Fisheries Improvement Loans Act (R.S.C., 1985, c. F-22)

Special Powers of a Bank

Marginal note:Bank security

• 10 (1) Notwithstanding anything in the Bank Act or any other Act of Parliament, if a bank makes a guaranteed loan in respect of which it is required by regulation to take security on real or personal property, the bank may at the time of making the loan take as security for the repayment thereof and the payment of interest thereon,

  • (a) a mortgage or hypothec on real or personal property whether or not all or part of the proceeds of the guaranteed loan are to be expended in respect thereof, or

  • (b) an assignment of the rights and interest of a purchaser under

    • (i) an agreement for sale of real or personal property, or

    • (ii) a lien or conditional sale contract for personal property,

    whether or not all or part of the proceeds of the guaranteed loan are to be expended in respect thereof.

• Marginal note:Rights in respect of security

  (2) A bank has and may exercise, in respect of any mortgage, hypothec or assignment taken under this Act and the real or personal property affected thereby, all rights and powers that it would have or might exercise if the mortgage, hypothec or assignment had been taken by the bank by way of subsequent security under the Bank Act.

• Marginal note:Meaning of “bank”

  (3) In this section, bank means a bank or an authorized foreign bank within the meaning of section 2 of the Bank Act.

Offences and Punishment

Marginal note:False statements or misuse of loan

• 11 (1) Every person who

  • (a) makes in an application for a guaranteed loan a statement that is false in any material respect,

  • (b) uses the proceeds of a guaranteed loan for a purpose other than that stated in his application, or

  • (c) while indebted to a lender under a guaranteed loan, without the consent in writing of the lender, encumbers or disposes of any property in respect of which the proceeds of the loan were expended,

  is guilty of an offence and liable on summary conviction to a fine not exceeding five hundred dollars.

• Marginal note:Penalty

  (2) Where a person is convicted of an offence under subsection (1), there shall be imposed on that person, in addition to any fine, a penalty equal to such amount of the guaranteed loan made to that person in respect of which the offence was committed as has not been repaid by him, with interest thereon to the date of payment of the penalty.

• Marginal note:Payment to lender or Receiver General

  (3) The penalty referred to in subsection (2) shall be paid to the lender by which the guaranteed loan was made, or, if payment has been made by the Minister to that lender in respect of the guaranteed loan, to the Receiver General, and the payment of the penalty to the lender or the Receiver General under this section discharges the liability of the person so convicted to pay the loan.

General

Marginal note:Minister subrogated in lender’s rights

• 12 (1) Where under this Act the Minister has paid to a lender the amount of any loss sustained by the lender as a result of a guaranteed loan, the lender shall execute a receipt in favour of the Minister in prescribed form and the Minister is thereupon subrogated in all rights of the lender in respect of the loan.

• Marginal note:Idem

  (2) Without limiting the generality of subsection (1), the subrogation mentioned in that subsection vests in the Minister all rights and powers of the lender in respect of the guaranteed loan, of any judgment concerning the loan obtained by the lender and of any security taken by the lender for the repayment of the loan, and the Minister is entitled to exercise all the rights, powers and privileges that the lender had or might exercise in respect of the loan, judgment or security, including the right to commence or continue any action or proceeding, to execute any release, transfer, sale or assignment or in any way to collect, realize or enforce the loan, judgment or security.

• Marginal note:Receipt evidence of payment

  (3) Any document purporting to be a receipt in prescribed form and purporting to be signed on behalf of the lender is evidence of the payment by the Minister to the lender under this Act in respect of the guaranteed loan therein mentioned and of the execution of that document on behalf of the lender.

Marginal note:Payment out of C.R.F.

13 The Minister may pay any amount payable to a lender under this Act out of the Consolidated Revenue Fund.

Marginal note:Annual report

• 14 (1) The Minister shall, as soon as possible after the termination of each fiscal year, and in any event within three months thereafter, prepare a report with regard to the administration of this Act during that fiscal year.

• Marginal note:Report to be laid before Parliament

  (2) The Minister shall lay before Parliament the report prepared under subsection (1) within fifteen days after it is prepared or, if Parliament is not then sitting, on any of the first fifteen days next thereafter that either House of Parliament is sitting.