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2010-115
- Agricultural Development Act
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Enabling Act
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NEW BRUNSWICK
REGULATION 2010-115
under the
Agricultural Development Act
(O.C. 2010-418)
Filed August 23, 2010
1
Section 2 of New Brunswick Regulation 90-125 under the
Agricultural Development Act
is amended
(
a
)
by repealing the following definitions:
(i
)
“borrower”;
(ii
)
“economic farm unit”;
(iii
)
“farmer”;
(iv
)
“new entrant farmer loan”;
(
b
)
by adding the following definition in alphabetical order:
“farm unit”
means a farming operation or a farming operation combined with a woodlot;
(entité agricole)
2
The Regulation is amended by adding after section 2 the following:
2.1
(1)
The Board may grant a new entrant farmer loan to a person for the purchase of a farming operation, either in whole or in part, including the purchase of shares in a farming operation.
2.1
(2)
Subject to subsection (3), the Board may grant to a person who has received a new entrant farmer loan an additional loan for any of the following purposes:
(
a
)
for the purchase of land to be added to an existing farming operation;
(
b
)
for the erection or improvement of buildings and facilities on the farming operation; and
(
c
)
for the purchase of essential farming equipment and livestock.
2.1
(3)
A loan under subsection (2) may only be granted to a person within the first four years of receiving a new entrant farmer loan.
2.1
(4)
The total amount owing by a person under a new entrant farmer loan and an additional loan made under subsection (2) shall not exceed the maximum amount prescribed under paragraph 4(1)(g) for a loan.
3
Section 3 of the Regulation is amended
(
a
)
by repealing subsection (1) and substituting the following:
3
(1)
An applicant for a new entrant farmer loan shall be an individual with a combination of six years of post-secondary education and work experience on a farming operation, including at least
(
a
)
the equivalent of one year of post-secondary courses in
(i
)
agriculture,
(ii
)
business administration, or
(iii
)
financial management, and
(
b
)
two years work experience on a farming operation.
(
b
)
by adding after subsection (1) the following:
3
(1.1)
In the case of a new entrant farmer loan to be granted to a corporation, only a majority shareholder in that corporation is eligible be an applicant for that loan.
3
(1.2)
In the case of a new entrant farmer loan to be granted to a partnership, only one partner in that partnership is eligible to be an applicant for that loan.
(
c
)
in subsection (2) of the English version
(i
)
in paragraph (a) by striking out “farm” and substituting
“farming operation”
;
(ii
)
in paragraph (b) by striking out “farm” and substituting
“farming operation”
.
4
Section 4 of the Regulation is amended
(
a
)
in subsection (1)
(i
)
by repealing paragraph (a) and substituting the following:
(
a
)
the Board shall be satisfied that the loan will effectively establish the applicant on a farm unit that can provide the income necessary to repay any financial assistance given under the Act;
(ii
)
by repealing paragraph (b) and substituting the following:
(
b
)
the Board shall be satisfied that the applicant has the necessary ability, skill and knowledge to operate the farming operation in accordance with a mutually agreed on management plan;
(iii
)
by adding after paragraph (b) the following:
(
b.1
)
the borrower shall undertake to operate the farming operation in accordance with a mutually agreed on management plan;
(iv
)
in paragraph (c) by striking out “farm” and substituting
“farming operation”
;
(v
)
in paragraph (d) of the English version by striking out “farm” wherever it appears and substituting
“farming operation”
;
(vi
)
in paragraph (e) of the English version by striking out “farm” wherever it appears and substituting
“farming operation”
;
(vii
)
by repealing paragraph (f) of the English version and substituting the following:
(
f
)
the Board shall take as security for the loan the first mortgage on the farming operation purchased by the borrower or any other security that the Board considers adequate;
(viii
)
in paragraph (g) by striking out “$500,000” and substituting
“$750,000”
;
(ix
)
in paragraph (h) by striking out “eight years” and substituting
“no more than 20 years”
;
(x
)
by repealing paragraph (m) and substituting the following:
(
m
)
repayment of the loan shall be
(i
)
during the first four years of the term of the loan, by annual payments of interest on the loan,
(ii
)
beginning in year five of the term of the loan, by blended payments of interest and principal as determined by the Board based on
(A
)
the amount of the loan,
(B
)
the capacity of the borrower to repay, and
(C
)
the security held on the loan, and
(iii
)
at the end of the term of the loan, by payment of any outstanding principal and accrued interest on the loan; and
(
b
)
by adding after subsection (1) the following:
4
(1.1)
Paragraphs 4(1)(
h
), (i) and (n) apply with the necessary modifications to a loan granted under subsection 2.1(2).
4
(1.2)
The repayment of a loan granted under subsection 2.1(2) shall be
(
a
)
in the years in which the borrower is eligible to make payments under subparagraph 4(1)(m)(i) on a new entrant farmer loan, by annual payments on interest on the loan,
(
b
)
beginning in the year the borrower becomes eligible to make payments under subparagraph 4(1)(m)(ii) on a new entrant farmer loan, by blended payments of interest and principal as determined by the Board based on
(i
)
the amount of the loan,
(ii
)
the capacity of the borrower to repay, and
(iii
)
the security held on the loan, and
(
c
)
at the end of the term of the loan, by payment of any outstanding principal and accrued interest on the loan.
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