Financial Compensation

15. (1) In this section, “corporation” means the Inuvialuit Regional Corporation.

15. (1) In this section, “corporation” means the Inuvialuit Regional Corporation.

15. (2) Canada shall make capital transfer payments to the corporation as financial compensation under this Settlement in accordance with the agreed schedule of payments set forth in Annex N, commencing December 31, 1984. Such payments are valued at Forty-five (45) million dollars as of December 31, 1977.

As amended January 15, 1984

15. (3) Where legislation allowing Canada to meet the schedule of payments set forth in Annex N is not in force, all outstanding amounts shall be increased at the rate of 8% compounded semi-annually until such time as the legislation comes into force.

15. (4) The corporation shall have the right to borrow any amount or amounts from Canada at any time or times commencing January 1, 1985, but such borrowing shall not, in the aggregate, including principal outstanding together with unpaid interest, exceed the Schedule of Maximum Amount Permitted to be Outstanding for the year set forth in Annex O and shall not exceed Thirty (30) million dollars in the aggregate in any fiscal year (April 1 to March 31).

As amended January 15, 1984

15. (5) Interest on amounts borrowed pursuant to subsection (4) at 8% per annum calculated semi-annually, not in advance, shall be due and payable on December 31 of each year. Where the amount of principal outstanding on December 30 in any year is greater than the Maximum Amount Permitted to be Outstanding for the subsequent year, the difference shall be due and payable on December 31 of that year. 

15. (6) The principal of any loan outstanding or any part thereof may be repaid at any time without notice, penalty or bonus.

15. (7) The corporation may exercise the right to borrow referred to in subsection (4) by giving to Canada four (4) months notice in writing setting out the amount required and the date on which it is required, and on that date Canada shall lend to the corporation the amount required.

15. (8) Canada shall have the right to set off amounts due to the corporation pursuant to Annex N against amounts of principal that become due and payable to Canada pursuant to subsection (5) and against any interest due and payable.

15. (9) It is recognized that since the execution of the Agreement in Principle, Canada has advanced to the Inuvialuit development Corporation interest free loans in the amount of Nine million six hundred and seventy-five thousand (9,675,000) dollars.

As amended by P.C. 1987-26, January 15, 1987

15. (10) Subject to subsection (3), on December 31, 1984,  Canada shall set off against the initial amount payable to the corporation pursuant to subsection (2) the amounts of the interest free loans owing by the Inuvialuit development Corporation pursuant to subsection (9) in payment and satisfaction of those loans. Amounts due pursuant to subsection (2) shall be paid to the corporation, subject to any other rights of set off by Canada .

15. (11) The financial compensation paid pursuant to subsection (2), the transfer to and receipt by the corporation or any other Inuvialuit corporation of the financial compensation and any corporate distribution by the corporation or any other Inuvialuit corporation of the financial compensation shall be exempt from tax, including income tax, by federal, territorial, provincial and municipal Government s.

15. (12) For greater certainty, any income earned from financial compensation received and invested or otherwise utilized by any Inuvialuit corporation shall be subject to the tax laws of general application.