Agricultural Marketing Programs Act

Marginal note:Payment of interest

• 9 (1) The Minister must, in relation to each producer, pay to the lender specified in the advance guarantee agreement the interest accruing during a crop year on the amounts borrowed by the administrator to pay the first $50,000 of the total of the following amounts advanced during the crop year, or any shorter period specified in the advance guarantee agreement:

  • (a) amounts advanced to the producer for all their crops; and

  • (b) the percentage of the amounts advanced to all related producers for all their crops that is attributable to the producer under subsection (2).

• Marginal note:Attribution

  (2) The amounts advanced to related producers are attributable to the producer as follows:

  • (a) if the related producer is an individual, the attributable percentage is 100%;

  • (b) if the related producer is a corporation, the attributable percentage is the percentage of the voting shares that the producer holds in the related producer;

  • (c) if the related producer is a cooperative, the attributable percentage is the percentage prescribed by the regulations; and

  • (d) if the producer and the related producer are partners or members of the same partnership or other association of persons, the attributable percentage is the percentage of the profits of the partnership or association to which the producer is entitled.

• Marginal note:Interest on emergency advances

  (3) The Minister is not required to pay the interest for an emergency advance, unless the advance guarantee agreement provides for its payment.

• Marginal note:Reduction of principal

  (4) When an amount is repaid on account of a guaranteed advance, the amount on which the Minister must pay interest is reduced by the amount of the repayment.