Marginal note:Payments to be made by Minister

• 12. (1) Where the Minister has given a guarantee in respect of an advance under section 4, the Minister shall, as soon as practicable after receiving a request therefor from the producer organization to which the guarantee was given, cause to be paid to the lender or the producer organization, as the case may be, out of the Consolidated Revenue Fund, subject to any regulations made under paragraph 14(b), on any default by the producer to whom the advance was made, an amount equal to the producer’s liability to the producer organization under section 8 in respect of the advance, less the aggregate of

  • (a) the amount for which the producer organization is responsible under subparagraphs 5(1)(i)(ii) and (iii), and

  • (b) any amount paid to the producer organization by the producer after the producer’s default.

• Marginal note:Legal costs

  (2) The Minister shall, out of the Consolidated Revenue Fund, reimburse a producer organization for legal costs described in paragraph 8(c) to the extent that the producer organization has not recovered them, but the producer organization shall pay over to the Minister any such costs subsequently recovered by it.

• Marginal note:Subrogation

  (3) Where the Minister causes a payment to be made under subsection (1) or (2), the Minister is, to the extent of that payment, subrogated to the producer organization’s rights against the producer in default and against persons who are personally liable under paragraphs 5(1)(a.2) and (a.3).

Marginal note:Offences by producers

• 13. (1) Every person or partnership that, for the purpose of obtaining an advance in respect of which a guarantee is sought from the Minister under this Act or evading compliance with the undertaking to repay it,

  • (a) gives false or misleading information to an organization or to the Minister, or

  • (b) fails to disclose any relevant information to an organization or to the Minister

  is guilty of an offence and liable on summary conviction to a fine not exceeding three thousand dollars or to imprisonment for a term not exceeding six months or to both.

• Marginal note:Offences by organizations

  (2) Every person or partnership that, for the purpose of obtaining a guarantee from the Minister under this Act or evading compliance with any obligation relating to such a guarantee,

  • (a) gives false or misleading information to the Minister, or

  • (b) fails to disclose any relevant information to the Minister

  is guilty of an offence and liable on summary conviction to a fine not exceeding three thousand dollars or to imprisonment for a term not exceeding six months or to both.

• Marginal note:Prosecution of partnership

  (3) A prosecution for an offence under subsection (1) or (2) may be brought against a partnership and in the name of the partnership, and for the purpose of that prosecution a partnership shall be deemed to be a person, and any act or thing done or omitted by a partner or agent of a partnership within the scope of the authority of that partner or agent to act on behalf of the partnership shall be deemed to be an act or thing done or omitted by the partnership.

• Marginal note:Officers, etc., of corporations or partnerships

  (4) Where a corporation or partnership commits an offence under subsection (1) or (2), whether or not it has been prosecuted or convicted, any officer, director, partner or agent of the corporation or partnership who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on summary conviction to the punishment provided for the offence.

• Marginal note:Limitation period

  (5) A prosecution under this section may be instituted within but not after two years from the time when the act or omission giving rise to the prosecution occurred.