Agricultural Marketing Programs Regulations

7 (1) No payment under subsection 23(1) of the Act may be made to a lender or administrator unless

• (a) the Minister receives a request in writing from the administrator for payment;

• (b) the administrator,

  • (i) if the advance guarantee agreement sets out the procedures to be followed in the event of default on the repayment agreement or the death of the producer, or in the event that the administrator has reasonable grounds to believe that an offence under the Act has been committed by the producer, demonstrates that it followed those procedures,

  • (ii) after receiving notice that the producer has made an assignment under the Bankruptcy and Insolvency Act or that the producer is subject to a receiving order, files with the appropriate authority a notice of their claim against the assets of the producer and provides a copy of that notice to the Minister,

  • (iii) after being informed that the producer has died, files with the executor or administrator of the producer’s estate a notice of the debt and provides a copy of that notice to the Minister,

  • (iv) if the administrator has reasonable grounds to believe that an offence under this Act has been committed, reports the particulars to the appropriate police authority and provides a copy of that report to the Minister, or

  • (v) in any other case, provides

    • (A) copies of three letters of demand for payment that have been sent to the producer,

    • (B) proof that the administrator made or attempted to make a personal visit or telephone call to the producer, and

    • (C) a detailed description of the attempts at mediation or other methods used to negotiate the terms for repayment; and

• (c) the administrator provides to the Minister an undertaking in writing to

  • (i) take all reasonable measures in the future to recover from the producer any amounts still owed, and

  • (ii) advise the Minister of all opportunities for collection as they arise.

• (d) [Repealed, SOR/2006-293, s. 5]

(1.1) In the case where the administrator is the Board, before requesting payment from the Minister under subsection 23(1) of the Act, the Board shall undertake to the Minister in writing to continue to collect, during the period specified in the advance guarantee agreement, any amounts still owed by the producer by endorsing the documents referred to in section 16 of the Act or by offsetting payments to producers.

(2) Despite paragraph (1)(a), payment under subsection 23(1) of the Act may be made to a lender if

• (a) the administrator has not made a request in writing to the Minister for payment within 10 months after the end of the production period specified in the advance guarantee agreement;

• (b) after the 10 month-period referred to in paragraph (a), the lender has submitted a letter to the administrator asking that the administrator request in writing payment from the Minister as specified in the advance guarantee agreement;

• (c) the administrator has failed to comply with the request referred to in paragraph (b) within 10 days after the date on which the letter was sent; and

• (d) the lender submits a request in writing to the Minister for payment

  • (i) stating that the lender has written to the administrator asking that the administrator request in writing payment from the Minister and that the administrator has failed to comply within 10 days after the date on which the letter was sent,

  • (ii) providing the Minister with a copy of the letter to the administrator, and

  • (iii) specifying the name and address of the producer in default and the amount of the default.