Marginal note:2006, c. 3, s. 3(3)

• 124. (1) The portion of paragraph 5(3)(e) of the Act before subparagraph (iii) is replaced by the following:

  • (e) to take steps, in accordance with the advance guarantee agreement, to ensure that, before an advance is made

    • (i) in the case of an agricultural product that is storable,

      • (A) it is of marketable quality and stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement, or

      • (B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12,

    • (ii) in the case of an agricultural product that is not storable,

      • (A) it is of marketable quality and maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement and either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, or

      • (B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, and

• (2) Paragraph 5(3)(g) of the Act is repealed.

• (3) Paragraph 5(3)(h) of the Act is replaced by the following:

  • (h) to pay to the Minister any additional interest resulting from its failure to make payments required by paragraph (f);

• (4) Paragraph 5(3)(i) of the Act is replaced by the following:

  • (h.1) after the administrator receives the payment of interest referred to in subparagraph 10(2)(a)(v), to pay to the Minister, within the period specified in the advance guarantee agreement, any interest paid by the Minister under subsection 9(1) on the amount of an advance that is repaid by a producer to the administrator without proof that the agricultural product has been sold;

  • (i) to pay to the Minister, within the period specified in the advance guarantee agreement, the amount repaid to the administrator under a repayment agreement by a defaulting producer if the Minister has previously made a payment for the producer under subsection 23(1) or (1.1); and

  • (j) to assign, on the Minister’s request and within any period that the Minister specifies, its rights and obligations under the advance guarantee agreement to any entity that the Minister specifies, if the administrator has not met all of its obligations under the agreement and the Minister has sent a notice to the administrator stating that the administrator has had, in the Minister’s opinion, adequate opportunity to meet the obligations, and requesting the administrator to meet them.

• Marginal note:2008, c. 7, s. 2(2)

  (5) Subsection 5(3.01) of the Act is replaced by the following:

  • Marginal note:Specific terms and conditions

    (3.01) An advance guarantee agreement may include any of the following terms and conditions governing advances and their repayment:

    • (a) the administrator must agree to make advances to producers solely in the areas specified in the agreement;

    • (b) the administrator must agree to make advances to producers solely in relation to the agricultural product specified in the agreement;

    • (c) the producer must agree to inform the administrator of the producer’s participation in any program listed in the schedule; and

    • (d) the producer must agree to assign, if in default, any amounts payable to the producer under a program listed in the schedule to

      • (i) the administrator, to the extent of the producer’s liability under section 22, and

      • (ii) the Minister, to the extent of the producer’s liability under section 23.

  • Marginal note:Designation by Minister

    (3.02) The Minister may designate, in the advance guarantee agreement with the administrator, agricultural products or classes of agricultural products with respect to which an amount of an advance may be repaid, without proof that the agricultural product has been sold, before the expiry of the production period for which the advance was made.

• Marginal note:2006, c. 3, s. 3(4)

  (6) Subsection 5(3.1) of the Act is replaced by the following:

  • Marginal note:Exception

    (3.1) The terms described in paragraphs (3)(c) and (f) — and in paragraph (3)(h) in relation to payments required by paragraph (3)(f) — are not required if the Minister and an administrator are the only parties to the agreement.

• (7) Subsection 5(4) of the Act is replaced by the following:

  • Marginal note:Recovery of costs

    (4) The administrator may, subject to any terms and conditions of the advance guarantee agreement, charge fees to producers for the purpose of recovering any costs under this Part, including costs related to the recovery of outstanding amounts from producers who are in default under a repayment agreement and costs of receiving and dealing with applications for advances, administering advances and any other administrative services.

• Marginal note:2006, c. 3, s. 3(5)

  (8) Subsection 5(6) of the Act is replaced by the following:

  • Marginal note:Amounts withheld from advance

    (6) The administrator may, with the Minister’s approval, withhold amounts from an advance made to a producer for a purpose authorized under the advance guarantee agreement.

Marginal note:2008, c. 7, s. 3

125. Subsection 5.1(2) of the Act is replaced by the following:

Marginal note:2008, c. 7, s. 4

• 126. (1) Paragraphs 7(4)(a) to (e) of the Act are replaced by the following:

  • (a) paragraph 5(3)(e);

  • (b) subsection 5(3.01);

  • (c) paragraphs 10(1)(g) and (h);

  • (d) paragraphs 10(2)(b) to (c); and

  • (e) paragraph 19(1)(c) and subsection 19(3).

• Marginal note:2008, c. 7, s. 4

  (2) Subsection 7(5) of the Act is repealed.

Marginal note:2006, c. 3, s. 5

• 127. (1) Subsection 9(1) of the Act is replaced by the following:

  Marginal note:Payment of interest

  • 9. (1) The Minister must, in relation to each producer, pay to the lender specified in an advance guarantee agreement — or, if the agreement was made only with an administrator, to the administrator — the interest accruing on the amounts borrowed by the administrator to pay the first $100,000 — or the amount fixed by regulation — of the total of the following amounts:

    • (a) the amounts of advances received by the producer during the program year for all of their agricultural products, including amounts under any other advance guarantee agreements, and

    • (b) the amounts of advances that are received by or attributed to all related producers during the program year for all of their agricultural products, including amounts under any other advance guarantee agreements, and that are attributable to the producer under subsection (2).

• (2) Subsection 9(2) of the Act is replaced by the following:

  • Marginal note:Attribution

    (2) If a producer is related to another producer, the amounts received by, or attributed to, the other producer are attributable to the producer in accordance with the percentage or method of calculation set out in the regulations.

Marginal note:2006, c. 3, s. 6(1)

• 128. (1) The portion of subsection 10(1) of the Act before paragraph (e) is replaced by the following:

  Marginal note:Eligibility requirements for producers

  • 10. (1) For a producer to be eligible for a guaranteed advance during a program year,

    • (a) the Minister must determine, taking into account any criteria prescribed by regulation, that the producer continuously owns the agricultural product, is responsible for marketing it and either is or was producing it;

    • (b) if the producer is an individual, the producer must have attained the age of majority in the province where the producer’s farming operation is carried on;

    • (c) if the producer is a corporation with only one shareholder,

      • (i) the individual who makes the application for an advance on the producer’s behalf must have attained the age of majority in the province where the producer’s farming operation is carried on, and

      • (ii) the shareholder must agree in writing to be personally liable — or a guarantor prescribed by the regulations must agree in writing to be liable — to the administrator for any of the producer’s liability under section 22 and to provide any security for the repayment of the advance that the administrator requires;

    • (d) if the producer is a corporation with two or more shareholders, a partnership, a cooperative or another association of persons,

      • (i) the individual who makes the application for an advance on behalf of the corporation, partnership, cooperative or association must have attained the age of majority in the province where the producer’s farming operation is carried on, and

      • (ii) each of the shareholders, partners or members, as the case may be, must agree in writing to be jointly and severally, or solidarily, liable — or a guarantor prescribed by the regulations must agree in writing to be liable — to the administrator for the producer’s liability under section 22 and to provide any security for the repayment of the advance that the administrator requires;

• Marginal note:2008, c. 7, s. 5(1)

  (2) Paragraph 10(1)(f.1) of the Act is replaced by the following:

  • (f.1) the producer must demonstrate to the administrator that they are capable of meeting their obligations under the repayment agreement and that they are meeting all of their obligations under any other repayment agreement;

• Marginal note:2006, c. 3, s. 6(1); 2008, c. 7, s. 5(2)

  (3) Paragraph 10(1)(h) of the Act is replaced by the following:

  • (h) the producer must demonstrate that

    • (i) in the case of an agricultural product that is storable,

      • (A) it is of marketable quality and stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement, or

      • (B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12,

    • (ii) in the case of an agricultural product that is not storable,

      • (A) it is of marketable quality and maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement and either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, or

      • (B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, and

    • (iii) despite subparagraphs (i) and (ii), in the case of an agricultural product that is livestock, it is of marketable quality and maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement; and

• Marginal note:1999, c. 26, s. 45; 2006, c. 3, s. 6(2)(E)

  (4) Subsection 10(1.1) of the Act is replaced by the following:

  • Marginal note:Sharing security

    (1.1) For the purpose of paragraph (1)(g), the producer’s eligibility is not affected by the administrator sharing the security referred to in section 12 with another creditor in accordance with the terms and conditions specified in the advance guarantee agreement.

• Marginal note:2006, c. 3, s. 6(3)

  (5) Subparagraphs 10(2)(a)(v) and (vi) of the Act are replaced by the following:

  • (v) if the producer repays to the administrator an amount of the advance without proof that the agricultural product has been sold and that amount is greater than the amount prescribed by the regulations, by paying to the administrator, in accordance with the terms and conditions specified in the repayment agreement, the amount of interest owed under that agreement on the difference obtained by subtracting that prescribed amount from that repaid amount,

  • (vi) by any other means prescribed by the regulations, or

  • (vii) by paying the administrator using a combination of the means described in subparagraphs (i) to (vi);

• (6) Subsection 10(2) of the Act is amended by adding the following after paragraph (a):

  • (a.1) if the repayment agreement is in respect of an agricultural product designated by the Minister in the advance guarantee agreement, or an agricultural product in a class of agricultural products that is so designated, to repay the amount of the advance with respect to that agricultural product, with or without proof that it has been sold, before the expiry of the production period for which the advance was made;

• Marginal note:2006, c. 3, s. 6(3); 2008, c. 7, s. 5(5)

  (7) Paragraph 10(2)(b) of the Act is replaced by the following:

  • (b) to ensure that

    • (i) in the case of an agricultural product that is storable,

      • (A) it is of marketable quality and will be stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement, or

      • (B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12,

    • (ii) in the case of an agricultural product that is not storable,

      • (A) it is of marketable quality and will be maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement and either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, or

      • (B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, and

    • (iii) despite subparagraphs (i) and (ii), in the case of an agricultural product that is livestock, it is of marketable quality and will be maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement;

• (8) Section 10 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Waiver

    (2.1) The administrator may, with the Minister’s approval and subject to any conditions specified by the Minister, waive those requirements of a repayment agreement that are referred to in paragraph 2(a) in order to permit a producer to repay an advance under the agreement if the administrator is satisfied that the agricultural product in respect of which the advance has been made has not been disposed of by the producer.

Marginal note:2006, c. 3, s. 7

129. Section 11 of the Act is replaced by the following:

Marginal note:2006, c. 3, s. 7

130. Section 12 of the Act is replaced by the following: