Agricultural Marketing Programs Act

Marginal note:Payments to be made by Minister

• 23 (1) If the producer is in default under the repayment agreement and the Minister receives a request for payment from the administrator or lender to whom the guarantee is made, the Minister must, in accordance with the advance guarantee agreement and subject to any regulations made under paragraph 40(1)(g) or (g.1), pay to the lender or the administrator, as the case may be, an amount equal to the amounts referred to in paragraphs 22(a) and (c) and the interest, other than the interest paid by the Minister under subsection 9(1), at the rate specified in the advance guarantee agreement on the outstanding amount of the advance, calculated from the date of the advance.

• Marginal note:Payments may be made by Minister

  (1.1) The Minister may, subject to any regulations made under paragraph 40(1)(g) or (g.1), pay to the lender or the administrator, as specified in the advance guarantee agreement, an amount equal to the amounts referred to in paragraphs 22(a) and (c) and the interest, other than the interest paid by the Minister under subsection 9(1), at the rate specified in the advance guarantee agreement on the outstanding amount of the advance, calculated from the date of the advance, if

  • (a) the producer is in default under the repayment agreement and has made an application under section 5 of the Farm Debt Mediation Act; or

  • (b) the producer has been in default under the repayment agreement for the period specified in the advance guarantee agreement.

• Marginal note:Subrogation

  (2) The Minister is, to the extent of any payment under subsection (1) or (1.1), subrogated to the administrator’s rights against the producer in default and against persons who are liable under paragraphs 10(1)(c) and (d) and may maintain an action, in the name of the administrator or in the name of the Crown, against that producer and those persons.

• Marginal note:Recovery of interest and costs

  (3) The producer is liable to the Minister for interest on the subrogated amount, calculated in accordance with the repayment agreement, and the costs incurred by the Minister to recover that amount, including legal costs.

• Marginal note:Limitation or prescription period

  (4) Subject to the other provisions of this section, no action or proceedings may be taken by the Minister to recover any amounts, interest and costs owing after the six year period that begins on the day on which the Minister is subrogated to the administrator’s rights.

• Marginal note:Deduction, set-off or compensation

  (5) The amounts, interest and costs owing may be recovered at any time by way of deduction from, set-off against or, in Quebec, compensation against any sum of money that may be due or payable by Her Majesty in right of Canada to the person or their estate or succession.

• Marginal note:Acknowledgment of liability

  (6) If a person acknowledges liability for the amounts, interest and costs owing, whether before or after the end of the limitation or prescription period, the time during which the limitation or prescription period has run before the acknowledgment of liability does not count in the calculation of the limitation or prescription period and an action or proceedings to recover the amounts, interest and costs may be taken within six years after the day of the acknowledgment of liability.

• Marginal note:Types of acknowledgment

  (7) An acknowledgement of liability means

  • (a) a written promise to pay the amounts, interest and costs owing, signed by the person or his or her agent or other representative;

  • (b) a written acknowledgment of the amounts, interest and costs owing, signed by the person or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay;

  • (c) a payment, even in part, by the person or his or her agent or other representative of any of the amounts, interests and costs owing;

  • (d) any acknowledgment of the amounts, interest and costs owing made by the person, his or her agent or other representative or the trustee or administrator in the course of proceedings under the Bankruptcy and Insolvency Act, the Farm Debt Mediation Act or any other legislation dealing with the payment of debts; or

  • (e) the person’s performance of an obligation under the repayment agreement referred to in subsection (1).

• Marginal note:Period excluded

  (8) Any period in which it is prohibited to commence or continue an action or proceedings against the person to recover the amounts, interest and costs owing does not count in the calculation of a limitation or prescription period under this section.

• Marginal note:Enforcement proceedings

  (9) This section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment.