Canadian Agricultural Loans Regulations

20 (1) Unless otherwise authorized in writing by the Minister, a claim for loss on a loan sustained by a lender may not be made to the Minister until the loan has been in default for at least three months but not more than 18 months.

(2) Despite subsection (1), the Minister may require that a claim for loss be submitted at any time by notifying the lender in writing.

(3) A claim for any loss shall be submitted to the Minister in the form approved by the Minister, together with a copy of the borrower’s application form and any other documentation that the Minister may require.

(4) The payment is to be made within 60 days after the Minister approves the claim for loss.

(5) If a claim for loss by a lender has been paid, the lender shall

• (a) execute a receipt in the form approved by the Minister;

• (b) send to the Minister the receipt and the written promise of the borrower to repay the loan; and

• (c) take measures in respect of any remaining security held by it for the loan in the manner that the Minister directs.

(6) If further costs are incurred by a lender as a result of collection action taken after an initial claim for loss has been paid, the lender may make a claim for loss for those costs in accordance with the procedures set out in subsections (1) to (5).