Kitsumkalum Agreement-in-Principle
CHAPTER 18 - CAPITAL TRANSFER AND NEGOTIATION LOAN REPAYMENT
Capital Transfer
1.
The Capital Transfer from Canada and British Columbia to Kitsumkalum will be $44.2 million
and will be paid in accordance with the Final Agreement.
2.
A provisional schedule of payments will be negotiated before initialling the Final Agreement
such that:
3.
a)
the timing and amounts of payments in the provisional schedule of payments will
provide for a first payment to Kitsumkalum on the Effective Date and subsequent
payments on each anniversary of the Effective Date;
b)
the net present value of the amounts listed in the provisional schedule of payments will
equal the amount set out in paragraph 1; and
c)
the net present value of the amounts listed in the provisional schedule of payments will
be calculated using as a discount rate the most recent and appropriate Consolidated
Revenue Fund Lending Rate available before initialling the Final Agreement from the
Department of Finance, Canada, less one-eighth of one percent.
A final schedule of payments will be determined on the Revision Date, in accordance with the
following formula:
Final Amount = Provisional Amount * (Effective Date FDDIPI / 1st Q 2012 FDDIPI)
Where,
“*” means multiplied by;
“/” means divided by;
“Final Amount” refers to each amount in the final schedule of payments;
“Provisional Amount” refers to the corresponding amount in the provisional schedule of
payments;
“Effective Date FDDIPI” refers to the value of the Canada Final Domestic Demand Implicit
Price Index (FDDIPI) for the quarter before the Effective Date;
“Revision Date” means the date which is 30 days before the Effective Date or as otherwise
agreed to by the Parties;
“1st Q 2012 FDDIPI” refers to the value of the Canada FDDIPI for the 1st quarter of the year
2012; and
the Effective Date FDDIPI and 1st Q 2012 FDDIPI values used will be the latest published
values available from Statistics Canada on the Revision Date.
4.
Canada, subject to paragraph 9, and British Columbia will make payments to Kitsumkalum in
accordance with the final schedule of payments determined in accordance with paragraph 3.
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