Marginal note:Annual maximum guarantee for each producer
20. (1) Subject to subsection (1.1), the maximum amount of advances in any production period that are eligible for a guarantee under this Act is
(a) for a particular agricultural product produced by a producer, the amount specified in the advance guarantee agreement for that agricultural product; and
(b) for all agricultural products produced by a producer or a related producer, to the extent that advances for the agricultural products are attributable to the producer under subsection (2), $400,000 or the amount fixed by regulation.
Marginal note:Overlapping production periods
(1.1) The maximum amount of all advances that are eligible for a guarantee under this Act in relation to a producer, or to a related producer to the extent that the advances are attributable to the producer under subsection (2), may not, at any one time, exceed $400,000, or the amount fixed by regulation.
(2) Amounts advanced to related producers are attributable to the producer as follows:
(a) if the related producer is an individual, the attributable percentage is 100%;
(b) if the related producer is a corporation, the attributable percentage is the percentage of the voting shares that the producer holds in the related producer;
(c) if the related producer is a cooperative, the attributable percentage is the percentage prescribed by the regulations; and
(d) if the producer and the related producer are partners or members of the same partnership or other association of persons, the attributable percentage is the percentage of the profits of the partnership or association to which the producer is entitled.
- 1997, c. 20, s. 20;
- 2006, c. 3, s. 11.
Marginal note:Circumstances constituting default
21. (1) For the purposes of this Part, a producer is in default under a repayment agreement if the producer
(a) has not met any of their obligations under the agreement within 20 days after the day on which the administrator mails or delivers a notice to the producer stating that the producer has had, in the opinion of the administrator, adequate opportunity to meet the obligation, and requesting the producer to meet it;
(b) has not met all of their obligations under the agreement at the end of the production period for which the advance was made;
(c) has not met all of their obligations under the agreement when the producer files an assignment under the Bankruptcy and Insolvency Act or a bankruptcy order is made under that Act against the producer;
(d) at any time breaches an obligation under the agreement and, if the breach relates to the obligation to store the agricultural product or to maintain it so that it remains of marketable quality, section 11 does not apply; or
(e) provides false or misleading information to the administrator for the purpose of obtaining a guaranteed advance, or evading compliance with an undertaking to repay it.
Marginal note:Stay of default
(2) If a default is impending, the Minister may, at the request of the administrator, order the default to be stayed for a specified period on any terms that the Minister may establish.
Marginal note:When default ceases
(3) A producer ceases to be in default on the full discharge of the producer’s liability under sections 22 and 23.
Marginal note:Ineligibility period
(4) An advance guarantee agreement may provide that a producer continues to be ineligible for a guaranteed advance for any period specified in the agreement, even though the producer has ceased to be in default.
- 1997, c. 20, s. 21;
- 2004, c. 25, s. 183;
- 2006, c. 3, s. 12.
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