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Meeting Details

April 2012

The Pasqua Treaty Land Entitlement Trust (the ìTrustî) is a separate legal entity which will be created by the Pasqua First Nation (the ìFirst Nationî), as represented by the Band Council, under the terms of the Pasqua Treaty Land Entitlement Trust Agreement (the ìTrust Agreementî). The Trust will be set up to manage, invest and administer the Entitlement Monies ($8,823,272.85) to be received by the First Nation under the terms of the Pasqua Band Treaty

Pasqua First Nation Treaty Land Entitlement Trust Agreement Summary

MPj01804300000[1]

Background

The Pasqua Treaty Land Entitlement Trust (the ìTrustî) is a separate legal entity which will be created by the Pasqua First Nation (the ìFirst Nationî), as represented by the Band Council, under the terms of the Pasqua Treaty Land Entitlement Trust Agreement (the ìTrust Agreementî). The Trust will be set up to manage, invest and administer the Entitlement Monies ($8,823,272.85) to be received by the First Nation under the terms of the Pasqua Band Treaty

Land Entitlement Settlement Agreement (the ìSettlement Agreementî).

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Background continued

The Trust will be administered by a professional corporate trustee being the Royal Trust Corporation of Canada (the ìTrusteeî). The Trust Agreement comes into effect once the Settlement and Trust Agreements have been approved by the First Nation through the ratification vote and the Settlement Agreement has been executed by the First Nation and the respective Ministers on behalf of the Governments of Saskatchewan and Canada.

The Settlement Agreement sets out certain provisions that must be included in the Trust Agreement; however, Canada has essentially left it up to the First Nation to draft its own Trust Agreement as long as it includes within it certain minimum requirements such as the following:

3 Background continued

1.That the Shortfall Acres be acquired with reserve status before the Entitlement Monies can be used for Band Development (other than the initial amount

permitted under the Settlement Agreement as described further herein);

2.That the Entitlement Monies have to be used for the long term benefit of the First Nation and its Members; and

3.That the upper limit on the price per acre that can be paid for Entitlement Land under the Settlement Agreement prior to the Shortfall Acres Acquisition Date be adhered to.

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Establishment of Accounts

Two accounts are created under the Trust Agreement; the first being the Capital Trust Account with the Trustee (Royal Trust) into which the Entitlement Monies to be received from Canada and Saskatchewan under the Settlement Agreement will be deposited, and, the second being the TLE Revenue Account, which is to be established by the Band Council at a financial institution located on reserve and into which the interest earned (Annual Income) on monies invested in the Capital Trust Account will be deposited on an annual basis.

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Purposes of the Trust

The purposes of the Trust are as follows:

(a) to ensure that there are sufficient revenues available to acquire the Shortfall Acres (6,686.55 acres) and Equity Quantum Acres (32,504.59 acres) according to the terms of the Settlement and Trust Agreements;

(b) to protect and preserve the Trust Property for the future use and benefit of the First Nation;

(c) to protect and preserve the value of the capital in the Capital Trust Account as may be necessary against inflation eroding its value;

(d) to seek a reasonable long term increase in the value of the monies in the Capital Trust Account;

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Purposes of the Trust continued

(e) to provide a reasonable Annual Income to be paid annually into the TLE Revenue Account;

(f) to eliminate or minimize taxation of the Trust Property payable by the Trust;

(g) to permit the First Nation to add to the Trust Property;

(h) to fully and properly implement the Settlement Agreement and Trust Agreement; and

(i) to fully, properly and annually account for the revenue generated and the use and expenditure of the Trust Property.

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Trust Property

Under the Trust Agreement, the term ìTrust Propertyî is defined as including the following:

(a) all monies on deposit in the Capital Trust Account;

(b) any and all Authorized Investments purchased under the Trust Agreement;

(c) any additions or accruals thereto including, without limitation, all interest revenue, capital gains and other income realized thereon; and

(d) any other funds paid into the Capital Trust Account by the First Nation

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Use of Entitlement Monies

The ultimate purpose of the Trust is to ensure that there are sufficient funds available to allow the First Nation to acquire its allotted Shortfall and Equity Quantum Acres and to have such Entitlement Lands added to the reserve, while at the same time allowing for permitted future Band Development. In furtherance of this objective, the Entitlement Monies on deposit in the Capital Trust Account may only be utilized by the Trustee and the First Nation for the following specific purposes:

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Use of Entitlement Monies continued

(a) prior to the Shortfall Acres Acquisition Date (that being the date upon which Entitlement Land equal to the First Nationís Shortfall Acres has been transferred into Entitlement Reserve status), only for the Purchase of Entitlement Land, including Minerals and Improvements to be set apart by Canada as an Entitlement Reserve (or Entitlement Reserves) for the use and benefit of the First Nation under the terms of the Settlement Agreement, except to the extent that lands may be purchased without requiring Minerals prior to the Shortfall Acres Acquisition Date as specifically authorized in the Settlement Agreement;

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Use of Entitlement Monies continued

(b) after the Shortfall Acres Acquisition Date for the Purchase of Entitlement Land, with or without Minerals and Improvements, up to the First Nationís

allotted Equity Quantum;

(c) for the purchase of Authorized Investments;

(d) for the payment of Authorized Expenses;

(e) for the payment of the Annual Income of the Capital Trust Account generated during each Fiscal Year into the TLE Revenue Account;

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Use of Entitlement Monies continued

(f) for the payment of up to three hundred thousand ($300,000.00) dollars into the TLE Revenue Account which may be utilized by the First Nation for Band Development following receipt of the initial installment of the Entitlement Monies from Canada and Saskatchewan; and

(g) after the Shortfall Acres Acquisition Date, for the payment of sums from the capital in the Capital Trust Account to the TLE Revenue Account for Band Development as permitted under the Trust Agreement.

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Prohibitions on the Use of Entitlement Monies

In light of the fact that the Trust will be established for specific defined purposes, and it is important that the Entitlement Monies be properly invested by the Trustee for and on behalf of the First Nation, the Trustee will be bound by certain prohibitions on the use of the Entitlement Monies in the Capital Trust Account. For example the following are non-permitted uses of monies in the Capital Trust Account:

(a) the Trustee shall not lend, invest, release, distribute,transfer or advance any portion of the funds in the Capital Trust Account except as may be specifically authorized in the Trust Agreement;

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Prohibitions on the Use of Entitlement Monies continued

(b) the funds in the Capital Trust Account, including the funds invested in Authorized Investments, shall not be used, directly or indirectly, at any time or in any circumstance, for per capita distribution to Members of the First Nation by the Trustee or the Band Council; and

(c) the Trustee shall not loan, mortgage, pledge, hypothecate or in any way encumber funds in the Capital Trust Account, including those funds invested in Authorized Investments, or any interest therein.

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20 Interest Earned on Entitlement Monies and Permitted Uses of Monies Transferred to the TLE Revenue Account

Once the interest earned (Annual Income) on the Entitlement Monies invested in the Capital Trust Account is transferred over to the TLE Revenue Account, it may only be utilized by the First Nation for the following specific purposes:

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Interest Earned on Entitlement Monies and Permitted Uses of Monies Transferred to the TLE Revenue Account continued

(a) for the payment of the Price and related Acquisition Costs associated with the Purchase of Entitlement Land up to the First Nationís allotted Shortfall Acres and Equity Quantum;

(b) for the reinvestment back into the Capital Trust Account of any funds as authorized by the Band Council through Band Council Resolution; and

(c) for permitted Band Development.

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Interest Earned on Entitlement Monies and Permitted Uses of Monies Transferred to the TLE Revenue Account continued

The restrictions identified above are important for the mere fact that in order for the First Nation to properly acquire its Shortfall and Equity Quantum Acres, it will be incumbent upon the First Nation to ensure that a majority of the revenues generated by the Trust are directed towards the purchase of Entitlement Land.

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Reporting on TLE Revenue Account

Once the interest earned (Annual Income) is transferred to the TLE Revenue Account, it becomes the property of the First Nation. Accordingly, to ensure adequate accountability for funds deposited into the TLE Revenue Account, the Trust Agreement requires that the First Nation have the TLE Revenue Account audited by a qualified auditor within ninety (90) days following the end of each Fiscal Year. Further, the Trust Agreement will require that prior to October 31st of each year, the Band Council call and convene a Band meeting at which time the Band Council shall present the results of the annual audit of the TLE Revenue Account together with a reporting of the use of any monies received for Band Development purposes, if any, for the previous Fiscal Year. If the Band Council fails to proceed with the reporting requirements as specified, the Trustee will be authorized to withhold any future Annual Income payments until such time as the Band Council has complied with the reporting and audit obligations.

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Acquisition of Entitlement Land

Under the terms of the Trust Agreement, the Council will have the ability to utilize both funds within the TLE Revenue Account along with the Capital Trust Account to acquire Entitlement Land. Where practicable, the First Nation shall be required to utilize funds in the TLE Revenue Account to purchase Entitlement Land prior to accessing funds in the Capital Trust Account. Again, the reason for this is to ensure that the majority of the costs associated with the acquisition of Entitlement Land are covered from the revenue of the Trust as compared to the capital. This will be important if the First Nation is to acquire and reach its allotted Equity Quantum Acres.

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Acquisition of Entitlement Land continued

In those circumstances where the First Nation acquires Entitlement Land utilizing funds in the Capital Trust Account, the Band Council shall be required to provide to the Trustee a Band Council Resolution which includes the legal description of the Entitlement Land, the price to be paid for the Land under the Agreement to Purchase along with an indication that the advice of the TLE Board (which is described in further detail later) has been obtained with respect to the proposed acquisition, and that the purchase of the Entitlement Land complies with the terms of the Settlement Agreement. The same type of Band Council Resolution will also be required in those situations where Entitlement Land is purchased utilizing monies out of the TLE Revenue Account.

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Acquisition of Entitlement Land continued

Once the Band Council Resolution is received by the Trustee, the funds required from the Capital Trust Account to purchase the Entitlement Land will be transferred over to the trust account of a practising solicitor to complete the purchase of the Entitlement Land. The same would also apply for monies released for land purchases utilizing funds from the TLE Revenue Account (ie: that they be placed by the Band Council into the trust account of a practising solicitor in order to complete the purchase).

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Acquisition of Entitlement Land continued

If for any reason, Entitlement Land which has been acquired is not eligible for placement into Entitlement Reserve status under the terms of the Settlement Agreement, or the First Nation is desirous of disposing of the Entitlement Land prior to it going into Entitlement Reserve status, the First Nation may subsequently sell the Land and the proceeds of such sale shall be required to be redeposited into the Capital Trust Account. In turn, these funds may be used for future land acquisitions.

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Acquisition of Entitlement Land continued

The Acquisition Costs associated with acquiring Entitlement Land which includes items such as land titles fees, taxes and tax adjustments, appraisal costs, survey costs, legal fees and any other reasonable costs associated with having the Entitlement Land placed into Entitlement Reserve status are to be paid firstly out of the TLE Revenue Account. If needed, the First Nation will also have the option of drawing on the capital in the Capital Trust Account to cover any Acquisition Costs which may not be paid out of funds maintained in the TLE Revenue Account, subject to approval of the Trustee.

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Holding Company

Once the Entitlement Land is acquired it will be held and managed by a holding company established by the First Nation until the Land is eligible for placement into Entitlement Reserve status under the terms of the Settlement Agreement. Upon the Entitlement Land being eligible for placement into Entitlement Reserve status, title to the Lands will then be transferred from the holding company to Canada for the purpose of accommodating reserve creation on the Lands.

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Holding Company continued

The holding company will be responsible for the payment of all reasonable expenses associated with the Land until it is placed into Entitlement Reserve status including the payment of municipal taxes and other expenses associated with the Land. Such expenses shall be paid out of the income earned on the Land with the balance of any funds remaining at the end of each Fiscal Year to be transferred over to the TLE Revenue Account.

The Band Council may, from time to time, establish policies and procedures governing the operations and administration of the holding company, provided that such policies and procedures shall not be inconsistent with the terms of the Trust Agreement.

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Use of Trust Property Prior to Shortfall Acres Acquisition Date

As has been the customary practice with most TLE settlements, the First Nation will be given the ability to utilize a small portion of the initial Entitlement Monies once they are deposited by Canada and Saskatchewan into the Capital Trust Account for Band Development purposes. In this regard, the Trust Agreement provides that the First Nation may, prior to the Shortfall Acres Acquisition Date, transfer up to $300,000.00 from the Capital Trust Account to the TLE Revenue Account for the purpose of Band Development.

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Use of Trust Property Prior to Shortfall Acres Acquisition Date continued

The term ìBand Developmentî is defined in the Trust Agreement as meaning the investment and utilization of monies for the purpose of Business, acquisition of Land, Minerals or Improvements (including Entitlement Land), infrastructure, agricultural, educational, cultural or recreational development, or any project or program for the use, development, advantage or benefit of the First Nation.

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Encroachment on Capital

After the First Nation has reached its Shortfall Acres Acquisition Date, the Band Council may, from time to time, request that the Trustee pay and transfer out of the Capital Trust Account to the TLE Revenue Account a cumulative total not to exceed the aggregate sum of $1,000,000.00 which may be utilized for further Band Development. Prior to releasing such funds, the Band Council shall be required to provide to the Trustee a Band Council Resolution certifying the following:

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Encroachment on Capital continued

(a) that the advice of the TLE Board has been obtained with respect to the proposed Band Development;

(b) that the Band Development proposal is supported by an expenditure plan, cost breakdown and business plan; and

(c) that an assessment has been provided that demonstrates how the Band Development proposal will benefit the First Nation.

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Obligations of the Trustee

The Trustee, being Royal Trust, will be authorized under the Trust Agreement to invest the Trust Property provided that such investments are undertaken in accordance with an Investment Policy as developed by the First Nation and Royal Trust. A copy of the initial Investment Policy for the Trust is attached as Schedule ìAî to the Trust Agreement.

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Obligations of the Trustee continued

The fees to be paid to the Trustee for its services will bepaid out of the Capital Trust Account and will be undertaken in accordance with a Service Agreement as entered into by the First Nation and the Trustee which sets out the remuneration and related expenses to be paid to the Trustee with respect to its administration and management of the Trust Property. A copy of the initial Service Agreement to be entered into with the Trustee is attached as Schedule ìBî to the Trust Agreement. If the Trustee wishes to retain the services of an outside investment counsel to assist in their investment and management of the Trust Property, they shall be required to consult with and obtain the approval of the First Nation.

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Obligations of the Trustee continued

Royal Trust (or any similar Trustee which may be substituted in the future) shall provide to the Band Council, upon request, access to all financial records relating to the investment and management of the Trust Property. Further, quarterly reports and an annual report are to be prepared by the Trustee concerning the Trust Property, its investments and their performance. Also, the Trustee will attend at least one annual Band meeting with the Members as well as a semi-annual meeting with the Band Council to report on the administration and investment of the Trust Property.

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Obligations of the Trustee continued

The Trustee shall also cause to be prepared for each Fiscal Year financial statements respecting the Trust which shall be completed within ninety (90) days following the end of each Fiscal Year. The First Nation may, at its option, request that the financial statements be audited by an independent auditor as selected by the First Nation at its own cost and expense. Within fifteen (15) days of the financial statements being presented to the Band Council, the Band Council shall cause the financial statements along with the Trusteeís annual report to be posted at the First Nationís Administration Office.

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Obligations of the Trustee continued

The Trustee shall be liable for all losses and damages caused to the Trust and the First Nation if the Trustee acts fraudulently or negligently in its administration of the Trust, or otherwise breaches the provisions of the Trust Agreement and subsequent loss or damage is caused to the First Nation as a result of such actions.

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Pasqua TLE Board

.A Pasqua TLE Board was established by Band Council to assist Council in the acquisition of Entitlement Land and in consideration of Band Development projects.

.The TLE Board consists of five (5) Members. Council is responsible to ensure that:

.the TLE Board is selected in the interests of all Members

.Individuals have the experience or training required to contribute to the Board

.Members are at least 18 years of age and are not Council Members

.TLE Board Members submit to a CPIC review prior to appointment

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Pasqua TLE Board

.As at December 31, 2011, the Pasqua TLE Board currently

consists of the following Members:

.Tatroy Lerat (Chair)

.Della Chicoose

.Shirley Acecoutay

.Norris Pasqua

.Glenda Dubois

.The Pasqua TLE Board also consists of an Elder, Clayton Cyr. Clayton assists the Board and provides guidance, advice and counsel. Clayton has no voting rights.

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Pasqua TLE Board

.Chief and Council are in the process of hiring a TLE Coordinator who will be responsible for maintaining the documents and records for the TLE Board. The TLE Coordinator will help the TLE Board with the preparation of the Board minutes, motions, resolutions, correspondence, etc. The TLE Coordinator will participate in all meetings and will assist the TLE Board in their deliberations. The TLE Coordinator has no voting rights.

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The Settlement Agreement dated September 30, 2008 provided for $8,823,272.85 to be distributed to the Pasqua TLE Trust. Of this amount, $6,176,291.00 was payable from the Canadian government (ìCanadaî) and $2,646,981.85 from the Province of Saskatchewan (ìSaskatchewanî). The funds are to be held in a trust for the long term use and benefit of the Pasqua First Nation. By Ratification Vote held on April 25, 2008, the Electors of the Pasqua First Nation approved the Pasqua TLE Trust Agreement. The Trust Agreement was signed on May 16, 2008. To date, the Trust has received the following amounts:

.From Canada

.

.October 27, 2008 $2,058,763.68

.January 29, 2009 $4,117,527.32

.From Saskatchewan

.November 12, 2008 $ 441,163.64

.July 16, 2009 $ 441,163.64

.July 15, 2010 $ 441,163.64

.July 15, 2011 $ 441,163.64

.$441,163.64 to be paid before July 15, 2012

.$441,163.64 to be paid before July 15, 2013

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CLOSING VALUES

AS AT DECEMBER 31, 2011, THE CLOSING VALUE OF THE TRUST IS AS FOLLOWS:

MARKET VALUE % OF PORTFOLIO

CASH AND SHORT TERM INVESTMENTS $ 199,859.74 2.77%

BONDS $4,176,684.75 57.98%

STOCKS $2,827,336.99 39.25%

TOTAL VALUE $7,203,881.48 100.00%

OPENING VALUES

As at December 31, 2010, the opening value of the Trust was as follows:

Market Value % of Portfolio

Cash and Short Term Investments $ 128,518.92 1.79%

Bonds $3,947,275.70 54.91%

Stocks $3,112,977.96 43.30%

TOTAL VALUE $7,188,772.48 100.00%

52 Land Purchased: On July 30, 2010, Pasqua First Nation purchased 1,630 acres of

land for $1,340,000.00 as hereinafter described:

SE 12-23-15 W2 Ext 35 ñ Surface Parcel #131757587

SE 12-23-15 W2 Ext 28 ñ Surface Parcel #131757565

Block A Plan 101237925 Ext 16 ñ Surface Parcel #131823019

NE 12-23-15 W2 ñ Surface Parcel #110705644

SW 07-23-14 W2 ñ Surface Parcel #110818919

NW 07-23-14 W2 ñ Surface Parcel #110818920

SE 07-23-14 W2 Ext 1 ñ Surface Parcel #110818908

SE 07-23-14 W2 Ext 2 ñ Surface Parcel #110830250

NE 06-23-14 W2 Ext 3 ñ Surface Parcel #110830249

NE 06-23-14 W2 Ext 1 ñ Surface Parcel #110818896

NE 06-23-14 W2 Ext 2 ñ Surface Parcel #110830238

NW 06-23-14 W2 Ext 2 ñ Surface Parcel #110830227

NE 06-23-14 W2 Ext 1 ñ Surface Parcel #110818885

NE 01-23-15 W2 Ext 27 ñ Surface Parcel #131757543 and Mineral

Parcel #1317577554

NE 26-22-15 W2 ñ Surface Parcel #110706375

SE 35-22-15 W2 ñ Surface Parcel #110706690 and Mineral

Parcel #120724130

NW 36-22-15 W2 ñ Surface Parcel #110706746.

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On November 30, 2011, Pasqua First Nation purchased 313.91

acres of land for $232,000.00 as hereinafter described:

SE 18-23-14 W2 Ext 0 ñ Surface Parcel #110819314

NE 18-23-14 W2 Ext 15 ñ Surface Parcel #120763201

To date, Pasqua First Nation has purchased 1,943.91 acres of land.

Lease Agreement for purchased lands:

Deer Creek Farms: 1440 acres

Year 1: $28/acre = $40,320.00 Year 2: $29/acre = $41,760.00

Year 3: $30/acre = $43,200.00 Year 4: $33/acre = $47,520.00

Year 5: $35/acre = $50,400.00

Deer Creek Farms: 313 acres @ $30/acre = $ 9,390.00/yr

Lease proceeds are deposited to PFN Holdings Inc Account at Peace Hills Trust. Expenses associated with the Holdings Acct pertain to land improvements and taxes. Period ending December 31 of each year, those funds unexpended in Holdings acct get re-directed to RBC TLE Revenue Acct.

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TLE Settlement Agreement: RBC Capital Account

$8,823,272.85

Funds used to purchase 6,686.55 shortfall acres of lands.

Equity acres: 32,504.59

Total acres eligible for purchase: 39,191.14

Government of Saskatchewan

$2,646,981.85

Government of Canada

$6,176,291.00

Pasqua First Nation

TLE Revenue Account ñ RBC

Receives annual interest from Capital Account

TLE Operating

Account: PHT

Receives operational budgeted funds from Rev Account for board and lands acquisition costs.

TLE Holdings Inc.: PHT

Receives lease payments for those lands purchased pursuant to the Trust.

Any surplus of funds are redirected to TLE Rev Account

57 MPj01804300000[1]

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