Agricultural Marketing Programs Regulations (SOR/99-295)

Regulations are current to 2017-11-20 and last amended on 2016-02-05. Previous Versions

Definition of Overpayment

  •  (1) For the purposes of paragraph 10(2)(c) of the Act, overpayment means

    • (a) in the case where an advance is covered by a program listed in the schedule to the Act, where the coverage amount payable to the producer under the program is reduced through no fault of the producer and where section 11 of the Act does not apply, that part of the outstanding amount of the advance that exceeds the reduced coverage amount by more than the limit determined in accordance with subsection (2); and

    • (b) in the case where an advance is in respect of an agricultural product that, at the time of the advance, was in the course of being produced or was not yet produced, where the value of the produced agricultural product – and the value of the security on the produced agricultural product – is reduced through no fault of the producer and where section 11 of the Act does not apply, that part of the outstanding amount of the advance that exceeds the reduced value of the security by more than the limit determined in accordance with subsection (2).

  • (2) The limit is the amount that is the greater of

    • (a) 10% of the advance, and

    • (b) $10,000.

  • (3) In any case where both paragraphs (1)(a) and (b) apply to an advance, overpayment means the amount calculated in accordance with paragraph (1)(b).

  • SOR/2006-293, s. 4;
  • SOR/2016-7, s. 6.

Security

  •  (1) For the purposes of section 12 of the Act, until the advance is repaid in full, the required security on the agricultural product for which the advance was made and on any agricultural product produced in a subsequent production period by the producer is one or both of the following:

    • (a) security on the agricultural product under applicable provincial law; and

    • (b) security referred to in section 427 of the Bank Act on the agricultural product.

  • (2) For the purposes of section 12 of the Act, until the advance is repaid in full, the required security in the case of an agricultural product that is not yet produced or in the case of livestock is, in addition to the security set out in subsection (1), one or a combination of the following:

    • (a) a full or partial assignment of any amount that may be received by the producer under a program listed in the schedule to the Act;

    • (b) insurance or other financial programs or products that, in the opinion of the Minister, protect against one or more risks that are associated with the issuance of an advance;

    • (c) financial collateral that is assignable by the producer; and

    • (d) a letter of guarantee from the producer’s financial institution guaranteeing the advance.

  • SOR/2006-293, s. 4;
  • SOR/2016-7, s. 7.

Guarantor

 For the purposes of subparagraphs 10(1)(c)(ii) and (d)(ii) of the Act, a guarantor is

  • (a) an individual or group of individuals that has the financial collateral to issue a letter that guarantees an advance until it is fully reimbursed; or

  • (b) a financial institution that issues a letter that guarantees an advance until it is fully reimbursed.

  • SOR/2016-7, s. 7.

Conditions for Payment

  •  (1) No payment under subsection 23(1) of the Act may be made to a lender or administrator unless

    • (a) the Minister receives a request in writing from the administrator for payment that includes documentation that supports the amount claimed and any documentation needed by the Minister to support an action under subsection 23(2) of the Act;

    • (b) the administrator,

      • (i) if the advance guarantee agreement sets out the procedures to be followed in the event of default on the repayment agreement or the death of the producer, or in the event that the administrator has reasonable grounds to believe that an offence under the Act has been committed by the producer, demonstrates that it followed those procedures,

      • (ii) after receiving notice that the producer is seeking a stay of proceedings, or other form of protection from their creditors, or that the producer is subject to a receiving order, files with the appropriate authority a notice of their claim against the assets of the producer and provides a copy of that notice to the Minister,

      • (iii) after being informed that the producer has died, files with the executor or administrator of the producer’s estate a notice of the debt and provides a copy of that notice to the Minister,

      • (iv) if the administrator has reasonable grounds to believe that an offence under this Act has been committed, reports the particulars to the appropriate police authority and provides a copy of that report to the Minister, or

      • (v) in any other case, provides

        • (A) a copy of one letter of request for payment that has been sent to the producer,

        • (B) a declaration that the administrator made or attempted to make a personal visit or telephone call to the producer, and

        • (C) a detailed description of any attempts at mediation or other methods used to negotiate the terms for repayment; and

    • (c) the administrator provides to the Minister an undertaking in writing to advise the Minister of all opportunities for collection as they arise.

    • (d) [Repealed, SOR/2006-293, s. 5]

  • (1.1) [Repealed, SOR/2016-7, s. 8]

  • (2) Despite paragraph (1)(a), payment under subsection 23(1) of the Act may be made to a lender if

    • (a) the administrator has not made a request in writing to the Minister for payment within 10 months after the end of the program year;

    • (b) after the 10 month-period referred to in paragraph (a), the lender has submitted a letter to the administrator asking that the administrator request in writing payment from the Minister as specified in the advance guarantee agreement;

    • (c) the administrator has failed to comply with the request referred to in paragraph (b) within 10 days after the date on which the letter was sent; and

    • (d) the lender submits a request in writing to the Minister for payment

      • (i) stating that the lender has written to the administrator asking that the administrator request in writing payment from the Minister and that the administrator has failed to comply within 10 days after the date on which the letter was sent,

      • (ii) providing the Minister with a copy of the letter to the administrator,

      • (iii) specifying the name and address of all of the producers that are in default in the program year,

      • (iv) providing the principal and interest owed by the administrator to the lender at the time the request was sent with respect to the producers that are in default, and

      • (v) providing a detailed calculation of how the lender determined the principal and interest owing.

  • SOR/2001-343, s. 1;
  • SOR/2006-293, s. 5;
  • SOR/2016-7, s. 8.

Repayment

  •  (1) If a producer that is an individual dies, no penalty for failing to provide a proof of sale for an agricultural product will be imposed under the repayment agreement if a repayment of an advance is made on behalf of that producer.

  • (2) If a producer that is an individual is declared legally incapable of making decisions, no penalty for failing to provide a proof of sale for an agricultural product will be imposed under the repayment agreement if a repayment of an advance is made on behalf of that producer.

  • (3) A producer may make a repayment of an advance with the proceeds from the security that they provided to secure the repayment of the advance and will not be penalized under the repayment agreement for failing to provide proof of sale for an agricultural product.

  • (4) With respect to an advance received for agricultural products under a repayment agreement, a producer may use a proof of sale for any of those agricultural products when making a repayment.

  • SOR/2016-7, s. 9.

Stays of Default

 For the purposes of subsection 21(2) of the Act, the Minister may order a default to be stayed within a period of four months before a default is impending.

  • SOR/2016-7, s. 9.
 
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