Acts and Regulations

83-173 - General

Table of contents
Full text
Revoked on 5 June 2015
NEW BRUNSWICK
REGULATION 83-173
under the
Farm Machinery Loans Act
(O. C. 83-934)
Filed November 18, 1983
Under section 6 of the Farm Machinery Loans Act, the Lieutenant-Governor in Council makes the following Regulation:
Repealed: 2015, c.12, s.2
1This Regulation may be cited as the General Regulation - Farm Machinery Loans Act.
2In this Regulation
“Act” means the Farm Machinery Loans Act;(loi)
“designated period” means the period prescribed in section 6;(période déterminée)
“farmer” means a person who is in possession of a farm upon which he is engaged in farming;(agriculteur)
“responsible official of the lender” includes(agent compétent du prêteur)
(a) the manager or assistant manager of a branch of the lender,
(b) the person for the time being acting as the manager or assistant manager of a branch of the lender,
(c) the credit committee of the lender, and
(d) any person duly authorized by the lender to supervise the granting of loans.
3(1)An applicant for a farm machinery loan shall submit a signed application in the form provided by the Minister.
3(2)If the farm machinery loan is made, a responsible official of the lender shall certify that to the best of his knowledge the conditions and purposes of the loan are such as to qualify it under the Act and this Regulation.
3(3)An application for a farm machinery loan does not require the approval of the Minister.
FARM MACHINERY LOANS
Repealed: 2015, c.12, s.2
2015, c.12, s.2.
4(1)A loan made by a lender is a farm machinery loan if the loan is made for the purchase of farm machinery and is in substantial compliance with the Act, this Regulation and the following conditions:
(a) the farm machinery loan is made to a farmer;
(b) a promissory note of the borrower in favour of the lender containing the terms of the loan is obtained in the form provided by the Minister;
(c) security is taken
(i) in the case of the lender being a bank to which the Bank Act, as enacted by section 2 of the Banks and Banking Law Revision Act, 1980, chapter 40 of the Statutes of Canada, 1980-81-82-83, pursuant to section 178 of the Bank Act, on the farm machinery purchased or on some or all of the farm machinery owned or to be owned by the borrower, or in the form of a chattel mortgage on such farm machinery, or by way of a written promise or agreement of the farmer to give such security, and
(ii) in the case of any other lender, in the form of a chattel mortgage on the farm machinery purchased, on some or all of the farm machinery owned by the borrower, or by way of a written promise or agreement of the farmer to give such security;
(d) the lender has required the farmer to deliver to the lender a receipt or a bill of sale from the vendor of the farm machinery, describing the farm machinery and acknowledging that the farmer has paid to the vendor of the farm machinery the purchase price thereof as set out in the application for the farm machinery loan; and
(e) the borrower has provided the lender with a description of the farm machinery giving make, year, model, serial number or other satisfactory means of identifying the farm machinery.
4(2)Farm machinery in respect to which a farm machinery loan may be made under the Act is equipment, machinery, apparatus and appliances of any kind for use on or in connection with a farm, including tractors, loaders, graders, wagons, trailers, pumps, motors, generators, compressors, grain grinders, feed mixers, stalls, pens, watering devices, milking machines and implements and equipment used for tillage, planting, haying, harvesting, spraying, irrigating, ventilating, drying, heating, cooling and materials handling, but not including trucks, cars or station wagons.
LOAN TERMS
Repealed: 2015, c.12, s.2
2015, c.12, s.2.
5(1)Payments of interest on a farm machinery loan are required to be made not less frequently than annually but, at the option of the lender, payments of interest may be scheduled more frequently than annually.
5(2)Repayments of principal on a farm machinery loan are required to be made not less frequently than annually but, at the option of the lender, repayments may be scheduled more frequently than annually with full repayment over a period of not more than eight years and the borrower has the option to repay the loan in full or in part at any time without notice or bonus.
5(3)Subject to subsections (1) and (2), the terms for repayment of a farm machinery loan shall be fixed by the lender which shall use its best endeavours to see that the amount and frequency of principal and interest payments conform to the probable ability of the borrower to pay, having due regard to the type of the borrower’s enterprise, the relevant marketing conditions, the repayment of other obligations and to any other circumstances that the lender considers pertinent.
DESIGNATED PERIOD
Repealed: 2015, c.12, s.2
2015, c.12, s.2.
6For the purposes of the Act and this Regulation, the expression “designated period” is the period from the first day of June in each year to the thirty-first day of May of the following year.
RATE OF INTEREST
Repealed: 2015, c.12, s.2
2015, c.12, s.2.
7The maximum rate of interest per annum payable to a lender in respect of a guaranteed farm machinery loan shall be, during the designated period, the aggregate of one percent per annum and the lender’s prevailing minimum commercial lending rate sometimes called “the prime bank rate”.
ADDITIONAL SECURITY
Repealed: 2015, c.12, s.2
2015, c.12, s.2.
8(1)A lender is not required to take any security other than the security specified in subsection 4(1).
8(2)Where, in the opinion of a responsible official of the lender, further security is required or advisable, the lender may take such further security as the responsible officer considers appropriate in the circumstances.
WHEN ENTIRE AMOUNT BECOMES DUE AND PAYABLE
Repealed: 2015, c.12, s.2
2015, c.12, s.2.
9Where a borrower is in default in respect of any payment of principal or interest or where a borrower becomes subject to or takes advantage of any law relating to bankruptcy or insolvency or for the relief of debtors, the entire amount of the balance outstanding on a farm machinery loan shall, at the option of the lender, thereupon become due and payable.
PROCEDURE ON DEFAULT
Repealed: 2015, c.12, s.2
2015, c.12, s.2.
10Where a borrower is in default in respect of any payment of principal or interest and the entire amount of the balance outstanding on the farm machinery loan becomes due and payable in accordance with section 9, the lender may take such action, whether by legal proceedings or otherwise, as it considers advisable
(a) to effect collection of the farm machinery loan,
(b) to obtain whatever additional security it considers advisable in the circumstances,
(c) to realize upon its security to whatever extent it considers advisable, and
(d) to effect any compromise with or grant any concession to any person other than the borrower to the extent that it considers advisable, without in any way discharging the liability of the Minister to the lender.
PROCEDURE FOR CLAIMS
Repealed: 2015, c.12, s.2
2015, c.12, s.2.
11(1)A claim for loss by a lender in respect of a farm machinery loan may be made to the Minister at any time not less than ninety days after the entire amount of the farm machinery loan becomes due and payable whether the loan becomes due and payable in accordance with section 9 or otherwise.
11(2)The amount of loss sustained by a lender in respect of a farm machinery loan for which a claim for loss has been submitted shall include:
(a) the unpaid principal amount of the farm machinery loan;
(b) the uncollected earned interest outstanding until the claim is approved for payment and paid;
(c) any uncollected taxed costs for or incidental to legal proceedings in respect of the farm machinery loan;
(d) legal fees, legal costs and legal disbursements, whether taxable or not, actually incurred by the lender, whether with or without litigation, in collecting or endeavouring to collect an outstanding farm machinery loan or in protecting the interests of the Minister; and
(e) any other disbursement actually and necessarily incurred by the lender in collecting or endeavouring to collect an outstanding farm machinery loan or in protecting the interests of the Minister.
11(3)A claim for loss in the form provided by the Minister shall be submitted to the Minister by the lender, together with a copy of the application of the borrower.
11(4)A claim for loss, if the farm machinery loan was made in substantial accordance with the Act and this Regulation, shall be approved for payment by the Minister within sixty days after receipt thereof and shall thereupon be paid.
11(5)Upon payment of the loss in respect of a farm machinery loan by the Minister to the lender, the lender shall execute a receipt, in the form provided by the Minister, to the Minister and such receipt shall be mailed to the Minister, together with the promissory note or notes signed by the borrower, and the lender shall dispose of any security held by it for the farm machinery loan as the Minister may direct and at the Minister’s expense.
12(1)When acting on behalf of the Minister, a lender shall, notwithstanding that its claim for loss has been settled or paid in full, take such reasonable steps as the Minister may consider necessary to collect payments of principal and interest due by the borrower and to realize upon any security provided for under this Regulation and such amounts as may be collected or realized shall be remitted to the Minister.
12(2)The actual expenses of the lender incurred under subsection (1) shall be payable by the Minister to the lender.
REPORTS TO THE MINISTER
Repealed: 2015, c.12, s.2
2015, c.12, s.2.
13(1)Every lender shall mail to the Minister by ordinary mail within fifteen days following the last day of each month copies of applications for loans made in the preceding month.
13(2)Every lender shall prepare and mail to the Minister by ordinary mail within thirty days following the last day of the quarter, quarterly reports in the form provided by the Minister showing the total of farm machinery loans made and amount of repayments made in the quarter reported.
13(3)Every lender shall immediately report to the Minister, in the form provided by the Minister, particulars of any farm machinery loan which has been in default for a period of six months.
13(4)Every lender shall furnish such information in addition to that supplied pursuant to subsections (1), (2) and (3) as the Minister may, from time to time, reasonably require.
REGISTRY
Repealed: 2015, c.12, s.2
2015, c.12, s.2.
14The Minister shall set up a registry for the purpose of recording farm machinery loans made under the Act.
GENERAL
Repealed: 2015, c.12, s.2
2015, c.12, s.2.
15Any provision of this Regulation requiring security to be taken under section 178 of the Bank Act, as enacted by section 2 of the Banks and Banking Law Revision Act, 1980, chapter 40 of the Statutes of Canada, 1980-81-82-83, is satisfied if a document purporting to give such security is signed and delivered, notwithstanding that the security is not effective in respect of some or all of the property to which the document relates by reason of any statute exempting property from seizure.
16Regulation 73-59 under the Farm Machinery Loans Act is repealed.
N.B. This Regulation is consolidated to June 5, 2015.