R.S., c. 25 (3rd Supp.)FARM IMPROVEMENT AND MARKETING COOPERATIVES LOANS ACT

1. The long title of the Farm Improvement and Marketing Cooperatives Loans Act is replaced by the following:

2. Section 1 of the Act is replaced by the following:

• 3. (1) The definitions “farmer” and “farm products marketing cooperative” in section 2 of the Act are replaced by the following:

  “farmer”

  « agriculteur »

  “farmer” means any individual, partnership, corporation or cooperative association that is or intends to be engaged in farming in Canada;

  “farm products marketing cooperative”

  « coopérative de commercialisation des produits agricoles »

  “farm products marketing cooperative” means a cooperative association, incorporated under the laws of Canada or a province for the purpose of processing, distributing or marketing on a cooperative basis the products of farming, with a majority of 50 per cent plus one of members or shareholders that are farmers;

• (2) The definition “lender” in section 2 of the Act is amended by striking out “or” at the end of paragraph (c), by adding “or” at the end of paragraph (d) and by adding the following after paragraph (d):

  • (e) any other organization that is designated by the Minister, with the approval of the Minister of Finance, on the application of that organization as a lender for the purposes of this Act.

4. The heading before section 4 of the Act is replaced by the following:

• 5. (1) The portion of subsection 4(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Payment of lenders’ losses

  • 4. (1) Subject to this Act and, in particular, to the conditions set out in subsection (3), the Minister is liable to pay to a lender 95 per cent — or if another percentage of not more than 95 per cent has been fixed by the regulations for the purpose of this subsection, that other percentage — of any loss sustained by it as a result of a loan made by it to a farmer for any of the following purposes in relation to farming in Canada:

• (2) The portion of paragraph 4(1)(c) of the Act before subparagraph (i) is replaced by the following:

  • (c) subject to the regulations, if any, the purchase of livestock, including

• (3) Paragraph 4(1)(g) of the Act is replaced by the following:

  • (g) the purchase of land;

  • (g.1) the purchase of shares in a corporation, of an interest in a partnership, or of a share or membership in a cooperative, if 90 per cent or more of the fair market value of the property of the corporation, the partnership, or the cooperative was attributable to property referred to in this subsection that was used principally in the course of carrying on the business of farming in Canada;

  • (g.2) the purchase of shares in a corporation, of an interest in a partnership or of a share or membership in a cooperative, if 90 per cent or more of the fair market value of the property of the corporation, the partnership, or the cooperative was attributable to shares, an interest in a partnership or memberships in a corporation, partnership or cooperative referred to in paragraph (g.1) or to property referred to in this subsection that was used principally in the course of carrying on the business of farming in Canada;

  • (g.3) the purchase of shares in a corporation, of an interest in a partnership or of a share or membership in a cooperative, if 90 per cent or more of the fair market value of the property of the corporation, the partnership, or the cooperative was attributable to shares, an interest in a partnership or memberships in a corporation, partnership or cooperative referred to in paragraph (g.2) or to property referred to in this subsection that was used principally in the course of carrying on the business of farming in Canada;

• (4) Subsection 4(2) of the Act is replaced by the following:

  • Marginal note:Exclusion of home improvements

    (2) Subsection (1) does not apply in respect of a loan made for the purpose of financing the construction of or improvements to a private dwelling.

• (5) Paragraphs 4(3)(b) and (c) of the Act are replaced by the following:

  • (b) if the loan is with respect to property and the regulations prescribe an interest or right that the farmer must hold or intends to hold in that property, the application stated the nature of that interest or right;

  • (c) the principal amount of the loan did not at the time of the making of the loan, together with the amount owing in respect of other loans under this Act previously made to the farmer and disclosed in the farmer’s application or of which the lender has knowledge, exceed

    • (i) for all the purposes set out in subsection (1), an aggregate amount of $500,000 or, if another amount has been fixed by the regulations, that other amount, and

    • (ii) for all the purposes set out in paragraphs (1)(a) to (e) and (g.1) to (i), an amount of $350,000 or, if another amount has been fixed by the regulations, that other amount;

6. Subsection 5(1) of the Act is replaced by the following:

• 7. (1) The portion of subsection 6(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Payment of lenders’ losses

  • 6. (1) Subject to this Act and, in particular, to the conditions set out in subsection (2), the Minister is liable to pay to a lender 95 per cent — or if another percentage of not more than 95 per cent has been fixed by the regulations for the purpose of this subsection, that other percentage — of any loss sustained by it as a result of a loan made by it to a farm products marketing cooperative for any of the following purposes in relation to the processing, distribution or marketing in Canada of the products of farming:

• (2) Paragraphs 6(2)(b) and (c) of the Act are replaced by the following:

  • (b) the application stated that 50 per cent plus one of the members or shareholders, as the case may be, of the farm products marketing cooperative are farmers and, if the loan is with respect to property and the regulations prescribe an interest or right that the cooperative must hold in that property, the application stated the nature of that interest or right;

  • (c) the principal amount of the loan did not at the time of the making of the loan, together with the amount owing in respect of other loans previously made to the farm products marketing cooperative and disclosed in the cooperative’s application or of which the lender has knowledge, exceed

    • (i) for all the purposes set out in subsection (1), an aggregate amount of $500,000 or, if another amount has been fixed by the regulations or any greater amount approved by the Minister pursuant to subsection (3), that other amount, and

    • (ii) for all the purposes set out in paragraphs (1)(d) and (e), an amount of $350,000 or, if another amount has been fixed by the regulations or any greater amount approved by the Minister pursuant to subsection (3), that other amount;

• (3) Subsection 6(3) of the Act is replaced by the following:

  • Marginal note:Minister may increase limits

    (3) The Minister may, on the application of a lender made before the granting of a loan, approve an increase in each of the monetary limits referred to in paragraph (2)(c) to an aggregate amount not exceeding $3 million or, if another amount has been fixed by the regulations for the purpose of this subsection, that other amount.

Marginal note:1995, c. 13, s. 1

8. Section 7 of the Act is replaced by the following:

9. Sections 9 and 10 of the Act are replaced by the following:

10. Section 13 of the Act is replaced by the following:

• 11. (1) Subsection 15(1) of the Act is amended by adding the following after paragraph (b):

  • (b.1) prescribing, for the purposes of paragraph 4(1)(c), the purpose for which the livestock is kept or the minimum period that the livestock must remain in the possession of the farmer;

  • (b.2) fixing percentages for the purposes of subsections 4(1) and 6(1) and paragraphs 9(a) and (b);

  • (b.3) fixing amounts for the purposes of paragraphs 4(3)(c) and 6(2)(c), subsection 6(3) and section 7;

• (2) Paragraph 15(1)(h) of the Act is replaced by the following:

  • (h) prescribing the information to be furnished to the Minister by a lender in respect of loans made by it and the time when the information is to be furnished;

• (3) Subsection 15(2) of the Act is repealed.

12. Section 22 of the Act is replaced by the following:

1991, c. 46CONSEQUENTIAL AMENDMENTS TO THE BANK ACT

Marginal note:1998, c. 36, s. 21

• 13. (1) Subparagraph 427(1)(m)(v) of the Bank Act is replaced by the following:

  • (v) any works for the improvement or development of an aquaculture operation for which a loan, as defined in the Canada Small Business Financing Act, or a business improvement loan, as defined in the Small Business Loans Act, may be made,

• (2) Subparagraphs 427(1)(n)(v) and (vi) of the Act are replaced by the following:

  • (vi) any purpose for which a loan as defined in the Canadian Agricultural Loans Act may be made,

REPEAL

Marginal note:Repeal of R.S., c. F-3

14. The Farm Improvement Loans Act is repealed.