Farm Improvement Loans Regulations (C.R.C., c. 645)

Short Title

1 These Regulations may be cited as the Farm Improvement Loans Regulations.

Interpretation

2 In these Regulations,

Act

Act means the Farm Improvement Loans Act; (Loi)

averaging period

averaging period[Revoked, SOR/78-138, s. 1]

interest period

interest period[Revoked, SOR/78-138, s. 1]

owner

owner means a person who has either an equitable or legal interest in a farm or is a veteran having a subsisting contract under the Veterans’ Land Act in respect of a farm. (propriétaire)

3 For the purposes of the Act and these Regulations,

addition

addition means the addition to a building or equipment and includes the

• (a) addition of one or more rooms or storeys,

• (b) construction of an attached garage or outbuilding,

• (c) installation and construction of foundations and basements for buildings or equipment and the purchase of materials for any such purpose, and

• (d) purchase of plumbing, heating, ventilating or air conditioning systems or parts thereof; (rajout)

alteration

alteration means the structural alterations to the exterior or interior of any building or structure that are designed to improve or modernize or increase the usefulness of any building or structure on a farm and includes the

• (a) purchase of material for any such purpose,

• (b) relocation of any equipment, and

• (c) alteration of plumbing, heating, ventilating, sewage disposal, water supply, farm electrical or air-conditioning systems or parts thereof; (modification)

major

major means, in relation to repair and overhaul, a cost of not less than $400 as estimated by the borrower; (majeurs)

repair

repair means the repair and the material required for the repair of any building, structure, implement or equipment for use in the business of farming and includes the painting of any farm building, the interior decorating of the farm home and repair to

• (a) the family dwelling and outbuildings,

• (b) a separate house for farm help,

• (c) a summer cottage or tourist cabin, if erected on a farm upon which a dwelling is situated and operated as an enterprise incidental to the farmer’s business of farming,

• (d) a barn, stable, silo or granary,

• (e) plumbing, heating, ventilating, sewage disposal, water supply, farm electrical or air-conditioning systems or parts thereof, and

• (f) wells, dug-outs or fencing; (réparation)

responsible officer of the bank

responsible officer of the bank means

• (a) the manager or assistant manager of the bank or a branch thereof,

• (b) the person for the time being acting as the manager or assistant manager of the bank or a branch thereof,

• (c) the credit committee of the bank or a branch thereof, or

• (d) any person duly authorized by the bank to supervise the granting of loans; (fonctionnaire responsable de la banque)

works for drainage

works for drainage means ditches, tiling and drainage installations, pumping and diking installations and works for the conservation of soil against water erosion. (ouvrages de drainage)

Application

4 These Regulations apply to a guaranteed farm improvement loan authorized under the Act.

Designation of Works

5 The following are designated as works for the improvement or development of a farm for which farm improvement loans may be made:

• (a) the construction, installation, repair, alteration or improvement of a sewage disposal system or any part thereof;

• (b) the sinking, construction, installation, repair, alteration or improvement of wells, dug-outs and all types of water supply systems;

• (c) the clearing, breaking, irrigating and reclaiming of land;

• (d) the conservation of soil, prevention of erosion and the planting of trees and shelter belts;

• (e) the purchase, moving to and installing on the farm of complete or partially complete buildings or structures and, where necessary, the completing of the buildings or structures;

• (f) the repair, alteration or improvement of fencing;

• (g) the purchase and planting of fruit trees; and

• (h) the construction of a road or driveway on a farm.

Application for Loan

6 Every applicant for a loan shall submit to the bank a signed application, in the form set out in Schedule I, containing the required information.

Classes of Farm Improvement Loans

7 The following are the classes of loans prescribed for the purposes of the Act and these Regulations:

• (a) agricultural implement loans, being loans made for the purpose of financing the purchase of

  • (i) agricultural implements, and

  • (ii) equipment for bee-keeping;

• (b) livestock loans, being loans made for the purpose of financing the purchase of livestock or bee-stock but excluding livestock of the kind commonly known as short-term feeder steers;

• (c) agricultural equipment loans, being loans made for the purpose of financing the purchase or installation of agricultural equipment or a farm electric system;

• (d) building loans, being loans made for the purpose of financing the construction, renovation, alteration, repair or extension of any building or structure on a farm;

• (e) additional land loans, being loans made for the purpose of financing the purchase by the owner of a farm of additional land;

• (f) improvement or development loans, being loans made for the purpose of financing any alteration or improvement of a farm electric system, works for drainage, the erection or construction of fencing or any work designated in section 5 for the improvement or development of a farm; and

• (g) major repair or major overhaul loans, being loans made for the purpose of financing the major repair to or major overhaul of agricultural implements or equipment, equipment for bee-keeping or a farm electrical system.

Agricultural Implement Loans

8 Subject to the Act and these Regulations, an agricultural implement loan or an equipment for bee-keeping loan is a guaranteed farm improvement loan if

• (a) the loan is made to the owner or tenant of the farm;

• (b) the loan is made in an amount not greater than 75 per cent of the cost price of the agricultural implement or equipment for bee-keeping, as set out in the relevant contract or other written evidence of the sale; and

• (c) and (d) [Revoked, SOR/78-138, s. 2]

• (e) the bank has required, in accordance with normal banking requirements, and the borrower has provided evidence that the funds advanced in respect of the loan were expended for the purpose set out in the application for the loan.

Livestock Loans

9 Subject to the Act and these Regulations, a livestock loan or a loan for bee-stock is a guaranteed farm improvement loan if

• (a) the loan is made to the owner or tenant of the farm;

• (b) the loan is made in an amount not greater than 75 per cent of the estimated cost of the purchase of the livestock or bee-stock, as set out in the application for the loan;

• (c) [Revoked, SOR/78-138, s. 3]

• (d) the bank has required, in accordance with normal banking requirements, and the borrower has provided evidence that the funds advanced in respect of the loan were expended for the purpose set out in the application for the loan.

Agricultural Equipment Loans

10 Subject to the Act and these Regulations, an agricultural equipment loan or a farm electric system loan is a guaranteed farm improvement loan if

• (a) the loan is made to the owner of the farm;

• (b) the loan is made in an amount not greater than 75 per cent of the estimated cost of the equipment or farm electric system, including the cost of installation but excluding the cost of any labour of the borrower, as set out in the application for the loan;

• (c) and (d) [Revoked, SOR/78-138, s. 4]

• (e) the bank has required, in accordance with normal banking requirements, and the borrower has provided evidence that the funds advanced in respect of the loan were expended for the purpose set out in the application for the loan.

Building Loans

11 Subject to the Act and these Regulations, a building loan is a guaranteed farm improvement loan if

• (a) the loan is made to the owner of the farm;

• (b) the loan is made in an amount not greater than 90 per cent of the estimated cost of the construction, renovation, alteration, repair or extension of any building or structure, excluding the cost of any labour of the borrower, as set out in the application for the loan;

• (c) and (d) [Revoked, SOR/78-138, s. 5]

• (e) the bank has required, in accordance with normal banking requirements, and the borrower has provided evidence that the funds advanced in respect of the loan were expended for the purpose set out in the application for the loan.

Additional Land Loans

12 Subject to the Act and these Regulations, an additional land loan is a guaranteed farm improvement loan if

• (a) the loan is made to the owner of the farm;

• (b) the loan is made in an amount not greater than 90 per cent of the market value of

  • (i) the land, and

  • (ii) any buildings used for the purpose of farming;

• (c) [Revoked, SOR/78-138, s. 6]

• (d) the bank has required, in accordance with normal banking requirements, and the borrower has provided evidence that the funds advanced in respect of the loan were expended for the purpose set out in the application for the loan.

Improvement or Development Loans

13 Subject to the Act and these Regulations, an improvement or development loan is a guaranteed farm improvement loan if

• (a) the loan is made to the owner of the farm, or to the tenant of the farm if the tenant has a right of tenancy extending at least two years beyond the repayment period of the loan;

• (b) the loan is made in an amount not greater than 90 per cent of the estimated cost of the alteration or improvement of a farm electric system, works for drainage, the erection or construction of fencing or any work for the improvement or development of a farm, excluding the cost of any labour of the borrower, as set out in the application for the loan;

• (c) and (d) [Revoked, SOR/78-138, s. 7]

• (e) the bank has required, in accordance with normal banking requirements, and the borrower has provided evidence that the funds advanced in respect of the loan were expended for the purpose set out in the application for the loan.

Major Repair or Major Overhaul Loans

14 Subject to the Act and these Regulations, a major repair or major overhaul loan is a guaranteed farm improvement loan if

• (a) the loan is made to the owner or tenant of the farm who is the owner of the agricultural implement or equipment or equipment for bee-keeping in respect of which the proceeds of the loan are to be expended;

• (b) the loan is made in an amount not greater than 75 per cent of the estimated cost of the major repair to or major overhaul of the agricultural implement or equipment or equipment for bee-keeping, excluding the cost of any labour of the borrower, as set out in the application for the loan;

• (c) [Revoked, SOR/78-138, s. 8]

• (d) the bank has required, in accordance with normal banking requirements, and the borrower has provided evidence that the funds advanced in respect of the loan were expended for the purpose set out in the application for the loan.