Interpretation

1 The definitions in this section apply in these Regulations.

Act

Act means the Agricultural Marketing Programs Act. (Loi)

settlement agreement

settlement agreement means an agreement between a producer and an administrator that sets out the terms for the repayment of amounts owing under a repayment agreement by the producer who is in default. (accord de règlement)

Ownership and Responsibility for Marketing

2 For the purposes of paragraph 10(1)(a) of the Act, a producer ceases to own a crop continuously and be responsible for its marketing

• (a) when the crop is sold or processed; or

• (b) when the crop, other than a horticultural crop, maple syrup or honey, is placed in a pool.

Administrator’s Percentage of Liability

• 3 (1) The administrator’s percentage mentioned in paragraph 5(3)(g) of the Act is to be calculated in accordance with the formula

  ((A - B) × 100) / C

  where

  A

  is,

  • (a) for the crop year that begins in 1999, the total of the outstanding principal amounts of advances owed by all the producers in default for the previous completed crop year, calculated on the date specified in the advance guarantee agreement, which date shall be within nine months after the end of the crop year, or

  • (b) for the crop year that begins in 2000 or after, the total of the outstanding principal amounts of advances owed by all the producers in default for the previous two completed crop years, calculated on the date specified in the advance guarantee agreement, which date shall be within nine months after the end of each respective crop year;

  B

  is the amount determined in accordance with subsection (2);

  C

  is the total of the principal amounts of all advances made to all the producers by the administrator in the previous completed crop year in the case of the crop year that begins in 1999, or the previous two completed crop years for crop years that begin in 2000 or later.

• (2) For the purpose of the calculation set out in subsection (1), “B” is the amount calculated in accordance with the formula

  ((D + E) x E) / F

  where

  D

  is the total of all the principal amounts repaid on all settlement agreements by all the producers to the administrator calculated on the date specified in the advance guarantee agreement, for the previous completed crop year or previous two completed crop years, as the case may be;

  E

  is the total of all the principal amounts of settlement agreements owed to the administrator by all the producers that are not in default under those agreements, calculated on the date specified in the advance guarantee agreement, for the previous completed crop year or previous two completed crop years, as the case may be; and

  F

  is the total of all the principal amounts of settlement agreements owed by all the producers to the administrator at the time the settlement agreements came into effect, calculated on the date in the advance guarantee agreement, for the previous completed crop year or previous two completed crop years, as the case may be.

• (3) For a crop year that begins in 1999, an administrator whose percentage of the producer’s liability from the previous completed crop year would increase as a result of the calculation in subsection (1), is limited to 50% of the increase so calculated.

Minister’s Percentage of Liability

4 The Minister’s percentage mentioned in paragraph 5(3)(i) and subsection 23(1) of the Act is 100% of the producer’s liability, minus the administrator’s percentage calculated under section 3.

Attributable Percentages for Cooperatives

5 For the purposes of paragraphs 9(2)(c) and 20(2)(c) of the Act, the attributable percentage of an amount advanced to a cooperative is the percentage calculated by dividing 100 by the number of members of the cooperative.

Limitation for Cash Repayments Without Proof of Sale

6 For the purposes of subparagraph 10(2)(a)(iii) of the Act, the amount prescribed

• (a) for a crop year that begins in 1997 or 1998, is the total amount advanced to the producer in that crop year; and

• (b) for any other crop year, is the greater of an amount specified in the advance guarantee agreement, which shall not exceed $500, and the percentage of the total amount advanced to the producer for a crop specified in the advanced guarantee agreement, which shall not exceed 10% of the total amount advanced for the crop.

Conditions for Payment

• 7 (1) No payment under subsection 23(1) of the Act may be made to a lender or administrator unless

  • (a) the Minister receives a request in writing from the administrator for payment;

  • (b) the administrator,

    • (i) if the advance guarantee agreement sets out the procedures to be followed in the event of default on the repayment agreement or the death of the producer, or in the event that the administrator has reasonable grounds to believe that an offence under the Act has been committed by the producer, demonstrates that it followed those procedures,

    • (ii) after receiving notice that the producer has made an assignment under the Bankruptcy and Insolvency Act or that the producer is subject to a receiving order, files with the appropriate authority a notice of their claim against the assets of the producer and provides a copy of that notice to the Minister,

    • (iii) after being informed that the producer has died, files with the executor or administrator of the producer’s estate a notice of the debt and provides a copy of that notice to the Minister,

    • (iv) if the administrator has reasonable grounds to believe that an offence under this Act has been committed, reports the particulars to the appropriate police authority and provides a copy of that report to the Minister, or

    • (v) in any other case, provides

      • (A) copies of three letters of demand for payment that have been sent to the producer,

      • (B) proof that the administrator made or attempted to make a personal visit or telephone call to the producer, and

      • (C) a detailed description of the attempts at mediation or other methods used to negotiate the terms for repayment;

  • (c) the administrator provides to the Minister an undertaking in writing to

    • (i) take all reasonable measures in the future to recover from the producer any amounts still owed, and

    • (ii) advise the Minister of all opportunities for collection as they arise; and

  • (d) if the administrator is the Board, in addition to the requirements specified in paragraph (c), it agrees in writing to continue to collect during a period specified in the advance guarantee agreement any amounts still owed by the producer by endorsing permit books or offsetting payments to producers.

• (2) Despite paragraph (1)(a), payment under subsection 23(1) of the Act may be made to a lender if

  • (a) the administrator has not made a request in writing to the Minister for payment within 10 months after the end of the crop year specified in the advance guarantee agreement;

  • (b) after the 10 month-period referred to in paragraph (a), the lender has submitted a letter to the administrator asking that the administrator request in writing payment from the Minister as specified in the advance guarantee agreement;

  • (c) the administrator has failed to comply with the request referred to in paragraph (b) within 10 days after the date on which the letter was sent; and

  • (d) the lender submits a request in writing to the Minister for payment

    • (i) stating that the lender has written to the administrator asking that the administrator request in writing payment from the Minister and that the administrator has failed to comply within 10 days after the date on which the letter was sent,

    • (ii) providing the Minister with a copy of the letter to the administrator, and

    • (iii) specifying the name and address of the producer in default and the amount of the default.

Coming into Force

8 These Regulations come into force on the day which they are registered.