ARTICLE 29

CAPITAL TRANSFER

PART 1: PAYMENT OF CAPITAL TRANSFER

29.1.1 Inuit acknowledge that they have received the capital transfer payments as listed in Schedule 29-1.

29.1.2 The Government of Canada shall make additional capital transfer payments to the Nunavut Trust as listed in Schedule 29-2.

29.1.3 The capital transfer payments referred to in Sections 29.1.1 and 29.1.2 include the Government of Canada's funding obligations in respect of the Nunavut Social Development Council and of the Inuit Heritage Trust, but such payment shall in no way affect the eligibility of the Council or Heritage Trust to apply for and receive government funds available for similar institutions in the Nunavut Settlement Area and throughout Canada by way of government grants, core funding, or other such funding mechanisms.

29.1.4 Any payment to which the Nunavut Trust is entitled under Section 29.1.2 shall, if the Trustees of the Nunavut Trust so direct, be paid directly to any beneficiary of the Trust.

PART 2: NEGOTIATION LOAN PAYMENT

29.2.1 The Nunavut Trust shall repay the negotiation loans of the Tungavik Federation of Nunavut in accordance with Schedule 29-3.

29.2.2 The Government of Canada may deduct any amounts due under Section 29.2.1 against payments referred to in Section 29.1.2.

29.2.3 In all other respects, terms and conditions of the negotiation loans shall be unaffected.

PART 3: LOANS AGAINST CAPITAL TRANSFER

29.3.1 At any time after three years from the date of ratification of the Agreement, the Nunavut Trust may request a loan from the Government of Canada against the then unpaid balance of the capital transfer.

29.3.2 If the Government of Canada agrees to consider the request, the Minister of Finance, representing Canada, and the Nunavut Trust will negotiate the amount and terms and conditions of the loan.

29.3.3 The Minister of Finance is authorized to consider a request and to grant a loan, on terms and conditions as agreed, up to the amount requested, if the Minister of Finance is satisfied that:

(a) the loan is intended for the social or economic development of Inuit;

(b) in any year, the unpaid balance of the capital transfer payment is sufficient to cover the total of all outstanding loan repayments, interest and fees required of the Nunavut Trust;

(c) the terms and conditions of the loan, including the amount of the loan, the timing and amount of repayments, and the interest rate,

(i) are consistent with government policies and practices for granting loans, and

(ii) enable the Minister to manage public disbursements and ensure fiscal constraint; and

(d) an amount to be paid is available for that purpose from the applicable Parliamentary appropriation.

29.3.4 A condition of any loan made under this Part shall be that the Nunavut Trust pay, at the time of the loan, an amount on any outstanding balance of negotiation loans described in Section 29.2.1 which will reduce the outstanding balance of those loans by the same proportion as the amount loaned under this Part bears to the unpaid balance of capital transfer payments referred to in Section 29.1.2. The amount so paid shall be credited to the last payments under Schedule 29-3.