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1998 Legislative Session: 3rd Session, 36th Parliament

THIRD READING

The following electronic version is for informational purposes only.

The printed version remains the official version.

Certified correct as passed Third Reading on the 22nd day of April, 1999

Ian D. Izard, Law Clerk

BILL 51: NIS G A'A FINAL AGREEMENT ACT –

SCHEDULE

CHAPTER 14 OF 22

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 Nis g a'a Nation, in

accordance with

Schedule A.

NEGOTIATION LOAN REPAYMENT

2. Subject to paragraph 3, the Nis g a'a Nation will pay

loan repayment amounts to Canada in accordance with

Schedule B.

3. The Nis g a'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. Canada may deduct from a capital transfer amount that it

would otherwise be required to pay to the Nis g a'a Nation on a scheduled date in

accordance with

Schedule A, any loan repayment amount, or portion thereof, that the Nis g a'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 to 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:

all seven of the Canada capital transfer amounts will be equal

amounts and each will be calculated so that the net present value, calculated on the

calculation date, of all of the Canada capital transfer amounts in the provisional

schedule of capital transfer amounts, discounted back to the beginning of the provisional

schedule of capital transfer amounts, and using the calculation rate as the discount rate,

will equal $175,554,200 multiplied by M and divided by L; and

all seven of the British Columbia capital transfer amounts will

be equal amounts and each will be calculated so that the net present value, calculated on

the calculation date, of all of the British Columbia capital transfer amounts in the

provisional

schedule of capital transfer amounts, discounted back to the beginning of the

provisional

schedule of capital transfer amounts, and using the calculation rate as the

discount rate, will equal $14,445,800 multiplied by M and divided by L

where L, M, the calculation date and the calculation rate are

defined in Note 2 to this schedule.

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 Nis g a'a final agreement" means

signing by the Parties after the ratification by the Nis g a'a Nation in accordance

with paragraph 2 of the Ratification Chapter.

If, within fifteen months after the signing of the Nis g a'a final agreement, the

Parliament of Canada has not enacted settlement legislation to give effect to the Nis g a'a

final agreement, Part B of this note will apply. Otherwise, Part A will apply. In either

event, the following will apply:

"*" means multiplied by, and "/" means

divided by;

CR is the calculation rate;

L is the value of FDDIPI for the fourth quarter of 1995

published by Statistics Canada at the same time as the value used in M is published;

M is the first published value of FDDIPI for the latest

calendar quarter for which Statistics Canada has published a FDDIPI before the calculation

date;

FDDIPI is the Final Domestic Demand Implicit Price Index for

Canada, series D15613, published regularly by Statistics Canada in Matrix 6544: Implicit

Price Indexes, Gross Domestic Product;

the calculation date is a date 14 days before the signing of

the Nis g a'a final agreement, or another date if the Parties agree, and is the same

calculation date as that referred to in

Schedule B; and

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 B.

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)

where:

N is the first published value of FDDIPI for the latest

calendar quarter for which Statistics Canada has published a FDDIPI before the revision

date, and

O is the value of FDDIPI for the fourth quarter of 1995

published by Statistics Canada at the same time as the value used in N is published.

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:

amount in provisional

schedule * (L/M) * (P/Q) * (1 + CR) Y *

(1 + CR * D/365)

where:

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,

Q is the value of FDDIPI for the fourth quarter of 1995

published by Statistics Canada at the same time as the value used in P is published,

Y is 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,

the transition date is the date that is 15 months after the

date of the signing of the Nis g a'a final agreement, and

the calculation rate is x.xxx per cent per year.

[The rate to be inserted in the definition of calculation rate

is the most recently released rate of interest, as of the calculation date, that the

Minister of Finance for Canada has approved on loans from the Consolidated Revenue Fund

amortized over 14 years, less 0.125 per cent (specified to three decimal places of a per

cent).]

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 Nis g a'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 Nis g a'a final agreement and the

effective date.

SCHEDULE B – LOAN REPAYMENT AMOUNTS

On the effective date

On the first anniversary

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 Nis g a'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 Nis g a'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)

where:

"*" means multiplied by, and "/" means

divided by,

Zr is the number of complete years between the date of the

prepayment and the "r" anniversary,

E is one plus the number of days between the date of the

prepayment and the "r" anniversary, once the number of complete years referred

to in "Zr" above has been deducted, and

the calculation rate is x.xxx per cent per year.

[The rate to be inserted in the definition of the calculation

rate is the most recently released rate of interest, as of the calculation date, that the

Minister of Finance for Canada has approved on loans from the Consolidated Revenue Fund

amortized over 14 years, less 0.125 per cent (specified to three decimal places of a per

cent). The calculation date is a date 14 days before the signing of the Nis g a'a

final agreement, or another date if the Parties agree, and is the same calculation date as

that referred to in

Schedule A. In this paragraph "signing of the Nis g a'a

final agreement" means signing by the Parties after the ratification by the Nis g a'a

Nation in accordance with paragraph 2 of the Ratification Chapter. This bracketed paragaph

will be deleted on the date that Note 1 to this

schedule is deleted.]

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 Nis g a'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:

Hypothetical calculation rate = 10.000%

Annual equal payments of $100.00

Prepayment = $100, made in year four at day 182

Fifth anniversary payment has been previously prepaid

Amount owing at fifth anniversary = $0.00

Amount owing at sixth anniversary = $100.00

Therefore:

Zr = 1

E = 184

r = 6

Future Value of prepayment made in year four at day 182

= $100.00 * (1+0.10000) 1 * (1 + 0.10000 * 184/365)

= $115.55

Amount prepaid for sixth anniversary = $100.00

Amount in excess for sixth anniversary = $115.55 - $100.00 =

$15.55

Future value of $15.55 as of the seventh anniversary

= $15.55 * (1 + 0.10000) 1 * (1 + 0.10000 * 0/365)

= $17.11

Amount prepaid for seventh anniversary = $17.11

The prepayment made at day 182 in year four has eliminated the

loan repayment amount for the sixth anniversary and reduced the loan repayment amount for

the seventh anniversary from $100.00 to $82.89.

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 Nis g a'a Tribal Council.

Canada will calculate the loan amount, based on a document that Canada and the Nis g a'a

Tribal Council will produce jointly before the initialling of the Nis g a'a final

agreement. That document will set out the amounts of all loans from Canada to the Nis g a'a

loans.

The document referred to in the previous paragraph will be available from either the

Nis g a'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 Nis g a'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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