassen First Nation will make negotiation loan repayments to Canada in accordance with the Negotiation Loan Repayment Plan in Schedule 2.
4. Canada may set off and deduct from a payment made under clause 1, the amount of a negotiation loan repayment to be made under clause 3 on the same date, except to the extent that the negotiation loan repayment amount has been prepaid in accordance with clause 5.
5. In addition to any negotiation loan repayment amount required under clause 3, Tsawwassen First Nation may make loan prepayments to Canada. All prepayments will be applied to the outstanding scheduled negotiation loan repayment amounts in consecutive order from the Effective Date. Tsawwassen First Nation will notify Canada in writing of a prepayment at least 30 days before the date of that prepayment.
6. The "n" anniversary for which a prepayment is to be applied will be the earliest anniversary for which a scheduled negotiation loan repayment amount, or a portion thereof, remains outstanding. Any loan prepayment applied to an outstanding negotiation loan repayment amount, or to a portion thereof, will be credited at its future value, as of the "n" anniversary, determined in accordance with the following formula:
| Future Value = Prepayment * (1+C)K * (1+C*H/365) |
where,
"/" means divided by;
"*" means multiplied by;
"K" is the number of complete years between the date of the prepayment and the "n" anniversary;
"H" is one plus the number of days remaining in the period between the date of the prepayment and the "n" anniversary, once the number of complete years referred to in "K" above has been deducted, and
"C" is 4.545 per cent per year.
7. If the future value of the prepayment exceeds the outstanding amount of the negotiation loan repayment amount scheduled for the "n" anniversary, the excess will be deemed to be a prepayment made on the "n" anniversary so that the future value of the excess will be applied as of the next anniversary in a manner analogous to that described in this clause.
8. On receipt of a prepayment, Canada will issue a letter to Tsawwassen First Nation setting out the amount of the prepayment received and the manner in which it will be applied.
Schedule 1 Capital Transfer Payment Plan
Part 1
| PAYMENT DATE | PROVISIONAL PAYMENT AMOUNT |
| Effective Date | $3,404,489 |
| First anniversary of Effective Date | $1,000,000 |
| Second anniversary of Effective Date | $1,000,000 |
| Third anniversary of Effective Date | $1,000,000 |
| Fourth anniversary of Effective Date | $1,000,000 |
| Fifth anniversary of Effective Date | $1,000,000 |
| Sixth anniversary of Effective Date | $1,000,000 |
| Seventh anniversary of Effective Date | $1,000,000 |
| Eighth anniversary of Effective Date | $1,000,000 |
| Ninth anniversary of Effective Date | $1,000,000 |
Part 2
| FUND | PAYMENT DATE | PROVISIONAL PAYMENT AMOUNT |
|---|---|---|
| Economic Development Capital Fund | Effective Date | $1,055,304 |
| Forest Resources Fund | Effective Date | $105,530 |
| Commercial Fish Fund | Effective Date | $1,155,304 |
| Commercial Crab Fund | Effective Date | $450,000 |
| Wildlife Fund | Effective Date | $50,000 |
| Reconciliation Fund | Effective Date | $440,000 |
Notes for Finalizing Schedule 1
These notes will not form part of this Agreement. 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 this Schedule. The Provisional Payment Amounts are expressed in second quarter 2006 dollars.
These instructions will be deleted, and will no longer form part of this Agreement, when this Schedule is completed in accordance with these instructions 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;
"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 each provisional payment amount in the Capital Transfer 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 first quarter of 2006 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 each provisional payment amount in the Capital Transfer Payment Plan will be adjusted as follows:
| provisional payment amount * [(P/Q) * (1 + CR)Y * (1+CR*D/365)] |
where:
"Q" is the value of FDDIPI for the first quarter of 2006 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
"CR" is 4.545 per cent.
The purpose of applying clause 3 is to limit the period for which the Capital Transfer is adjusted by FDDIPI to the period that ends on the date that is 15 months after the Signing Date, and to lengthen the period for which the Capital Transfer is adjusted by the calculation rate to the period between the date that is 15 months after the Signing Date and the Effective Date.
4. On the Revision Date, following the adjustment performed in accordance with either clause 2 or 3 of these notes, 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:
Part 1
| PAYMENT AMOUNT | |
| PAYMENT DATE | CANADA WILL PAY |
Part 2
| FUND | PAYMENT DATE | PAYMENT AMOUNT |
| CANADA WILL PAY |
Schedule 2 Negotiation Loan Repayment Plan
Negotiation Loan Repayment Plan
| PAYMENT DATE | PROVISIONAL NEGOTIATION LOAN REPAYMENT AMOUNT |
|---|---|
| Effective Date | $1,336,097 |
| First anniversary of Effective Date | $ 469,478 |
| Second anniversary of Effective Date | $ 469,478 |
| Third anniversary of Effective Date | $ 469,478 |
| Fourth anniversary of Effective Date | $ 469,478 |
| Fifth anniversary of Effective Date | $ 469,478 |
| Sixth anniversary of Effective Date | $ 469,478 |
| Seventh anniversary of Effective Date | $ 469,478 |
| Eighth anniversary of Effective Date | $ 469,478 |
| Ninth anniversary of Effective Date | $ 469,478 |
Notes for Finalizing Schedule 2
These notes will not form part of this Agreement. 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 this Schedule.
The provisional loan repayment amounts are based on total outstanding negotiation loans and interest accrued as of March 31, 2006. Final loan repayment amounts, including any further negotiation loans made and interest accrued after March 31, 2006, will be calculated and included in the final loan repayment schedule in accordance with the following notes.
1. In these notes:
"Revision Date" is the same as the Revision Date in Schedule 1.
2. On the Revision Date, the provisional negotiation loan repayment amounts in the Negotiation Loan Repayment Plan will be adjusted to final negotiation loan repayment amounts by:
a. determining the amount of the additional negotiation loans made by Canada to Tsawwassen First Nation which were not included in the calculation of the provisional negotiation loan repayment amounts and any additional interest accrued since the provisional negotiation loan and interest amounts were calculated; and
b. pro-rating and adjusting the additional amounts determined in accordance with subclause 2.a of these notes for Tsawwassen First Nation and apply these amounts to the Negotiation Loan Repayment Plan such that the amounts in the final Negotiation Loan Repayment Plan are proportional to the amounts in the provisional Negotiation Loan Repayment Plan and such that the final Negotiation Loan Repayment Plan incorporates interest on unpaid loan balances, using 4.545% as an interest rate per year beginning at the Effective Date and compounded annually, which is the same rate of interest that was used to establish the provisional Negotiation Loan Repayment Plan.
3. Canada will calculate the final negotiation loan repayment amounts based on a document that Canada and Tsawwassen 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 clause 2 of these notes, 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 |