51. Section 50 applies only where and as long as
(a) the total financial assistance required by a veteran to set up an economic farm unit, including any debt owing by the veteran to the Director, is in excess of 75 per cent of the security value of the real property available as security; or
(b) the veteran is in default under an existing contract with the Director and the Director so requires.
NATURE AND EXTENT OF SECURITY
52. For the purposes of section 79 of the Act, every loan advanced by the Director under section 71 to a veteran certified by the Director to be a full-time farmer shall, wherever practicable, be secured in its entirety by farm land.
53. (1) Where an advance is made by way of loan to a veteran under section 72 of the Act and the amount of the advance together with amounts then outstanding as described in the section exceeds 75 per cent of the market value of security held, acquired or taken by the Director, the Director shall take as additional security, title to livestock, farm equipment and other chattels of a value equal to not less than the amount by which the advance together with the amounts outstanding exceeds 75 per cent of the value of the said security.
(2) Any livestock, farm equipment and other chattels taken as security by the Director under subsection (1) shall not be valued for the purposes of security at an amount greater than 50 per cent of the market value as determined by the Director of such livestock, farm equipment and other chattels.
54. (1) Every contract providing for repayment of a loan entered into between a veteran and the Director pursuant to Part I or III of the Act shall be in the form prescribed by the Director pursuant to section 36 of the Act and set out in Schedule I or II or in the form set out in Schedule IV, whichever form is appropriate.
(2) The terms and conditions of an agreement made under section 20 of the Act shall be those contained in clause 11 of Schedule I.
(3) Every contract providing for repayment of Part I assistance entered into between a veteran and the Director subsequent to the initial 10 years of the veteran’s establishment shall be in the form set out in Schedule III.
55. No advance by way of a loan under section 71 of the Act shall be made to a veteran for the development of a secondary enterprise unless, in the opinion of the Director,
(a) the development of the secondary enterprise will increase the income of the veteran and his family;
(b) the veteran or a member of his family is adequately trained to successfully conduct the operation of the secondary enterprise; and
(c) the secondary enterprise will be developed and operated on and from the land upon which the veteran is established.
APPLICATIONS FOR THE PURPOSE OF SECTION 13 OF THE ACT
56. (1) Subject to section 57, where a veteran who has a subsisting contract with the Director under Part I or Parts I and III of the Act wishes the Director to sell, pursuant to subsection 13(1) of the Act, a part of the lands in respect of which that contract relates, the veteran shall submit to the Director, through the office of the Director nearest the lands proposed to be sold, an application therefor in writing, in the form prescribed by the Director.
(2) Where a veteran referred to in subsection (1) makes an application under that subsection, the Director may sell the lands proposed to be sold, notwithstanding that after such sale the lands remaining under the contract are less than ½ acre in area, if, in the opinion of the Director, the lands remaining under the contract are suitable for part-time farming purposes and comply in all respects with the laws of the province in which the lands are situated relating to the use or state of the lands or to the erection, use or state of improvements on the lands.
- SOR/83-203, s. 1.
- Date modified: