Marginal note:Crop Reinsurance Fund

• 13. (1) There is hereby continued in the accounts of Canada the special account known as the Crop Reinsurance Fund,

  • (a) to which shall be credited the moneys paid by a province for the purpose of reinsurance under a reinsurance agreement; and

  • (b) to which shall be charged all amounts required for the purpose of making payments to a province under the terms of a reinsurance agreement.

• Marginal note:Payments charged to Fund

  (2) The Minister of Finance may, subject to this Act, on the request of the Minister, authorize payment out of the Crop Reinsurance Fund of any amount required to be paid to any province under the terms of a reinsurance agreement.

• Marginal note:Advances to Fund out of Consolidated Revenue Fund

  (3) Where the amount standing to the credit of the Crop Reinsurance Fund is insufficient for the payment of amounts required under the terms of a reinsurance agreement, the Minister of Finance may authorize an advance to the Crop Reinsurance Fund from the Consolidated Revenue Fund of an amount sufficient to meet the deficit.

• Marginal note:Advances repayable

  (4) An advance made under subsection (3) shall be credited to the Crop Reinsurance Fund and repaid in such manner and on such terms and conditions, including the payment of interest, as the Minister of Finance may fix, after considering any advice furnished by the Minister.

• Marginal note:Advance included in deficit

  (5) An amount advanced to the Crop Reinsurance Fund under subsection (3) and any interest thereon shall be included in any estimated deficit of that Fund.

• Marginal note:Repayment

  (6) The repayment of an amount advanced under subsection (3) shall be charged to the Crop Reinsurance Fund.

Marginal note:Limitation of payments out of Crop Reinsurance Fund to province

• 14. (1) Subject to subsection (2), the total amount that may be paid under section 13 to a province in any year pursuant to the terms of a reinsurance agreement shall not exceed seventy-five per cent of the amount by which the indemnities required to be paid by the province in the year under policies of insurance in force in that year exceed the aggregate of

  • (a) the premium receipts for the year minus any moneys paid by the province for the purpose of reinsurance for that year,

  • (b) the reserve for the payment of indemnities, and

  • (c) a portion of any sums paid by the province in respect of the indemnities required to be paid by the province in the year under the policies of insurance in force in that year, equal to two and one-half per cent of the total liability of the province under those policies.

• Marginal note:Modified limitation of reinsurance payments in certain circumstances

  (2) Where a province has paid any sums described in paragraph (1)(c) and in any year the total of those sums not repaid to the province exceeds sixteen and two-thirds per cent of the total liability of the province under the policies of insurance in force in that year, that paragraph shall not be taken into account in the calculation pursuant to subsection (1) of the total amount that may be paid under section 13 to the province in that year.