SOP - Requests to PT Governments
for Monthly Payments and Payment of Plan Disbursements
The purpose of this SOP is to set out the procedure
by which monthly payments for Plan Disbursements
and Other Fees and Disbursements will be requested
from the PT Governments as well as the procedure
for payment to approved claimants.
- Other Fees and Disbursements - Trustee
The Trustee will total the amounts to be paid
pursuant to paragraphs (b), (c), (d) and (e)
of the definition of Other Fees and Disbursements
in Section 1.01 of the Funding Agreement in
respect of the preceding month. Such amounts
will include monthly budget payments to the
various administrative service providers (including
the Trustee, Investment Advisor, Investment
Consultant, Auditor and Actuary), as well as
other expenses incurred in the administration
of the Settlement Agreement and Plans, as approved
by the Courts. The Trustee will apply the Sharing
Proportion of each PT Government in respect
of the preceding month's Other Fees and Disbursements,
complete Chart "C" of the Monthly
PT Request for Payment (Schedule "A"),
and forward a copy to the Administrator on the
first business day after the end of the month.
- Plan Disbursements
The Administrator will determine Plan Disbursements
to be paid to Approved Claimants whose payments
have been approved and where release agreements
(Schedule "C") have been duly executed
and received by the fifteenth day of the preceding
month. The Administrator will calculate the
amounts to be paid and will complete Chart "B"
of the Monthly PT Request for Payment which
sets out the Plan Disbursements for each PT
Government, the facts upon which this monthly
calculation is based (ie. claimant number, disease
level and payment amount) and the residence
information set out in the application of each
Approved Claimant. Such amounts shall not include
the restricted payment of $5,000 in Section
4.01(1)(b) of the Plans, shall not exceed the
70% limitation in Sections 4.02 and 6.01 of
the Plans, and shall not exceed the $75,000
limitation in Sections 4.02 and 6.01 of the
Plans (the "Holdback Amounts"). Each
month, the Administrator will requisition funds
from the Trustee, by letter (see "Request
for Funds" in Schedule "A"),
equal to the amount of all Plan Disbursements
to be paid by the Administrator for claims approved
in the previous month.
- Notice of Payments
Upon completion of Chart "B" of the
Monthly PT Request for Payment, the Administrator
will complete Chart "A" of the Monthly
PT Request for Payment by adding the total monthly
Plan Disbursements and total monthly Other Fees
and Disbursements to determine the total monthly
payment owed by each PT government. In accordance
with Section 4.04 of the Funding Agreement,
within five business days after the end of the
month, each PT government will be notified of
the monthly payment to be made in respect of
the Plan Disbursements and Other Fees and Disbursements
in the preceding month. The Monthly Request
for Payment will be sent to the FPT Governments,
Trustee, Joint Committee, Fund Counsel and Richard
O'Brien (Senior Director of FPT Affairs). The
list of PT Government contacts for notification
is attached as Schedule "B".
-
In accordance with Section 6.01 of the Funding
Agreement and the Payment Terms of Royal Trust
confirmed by each of the PT Governments (Schedule
"D"), monthly payments are to be made
to the Trustee, Royal Trust, upon notification
and within ten business days after the end of
each month. Funds are to be paid to Royal Trust
by electronic fund transfer, wire transfer or
cheque. Royal Trust is to be advised of the method
of monthly payment by each PT Government.
In the event that a PT Government is delayed in
remitting a requested monthly payment within the
time period provided set out above, Royal Trust
will loan the outstanding amount pursuant to the
Payment Terms so that claimant payments will not
be delayed. The Government that has been covered
by Royal Trust will be notified the day following
such borrowing and will be required to repay Royal
Trust within 30 days. Interest on the funds advanced
by Royal Trust will be charged at the Prime Rate.
-
Within 10 business days after the end of each
month, the Trustee will transfer an amount equal
to the amount requisitioned by the Administrator
for Plan Disbursements, pursuant to Section 6.01
of the Funding Agreement. The funds will be transferred
electronically to a Royal Bank account situated
in Ottawa. In accordance with the Payment Agreement
(Schedule "E"), the account will be
in the name of Royal Trust as Trustee for the
1986-1990 Hepatitis C Fund, however, the Administrator
will be authorized to make approved payments to
Class Members from the account. The Administrator
will not have any ownership interest in the funds.
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In the month following the receipt of a order
of a Court approving any costs as referred to
in the definition of Other Fees and Disbursements
in Section 1.01 of the Funding Agreement, the
Trustee will pay an amount equal to the amount
of such costs, in accordance with Section 6.05
of the Funding Agreement. For costs payable on
an ongoing basis, the Trustee will pay such costs
in the month following delivery of an invoice
for services rendered.
-
The Administrator will maintain notional accounts
for each approved claimant in respect of the
restricted payment of $5,000 in Section 4.01(1)(b)
of the Plans, the 70% limitation in Sections
4.02 and 6.01 of the Plans, and the $75,000
limitation in Sections 4.02 and 6.01 of the
Plans (the "Holdback Amounts"). Such
amounts will be paid to qualifying approved
claimants, with interest, in the event the Courts
decide to amend the restrictions pursuant to
Section 7.03 of the Plans.
Disclaimer
This Standard Operating Procedure
is intended to assist the reader with respect to
the subject matter and the procedures set forth
in this Standard Operating Procedure, however, in
the event there is any difference or ambiguity between
this Standard Operating Procedure and the 1986-1990
Hepatitis C Settlement Agreement such difference
or ambiguity will be governed by and will be resolved
by the terms of the 1986-1990 Hepatitis Settlement
Agreement.
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