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

Marginal note:Specially binning grain restricted

72 The operator of a licensed terminal elevator shall not specially bin any grain except as may be authorized by regulation and in the prescribed manner.

Marginal note:Priority of claims

73 Subject to subsection 77(3), the holder of an elevator receipt issued in respect of grain in a licensed terminal elevator is entitled, in priority to all other claims affecting the grain, to the grain referred to in the receipt or to grain in the elevator of the same kind, grade and quantity as the grain referred to in the receipt.

Marginal note:Discharge from elevator

• 74 (1) Subject to section 86, the operator of a licensed terminal elevator shall without delay discharge into a conveyance referred to in paragraph (b), to the extent of the conveyance’s capacity, the identical grain or grain of the same kind, grade and quantity that any elevator receipt issued by the operator requires if the holder of the receipt who may lawfully deliver grain referred to in that receipt to another elevator or to a consignee at a destination other than an elevator

  • (a) requests that the grain be shipped,

  • (b) causes to be placed at the elevator to transport the grain a conveyance that is capable of receiving grain discharged from the elevator and to which the grain may lawfully be delivered, and

  • (c) surrenders the elevator receipt and pays the charges accrued under this Act in respect of the grain referred to in the receipt.

• Marginal note:Idem

  (2) The operator of an elevator shall be deemed to have discharged grain forthwith as required by subsection (1) if the operator discharges grain in respect of which elevator receipts have been tendered or surrendered and the charges accrued under this Act have been tendered or paid, in the order in which conveyances for the grain are presented and as rapidly as due diligence, care and prudence justify.

Marginal note:Limitation on receipt and discharge

75 No operator or manager of a licensed terminal elevator shall, except with the Commission’s written permission,

• (a) permit any grain that has been officially inspected on discharge from the elevator to be again received into the elevator; or

• (b) permit any grain containing dockage to be discharged from the elevator.

Marginal note:Procedure if grain requires treatment or must be disposed of

• 76 (1) If any grain in a licensed terminal elevator is found to be infested or contaminated, or to have gone or to be likely to go out of condition or otherwise to require treatment,

  • (a) the operator of the elevator shall, without delay, inform the Commission, the principal inspector at the nearest inspection point and, if the grain is specially binned, the persons having an interest or right in the grain;

  • (b) the Commission shall, if it deems it necessary, arrange for the inspection of the grain;

  • (c) the Commission, or a person authorized by the Commission, shall give such directions as to the treatment or disposal of the grain as the circumstances require; and

  • (d) the operator of the elevator shall forthwith treat or dispose of the grain as so directed.

• Marginal note:Mixing prohibited

  (2) Except with the permission of the Commission, no grain in respect of which a direction has been given pursuant to subsection (1) shall thereafter be mixed with other grain.

• Marginal note:Costs of treatment, etc.

  (3) If, under a direction given under subsection (1), grain referred to in an elevator receipt indicating special binning issued by the operator of a licensed terminal elevator has been treated, shipped or otherwise disposed of, the costs incurred by the operator of the elevator in complying with the direction are recoverable from the persons having an interest or right in the grain in proportion to their respective interests or rights.

• Marginal note:Operator not relieved of statutory or contractual obligation

  (4) Nothing in this section shall be construed as relieving the operator of a licensed terminal elevator from the performance of any obligation imposed on him or her under this Act or any contract under which any grain came into or remains in the operator’s possession.

Marginal note:Compulsory removal of grain

• 77 (1) The operator of a licensed terminal elevator may, with the Commission’s written permission, on at least 30 days’ notice in writing, in a form and manner prescribed, to the last known holder of an elevator receipt issued by the operator, require the holder to take delivery from the elevator of the grain referred to in the receipt.

• Marginal note:Sale of grain

  (2) If the holder of an elevator receipt issued by the operator of a licensed terminal elevator fails to take delivery of the grain referred to in a notice given under subsection (1) within the period for taking delivery set out in it, whether or not the notice has been brought to his or her attention, the operator of the elevator may, on any terms that may be specified in writing by the Commission, sell the identical grain or grain of the same kind, grade and quantity.

• Marginal note:Obligation on sale

  (3) Where an operator of an elevator sells grain under subsection (2), the operator 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 operator 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

  (4) Each elevator receipt issued by the operator of a licensed terminal elevator shall bear the warning set out in subsection 65(4).

Process Elevators

Marginal note:Receipt

• 78 (1) Subject to any provision of this Act, any regulation or any order of the Commission, the operator of a licensed process elevator shall receive into the elevator grain lawfully delivered to the elevator at the discretion of the operator.

• Marginal note:Issuance of receipt or ticket

  (2) On the receipt of grain from a producer into a licensed process elevator, the operator of the elevator shall, at the prescribed time and in the prescribed manner, issue a grain receipt or a cash purchase ticket stating the grade name, grade and dockage of the grain, and immediately provide the producer with the grain receipt or cash purchase ticket.

• Marginal note:Limitation on discharge

  (3) Except with the permission of the Commission, no operator of a licensed process elevator shall discharge grain from the elevator, otherwise than for direct manufacture or processing into another product, unless the grain is officially inspected and officially weighed at the time of discharge and assigned a grade pursuant to this Act.

79 [Repealed, 2012, c. 31, s. 376]

80 [Repealed, 2012, c. 31, s. 376]

Grain Dealers

Marginal note:Requirement to issue grain receipt or cash purchase ticket

• 81 (1) With respect to the purchase of western grain from a producer of that grain, every licensed grain dealer shall, at the prescribed time and in the prescribed manner, issue a grain receipt or cash purchase ticket stating the grade name, grade and dockage of the grain, and immediately provide it to the producer.

• (2) [Repealed, R.S., 1985, c. 37 (4th Supp.), s. 24]

• Marginal note:Commission contracts

  (3) No licensed grain dealer who acts for any person on a commission basis in relation to the purchase or sale of western grain by a grade name shall, except with the consent of that person, buy, sell or have any interest or right, directly or indirectly beyond the dealer’s agreed commission in the purchase or sale of the grain.

• Marginal note:Prohibitions

  (4) No licensed grain dealer shall

  • (a) except with the permission of the Commission, enter into a contract relating to western grain that the dealer has reason to believe is infested or contaminated; or

  • (b) enter into a contract that provides for the delivery of western grain to an elevator or a consignee if the grain is not lawfully receivable by the operator of the elevator or other consignee.

Marginal note:Records and reports

82 Every licensed grain dealer shall maintain such records of his business as a grain dealer and make such reports to the Commission in respect of that business as may be prescribed.

82.1 [Repealed, 2012, c. 31, s. 377]

Grain Handling Generally

Marginal note:Contracts to be made only by licensees

• 83 (1) No person in the Western Division shall, for reward, by way of a profit, commission or otherwise,

  • (a) act on behalf of any other person in buying, selling or arranging for the weighing, inspection or grading of western grain, or

  • (b) make any contract for the purchase of western grain,

  unless that person is a licensee or is employed by a licensee and acts only on behalf of his employer.

• Marginal note:Exception

  (2) Subject to this Act, a transaction referred to in subsection (1) may be entered into by a person who is not a licensee where the transaction is

  • (a) a contract for the purchase of grain without reference to any grade name on terms whereby the consideration payable under the contract for the purchase of the grain is to be paid in full at the time of the making of the contract or the delivery of the grain;

  • (b) a contract for the purchase of grain whereby the grain is purchased by a producer of grain for use as seed in the producer’s farming operation;

  • (c) a contract for the purchase of grain whereby a person who raises livestock or poultry purchases the grain for feeding the livestock or poultry; or

  • (d) a contract made on the premises of a recognized grain exchange by or through a broker who is a member of the exchange and duly recorded pursuant to the rules of the exchange.

Declaration Respecting Grain

Marginal note:Obligation to provide declaration

83.1 Every licensee and every person who sells grain to a licensee shall, in accordance with the regulations, make and provide a declaration respecting the grain to a prescribed person.

Marginal note:Regulations

83.2 The Commission may, with the approval of the Governor in Council, make regulations respecting the declaration referred to in section 83.1, including regulations prescribing

• (a) its form and content;

• (b) when it is to be made and provided; and

• (c) the persons to whom it is to be provided.

Marginal note:False or misleading statement

83.3 No person shall knowingly make a false or misleading statement in a declaration referred to in section 83.1.