Agricultural Marketing Programs Act

Marginal note:Circumstances constituting default

• 21 (1) For the purposes of this Part, a producer is in default under a repayment agreement if the producer

  • (a) has not met all of their obligations under the agreement within 21 days after the day on which the administrator mails or delivers a notice to the producer stating that the producer has had, in the administrator’s opinion, adequate opportunity to meet the obligations, and requesting the producer to meet them;

  • (b) has not met all of their obligations under the agreement at the end of the production period for which the advance was made;

  • (c) has not met all of their obligations under the agreement when the producer files an assignment under the Bankruptcy and Insolvency Act or a bankruptcy order is made under that Act against the producer;

  • (c.1) becomes the subject of proceedings under the Companies’ Creditors Arrangement Act and has not met all of their obligations under the agreement;

  • (c.2) has made an application under section 5 of the Farm Debt Mediation Act and has not met all of their obligations under the agreement;

  • (d) at any time breaches an obligation under the agreement and, if the breach relates to the obligation to store the agricultural product or to maintain it so that it remains of marketable quality, section 11 does not apply;

  • (d.1) is, in the administrator’s opinion, at fault for causing or contributing to a decrease in the value of the security taken by the administrator under section 12 and, as a result, in the administrator’s opinion, the value of the security is less than the value of the outstanding amount of the advance; or

  • (e) provides false or misleading information to the administrator for the purpose of obtaining a guaranteed advance, or evading compliance with an undertaking to repay it.

• Marginal note:Stay of default

  (2) Subject to any regulations, if a default is impending, the Minister may, at the administrator’s request, order the default to be stayed for a specified period on any terms and conditions that the Minister may establish.

• Marginal note:Liability of producer

  (2.1) A producer in respect of whom a stay of default is ordered is liable to the administrator for the costs incurred by the administrator in relation to the stay of default, other than the costs that the administrator has recovered by means of a fee charged to the producer under subsection 5(4).

• Marginal note:When default ceases

  (3) A producer ceases to be in default on the full discharge of the producer’s liability under sections 22 and 23.

• Marginal note:Ineligibility period

  (4) An advance guarantee agreement may provide that a producer continues to be ineligible for a guaranteed advance from the administrator for any period specified in the agreement, even though the producer has ceased to be in default.