Her Excellency the Governor General in Council, on the recommendation of the Minister of Indian Affairs and Northern Development, pursuant to subsection 64.1(3)* of the Indian Act, is pleased hereby to make the annexed Regulations prescribing the manner of determining interest for the purpose of subsections 64.1(1) and (2) of the Indian Act, effective November 1, 1987. S.C. 1985, c. 27, s. 11
Short Title
These Regulations may be cited as the Calculation of Interest Regulations.
Interpretation
In these Regulations,
Act means the Indian Act; (Loi)
principal amount outstanding means the amount received by a person under paragraph 15(1)(a) of the Act, as it read immediately prior to April 17, 1985, or under any former provision of the Act relating to the same subject-matter as that paragraph, less the sum of one thousand dollars and less the amounts withheld under subsection 64.1(1) of the Act and the amounts repaid under subsection 64.1(2) of the Act in respect of that person; (capital à rembourser)
reinstatement means the entering of the name of a person referred to in subsection 64.1(1) or (2) of the Act in a Band List. (réintégration)
Application
These Regulations apply to persons referred to in subsections 64.1(1) and (2) of the Act who make an application for reinstatement.
Calculation of Interest
For the purpose of subsections 64.1(1) and (2) of the Act, interest shall be calculated
on the principal amount outstanding only;
quarterly on the average month-end balance of the principal amount outstanding;
at a rate equal to the quarterly average of the interest rates applied by the Bank of Canada to Government of Canada Treasury bills of terms of six months; and
from the date referred to in section 5.
Accrual of Interest
Where reinstatement of a person referred to in paragraph 11(1)(c) or 11(2)(a) of the Act is made, interest accrues from the later of
November 1, 1987; and
subject to subsection (2), the date of signature on the application for reinstatement.
Where there is a difference of more than 30 days between the date of signature on an application for reinstatement and the date on which the application is received by the Registrar, interest shall accrue from the date on which the application is received by the Registrar.
Where reinstatement of a person is made pursuant to membership rules made pursuant to section 10 of the Act, interest accrues from the later of
November 1, 1987; and
the date of reinstatement of the person.
Method of Applying Moneys Withheld or Repaid
Where an amount is withheld under subsection 64.1(1) of the Act or is repaid under subsection 64.1(2) of the Act, the amount shall be applied first against the principal amount outstanding, and second against accrued interest.
For the purposes of section 6, the effective date on which an amount is applied shall be
where the amount is withheld pursuant to subsection 64.1(1) of the Act, the date that the person would have been entitled to receive the amount but for that subsection; and
where the amount is repaid pursuant to subsection 64.1(2) of the Act, the date that the amount is received by the band.