Canada Grain Act (R.S.C., 1985, c. G-10)

Marginal note:Subclasses of licences

43 The Commission may, with the approval of the Governor in Council, make regulations prescribing

• (a) subclasses of the licences established by section 42; and

• (b) any terms and conditions of a licence of any class or subclass.

Marginal note:Prohibition

44 No person shall

• (a) operate an elevator of a type referred to in section 42 unless

  • (i) that person is the holder of a licence issued in respect of the elevator, or

  • (ii) the elevator has been exempted from the licensing requirements of this Act pursuant to section 117; or

• (b) carry on business as a grain dealer unless

  • (i) that person is the holder of a grain dealer’s licence,

  • (ii) the business of that person as a grain dealer has been exempted from the licensing requirements of this Act pursuant to section 117, or

  • (iii) that person deals in grain only in the course of operating a licensed elevator or as a broker trading on a recognized grain exchange.

Marginal note:Issue of licences — primary and process elevators and grain dealers

• 45 (1) Where a person who proposes to operate a primary or process elevator or to carry on business as a grain dealer applies in writing to the Commission for a licence and the Commission is satisfied that the applicant and the elevator, if any, meet the requirements of this Act, the Commission may

  • (a) issue to the applicant a licence of a class or subclass determined by the Commission to be appropriate to the type of operation of that elevator or the business of that grain dealer; and

  • (b) subject to the regulations, fix the security to be given by the applicant, by way of bond, suretyship, insurance or otherwise, having regard to the applicant’s potential obligations for the payment of money or the delivery of grain to producers of grain who are holders of cash purchase tickets, elevator receipts or grain receipts issued pursuant to this Act in relation to grain produced by the holders.

• Marginal note:Issue of licences — terminal and transfer elevators

  (2) Where a person who proposes to operate a terminal or transfer elevator applies in writing to the Commission for a licence and the Commission is satisfied that the applicant and the elevator, if any, meet the requirements of this Act, the Commission may

  • (a) issue to the applicant a licence of a class or subclass determined by the Commission to be appropriate to the type of operation of that elevator; and

  • (b) subject to the regulations, fix the security to be given by the applicant, by way of bond, suretyship, insurance or otherwise, having regard to the applicant’s obligations for the payment of money or the delivery of grain to holders of elevator receipts issued pursuant to this Act.

• Marginal note:Terms and conditions of licence

  (3) A licence issued pursuant to this section shall be

  • (a) for a term not exceeding five years; and

  • (b) subject to such conditions, in addition to any prescribed conditions, as the Commission deems appropriate in the public interest for facilitating trade in grain.

Marginal note:Refusal to issue elevator licence

• 46 (1) The Commission may refuse to issue an elevator licence if the applicant has not given the security fixed pursuant to section 45 or fails to establish to the satisfaction of the Commission that

  • (a) the premises that the applicant proposes to use are appropriate for the storage and handling of grain; or

  • (b) the elevator is or will be of such a type and in such condition and the equipment of the elevator is or will be of such a type and size and in such condition as to enable the applicant to provide, at the location where the applicant proposes to operate the elevator, the services required by or pursuant to this Act to be provided at that location by a licensee holding a licence of the class for which the applicant has applied.

• Marginal note:Refusal to issue grain dealer’s licence

  (2) The Commission may refuse to issue a grain dealer’s licence if the applicant has not given the security fixed pursuant to section 45.

• Marginal note:Refusal of licence re convictions

  (3) The Commission may refuse to issue a licence if the applicant has been convicted of an offence under this Act within the twelve months immediately preceding the application for the licence and the Commission is satisfied that it would not be in the public interest to issue a licence to the applicant.

• Marginal note:Interpretation

  (4) Nothing in this section shall be construed as a limitation on the powers of the Commission to issue or refuse to issue a licence pursuant to any other provision of this Act.

47 [Repealed, 1994, c. 45, s. 10]

Marginal note:Consultation

• 48 (1) The Commission shall, at the request of an applicant for a licence, consult with the applicant with regard to any conditions that the Commission proposes to attach to the licence pursuant to paragraph 45(3)(b).

• Marginal note:Amendment of licence

  (2) The Commission may, subject to the regulations and on application by a licensee, amend any condition of a licence issued to the licensee.

Marginal note:Additional security

• 49 (1) Where the Commission has reason to believe and is of the opinion that any security given by a licensee pursuant to this Act is not sufficient, the Commission may, by order, require the licensee to give, within such period as the Commission considers reasonable, such additional security as, in the opinion of the Commission, is sufficient.

• Marginal note:Enforcement or realization of security

  (2) Any security given by a licensee as a condition of a licence may only be realized or enforced by

  • (a) the Commission; or

  • (b) any holder referred to in section 45 who has suffered loss or damage by reason of the refusal or failure of the licensee to

    • (i) comply with this Act or any regulation or order made thereunder, or

    • (ii) meet any of the licensee’s payment or delivery obligations to that holder on the surrender of any cash purchase ticket, elevator receipt or grain receipt issued by the licensee pursuant to this Act.

• (2.1) [Repealed, 1994, c. 45, s. 12]

• Marginal note:Limitation — primary or process elevator or grain dealers

  (3) Notwithstanding subsection (2), a security given by a licensee as a condition of a licence to operate a primary or process elevator or to carry on business as a grain dealer may be realized or enforced in relation to a cash purchase ticket, an elevator receipt or a grain receipt only if

  • (a) the licensee fails or refuses to meet any of their payment or delivery obligations to the producer of the grain to which the ticket or receipt relates within such period as may be prescribed after the day on which the grain was delivered to the licensee; and

  • (b) the producer of the grain has given notice in writing of the failure or refusal to the Commission within thirty days after the failure or refusal.

• Marginal note:Limitation — terminal and transfer elevator

  (4) Notwithstanding subsection (2), a security given by a licensee as a condition of a licence to operate a terminal or transfer elevator may be realized or enforced in relation to an elevator receipt only if the holder of the receipt has given notice in writing to the Commission within thirty days after the failure or refusal of the licensee to meet any of their delivery obligations to the holder.

• Marginal note:Limitation — prescribed percentage

  (5) Notwithstanding any other provision of this Act, the Commission may prescribe by regulation the percentage of the value of a cash purchase ticket, an elevator receipt or a grain receipt that may be realized or enforced against security given by a licensee, and the security may be realized or enforced in relation to the cash purchase ticket, elevator receipt or grain receipt only to the extent of the prescribed percentage.

• Marginal note:Interpretation — failure to meet payment obligations

  (6) If the failure on the part of a licensee to meet the licensee’s payment obligations is a result of their giving to the producer a cash purchase ticket or other bill of exchange that the bank or other financial institution on which it is drawn subsequently refuses to honour, that failure occurs when the cash purchase ticket or other bill of exchange is given to the producer.

• (7) [Repealed, 1998, c. 22, s. 6]

• Marginal note:Insurance

  (8) The Commission may require an applicant for or the holder of a primary elevator licence, a terminal elevator licence or a transfer elevator licence to obtain insurance, in accordance with the regulations, against loss of or damage to the grain stored in the elevator.

Marginal note:Restrictions — no liability for improper delivery of grain

• 49.1 (1) The Commission is not liable to a producer who has delivered grain

  • (a) to a person who is not a licensee; or

  • (b) to a licensee, if the producer has not obtained a cash purchase ticket, an elevator receipt or a grain receipt from the licensee.

• Marginal note:No liability

  (2) The Commission is not liable if a licensee fails to fulfill any payment or delivery obligation owed to a holder of a grain receipt, elevator receipt or cash purchase ticket.

Charges by Licensees

Marginal note:Charges to be filed

• 50 (1) Each licensee who operates an elevator shall, before the commencement of each crop year, file with the Commission a schedule of the charges to be made at the licensed elevator in the crop year for each service to be performed under their licence.

• Marginal note:Amendment of charges

  (2) A licensee who operates an elevator may, during a crop year, file with the Commission an amended schedule of charges for services to be performed under the licence in that crop year.

• Marginal note:Condition

  (3) An amended schedule of charges is not effective until it has been filed with the Commission.

Marginal note:Charges that may be made

• 51 (1) No licensee who operates an elevator shall charge or receive for any services performed under the licence at that elevator any sum greater than the lesser of

  • (a) the maximum charges that may be fixed by the regulations for the services, and

  • (b) such charges for the services as are set out in the schedule of charges filed by the licensee with the Commission.

• Marginal note:Charge fixed includes charge determined

  (2) The reference in paragraph (1)(a) to maximum charges fixed by the regulations includes a maximum charge determined pursuant to the regulations.

• Marginal note:Temporary maximum charges

  (3) Notwithstanding subsection (1), the Commission, on receiving a written complaint from an interested person with respect to the charge for a service provided by the operator of a licensed elevator, may, by order, after giving all interested persons an opportunity to be heard, fix the maximum charge or a manner for determining the maximum charge for that service.

• Marginal note:Period of validity of order

  (4) An order made under subsection (3) becomes effective on the day specified in the order, which day shall not be earlier than the day the Commission determines that the facts giving rise to the complaint occurred, and ceases to be effective at the end of the crop year in which the order is made or on such earlier day as is set out in the order for its expiration.

• Marginal note:Cease to be in force

  (5) Subsections (3) and (4) cease to be in force on July 31, 1996.

Marginal note:Time limitation on charges

• 52 (1) No storage charge in respect of grain referred to in an elevator receipt shall be made by the licensee of an elevator in respect of time subsequent to

  • (a) the delivery of the grain out of the elevator into a railway car or other conveyance; or

  • (b) the expiration of twenty-four hours after

    • (i) a railway car or other conveyance that is capable of receiving grain discharged from the elevator and to which the grain may lawfully be delivered has been placed at the elevator to receive the grain,

    • (ii) all charges accrued in respect of the grain have been paid or tendered, and

    • (iii) elevator receipts requiring delivery of the grain have been surrendered or tendered.

• Marginal note:Exception relating to ships

  (2) For the purpose of subsection (1), where the conveyance placed at an elevator is a ship, the holder of elevator receipts requiring the delivery of grain shall be deemed to surrender or tender on any day only receipts for a quantity of grain that can reasonably be discharged from the elevator into the ship within twenty-four hours from the time the receipts are deemed to be surrendered or tendered.

Marginal note:Charges where licensee is unable to deliver grain

• 53 (1) Where, by reason of the condition of any licensed elevator or as a result of any labour stoppage by employees of a licensee of an elevator or any lockout at any licensed elevator, the licensee of the elevator is, for any period, unable to deliver grain, grain products or screenings stored in any type of storage in the elevator in accordance with an elevator receipt issued by the licensee, whether or not the holder has requested delivery pursuant to the receipt, notwithstanding section 51, the licensee shall not charge the holder of the receipt, in respect of any part of that period after the first seven days thereof, any storage charge that accrues under the receipt that exceeds the appropriate maximum storage charge prescribed pursuant to subsection (2) with respect to that type of storage.

• Marginal note:Regulations — special maximum storage charge

  (2) The Commission shall, with the approval of the Governor in Council, make regulations prescribing, with respect to a period referred to in subsection (1), a special maximum storage charge relating to any type of storage of grain, grain products or screenings in licensed elevators of any type that is lower than the maximum storage charge authorized to be charged for that storage pursuant to section 51 and, in so doing, the Commission may prescribe a different maximum storage charge with respect to any period within that period.

• Marginal note:Application

  (3) A special maximum storage charge prescribed pursuant to subsection (2) applies only in respect of a period of inability to deliver described in subsection (1) that commences after the effective date of the provision of any regulations in which that special maximum storage charge is prescribed.