A court order sought by the Yukon government would require that Inconnu Lodge owner Warren Lafave pay $407,756 if he wants to redeem the lease he has on the land.

In Yukon Supreme Court documents filed late last month, the territory applied for numerous orders over the lease, including declarations that the business has defaulted under a 1990 mortgage.

The $407,756.34 represents the outstanding principal on the loan, accrued interest and additional expenses due under the mortgage as of last Dec. 19.

Interest after Dec. 19 should be accrued at a rate of 13.63 per cent per year or $53.10 per day until it's paid in full, the documents state.

The government is also asking for costs associated with the case and any other amount the court declares as being due.

The territory is also seeking a number of orders that would prevent Inconnu from gaining title to the land and give the territory the exclusive condition of sale of the lease no later than one day after the order.

Around April 22, 1987, Lafave began leasing the land. Then, on Aug. 10, 1990, the two parties entered into a mortgage.

Last November, the two parties replaced the 1987 lease agreement with a new one.

Under the terms of the mortgage, the principal sum was $142,500, with the 13.63 per cent interest rate calculated each half-year.

Palm Lake Investments funded a second mortgage at $250,000 on June 22, 1999.

Last Dec. 20, the government issued a demand for payment to Lafave, who then went into default as of Jan. 10, when he had still failed to pay the amount due.

No payment has been provided yet, the court documents state. As a result, Lafave remains in default.

Dana naye Ventures, the company tasked with collecting Yukon government loans handed out under the former Business Development Fund, has also filed court documents over a loan handed out under that program.