NISGA'A FINAL AGREEMENT CAPITAL TRANSFER AND NEGOTIATION LOAN REPAYMENT

CHAPTER 14
CAPITAL TRANSFER AND NEGOTIATION LOAN REPAYMENT




CAPITAL TRANSFER

  1. Subject to paragraph 4, Canada and British Columbia will each pay their respective capital transfer amounts to the Nisga€™a Nation, in accordance with Schedule A.


 NEGOTIATION LOAN REPAYMENT

  1. Subject to paragraph 3, the Nisga€™a Nation will pay loan repayment amounts to Canada in accordance with Schedule B.

  2.  
  3. The Nisga€™a Nation may pay to Canada, in advance and on account, without bonus or penalty, amounts that will be credited against the loan repayment amounts in the manner described in Schedule B.

  4.  
  5. Canada may deduct from a capital transfer amount that it would otherwise be required to pay to the Nisga€™a Nation on a scheduled date in accordance with Schedule A, any loan repayment amount, or portion thereof, that the Nisga€™a Nation would otherwise be required to pay to Canada in accordance with Schedule B on that scheduled date, except to the extent that the loan repayment amount has been prepaid in accordance with paragraph 3.


SCHEDULE A -- PROVISIONAL SCHEDULE OF CAPITAL TRANSFER AMOUNTS
 
 
 
AMOUNTS
DATE
CANADA
WILL PAY
BRITISH COLUMBIA
WILL PAY
On the effective date    
On the first anniversary    
On the second anniversary    
On the third anniversary    
On the fourth anniversary    
On the fifth anniversary    
On the sixth anniversary    
On the seventh anniversary    
On the eighth anniversary    
On the ninth anniversary    
On the 10th anniversary    
On the 11th anniversary    
On the 12th anniversary    
On the 13th anniversary    
On the 14th anniversary    

 In this schedule "anniversary" means an anniversary of the effective date.
 

Note 1 and Note 2 of this schedule will be deleted, and will no longer form part of this Agreement,  when this Schedule is completed in accordance with those notes and the effective date occurs.

Note 1 to Schedule A

The Parties will calculate on the calculation date the amounts to be shown in the provisional schedule of capital transfer amounts in accordance with this Note.

The Canada and British Columbia capital transfer amounts for the effective date will sum to $22.0 million.

The Canada and British Columbia capital transfer amounts for the first anniversary will sum to $22.0 million.

The Canada and British Columbia capital transfer amounts will sum to $13.0 million for each of the second, third, fourth, fifth, sixth, and seventh anniversaries.

The capital transfer amounts for the eighth to fourteenth anniversaries, inclusive, will be calculated on the calculation date as follows:

On each scheduled date, the Canada capital transfer amount will be approximately 92.4 per cent of the sum of the Canada capital transfer amount and the British Columbia capital transfer amount, and the British Columbia capital transfer amount will be approximately 7.6 per cent of the same sum.

Note 2 to Schedule A

The Parties will calculate on the revision date the amounts to be shown in the final version of this schedule in accordance with this Note and will delete the word 'PROVISIONAL'  from the title of this schedule.

In this note "signing of the Nisga€™a final agreement" means signing by the Parties after the ratification by the Nisga€™a Nation in accordance with paragraph 2 of the Ratification Chapter.

If, within fifteen months after the signing of the Nisga€™a final agreement, the Parliament of Canada has not enacted settlement legislation to give effect to the Nisga€™a final agreement, Part B of this note will apply. Otherwise, Part A will apply. In either event, the following will apply:

 Part A of Note 2

On the revision date, the final schedule of capital transfer amounts will be prepared by amending each amount in this provisional schedule as follows:

amount in provisional schedule * (L/M) * (N/O)

Part B of Note 2

On the revision date, the final schedule of capital transfer amounts will be prepared by amending each amount in the provisional schedule as follows:

This paragraph is for information purposes and not for calculation purposes. The approximate effects of applying Part B are 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 of the Nisga€™a final agreement, 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 of the Nisga€™a final agreement and the effective date.
 

SCHEDULE B -- LOAN REPAYMENT AMOUNTS
 
 
On the effective date 0
On the first anniversary 0
On the second anniversary $2,000,000
On the third anniversary $2,000,000
On the fourth anniversary $2,000,000
On the fifth anniversary $2,000,000
On the sixth anniversary $2,000,000
On the seventh anniversary $2,000,000
On the eighth anniversary to be calculated on revision date
On the ninth anniversary to be calculated on revision date
On the 10th anniversary to be calculated on revision date
On the 11th anniversary to be calculated on revision date
On the 12th anniversary to be calculated on revision date
On the 13th anniversary to be calculated on revision date
On the 14th anniversary to be calculated on revision date

In this schedule "anniversary" means an anniversary of the effective date.
 

PREPAYMENTS

In addition to any required loan repayment amount, at each anniversary, and up to three times during the first nine months after an anniversary, the Nisga€™a Nation may make loan prepayments to Canada. All prepayments will be applied to the outstanding scheduled loan repayment amount(s) in consecutive order from the effective date.

The "r" anniversary at which a prepayment is to be applied is the earliest anniversary for which a scheduled loan repayment amount, or a portion thereof, remains outstanding. Any loan prepayment applied to an outstanding loan repayment amount, or to a portion thereof, will be credited to the Nisga€™a Nation at its future value, as of the "r" anniversary, determined in accordance with the following formula:

    Future Value = Prepayment * (1 + calculation rate)Zr * (1 + calculation rate * E/365)

If the future value of the prepayment exceeds the outstanding amount of the loan repayment amount scheduled for the "r" anniversary, the excess will be deemed to be a prepayment made on the "r" anniversary so that the future value of the excess will be applied as of the next "r" anniversary in a manner analogous to that described in this paragraph.

On receipt of a loan prepayment, Canada will issue a letter to the Nisga€™a Nation setting out the amount of the prepayment received and the manner in which it will be applied in accordance with this "Prepayments" section of this schedule.

Illustrative Example:
 


Note 1 to this Schedule will be deleted, and will no longer form part of this Agreement, when this Schedule is completed in accordance with the Note and the effective date occurs.

Note 1 to Schedule B

Canada will calculate in accordance with this note the actual loan repayment amounts for the eighth to 14th anniversaries inclusive to be inserted on the revision date in the final version of this schedule. In the final version of this schedule the loan repayment amounts for the effective date, and for the first to seventh anniversaries inclusive, will remain as set out in the initial version of this schedule.

The revision date is a date 14 days before the effective date, or another date if the Parties agree, and is the same revision date as that referred to in Schedule A.

On the revision date, Canada will calculate the amounts in the final schedule of loan repayment amounts for the eighth to 14th anniversaries, inclusive. These seven amounts will be equal amounts and each will be such that the net present value of all of the amounts in the final schedule of loan repayment amounts, discounted back to the effective date using the calculation rate (as described in the "Prepayment" section of this Schedule B) as the discount rate, will equal the loan amount.

In this schedule, the loan amount means the aggregate outstanding balance, at the effective date, of all negotiation and support loans, including principal and accrued interest, made by Canada to the Nisga€™a Tribal Council.

Canada will calculate the loan amount, based on a document that Canada and the Nisga€™a Tribal Council will produce jointly before the initialling of the Nisga€™a final agreement. That document will set out the amounts of all loans from Canada to the Nisga€™a Tribal Council, interest accrued to date and the relevant terms and conditions of those loans.

The document referred to in the previous paragraph will be available from either the Nisga€™a Tribal Council or the Federal Treaty Negotiation Office of the Department of Indian Affairs and Northern Development, upon request, as of the date of initialling of the Nisga€™a final agreement, to persons eligible to be enrolled as participants under that agreement.

For information purposes (and not for calculation purposes), the approximate amount of outstanding loans, including principal and accrued interest, as of the date that settlement legislation is introduced in Parliament, will be inserted in the following blank space before that date: ____________.
 
 

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