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The settlement builds on the 2021 Gottfriedson Day Scholars settlement, that provided individual compensation to day scholars who attended a residential school but did not reside at the institution.
Canada will provide the settlement amount to a non-profit trust, independent of the government, as part of the class settlement.
The organization charged with administering the trust will be governed by a permanent board consisting of nine indigenous directors, the government said in a statement.
The terms of the settlement are yet to be approved by the Federal Court.
($1 = 1.3380 Canadian dollars)