Government of Canada / Gouvernement du Canada
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Canadian Agricultural Loans Regulations

Version of section 20 from 2006-03-22 to 2014-02-27:

  •  (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).

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