Canadian Agricultural Loans Regulations

19 (1) In this section, the default date is the day after the day on which a payment under a loan was scheduled to have been made but was not made.

(2) If a borrower is in default in respect of a payment on a loan made for a purpose set out in subsection 4(1) of the Act, the lender shall

• (a) take any action that it considers advisable in the circumstances to

  • (i) effect collection of the unpaid balance of the loan,

  • (ii) obtain additional security,

  • (iii) realize on any or all of the security it has taken, or

  • (iv) effect any compromise with or grant any concession to any person other than the borrower; and

• (b) submit to the Minister, within six months after the default date, a Report on Defaulted Loan, unless the claim referred to in section 20 has been submitted.

(3) If a borrower is in default in respect of a payment on a loan made for a purpose set out in subsection 6(1) of the Act, the lender shall, within 15 days after the default date,

• (a) take any action referred to in paragraph (2)(a) that is agreed on with the Minister;

• (b) submit to the Minister a Report on Defaulted Loans; and

• (c) inform the Minister prior to appointing an independent consultant to monitor the activities of the borrower.