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 an advance guarantee agreement — or, if the agreement was made only with an administrator, to the administrator — the interest accruing on the amounts borrowed by the administrator to pay the first $100,000 — or the amount fixed by regulation — of the total of the following amounts:

  • (a) the amounts of advances received by the producer during the program year for all of their agricultural products, including amounts under any other advance guarantee agreements, and

  • (b) the amounts of advances that are received by or attributed to all related producers during the program year for all of their agricultural products, including amounts under any other advance guarantee agreements, and that are 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.