Agricultural Marketing Programs Act

Marginal note:Circumstances constituting default

• 21 (1) For the purposes of this Part, a producer is in default under a repayment agreement if the producer

  • (a) has not met any of their obligations under the agreement within 20 days after the day on which the administrator mails or delivers a notice to the producer stating that the producer has had, in the opinion of the administrator, adequate opportunity to meet the obligation, and requesting the producer to meet it;

  • (b) has not met all of their obligations under the agreement at the end of the crop year in which the advance was made;

  • (c) has not met all of their obligations under the agreement when the producer files an assignment under the Bankruptcy and Insolvency Act or a bankruptcy order is made under that Act against the producer;

  • (d) at any time breaches an obligation under the agreement; or

  • (e) provides false or misleading information to the administrator for the purpose of obtaining a guaranteed advance, or evading compliance with an undertaking to repay it.

• Marginal note:Stay of default

  (2) If a default is impending, the Minister may, at the request of the administrator, order the default to be stayed for a specified period on any terms that the Minister may establish.

• Marginal note:When default ceases

  (3) A producer ceases to be in default on the full discharge of the producer’s liability under sections 22 and 23.

• Marginal note:Ineligibility period

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