I'm going to remove the first part as well, the “When”. It would read, “71.(1) When a call for public funds is made under subsection 72(1), those funds are to be used to compensate...if the damage that is suffered (a) occurs in the territory...”, and and then (b), (c), (d).
The second option would be, “71.(1) When a call for public funds is made under subsection 72(1), those funds are to be used to compensate...the damage that is suffered, if it” and then (a), (b), (c).