Agricultural Marketing Programs Regulations

7 (1) No payment under subsection 23(1) of the Act may be made to a lender or administrator unless

• (a) the Minister receives a request in writing from the administrator for payment that includes documentation that supports the amount claimed and any documentation needed by the Minister to support an action under subsection 23(2) of the Act;

• (b) the administrator,

  • (i) if the advance guarantee agreement sets out the procedures to be followed in the event of default on the repayment agreement or the death of the producer, or in the event that the administrator has reasonable grounds to believe that an offence under the Act has been committed by the producer, demonstrates that it followed those procedures,

  • (ii) after receiving notice that the producer is seeking a stay of proceedings, or other form of protection from their creditors, or that the producer is subject to a receiving order, files with the appropriate authority a notice of their claim against the assets of the producer and provides a copy of that notice to the Minister,

  • (iii) after being informed that the producer has died, files with the executor or administrator of the producer’s estate a notice of the debt and provides a copy of that notice to the Minister,

  • (iv) if the administrator has reasonable grounds to believe that an offence under this Act has been committed, reports the particulars to the appropriate police authority and provides a copy of that report to the Minister, or

  • (v) in any other case, provides

    • (A) a copy of one letter of request for payment that has been sent to the producer,

    • (B) a declaration that the administrator made or attempted to make a personal visit or telephone call to the producer, and

    • (C) a detailed description of any attempts at mediation or other methods used to negotiate the terms for repayment; and

• (c) the administrator provides to the Minister an undertaking in writing to advise the Minister of all opportunities for collection as they arise.

• (d) [Repealed, SOR/2006-293, s. 5]

(1.1) [Repealed, SOR/2016-7, s. 8]

(2) Despite paragraph (1)(a), payment under subsection 23(1) of the Act may be made to a lender if

• (a) the administrator has not made a request in writing to the Minister for payment within 10 months after the end of the program year;

• (b) after the 10 month-period referred to in paragraph (a), the lender has submitted a letter to the administrator asking that the administrator request in writing payment from the Minister as specified in the advance guarantee agreement;

• (c) the administrator has failed to comply with the request referred to in paragraph (b) within 10 days after the date on which the letter was sent; and

• (d) the lender submits a request in writing to the Minister for payment

  • (i) stating that the lender has written to the administrator asking that the administrator request in writing payment from the Minister and that the administrator has failed to comply within 10 days after the date on which the letter was sent,

  • (ii) providing the Minister with a copy of the letter to the administrator,

  • (iii) specifying the name and address of all of the producers that are in default in the program year,

  • (iv) providing the principal and interest owed by the administrator to the lender at the time the request was sent with respect to the producers that are in default, and

  • (v) providing a detailed calculation of how the lender determined the principal and interest owing.