5. (1) Where the Minister has received an application in accordance with paragraph 4(1)(e), a transition payment in respect of farmland leased by an applicant to a lessee shall be made, unless the Minister has received a letter, delivered or mailed on or before November 15, 1995, from the lessee stating that an equitable arrangement has not been made.

(2) Before a transition payment is made in respect of farmland leased by an applicant to a lessee where the Minister has received a letter referred to in subsection (1), the following conditions shall be met:

• (a) on notification by the Minister of the receipt of the letter, the applicant shall deliver or mail to the Minister no later than May 1, 1996

  • (i) a statement, signed by both the applicant and the lessee of the farmland, stating that an equitable arrangement has been reached,

  • (ii) a binding decision of an arbitrator setting out the terms of the equitable arrangement, or

  • (iii) a report of an arbitrator stating that the lessee failed to appear for arbitration or failed to pay a deposit required by an arbitrator; and

• (b) where by March 1, 1996 no arbitrator has been agreed upon by the owner and the lessee, the owner shall

  • (i) within 10 days after that date, select an arbitrator from a list of arbitrators supplied by the Minister,

  • (ii) within 20 days after that date, give notice to the lessee of the time and place of the arbitration and of the lessee’s one-half share of the arbitration fee, and

  • (iii) within 30 days after that date, deposit one-half of the arbitration fee which an arbitrator may require the owner and the lessee to deposit.

(3) The notice referred to in subparagraph (2)(b)(ii) shall be sent to the lessee by registered mail with an acknowledgement of receipt attached at

• (a) the address that the lessee set out in the letter referred to in subsection (2); or

• (b) the address of the lessee’s last known residence or place of business where no address for the lessee is set out in the letter referred to in subsection (2).

6. (1) The interim payment in respect of an applicant’s farmland shall be calculated as follows:

(2) Where the interim payment referred to in subsection (1) contains a fraction of a dollar, that fraction shall be expressed as a decimal fraction of three or more digits after the decimal point and

• (a) the third and subsequent digits after the decimal point shall be dropped if the third digit is less than five; or

• (b) the second digit after the decimal point shall be increased by one and the third and subsequent digits dropped if the third digit is five or greater than five.