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Veterans’ Land Act (R.S.C. 1970, c. V-4)

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Act current to 2022-01-12 and last amended on 2018-03-29. Previous Versions

PART ILand Settlement Assistance (continued)

Sales of Land and Other Property to Veterans (continued)

Marginal note:Director may resell livestock, etc., to veteran

 Notwithstanding anything in this Act, where the Director requires a veteran to repay the cost of the livestock and farm equipment sold to him under a contract made under this Act, the Director may sell to that veteran livestock and farm equipment up to a total cost to the Director of an amount equal to the amount repaid by that veteran.

  • 1959, c. 37, s. 2

Marginal note:Director may sell all or part of property sold to a veteran

  •  (1) Notwithstanding anything in this Part, where the Director has by a contract made under this Part sold property to a veteran certified by the Director to be qualified to participate in the benefits of this Part, the Director, with the consent of the veteran, may in accordance with section 11 or 26 sell to another veteran certified by the Director to be qualified to participate in the benefits of this Part or may sell or otherwise dispose of to any other person, all or any part of the land, improvements, building materials, livestock or farm equipment that was sold by such contract to the first-mentioned veteran.

  • Marginal note:Use of proceeds from sale of land

    (2) Where the property sold or otherwise disposed of pursuant to subsection (1) consists of land, improvements or building materials, the Director shall, subject to subsection (3), use the proceeds for one or more of the following purposes:

    • (a) to purchase for the veteran other or additional lands, which shall for the purposes of the contract be substituted for any lands so sold;

    • (b) to effect improvements to the land retained by the veteran or to such other or additional lands;

    • (c) to pay debts that, in the opinion of the Director, were reasonably incurred by the veteran to effect improvements on the land retained by him;

    • (d) to reduce the amount owing under the contract or to reduce the cost to the Director as provided in this section; or

    • (e) to pay real estate commission, legal costs and any other costs related to the sale or disposition of the property.

  • Marginal note:Exception

    (3) Where the land sold or otherwise disposed of consists of mines and minerals or where the land, improvements or building materials sold or otherwise disposed of do not constitute part of the cost to the Director as determined under section 10, the Director may use the proceeds for one or more of the following purposes, in addition to or in lieu of any of the purposes specified in subsection (2):

    • (a) to purchase for the veteran cattle, sheep or swine to be used as basic herd livestock;

    • (b) to purchase for the veteran farm equipment necessary for the economic operation of the veteran’s farm; or

    • (c) to pay debts that, in the opinion of the Director, were reasonably incurred by the veteran for any of the purposes specified in paragraphs (a) and (b).

  • Marginal note:Application of surplus

    (4) Where a surplus remains after the amounts to be expended, if any, under paragraphs (2)(a) and (b) and (3)(a) to (c) have been determined by the Director, (hereinafter called the “surplus”),

    • (a) if the ten-year period mentioned in subsection 11(5) has expired, the surplus shall be applied in reduction of the amount owing under the contract;

    • (b) if the ten-year period has not expired, and the sale or other disposition was to Her Majesty in right of Canada for public purposes or to a government, authority or corporation described in subsection 29(1), the surplus shall be applied in reduction of the amount owing under the contract and the ten-year period shall be deemed to have expired; and

    • (c) if the ten-year period has not expired, and the sale or other disposition was not to Her Majesty in right of Canada for public purposes or to a government, authority or corporation described in subsection 29(1), the Director shall determine what portion, if any, of the surplus shall be applied in reduction of the amount owing under the contract, and the remainder of the surplus shall be applied in reduction of the cost to the Director.

  • Marginal note:Reduction of cost to Director

    (5) Where under this section the surplus or any portion thereof is applied in reduction of the cost to the Director,

    • (a) an amount that bears the same proportion to such surplus or portion as the contract sale price bears to the cost to the Director of the land, improvements and building materials, or

    • (b) seventy-six and two-thirds per cent of such surplus or portion

    whichever is the lesser, shall be applied in reduction of the amount owing under the contract, and for the purposes of subsection 11(5) the total outstanding cost to the Director shall be reduced by the amount of such surplus or portion.

  • Marginal note:Payment of balance of surplus to veteran

    (6) Subject to subsections (6.1) and (6.2), where by the application of the surplus in accordance with subsections (4) and (5) the amount owing under the contract is paid in full and a balance of the surplus remains, such balance shall be paid to the veteran.

  • Marginal note:Balance of surplus paid into court

    (6.1) Where the Director has notice of an unsatisfied court order or judgment obtained against the veteran for the recovery or payment of money or of an unsatisfied court order or judgment referred to in section 37 obtained against the veteran, the Director may pay into court the balance of the surplus referred to in subsection (6) or such part thereof as would satisfy the order or judgment and related costs.

  • Marginal note:Remainder of balance of surplus paid to veteran

    (6.2) Where the Director pays less than the total balance of the surplus into court pursuant to subsection (6.1), he shall pay the remainder of the balance to the veteran.

  • Marginal note:Use of proceeds from sale of livestock or farm equipment

    (7) Where the property sold or otherwise disposed of pursuant to subsection (1) consists of livestock or farm equipment, the Director may use the proceeds for one or more of the following purposes:

    • (a) to purchase for the veteran other or additional livestock or farm equipment, which shall for the purposes of the contract be substituted for the livestock or farm equipment so sold;

    • (b) to purchase, subject to the conditions set out in subsection 11(1), land for sale to the veteran;

    • (c) to effect, subject to the conditions set out in subsection 11(1), improvements to the lands sold to the veteran or to any other lands purchased for sale to him; or

    • (d) to pay debts that, in the opinion of the Director, were reasonably incurred by the veteran to effect improvements on the land sold to him.

  • Marginal note:Acquisition of veterans’ lands by Her Majesty

    (8) Where all or any part of the land sold by the Director to a veteran by a contract made under this Part is acquired by Her Majesty in right of Canada for public purposes, the compensation money or purchase price shall be ascertained as though the Director were not an agent of Her Majesty and shall for the purposes of this section be deemed to be proceeds of the sale of the land.

  • Marginal note:Definitions

    (9) For the purposes of this section

    land

    land includes mines, minerals and timber and any rights in respect thereof; (terre ou bien-fonds)

    proceeds

    proceeds,

    • (a) in the case of a contract for the sale of land, improvements or building materials to a veteran certified by the Director to be qualified to participate in the benefits of this Act, means the amount the veteran would be required to pay to the Director under subsection 11(5) to obtain an immediate transfer, together with the amount, other than the ten per cent of the cost to the Director of the land, improvements and building materials, paid by the veteran under paragraph 11(1)(b) or 11(3)(c) and together with the outstanding amount of any loan under Part III approved by the Director for the purchase of the property and the amount of any payment made by the veteran to the Director under Part III,

    • (b) in the case of a contract for the sale of livestock or farm equipment to a veteran, means an amount equal to the amount that the veteran would be required to pay under subsection 11(5) for an immediate transfer thereof,

    • (c) in the case of a sale or other disposition of property, except timber, to any other person, means the amount received, and

    • (d) in the case of a sale of timber to any person means the stumpage value of that timber, as determined by the Director. (produit)

  • Marginal note:Insurance money

    (10) For the purposes of this section any money received by the Director under a contract of insurance on property sold to a veteran shall be deemed to be proceeds of the sale of the property.

  • (11) [Repealed, 1980-81-82-83, c. 78, s. 2]

  • Marginal note:Application of proceeds of sales made before December 10, 1949

    (12) Where the Director before the 10th day of December 1949, with the consent of the veteran, sold or otherwise disposed of part only of the property that was sold by the Director to the veteran by a contract made under this Part and the contract was not rescinded or otherwise terminated, the proceeds may, at the request of the veteran, be applied as prescribed in this section.

  • (13) [Repealed, 1980-81-82-83, c. 78, s. 2]

  • Marginal note:Sale of timber

    (14) Notwithstanding anything in this section, the Director may pay to a veteran, in the event of any sale of timber from land sold to that veteran under a contract entered into under this Part, any amount by which the amount for which the timber was sold exceeds the stumpage value of that timber as determined by the Director.

  • R.S., 1970, c. V-4, s. 13
  • 1980-81-82-83, c. 78, s. 2

Marginal note:Veteran deemed a tenant at will

 Every veteran holding or occupying land sold by the Director shall until the Director grants or conveys the land to him be deemed a tenant at will.

  • R.S., 1952, c. 280, s. 12

Marginal note:Title, etc., to remain in the Director

  •  (1) The title, ownership and right of possession of all property sold to a veteran shall, save as hereinafter provided, remain in the Director until the sale price and other charges duly made in respect thereof are fully paid.

  • Marginal note:Title to livestock, etc., may be released to veteran

    (2) The Director may at any time transfer to the veteran the title to any such livestock and farm equipment as he may deem advisable but such release does not relieve the veteran from making the payment therefor as provided under this Part.

  • R.S., 1952, c. 280, s. 13

Marginal note:Agreement of sale

 All sales of property made pursuant to this Part and whereon any balance of the sale price remains payable by instalments or otherwise, shall be evidenced by agreement of sale, which shall fully set forth the terms of sale.

  • R.S., 1952, c. 280, s. 14

Advances on the Security of Land Owned by a Veteran

Marginal note:Advances under conditions

  •  (1) The Director may make advances to a veteran certified by him to be qualified to participate in the benefits of this Act to enable the discharge of encumbrances on farm land that is owned and used by the veteran as such, for the payment of debts not secured by encumbrances on farm land that, in the opinion of the Director, were reasonably incurred by the veteran to effect improvements on farm land that is owned and used by the veteran as such, for the purchase of livestock and farm equipment and for the effecting of permanent improvements, of amounts not exceeding in the aggregate the sum of four thousand four hundred dollars, but subject to the following conditions:

    • (a) advances for all purposes shall not exceed sixty per cent of the value of the land as established by the Director;

    • (b) advances for the purchase of livestock and farm equipment shall not exceed fifty per cent of the value of the land, and shall not exceed a total of two thousand five hundred dollars, and all such purchases may be subject to the approval of the Director;

    • (c) such advances shall constitute a first charge on the land of the veteran with respect to which the advance is made and repayment thereof shall be secured by a first mortgage or hypothec upon such land;

    • (d) the terms of repayment may be extended over a period of thirty years with interest at the rate of three and one-half per cent per annum on the amortization plan;

    • (e) that, at the request of the veteran and at any time and from time to time during the period over which the advance is repayable, the Director may vary the terms of repayment to provide for payment of interest only for a period or periods not exceeding in the aggregate five years, or for annual, semi-annual or monthly instalments of principal and interest, but a maximum repayment period of thirty years may not be exceeded; and

    • (f) repayment in full of advances made under this section may be made at any time without notice or payment of bonus.

  • Marginal note:Sale of land subject to mortgage

    (2) Where any land subject to a first mortgage or hypothec in favour of the Director as described in subsection (1) is sold or agreed to be sold by a veteran, notwithstanding anything in this Act or the mortgage or hypothec, the interest payable from the date of such sale or agreement of sale on any remaining indebtedness to the Director under the mortgage or hypothec or under any other mortgage or hypothec taken to secure repayment of the amount then outstanding of any advance made under subsection (1) shall be at the rate or rates in effect for the purpose of this subsection at the time of such sale or agreement of sale.

  • R.S., 1952, c. 280, s. 15
  • 1953-54, c. 66, s. 5
  • 1962, c. 29, s. 4
  • 1965, c. 19, s. 5
  • 1968-69, c. 22, s. 1

Marginal note:Mortgage or hypothec

  •  (1) Notwithstanding any other provision of this Act, the Director, on the request of the person who is a party to a contract for the sale of land, or where there is more than one such person, on the request of every such person, may terminate the contract, or any part of the contract, and may convey title to the land to the person or persons, as the case may be, subject to the following terms and conditions:

    • (a) ten years have elapsed since the effective date provided in the contract;

    • (b) the terms of the contract have been complied with throughout the ten-year period;

    • (c) the balance of the price payable to the Director for the sale of the land constitutes a first charge on the land and repayment thereof is secured by a first mortgage or hypothec on the land;

    • (d) the terms of repayment and the interest rates are the same as in the contract;

    • (e) the Director may, on the request of the person or persons obligated under any mortgage or hypothec executed under this subsection, at any time and from time to time during the period over which the balance of the sale price is repayable, vary the terms of repayment to provide for payment of interest only for a period or periods not exceeding in the aggregate five years, or to provide for annual, semi-annual or monthly payments of principal and interest; and

    • (f) repayment in full or in part of the balance of the sale price may be made at any time without notice or payment of bonus.

  • Marginal note:Assumption only with consent

    (2) A mortgage or hypothec executed under subsection (1) may be assumed only with the consent of the Director.

  • Marginal note:Costs

    (3) The costs incurred to convey title to property and to register mortgages or hypothecs and all other immediately related costs shall be borne by the person or persons making the request referred to in subsection (1), but the Director may, at his discretion, pay such costs.

  • 1980-81-82-83, c. 78, s. 3
  • 1986, c. 15, s. 11

Insurance and Taxes

Marginal note:Director may require insurance policies

 While a veteran is indebted to the Director in connection with the sale of land or other property to him, in connection with any mortgage or hypothec taken under section 17 or 17.1, or in connection with any loan made under Part III, the Director may require that the veteran shall insure in favour of the Director any property to the extent of its insurable value and may require the veteran to assign and deliver over unto the Director, as the interest of the Director may appear, the policy or policies of insurance; if the veteran fails or neglects to keep such property insured then it is lawful for the Director to insure such property and all moneys so expended by the Director shall be repaid by the veteran on demand with interest computed from the time of advancing the same at the rate or rates in effect for the purpose of this section at that time, and in the meantime the amount of such payment shall be added to the sale price of or amount outstanding on such property or to the amount of the mortgage or hypothec, as the case may be, and shall become a part of the principal.

  • R.S., 1970, c. V-4, s. 18
  • 1980-81-82-83, c. 78, s. 4
 
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