Veterans’ Land Act (R.S.C. 1970, c. V-4)

Marginal note:Interest rates

• 76 (1) The interest payable on any loan made by the Director under this Part shall be at the rate or rates in effect for the purpose of this subsection at the time of approval by the Director of the veteran’s application for assistance in respect of the loan.

• Marginal note:Repayment period

  (2) Subject to section 77, loans made by the Director under this Part shall be repayable in equal instalments of principal and interest over a period not exceeding thirty years.

• Marginal note:Variation of terms

  (3) The Director may,

  • (a) where a loan made under this Part is repayable over a period of less than thirty years, extend the period of time over which the loan may be repaid for a period that, together with the original repayment period and any other extensions thereof, does not exceed thirty years; and

  • (b) at any time and from time to time during the repayment period of a loan made under this Part, vary the terms of repayment to provide for payment of interest only for a period or periods not exceeding in the aggregate five years, or to provide for annual, semi-annual or monthly payments of principal and interest, but a maximum repayment period of thirty years may not be exceeded.

Marginal note:Consolidation of loans under section 71 or 72

77 Notwithstanding the maximum repayment period specified in section 76, where the Director enters into more than one agreement with a veteran under section 71 or 72, those agreements may be consolidated into one agreement and for the purposes of such consolidation a uniform repayment period may be provided for all loans under section 71 or 72, which period shall not exceed thirty years from the date of the last such loan.

Marginal note:Other terms

78 It shall be a term of every agreement of loan entered into under this Part that, in the event of the sale, lease or other disposition by the veteran of the land upon which the Director has, by virtue of section 81, a first and paramount lien, any portion of the loan then outstanding shall, at the option of the Director, forthwith become due and payable.

Security

Marginal note:Director to take security

79 Subject to this Act, the Director shall, as security for a loan made under this Part to a veteran certified to be a full-time farmer, hold farm land, basic herd livestock or farm equipment sufficient, in the opinion of the Director, to secure the repayment of the amount of the veteran’s outstanding indebtedness under that loan.

Marginal note:Amount of Director’s security to be in land, etc.

80 The Director shall ensure at all times that not less than sixty per cent of the security held by him to secure repayment of a loan made under this Part and the outstanding cost to the Director owing under a Part I contract by a veteran certified to be a full-time farmer is in farm land and the balance, if any, in basic herd livestock and farm equipment not in excess of such amounts as the Governor in Council may prescribe.

Marginal note:Director’s lien

81 As long as any portion of a loan made under this Part remains unpaid, the Director has a first and paramount lien in respect thereof upon the land, livestock or farm equipment to which a Part I contract relates, and upon any land, basic herd livestock or farm equipment purchased or taken as security by the Director under this Part, which lien has priority over all other rights, interests, liens, charges, claims or demands whatever of any other person.

Marginal note:Lien where additional land purchased

82 Where proceeds of a loan made under this Part are used by the Director to purchase land, the land so purchased shall be held as security for the repayment of the loan in the same manner and subject to the same terms and conditions, as nearly as may be, as the land to which the Part I contract relates.

Marginal note:No transfer, etc. of land subject to Part I contract

• 83 (1) Subject to this Act, no transfer or conveyance of the land to which a Part I contract relates or discharge of any mortgage thereon shall be given by the Director to any veteran to whom a loan under this Part has been made, until such time as the veteran has repaid in full his indebtedness to the Director under this Part in respect of that loan.

• Marginal note:Title to land, etc. to be released to veteran

  (2) The Director may, subject to section 79 and on such terms and conditions as he deems necessary, transfer to a veteran certified to be a full-time farmer the title to any land, livestock or farm equipment held by the Director as security to secure the repayment by that veteran of his indebtedness under this Act, but such release does not relieve that veteran from making repayment thereof as provided by this Part.

Regulations

Marginal note:Regulations

84 The Governor in Council may make regulations

• (a) prescribing the terms and conditions on which a loan may be made to a veteran;

• (b) prescribing, for the purposes of section 80, the maximum amounts of basic herd livestock or farm equipment that the Director may hold as security to secure a loan made under this Part;

• (c) for defining, for the purposes of this Act, agricultural value, basic herd livestock, economic farm unit, farm equipment and farm land; and

• (d) for prescribing the rate or rates of interest in effect for the purpose of subsection 17(2), section 18, subsections 19(2) and 20(2), section 23, paragraph 24(2)(f), and subsections 32(3) and 76(1).

General

Marginal note:Prohibition

85 Notwithstanding anything in this Part, no loan shall be made under this Part

• (a) except with the approval of the Minister, to a veteran who is in default under a Part I contract, or

• (b) to a veteran who is indebted in respect of any loan made pursuant to the Veterans’ Business and Professional Loans Act.