Acts and Regulations

85-19 - Swine Industry Financial Restructuring

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Current to 1 January 2024
NEW BRUNSWICK
REGULATION 85-19
under the
Agricultural Development Act
(O.C. 85-98)
Filed February 13, 1985
Under section 44 of the Agricultural Development Act, the Lieutenant-Governor in Council makes the following Regulation:
2018-39
1This Regulation may be cited as the Swine Industry Financial Restructuring Regulation - Agricultural Development Act.
2018-39
2In this Regulation,
“Farm Credit Corporation” means the Farm Credit Corporation established by the Farm Credit Act, chapter F-2 of the Revised Statutes of Canada, 1970.(Société du crédit agricole)
3(1)A person who, on March 31, 1984,
(a) was actively engaged in the business of swine production, and
(b) was indebted to the Board under a loan or loans made to him by the Board
may make an application to the Board, no later than thirty days after the coming into force of this Regulation, for a rebate of interest chargeable under the terms of the loan or loans.
3(2)An application for a rebate of interest, if made to the Board before the coming into force of this Regulation but made by a person described in subsection (1), shall be deemed for the purposes of this Regulation to be an application under subsection (1).
3(3)An application for a rebate of interest, if made to the Board no later than thirty days after the coming into force of this Regulation and made by a person who
(a) is actively engaged in the business of swine production, and
(b) since March 31, 1984, has assumed from a person described in subsection (1) a loan or loans described in paragraph (1)(b),
shall be deemed for the purposes of this Regulation to be an application under subsection (1), and any question arising as to the circumstances on March 31, 1984, of an applicant described in this subsection shall be determined in accordance with the circumstances on that date of the person who was then indebted to the Board under the loan or loans assumed by the applicant.
4(1)The Board may grant approval in principle to an application under subsection 3(1) where
(a) the total indebtedness of the applicant exceeds the standard debt load of the swine producing unit that the applicant operates, and
(b) the applicant satisfies the Board that his costs of production are reasonable.
4(2)The total indebtedness of an applicant is the sum of all amounts owed by the applicant to the Board or to the Farm Credit Corporation on March 31, 1984, under loans contracted for the purpose of the business of swine production, and where any loan was contracted partly for that purpose and partly for another purpose, the Board shall determine the proportion in which that loan was contracted for the purpose of the business of swine production.
4(3)The standard debt load of a swine producing unit is the amount of debt which that unit, if efficiently managed, can, in the opinion of the Board, reasonably be expected to service.
5(1)Where the Board has granted approval in principle to an application under subsection 3(1), the Board may grant a rebate of interest to the applicant if there have been paid to the Board all amounts which, under the terms of the applicant’s loan or loans from the Board, fell due to the Board on account of principal and interest repayment between March 31, 1984, and the date on which the rebate of interest is granted.
5(1.1)Notwithstanding subsection (1), where there have not been paid to the Board all amounts which, under the terms of the applicant’s loan or loans from the Board, fell due to the Board on account of principal and interest repayment between March 31, 1984 and the date on which the rebate of interest is granted, the Board may, where it has granted approval in principle to an application under subsection 3(1), grant a rebate of interest to an applicant if such amounts are paid by the applicant in accordance with the terms and conditions set by the Board.
5(2)The amount of the applicant’s debt to the Board on which a rebate of interest may be granted is the amount by which, on March 31, 1984, the total indebtedness of the applicant exceeded the standard debt load of the swine producing unit that the applicant operates, but where the amount so calculated is greater than the applicant’s debt to the Board, the amount on which the rebate may be granted is the amount of the applicant’s debt to the Board.
5(3)Where an applicant is indebted to the Board under more than one loan, the Board shall determine which of those loans, and which elements thereof, shall be the subject of the rebate of interest.
85-123; 85-180
6(1)The portion of an applicant’s debt that is not set aside for a rebate of interest shall be termed his active debt.
6(2)An applicant’s active debt remains due and payable in accordance with the terms of the loan or loans under which it was incurred, but the Board may agree to a revised schedule of payments so long as the period in which the active debt will be paid off does not exceed twenty years.
7(1)The portion of an applicant’s debt that is set aside for a rebate of interest shall be termed his residual debt.
7(2)An applicant’s residual debt shall not bear interest unless, the applicant having committed a breach of the requirements of subsection (3), the Board terminates the applicant’s rebate of interest under section 8.
7(3)An applicant to whom a rebate of interest is granted
(a) shall pay punctually all amounts coming due to the Board on account of his active debt,
(b) shall, for so long as any part of his active debt remains outstanding, make payments to the Board in reduction of his residual debt as required by the Board when the rebate of interest was granted,
(c) shall, when no part of his active debt remains outstanding, make payments to the Board in reduction of his residual debt as required by the Board when the rebate of interest was granted,
(d) shall submit to the Board when required by the Board such financial and production information as the Board may require,
(e) shall, if required by the Board, enter a farm management agreement with the Board, and having entered such an agreement shall comply with its terms, and
(f) shall observe the terms of any other agreement made with the Board when the rebate of interest is granted.
8Where an applicant is in breach of the requirements of subsection 7(3), the Board may, by notice in writing, terminate the rebate of interest, and when such notice is given, the obligations which, in consequence of the granting of that rebate, did not fall to be performed while the rebate was in effect revive and are enforceable, but
(a) so far as concerns the time at which those obligations are to be performed, a person is not in breach of his obligations if he performs them no later than a date calculated by taking the date by which, under the terms of his loan, they should have been performed and adding to it the number of days during which his rebate was in effect, and
(b) where, while his rebate was in effect, a person made payments in reduction of his residual debt, his obligations when the rebate is terminated shall be reduced accordingly.
9In the event of a conflict between the provisions of this Regulation and those of New Brunswick Regulation 66-26 or 84-295 under the Farm Adjustment Act, the provisions of this Regulation prevail.
N.B. This Regulation is consolidated to May 15, 2018.