Canada Grain Act (R.S.C., 1985, c. G-10)

Marginal note:Consultation

• 48 (1) The Commission shall, at the request of an applicant for a licence, consult with the applicant with regard to any conditions that the Commission proposes to attach to the licence pursuant to paragraph 45(3)(b).

• Marginal note:Amendment of licence

  (2) The Commission may, subject to the regulations and on application by a licensee, amend any condition of a licence issued to the licensee.

Marginal note:Additional security

• 49 (1) Where the Commission has reason to believe and is of the opinion that any security given by a licensee pursuant to this Act is not sufficient, the Commission may, by order, require the licensee to give, within such period as the Commission considers reasonable, such additional security as, in the opinion of the Commission, is sufficient.

• Marginal note:Enforcement or realization of security

  (2) Any security given by a licensee as a condition of a licence may only be realized or enforced by

  • (a) the Commission; or

  • (b) any holder referred to in section 45 who has suffered loss or damage by reason of the refusal or failure of the licensee to

    • (i) comply with this Act or any regulation or order made thereunder, or

    • (ii) meet any of the licensee’s payment or delivery obligations to that holder on the surrender of any cash purchase ticket, elevator receipt or grain receipt issued by the licensee pursuant to this Act.

• (2.1) [Repealed, 1994, c. 45, s. 12]

• Marginal note:Limitation — primary or process elevator or grain dealers

  (3) Notwithstanding subsection (2), a security given by a licensee as a condition of a licence to operate a primary or process elevator or to carry on business as a grain dealer may be realized or enforced in relation to a cash purchase ticket, an elevator receipt or a grain receipt only if

  • (a) the licensee fails or refuses to meet any of their payment or delivery obligations to the producer of the grain to which the ticket or receipt relates within such period as may be prescribed after the day on which the grain was delivered to the licensee; and

  • (b) the producer of the grain has given notice in writing of the failure or refusal to the Commission within thirty days after the failure or refusal.

• Marginal note:Limitation — terminal and transfer elevator

  (4) Notwithstanding subsection (2), a security given by a licensee as a condition of a licence to operate a terminal or transfer elevator may be realized or enforced in relation to an elevator receipt only if the holder of the receipt has given notice in writing to the Commission within thirty days after the failure or refusal of the licensee to meet any of their delivery obligations to the holder.

• Marginal note:Limitation — prescribed percentage

  (5) Notwithstanding any other provision of this Act, the Commission may prescribe by regulation the percentage of the value of a cash purchase ticket, an elevator receipt or a grain receipt that may be realized or enforced against security given by a licensee, and the security may be realized or enforced in relation to the cash purchase ticket, elevator receipt or grain receipt only to the extent of the prescribed percentage.

• Marginal note:Interpretation — failure to meet payment obligations

  (6) If the failure on the part of a licensee to meet the licensee’s payment obligations is a result of their giving to the producer a cash purchase ticket or other bill of exchange that the bank or other financial institution on which it is drawn subsequently refuses to honour, that failure occurs when the cash purchase ticket or other bill of exchange is given to the producer.

• (7) [Repealed, 1998, c. 22, s. 6]

• Marginal note:Insurance

  (8) The Commission may require an applicant for or the holder of a primary elevator licence, a terminal elevator licence or a transfer elevator licence to obtain insurance, in accordance with the regulations, against loss of or damage to the grain stored in the elevator.

Marginal note:Restrictions — no liability for improper delivery of grain

• 49.1 (1) The Commission is not liable to a producer who has delivered grain

  • (a) to a person who is not a licensee; or

  • (b) to a licensee, if the producer has not obtained a cash purchase ticket, an elevator receipt or a grain receipt from the licensee.

• Marginal note:No liability

  (2) The Commission is not liable if a licensee fails to fulfill any payment or delivery obligation owed to a holder of a grain receipt, elevator receipt or cash purchase ticket.

Charges by Licensees

Marginal note:Charges to be filed

• 50 (1) Each licensee who operates an elevator shall, before the commencement of each crop year, file with the Commission a schedule of the charges to be made at the licensed elevator in the crop year for each service to be performed under their licence.

• Marginal note:Amendment of charges

  (2) A licensee who operates an elevator may, during a crop year, file with the Commission an amended schedule of charges for services to be performed under the licence in that crop year.

• Marginal note:Condition

  (3) An amended schedule of charges is not effective until it has been filed with the Commission.

Marginal note:Charges that may be made

• 51 (1) No licensee who operates an elevator shall charge or receive for any services performed under the licence at that elevator any sum greater than the lesser of

  • (a) the maximum charges that may be fixed by the regulations for the services, and

  • (b) such charges for the services as are set out in the schedule of charges filed by the licensee with the Commission.

• Marginal note:Charge fixed includes charge determined

  (2) The reference in paragraph (1)(a) to maximum charges fixed by the regulations includes a maximum charge determined pursuant to the regulations.

• Marginal note:Temporary maximum charges

  (3) Notwithstanding subsection (1), the Commission, on receiving a written complaint from an interested person with respect to the charge for a service provided by the operator of a licensed elevator, may, by order, after giving all interested persons an opportunity to be heard, fix the maximum charge or a manner for determining the maximum charge for that service.

• Marginal note:Period of validity of order

  (4) An order made under subsection (3) becomes effective on the day specified in the order, which day shall not be earlier than the day the Commission determines that the facts giving rise to the complaint occurred, and ceases to be effective at the end of the crop year in which the order is made or on such earlier day as is set out in the order for its expiration.

• Marginal note:Cease to be in force

  (5) Subsections (3) and (4) cease to be in force on July 31, 1996.

Marginal note:Time limitation on charges

• 52 (1) No storage charge in respect of grain referred to in an elevator receipt shall be made by the licensee of an elevator in respect of time subsequent to

  • (a) the delivery of the grain out of the elevator into a railway car or other conveyance; or

  • (b) the expiration of twenty-four hours after

    • (i) a railway car or other conveyance that is capable of receiving grain discharged from the elevator and to which the grain may lawfully be delivered has been placed at the elevator to receive the grain,

    • (ii) all charges accrued in respect of the grain have been paid or tendered, and

    • (iii) elevator receipts requiring delivery of the grain have been surrendered or tendered.

• Marginal note:Exception relating to ships

  (2) For the purpose of subsection (1), where the conveyance placed at an elevator is a ship, the holder of elevator receipts requiring the delivery of grain shall be deemed to surrender or tender on any day only receipts for a quantity of grain that can reasonably be discharged from the elevator into the ship within twenty-four hours from the time the receipts are deemed to be surrendered or tendered.

Marginal note:Charges where licensee is unable to deliver grain

• 53 (1) Where, by reason of the condition of any licensed elevator or as a result of any labour stoppage by employees of a licensee of an elevator or any lockout at any licensed elevator, the licensee of the elevator is, for any period, unable to deliver grain, grain products or screenings stored in any type of storage in the elevator in accordance with an elevator receipt issued by the licensee, whether or not the holder has requested delivery pursuant to the receipt, notwithstanding section 51, the licensee shall not charge the holder of the receipt, in respect of any part of that period after the first seven days thereof, any storage charge that accrues under the receipt that exceeds the appropriate maximum storage charge prescribed pursuant to subsection (2) with respect to that type of storage.

• Marginal note:Regulations — special maximum storage charge

  (2) The Commission shall, with the approval of the Governor in Council, make regulations prescribing, with respect to a period referred to in subsection (1), a special maximum storage charge relating to any type of storage of grain, grain products or screenings in licensed elevators of any type that is lower than the maximum storage charge authorized to be charged for that storage pursuant to section 51 and, in so doing, the Commission may prescribe a different maximum storage charge with respect to any period within that period.

• Marginal note:Application

  (3) A special maximum storage charge prescribed pursuant to subsection (2) applies only in respect of a period of inability to deliver described in subsection (1) that commences after the effective date of the provision of any regulations in which that special maximum storage charge is prescribed.

Marginal note:Payment before delivery

54 Nothing in this Act requires a licensee, on a request for the delivery of grain by the holder of an elevator receipt, to deliver the grain referred to in the receipt to the holder unless the receipt has been surrendered and all charges accrued under this Act have been paid.

Marginal note:Recovery of charges

• 54.1 (1) If an elevator receipt issued by the licensee of a terminal elevator has been outstanding for more than one year and any charges accruing under the receipt have accrued for more than one year and are unpaid, the licensee, with the Commission’s written permission, after giving any notice of sale to the last known holder of the receipt that may be specified by the Commission, may, on any terms and conditions that may be specified in writing by the Commission, sell the grain referred to in the receipt or grain of the same kind, grade and quantity to recover the charges.

• Marginal note:Obligation of licensee after sale

  (2) Where the licensee of an elevator sells grain under subsection (1), the licensee has no obligation to the holder of the elevator receipt issued in respect of the grain, other than to pay to the holder on surrender of the receipt the amount that the licensee received for the grain sold less the aggregate of the costs, if any, incurred in the sale of the grain and the charges accrued under this Act in respect of the grain to the date of the sale.

• Marginal note:Warning

  (3) Each elevator receipt issued by the licensee of a terminal elevator shall bear the following warning:

  “WARNING: If the charges accruing under this receipt have been unpaid for more than one year, the grain may be sold, in which case the holder is entitled to receive, on surrender of this receipt, only the money received for the grain less those charges and the costs of sale.

  AVERTISSEMENT : En cas de non-paiement, pendant plus d’un an, des droits exigibles aux termes d’un récépissé, le grain peut être vendu, le détenteur du récépissé n’ayant droit par la suite, sur remise de ce document, qu’au produit de la vente, déduction faite de ces droits et des frais exposés pour la vente.”