Marginal note:2008, c. 7, s. 3

125. Subsection 5.1(2) of the Act is replaced by the following:

Marginal note:2008, c. 7, s. 4

• 126. (1) Paragraphs 7(4)(a) to (e) of the Act are replaced by the following:

  • (a) paragraph 5(3)(e);

  • (b) subsection 5(3.01);

  • (c) paragraphs 10(1)(g) and (h);

  • (d) paragraphs 10(2)(b) to (c); and

  • (e) paragraph 19(1)(c) and subsection 19(3).

• Marginal note:2008, c. 7, s. 4

  (2) Subsection 7(5) of the Act is repealed.

Marginal note:2006, c. 3, s. 5

• 127. (1) Subsection 9(1) of the Act is replaced by the following:

  Marginal note:Payment of interest

  • 9. (1) The Minister must, in relation to each producer, pay to the lender specified in an advance guarantee agreement — or, if the agreement was made only with an administrator, to the administrator — the interest accruing on the amounts borrowed by the administrator to pay the first $100,000 — or the amount fixed by regulation — of the total of the following amounts:

    • (a) the amounts of advances received by the producer during the program year for all of their agricultural products, including amounts under any other advance guarantee agreements, and

    • (b) the amounts of advances that are received by or attributed to all related producers during the program year for all of their agricultural products, including amounts under any other advance guarantee agreements, and that are attributable to the producer under subsection (2).

• (2) Subsection 9(2) of the Act is replaced by the following:

  • Marginal note:Attribution

    (2) If a producer is related to another producer, the amounts received by, or attributed to, the other producer are attributable to the producer in accordance with the percentage or method of calculation set out in the regulations.

Marginal note:2006, c. 3, s. 6(1)

• 128. (1) The portion of subsection 10(1) of the Act before paragraph (e) is replaced by the following:

  Marginal note:Eligibility requirements for producers

  • 10. (1) For a producer to be eligible for a guaranteed advance during a program year,

    • (a) the Minister must determine, taking into account any criteria prescribed by regulation, that the producer continuously owns the agricultural product, is responsible for marketing it and either is or was producing it;

    • (b) if the producer is an individual, the producer must have attained the age of majority in the province where the producer’s farming operation is carried on;

    • (c) if the producer is a corporation with only one shareholder,

      • (i) the individual who makes the application for an advance on the producer’s behalf must have attained the age of majority in the province where the producer’s farming operation is carried on, and

      • (ii) the shareholder must agree in writing to be personally liable — or a guarantor prescribed by the regulations must agree in writing to be liable — to the administrator for any of the producer’s liability under section 22 and to provide any security for the repayment of the advance that the administrator requires;

    • (d) if the producer is a corporation with two or more shareholders, a partnership, a cooperative or another association of persons,

      • (i) the individual who makes the application for an advance on behalf of the corporation, partnership, cooperative or association must have attained the age of majority in the province where the producer’s farming operation is carried on, and

      • (ii) each of the shareholders, partners or members, as the case may be, must agree in writing to be jointly and severally, or solidarily, liable — or a guarantor prescribed by the regulations must agree in writing to be liable — to the administrator for the producer’s liability under section 22 and to provide any security for the repayment of the advance that the administrator requires;

• Marginal note:2008, c. 7, s. 5(1)

  (2) Paragraph 10(1)(f.1) of the Act is replaced by the following:

  • (f.1) the producer must demonstrate to the administrator that they are capable of meeting their obligations under the repayment agreement and that they are meeting all of their obligations under any other repayment agreement;

• Marginal note:2006, c. 3, s. 6(1); 2008, c. 7, s. 5(2)

  (3) Paragraph 10(1)(h) of the Act is replaced by the following:

  • (h) the producer must demonstrate that

    • (i) in the case of an agricultural product that is storable,

      • (A) it is of marketable quality and stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement, or

      • (B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12,

    • (ii) in the case of an agricultural product that is not storable,

      • (A) it is of marketable quality and maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement and either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, or

      • (B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, and

    • (iii) despite subparagraphs (i) and (ii), in the case of an agricultural product that is livestock, it is of marketable quality and maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement; and

• Marginal note:1999, c. 26, s. 45; 2006, c. 3, s. 6(2)(E)

  (4) Subsection 10(1.1) of the Act is replaced by the following:

  • Marginal note:Sharing security

    (1.1) For the purpose of paragraph (1)(g), the producer’s eligibility is not affected by the administrator sharing the security referred to in section 12 with another creditor in accordance with the terms and conditions specified in the advance guarantee agreement.

• Marginal note:2006, c. 3, s. 6(3)

  (5) Subparagraphs 10(2)(a)(v) and (vi) of the Act are replaced by the following:

  • (v) if the producer repays to the administrator an amount of the advance without proof that the agricultural product has been sold and that amount is greater than the amount prescribed by the regulations, by paying to the administrator, in accordance with the terms and conditions specified in the repayment agreement, the amount of interest owed under that agreement on the difference obtained by subtracting that prescribed amount from that repaid amount,

  • (vi) by any other means prescribed by the regulations, or

  • (vii) by paying the administrator using a combination of the means described in subparagraphs (i) to (vi);

• (6) Subsection 10(2) of the Act is amended by adding the following after paragraph (a):

  • (a.1) if the repayment agreement is in respect of an agricultural product designated by the Minister in the advance guarantee agreement, or an agricultural product in a class of agricultural products that is so designated, to repay the amount of the advance with respect to that agricultural product, with or without proof that it has been sold, before the expiry of the production period for which the advance was made;

• Marginal note:2006, c. 3, s. 6(3); 2008, c. 7, s. 5(5)

  (7) Paragraph 10(2)(b) of the Act is replaced by the following:

  • (b) to ensure that

    • (i) in the case of an agricultural product that is storable,

      • (A) it is of marketable quality and will be stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement, or

      • (B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12,

    • (ii) in the case of an agricultural product that is not storable,

      • (A) it is of marketable quality and will be maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement and either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, or

      • (B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, and

    • (iii) despite subparagraphs (i) and (ii), in the case of an agricultural product that is livestock, it is of marketable quality and will be maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement;

• (8) Section 10 of the Act is amended by adding the following after subsection (2):

  • Marginal note:Waiver

    (2.1) The administrator may, with the Minister’s approval and subject to any conditions specified by the Minister, waive those requirements of a repayment agreement that are referred to in paragraph 2(a) in order to permit a producer to repay an advance under the agreement if the administrator is satisfied that the agricultural product in respect of which the advance has been made has not been disposed of by the producer.