Zagimē Anishinabēk must create a Trust to receive the settlement monies. The Trust Agreement governs how the Trust Property is to be used according to the requirements of the Settlement Agreement.
The Trust Property must be managed by a corporate Trustee. CIBC Trust Corporation is the Trustee appointed by Council. The corporate Trustee ensures that the Trust Property is invested according to the Investment Policy. The Trustee ensures that no funds may be drawn from the Trust Property unless the draw on Trust Property meets the rules of the Trust Agreement.
Before Shortfall (2,859 acres) the Trust Property can only be used for:
1. The purchase of Entitlement Land to be set apart as reserve
2. Up to $1,200.000 for Capital Infrastructure Purpose
After Shortfall the Trust Property can only be used for:
1. The purchase of additional Entitlement Land (18,620 acres) to be set apart as reserve
2. Capital Projects for the long-term use and benefit of Zagimē Anishinabēk
3. Strategic investments and enterprise initiatives for the long-term use and benefit of Zagimē Anishinabēk
During each Term of Office of a Council, only 20% of the value of the Trust Property may be used for the three allowable purposes. Of this 20%, the Trust Agreement identifies these restrictions:
1. Up to 100% may be used for Land Acquisition
2. Only up to 60% may be used for capital infrastructure
3. Only up to 10% may be used for enterprise initiatives
Due Diligence is built into the Trust Agreement when a draw on the Trust Property is made.
A strategic plan must guide decisions on Land Acquisitions, infrastructure projects and enterprise initiatives
Appraisals, studies and accredited financial advice must be undertaken before any draw on the Trust Property is approved by the Trustee.
After Shortfall Acres Acquisition the Trust Property may be used to guarantee a loan with the following restrictions on the purpose and amount that may be borrowed:
1. Up to 30% of the market value of the Trust Property for Land Acquisition with a loan term no longer than 25 years
2. Up to 20% of the market value of the Trust Property for Capital Infrastructure with a loan term no longer than 15 years
3. Up to 5% of the market value of the Trust Property for Enterprise Initiatives with a loan term no longer than 8 years
The Trust Agreement requires independent financial advice on any proposed loan or authorized loan guarantee.
Annual Audit and Reporting
The financial statements for the Trust account must be audited annually. The annual audit must be posted and an annual meeting for the membership must be held to report on the activities of the Trust through an Annual Report.
After Zagimē Anishinabēk has purchased all Equity Acres and the land has been set aside as reserve, the Trustee may make unrestricted payments from the Trust Property for Band Development as defined in the Settlement Agreement.
After Shortfall Acres Acquisition Date, up to $5,000,000 of the Trust Property may be used to respond to an extraordinary natural disaster that may severely impact critical infrastructure and the life, health and safety of Zagimē Anishinabēk membership.
The Trust Agreement cannot be amended before the Shortfall Acres Acquisition Date. The Trust Agreement can only be amended by a majority of the electors as set out in the Trust Agreement.
The Trust can only terminate when: the Trust Property is less than $500,000 and all Shortfall Acres have been set aside as reserve; all Equity Acres have been set aside as reserve; or where required by applicable law.