Agricultural Marketing Programs Regulations

6.2 (1) For the purposes of section 12 of the Act, until the advance is repaid in full, the required security on the agricultural product for which the advance was made and on any agricultural product produced in a subsequent production period by the producer is one or both of the following:

• (a) security on the agricultural product under applicable provincial law; and

• (b) security referred to in section 427 of the Bank Act on the agricultural product.

(2) For the purposes of section 12 of the Act, until the advance is repaid in full, the required security in the case of an agricultural product that is not yet produced or in the case of livestock is, in addition to the security set out in subsection (1), one or a combination of the following:

• (a) a full or partial assignment of any amount that may be received by the producer under a program listed in the schedule to the Act;

• (b) insurance or other financial programs or products that, in the opinion of the Minister, protect against one or more risks that are associated with the issuance of an advance;

• (c) financial collateral that is assignable by the producer; and

• (d) a letter of guarantee from the producer’s financial institution guaranteeing the advance.