Canadian Agricultural Loans Regulations

19 (1) In this section, the default date is the day after the day on which a payment under a loan was scheduled to have been made but was not made.

(2) If a borrower is in default in respect of a payment on a loan made for a purpose set out in subsection 4(1) or 6(1) of the Act, the lender shall register, for a period of 10 years, the security referred to in section 15 that the lender holds with respect to the loan and take any of the following measures that will minimize the loss sustained by the lender in respect of the loan or that will maximize the amount recovered:

• (a) collect the principal and interest outstanding on the loan;

• (b) fully realize any security, guarantee or suretyship;

• (c) realize on any insurance policy under which the lender is the beneficiary;

• (d) fully implement a compromise settlement with the borrower or with a guarantor or surety or any other person on behalf of the borrower, guarantor or surety that has been approved by the Minister; and

• (e) take legal proceedings, including the enforcement of any resulting judgment, if the estimated cost of the proceedings is not greater than the estimated amount that may be recovered.

(3) Unless a claim for loss has been submitted in accordance with section 20, the lender shall submit a Report on Defaulted Loan to the Minister

• (a) for the purposes set out in subsection 4(1) of the Act, within six months after the default date; and

• (b) for the purposes set out in subsection 6(1) of the Act, within 15 days after the default date.