Canadian Agricultural Loans Regulations

4 (1) Subject to subsections (2) and (3), a lender may consolidate or refinance debts incurred for any of the purposes set out in paragraphs 4(1)(a) to (h) and 6(1)(a) to (d) of the Act.

(2) No loan for the purpose of consolidating or refinancing may be made if the debts to be consolidated or refinanced are

• (a) more than one year in arrears, in the case of loans or guaranteed farm improvement loans paid in annual instalments; or

• (b) more than six months in arrears, in the case of loans or guaranteed farm improvement loans paid in more frequent instalments.

(3) No debt may be consolidated or refinanced by the lender except for a debt incurred in respect of

• (a) a loan under the Act;

• (b) a guaranteed farm improvement loan under the Farm Improvement Loans Act; or

• (c) a loan granted before February 1, 1988 that

  • (i) was made to a farm products marketing cooperative, and

  • (ii) was for any of the following purposes in relation to the processing, distribution or marketing in Canada of the products of farming, namely,

    • (A) the purchase of land,

    • (B) the purchase or construction of a building or structure,

    • (C) the repair or alteration of, or the making of additions to, a building or structure, and

    • (D) the purchase or repair of machinery or apparatus.