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

Sales of Land and Other Property to Veterans

Marginal note:Determination of cost to Director

• 10 (1) The Director shall, for the purposes of this Part, determine the cost to the Director of the land and improvements thereon, building materials, livestock and farm equipment to be sold to a veteran under this Part, which shall be not less than the amount actually expended by the Director therefor.

• Marginal note:Idem

  (2) Where the Director acquires land and improvements thereon from a veteran and the veteran has at the time of such acquisition outstanding debts that, in the opinion of the Director, were reasonably incurred to effect improvements to the land and improvements so acquired, the Director may pay the debts on behalf of the veteran, and the cost to the Director of the land and improvements shall include the amount of the debts so paid.

Marginal note:Sale of land, etc., to veterans

• 11 (1) Subject to this Part and the regulations, the Director may contract with a veteran certified by him to be qualified to participate in the benefits of this Part for the sale to such veteran of land and improvements thereon, building materials, livestock and farm equipment up to a total cost to the Director of six thousand dollars, but subject to the following conditions:

  • (a) that the cost to the Director of the land, improvements and building materials shall not exceed six thousand dollars;

  • (b) that the veteran has paid to the Director ten per cent of such cost and the entire cost price of land, improvements and building materials in excess of six thousand dollars;

  • (c) that the cost to the Director of the livestock and farm equipment shall not exceed twelve hundred dollars or the amount by which six thousand dollars exceeds the cost to the Director of the land, improvements and building materials, whichever is less;

  • (d) that the sale price to a veteran of land, improvements, building materials, livestock and farm equipment shall be, in addition to any sum paid by the veteran before contract made, a sum equal to two-thirds of the cost to the Director of the land, improvements and building materials;

  • (e) that the interest rate payable by a veteran shall be three and one-half per cent per annum;

  • (f) that the balance of the purchase price payable by a veteran may be extended over a term not in excess of thirty years with interest at the rate aforesaid on the amortization plan; and

  • (g) that, at the request of the veteran, and at any time and from time to time during the period over which the purchase price is payable, the Director may vary the terms of payment 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:Commercial fishing equipment

  (2) In this Part, except in subsection (3) of this section, the expression livestock and farm equipment, in the case of a veteran certified by the Director to be a commercial fisherman, includes commercial fishing equipment.

• Marginal note:Contract with veteran

  (3) In lieu of the contract for sale described in subsection (1) and subject to this Part and the regulations, the Director may contract with a veteran certified by him to be qualified to participate in the benefits of this Part for the sale to such veteran of land and improvements thereon, building materials, livestock and farm equipment, up to a total cost to the Director of five thousand eight hundred dollars, but subject to the following conditions:

  • (a) that the cost to the Director of livestock and farm equipment shall not exceed the sum of three thousand dollars;

  • (b) that the cost to the Director of land and improvements and building materials shall not exceed an amount by which the sum of five thousand eight hundred dollars exceeds the cost to the Director of livestock and farm equipment;

  • (c) that the veteran has paid to the Director twenty per cent of the cost to the Director of the livestock and farm equipment and ten per cent of the cost to the Director of the land, improvements thereon and building materials;

  • (d) that the sale price to a veteran of land, improvements and building materials and livestock and farm equipment, shall be, in addition to any sum paid by the veteran before contract made, a sum equal to forty per cent of the cost to the Director of the livestock and farm equipment and fifty per cent of the cost to the Director of land, improvements thereon and building materials;

  • (e) that the interest rate payable by a veteran shall be three and one-half per cent per annum;

  • (f) that the balance of the purchase price payable by a veteran may be extended over a term not in excess of ten years for the payment of livestock and farm equipment and not in excess of thirty years for the payment of land and improvements thereon and building material; and

  • (g) that livestock and farm equipment shall be sold under this subsection only to a veteran who at the time of such sale enters into a contract under this subsection or has a subsisting contract under this subsection for the purchase of land from the Director or who occupies land under a rental or purchase agreement satisfactory to the Director, and the cost to the Director of such livestock and equipment shall not exceed forty per cent of

    • (i) the value, as estimated by the Director, of the land and improvements thereon sold to the veteran and the cost to the Director of building materials sold to the veteran, and

    • (ii) the value of any land occupied by that veteran under a rental or purchase agreement as estimated by the Director.

• Marginal note:Additional assistance under ss. (1)

  (4) Where a veteran who entered into a contract with the Director under subsection (3), under which the total cost to the Director was less than five thousand eight hundred dollars, pays in full his indebtedness to the Director thereunder, the Director may enter into a contract with the veteran under subsection (1) subject to the following conditions:

  • (a) that the cost to the Director of the land, improvements, building materials, livestock and farm equipment shall not exceed six thousand dollars less the total cost to the Director under the contract entered into between the Director and the veteran under subsection (3); and

  • (b) that the total cost to the Director under the contract entered into under subsection (3), less the sum paid before contract made and the sale price paid by the veteran, and the cost to the Director under the contract under subsection (1) after deduction of any sum paid before contract made and the sale price payable thereunder, does not exceed two thousand three hundred and twenty dollars,

  and subject to the conditions set forth in paragraphs (1)(b),(d),(e),(f) and (g).

• Marginal note:Sale, assignment or other disposition only after all commitments met

  (5) A veteran who has entered into a contract with the Director under subsection (1) or (3) may not during the term of that contract sell, assign or otherwise dispose of the subject-matter of that contract or any part thereof, except by lease entered into with the permission of the Director after the expiration of ten years from the effective date provided in the contract, unless payment is made in full to the Director of

  • (a) the total outstanding cost to the Director of the land, improvements, livestock and farm equipment;

  • (b) interest charges at the rate specified in the contract and accruing to the day of payment on the total outstanding cost to the Director; and

  • (c) all other amounts owing by the veteran to the Director and secured under the contract.

• Marginal note:Conveyance or transfer

  (6) Except upon payment in full to the Director of the amounts set out in paragraphs (5)(a),(b) and (c), no conveyance or transfer of any land being purchased by a veteran from the Director under subsection (1) or (3) shall be given by the Director to the veteran unless

  • (a) ten years have elapsed since the effective date provided in the contract; and

  • (b) the veteran has complied with the terms of the contract throughout that ten-year period.

• Marginal note:Where contract for sale of livestock and equipment

  (7) Notwithstanding subsection (5), in the case of any contract for the sale of livestock and equipment made between the Director and a veteran who occupies land under a rental or purchase agreement and who subsequently enters into a contract to buy land from the Director before the terms of the contract for the sale of livestock and equipment have been completely fulfilled, the Director shall not give a conveyance or transfer in respect of the said land or improvements thereon or building materials until the terms of the contract for the sale of the said livestock and equipment have been completely fulfilled.

• Marginal note:No further contract where default exists in previous contract

  (8) Except with the approval of the Minister, the Director shall not enter into a contract for the sale of land, improvements, building materials, livestock, farm equipment or commercial fishing equipment with a veteran who is in default in respect of any contract previously entered into under this Act.

• Marginal note:Spouse or common-law partner may be joined

  (9) Notwithstanding any other provision of this Act, the Director may, on the request of a veteran, join the spouse or common-law partner of the veteran as a joint purchaser with the veteran in any contract entered into by the veteran pursuant to this section, subject to the following conditions:

  • (a) the veteran and the spouse or common-law partner of the veteran complete, in a form prescribed by the Director, an application to join the spouse or common-law partner;

  • (b) on the death of the veteran or the spouse or common-law partner of the veteran, the survivor becomes the sole purchaser under the contract;

  • (c) the contract cannot be terminated except with the consent of all the parties or as provided under subsection 37(2) of this Act, or by the Director for false or misrepresented information in the application;

  • (d) repayment in full or part of the balance of the sale price may be made at any time without notice or payment of bonus; and

  • (e) on repayment in full of the balance of the sale price, a transfer or conveyance will be issued by the Director to the veteran and the spouse or common-law partner of the veteran, or if one has died, to the survivor.

Marginal note:Director may resell livestock, etc., to veteran

12 Notwithstanding anything in this Act, where the Director requires a veteran to repay the cost of the livestock and farm equipment sold to him under a contract made under this Act, the Director may sell to that veteran livestock and farm equipment up to a total cost to the Director of an amount equal to the amount repaid by that veteran.

Marginal note:Director may sell all or part of property sold to a veteran

• 13 (1) Notwithstanding anything in this Part, where the Director has by a contract made under this Part sold property to a veteran certified by the Director to be qualified to participate in the benefits of this Part, the Director, with the consent of the veteran, may in accordance with section 11 or 26 sell to another veteran certified by the Director to be qualified to participate in the benefits of this Part or may sell or otherwise dispose of to any other person, all or any part of the land, improvements, building materials, livestock or farm equipment that was sold by such contract to the first-mentioned veteran.

• Marginal note:Use of proceeds from sale of land

  (2) Where the property sold or otherwise disposed of pursuant to subsection (1) consists of land, improvements or building materials, the Director shall, subject to subsection (3), use the proceeds for one or more of the following purposes:

  • (a) to purchase for the veteran other or additional lands, which shall for the purposes of the contract be substituted for any lands so sold;

  • (b) to effect improvements to the land retained by the veteran or to such other or additional lands;

  • (c) to pay debts that, in the opinion of the Director, were reasonably incurred by the veteran to effect improvements on the land retained by him;

  • (d) to reduce the amount owing under the contract or to reduce the cost to the Director as provided in this section; or

  • (e) to pay real estate commission, legal costs and any other costs related to the sale or disposition of the property.

• Marginal note:Exception

  (3) Where the land sold or otherwise disposed of consists of mines and minerals or where the land, improvements or building materials sold or otherwise disposed of do not constitute part of the cost to the Director as determined under section 10, the Director may use the proceeds for one or more of the following purposes, in addition to or in lieu of any of the purposes specified in subsection (2):

  • (a) to purchase for the veteran cattle, sheep or swine to be used as basic herd livestock;

  • (b) to purchase for the veteran farm equipment necessary for the economic operation of the veteran’s farm; or

  • (c) to pay debts that, in the opinion of the Director, were reasonably incurred by the veteran for any of the purposes specified in paragraphs (a) and (b).

• Marginal note:Application of surplus

  (4) Where a surplus remains after the amounts to be expended, if any, under paragraphs (2)(a) and (b) and (3)(a) to (c) have been determined by the Director, (hereinafter called the “surplus”),

  • (a) if the ten-year period mentioned in subsection 11(5) has expired, the surplus shall be applied in reduction of the amount owing under the contract;

  • (b) if the ten-year period has not expired, and the sale or other disposition was to Her Majesty in right of Canada for public purposes or to a government, authority or corporation described in subsection 29(1), the surplus shall be applied in reduction of the amount owing under the contract and the ten-year period shall be deemed to have expired; and

  • (c) if the ten-year period has not expired, and the sale or other disposition was not to Her Majesty in right of Canada for public purposes or to a government, authority or corporation described in subsection 29(1), the Director shall determine what portion, if any, of the surplus shall be applied in reduction of the amount owing under the contract, and the remainder of the surplus shall be applied in reduction of the cost to the Director.

• Marginal note:Reduction of cost to Director

  (5) Where under this section the surplus or any portion thereof is applied in reduction of the cost to the Director,

  • (a) an amount that bears the same proportion to such surplus or portion as the contract sale price bears to the cost to the Director of the land, improvements and building materials, or

  • (b) seventy-six and two-thirds per cent of such surplus or portion

  whichever is the lesser, shall be applied in reduction of the amount owing under the contract, and for the purposes of subsection 11(5) the total outstanding cost to the Director shall be reduced by the amount of such surplus or portion.

• Marginal note:Payment of balance of surplus to veteran

  (6) Subject to subsections (6.1) and (6.2), where by the application of the surplus in accordance with subsections (4) and (5) the amount owing under the contract is paid in full and a balance of the surplus remains, such balance shall be paid to the veteran.

• Marginal note:Balance of surplus paid into court

  (6.1) Where the Director has notice of an unsatisfied court order or judgment obtained against the veteran for the recovery or payment of money or of an unsatisfied court order or judgment referred to in section 37 obtained against the veteran, the Director may pay into court the balance of the surplus referred to in subsection (6) or such part thereof as would satisfy the order or judgment and related costs.

• Marginal note:Remainder of balance of surplus paid to veteran

  (6.2) Where the Director pays less than the total balance of the surplus into court pursuant to subsection (6.1), he shall pay the remainder of the balance to the veteran.

• Marginal note:Use of proceeds from sale of livestock or farm equipment

  (7) Where the property sold or otherwise disposed of pursuant to subsection (1) consists of livestock or farm equipment, the Director may use the proceeds for one or more of the following purposes:

  • (a) to purchase for the veteran other or additional livestock or farm equipment, which shall for the purposes of the contract be substituted for the livestock or farm equipment so sold;

  • (b) to purchase, subject to the conditions set out in subsection 11(1), land for sale to the veteran;

  • (c) to effect, subject to the conditions set out in subsection 11(1), improvements to the lands sold to the veteran or to any other lands purchased for sale to him; or

  • (d) to pay debts that, in the opinion of the Director, were reasonably incurred by the veteran to effect improvements on the land sold to him.

• Marginal note:Acquisition of veterans’ lands by Her Majesty

  (8) Where all or any part of the land sold by the Director to a veteran by a contract made under this Part is acquired by Her Majesty in right of Canada for public purposes, the compensation money or purchase price shall be ascertained as though the Director were not an agent of Her Majesty and shall for the purposes of this section be deemed to be proceeds of the sale of the land.

• Marginal note:Definitions

  (9) For the purposes of this section

  land

  land includes mines, minerals and timber and any rights in respect thereof; (terre ou bien-fonds)

  proceeds

  proceeds,

  • (a) in the case of a contract for the sale of land, improvements or building materials to a veteran certified by the Director to be qualified to participate in the benefits of this Act, means the amount the veteran would be required to pay to the Director under subsection 11(5) to obtain an immediate transfer, together with the amount, other than the ten per cent of the cost to the Director of the land, improvements and building materials, paid by the veteran under paragraph 11(1)(b) or 11(3)(c) and together with the outstanding amount of any loan under Part III approved by the Director for the purchase of the property and the amount of any payment made by the veteran to the Director under Part III,

  • (b) in the case of a contract for the sale of livestock or farm equipment to a veteran, means an amount equal to the amount that the veteran would be required to pay under subsection 11(5) for an immediate transfer thereof,

  • (c) in the case of a sale or other disposition of property, except timber, to any other person, means the amount received, and

  • (d) in the case of a sale of timber to any person means the stumpage value of that timber, as determined by the Director. (produit)

• Marginal note:Insurance money

  (10) For the purposes of this section any money received by the Director under a contract of insurance on property sold to a veteran shall be deemed to be proceeds of the sale of the property.

• (11) [Repealed, 1980-81-82-83, c. 78, s. 2]

• Marginal note:Application of proceeds of sales made before December 10, 1949

  (12) Where the Director before the 10th day of December 1949, with the consent of the veteran, sold or otherwise disposed of part only of the property that was sold by the Director to the veteran by a contract made under this Part and the contract was not rescinded or otherwise terminated, the proceeds may, at the request of the veteran, be applied as prescribed in this section.

• (13) [Repealed, 1980-81-82-83, c. 78, s. 2]

• Marginal note:Sale of timber

  (14) Notwithstanding anything in this section, the Director may pay to a veteran, in the event of any sale of timber from land sold to that veteran under a contract entered into under this Part, any amount by which the amount for which the timber was sold exceeds the stumpage value of that timber as determined by the Director.