Marginal note:2006, c. 3, s. 7

129. Section 11 of the Act is replaced by the following:

Marginal note:2006, c. 3, s. 7

130. Section 12 of the Act is replaced by the following:

131. The Act is amended by adding the following after section 12:

Marginal note:2006, c. 3, s. 10

• 132. (1) Paragraph 19(1)(b) of the Act is replaced by the following:

  • (b) the rate per production unit that is specified by the Minister for the agricultural product for the production period for which the advance is made, or for a specified portion of the production period for which the advance is made.

• (2) Subsection 19(1) of the Act is amended by adding the following after paragraph (b):

  by

  • (c) the rate obtained by subtracting the administrator’s percentage, as determined under the regulations, from 100%.

• (3) Section 19 of the Act is amended by adding the following after subsection (1):

  • Marginal note:Administrator’s percentage

    (1.1) The administrator’s percentage mentioned in paragraph (1)(c), as determined under the regulations, must not exceed 10%. If the regulations establish a method of calculating that percentage, when the calculation results in a percentage that is less than 3%, that percentage is deemed to be 3% and when the calculation results in a percentage that is greater than 10%, that percentage is deemed to be 10%.

• Marginal note:2006, c. 3, s. 10

  (4) Subsection 19(3) of the Act is replaced by the following:

  • Marginal note:Exception

    (3) If, because of paragraph 10(1)(h), the amount of the advance must be covered by a program listed in the schedule or the security referred to in section 12, the maximum amount of an advance eligible for a guarantee under this Part is

    • (a) in the case when the advance is covered by such a program, the lesser of the amount calculated under subsection (1) and the percentage, specified in the advance guarantee agreement, of the maximum amount that the producer could receive under that program; or

    • (b) in the case when the advance is covered by such a security, the lesser of the amount calculated under subsection (1) and the amount of the value of that security.

Marginal note:2006, c. 3, s. 11

• 133. (1) The portion of subsection 20(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Annual maximum guarantee for each producer

  • 20. (1) Subject to subsection (1.1), the maximum amount of advances in any program year that are eligible for a guarantee under this Act is

• (2) Subsection 20(2) of the Act is replaced by the following:

  • Marginal note:Attribution

    (2) If a producer is related to another producer, the amounts of advances 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.

• 134. (1) Paragraph 21(1)(a) of the Act is replaced by the following:

  • (a) has not met all of their obligations under the agreement within 21 days after the day on which the administrator mails or delivers a notice to the producer stating that the producer has had, in the administrator’s opinion, adequate opportunity to meet the obligations, and requesting the producer to meet them;

• (2) Subsection 21(1) of the Act is amended by adding the following after paragraph (c):

  • (c.1) becomes the subject of proceedings under the Companies’ Creditors Arrangement Act and has not met all of their obligations under the agreement;

  • (c.2) has made an application under section 5 of the Farm Debt Mediation Act and has not met all of their obligations under the agreement;

• (3) Subsection 21(1) of the Act is amended by striking out “or” at the end of paragraph (d) and by adding the following after that paragraph:

  • (d.1) is, in the administrator’s opinion, at fault for causing or contributing to a decrease in the value of the security taken by the administrator under section 12 and, as a result, in the administrator’s opinion, the value of the security is less than the value of the outstanding amount of the advance; or

• (4) Subsection 21(2) of the Act is replaced by the following:

  • Marginal note:Stay of default

    (2) Subject to any regulations, if a default is impending, the Minister may, at the administrator’s request, order the default to be stayed for a specified period on any terms and conditions that the Minister may establish.

  • Marginal note:Liability of producer

    (2.1) A producer in respect of whom a stay of default is ordered is liable to the administrator for the costs incurred by the administrator in relation to the stay of default, other than the costs that the administrator has recovered by means of a fee charged to the producer under subsection 5(4).

• (5) Subsection 21(4) of the Act is replaced by the following:

  • Marginal note:Ineligibility period

    (4) An advance guarantee agreement may provide that a producer continues to be ineligible for a guaranteed advance from the administrator for any period specified in the agreement, even though the producer has ceased to be in default.

• 135. (1) The portion of section 22 of the French version of the Act before paragraph (a) is replaced by the following:

  Marginal note:Obligations du producteur défaillant envers l’agent d’exécution

  22. Le producteur défaillant relativement à l’accord de remboursement est redevable à l’agent d’exécution de ce qui suit :

• (2) Section 22 of the Act is amended by striking out “and” at the end of paragraph (b) and by replacing paragraph (c) with the following:

  • (c) the costs, including legal costs, incurred by the administrator to recover the outstanding amounts and interest, if those costs are approved by the Minister, other than the costs that the administrator has recovered by means of a fee charged to the producer under subsection 5(4); and

  • (d) any other outstanding amounts under the repayment agreement.

Marginal note:1999, c. 26, s. 46

• 136. (1) Subsections 23(1) and (2) of the Act are replaced by the following:

  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:2008, c. 7, s. 6

  (2) Subsections 23(4) and (5) of the Act are replaced by the following:

  • 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.