Marginal note:Liability of defaulting producer to administrator
22. A producer who is in default under a repayment agreement is liable to the administrator for
(a) the outstanding amount of the guaranteed advance;
(b) the interest at the rate specified in the repayment agreement on the outstanding amount of the advance, calculated from the date of the advance; and
(c) costs incurred by the administrator to recover the outstanding amount and interest, including legal costs approved by the Minister.
Marginal note:Payments to be made by Minister
23. (1) If a producer is in default under a repayment agreement and the Minister receives a request for payment from the administrator or lender to whom the guarantee is made, the Minister must, subject to any regulations made under paragraphs 40(1)(g) and (g.1), pay to the lender or the administrator, as specified in the advance guarantee agreement, an amount equal to the Minister’s percentage of
(a) the amounts mentioned in paragraphs 22(a) and (c); and
(b) the interest at the rate specified in the advance guarantee agreement on the outstanding amount of the advance, calculated from the date of the advance.
(2) The Minister is, to the extent of any payment under subsection (1), subrogated to the administrator’s rights against the producer in default and against persons who are personally liable under paragraphs 10(1)(c) and (d).
Marginal note:Recovery of interest and costs
(3) The producer is liable to the Minister for interest on the subrogated amount, calculated in accordance with the repayment agreement, and the costs incurred by the Minister to recover that amount, including legal costs.
Marginal note:Limitation period
(4) No action or proceedings may be initiated by the Minister to recover any amounts, interest and costs that are owing more than six years after the day on which the Minister is subrogated to the administrator’s rights.
Marginal note:Deduction and set-off
(5) The amounts, interest and costs that are owing may be recovered at any time by way of deduction from or set-off against any sum of money that may be due or payable by Her Majesty in right of Canada to the person who is liable or their estate or succession.
- 1997, c. 20, s. 23;
- 1999, c. 26, s. 46;
- 2008, c. 7, s. 6.
24. [Repealed, 2011, c. 25, s. 18]
Marginal note:Payments out of the C.R.F.
25. Payments that the Minister or the Minister of Finance is liable to make under this Part are to be made out of the Consolidated Revenue Fund.
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