Acts and Regulations

L-11 - Livestock Incentives Act

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Repealed on 1 September 2011
CHAPTER L-11
Livestock Incentives Act
Repealed: R.S.N.B. 2011, Schedule A
Definitions
1In this Act
“bank” means 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, applies;(banque)
“borrower” means a farmer to whom a livestock loan has been made;(emprunteur)
“credit union” means a credit union incorporated under the Credit Unions Act and under any former Credit Unions Act;(caisse populaire)
“designated period” Repealed: 1979, c.38, s.1
“farm plan” means a plan as defined by regulation;(plan d’exploitation)
“farmer” means (agriculteur)
(a) an individual residing in the Province who is engaged in farming on land in New Brunswick;
(b) a partnership, corporation or incorporated co-operative association engaged in farming on land in New Brunswick;
“farming” includes livestock raising, dairying and all tillage of the soil;(agriculture)
“lender” means 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 applies or a credit union to which the Credit Unions Act applies;(prêteur)
“livestock loan” means a loan made to a farmer by a lender for the purpose of purchasing animals as are designated by the Lieutenant-Governor in Council;(prêt pour achat de bétail)
“Minister” means the Minister of Agriculture, Aquaculture and Fisheries and includes any person designated by the Minister to act on the Minister’s behalf.(Ministre)
1971, c.12, s.2; 1972, c.44, s.1; 1975, c.34, s.1; 1979, c.38, s.1; 1985, c.4, s.39; 1986, c.8, s.67; 1987, c.6, s.57; 1996, c.25, s.19; 2000, c.26, s.180; 2009, c.36, s.6; 2010, c.31, s.80
Livestock loan
2(1)Subject to this Act, the Minister may pay to a lender the amount of loss sustained by it as a result of a livestock loan if
(a) the loan was made pursuant to an application signed by the borrower stating the purpose for which the proceeds of the loan were to be expended,
(b) the loan was made in the manner prescribed by the regulations,
(c) the making of the loan was reported to the Minister within the time and in the manner prescribed by the regulations,
(d) the loan was not less than the minimum amount prescribed by regulation for any animals designated by regulation, and neither the loan nor the total amount of all loans outstanding under this Act, is more than the maximum amount prescribed by regulation,
(e) a responsible official of the lender certified that he scrutinized and checked the application for the loan with the care required of him by the lender in the conduct of its ordinary business,
(f) the rate of interest charged by the lender on the loan is not more than the rate prescribed by the regulations,
(g) the terms of the loan provide that the loan is repayable in full in not more than seven years and the borrower had the option to repay the loan in full or in part at any time without notice or bonus, or if the loan is made for the purpose of purchasing animals designated by the Lieutenant-Governor in Council, the terms of the loan provide that the loan is repayable in a manner stipulated by regulation,
(h) the borrower is required to make or has made a down payment in an amount of not less than ten per cent of the purchase price of livestock in respect of which the loan was made, and
(i) the first payment to be made by the borrower on the principal of the loan is due not sooner than two years after the date on which the loan was made, except in the case of a loan made for the purpose of purchasing animals designated by the Lieutenant-Governor in Council.
2(2)The Minister may waive provisions of paragraph (1)(i) on such terms as he considers advisable.
1971, c.12, s.3; 1972, c.44, s.2, 3, 4; 1975, c.34, s.2; 1979, c.38, s.2, 3; 1983, c.48, s.1
Notice of termination of livestock loan provisions
3(1)Subject to the approval of the Lieutenant-Governor in Council, the Minister may, by notice in writing or published in The Royal Gazette, advise a lender that after a date specified in the notice, which date shall be not less than ten days after the date the notice is served or published, as the case may be, this Act shall cease to operate in respect of any livestock loans made by the lender after that date.
3(2)The Minister is not liable to make any payment in respect of any livestock loan made by the lender after the date specified in the notice upon the notice being served upon the lender or published in The Royal Gazette, as the case may be.
3(3)A notice under subsection (1) may be served by sending it by registered mail, postage prepaid, to the lender at his head office.
1971, c.12, s.4
Guarantee of livestock loans
4The Minister is not liable under this Act
(a) to pay to a bank in respect of losses sustained by it as a result of livestock loans made by it, any amount that would result in the total payments made to the said bank by the Minister in respect of such losses being an amount in excess of twenty-five per cent of the aggregate principal amount of livestock loans made by the said bank pursuant to this Act;
(b) to pay to a credit union carrying on business in the Province, in respect of losses sustained by it as a result of livestock loans made by it, any amount that would result in the total payments made by the Minister in respect of losses sustained by all credit unions in the Province as a result of livestock loans being made by them, being an amount in excess of twenty-five per cent of the aggregate principal amount of livestock loans made by all credit unions in the Province pursuant to this Act.
1971, c.12, s.5; 1979, c.38, s.4
Subrogation rights
5Where the Minister makes a payment under this Act to a lender in respect of a livestock loan
(a) the Minister is subrogated to all rights of recovery, powers, remedies and securities of the lender in respect of the loan against any borrower and may bring action in the name of Her Majesty in right of the Province or in the name of the lender to enforce those rights,
(b) the payment does not affect any liability of the borrower or release any securities given by the borrower in respect of the loan, and
(c) notwithstanding any payment the liability and security shall remain and continue in full force and effect and may be enforced by the Minister against the borrower.
1971, c.12, s.6
Grants to farmers
6Subject to the regulations, the Minister may, after the expiration of three years from the date of the livestock loan made to a farmer, pay to or on behalf of a farmer a grant as determined by regulation, if the farmer has conducted his operation substantially in accordance with a farm plan approved by an official designated by the Minister.
1971, c.12, s.7
Regulations
7The Lieutenant-Governor in Council may make regulations
(a) prescribing the methods for determining the amounts of losses sustained by lenders as a result of making livestock loans;
(b) prescribing the procedures to be followed by lenders in making claims for losses sustained by them as a result of making livestock loans;
(c) respecting the form of any document required for the purposes of this Act;
(d) prescribing in the event of default in the repayment of a livestock loan the legal or other measures to be taken by a lender and the procedure to be followed for the collection of the amount of the loan outstanding and the disposal or realization of any security for the repayment thereof held by the lender;
(e) prescribing the manner and time within which lenders are required to submit reports of livestock loans to the Minister;
(f) prescribing the nature and kind of security to be taken by lenders for the repayment of livestock loans;
(g) prescribing the procedures for making of grants under section 6;
(h) prescribing terms and conditions of grants under section 6;
(i) prescribing the maximum rate of interest on livestock loans in respect of which the Minister shall make payment to lenders for losses they sustained;
(j) providing that in the event of actual or impending default in the repayment of a livestock loan the lender may, notwithstanding anything in this Act, with the approval of the borrower, alter or revise the terms of the loan respecting the amount of any payments to be made by the borrower under the loan or the time when any payments under the loan become due but that no alteration or revision shall be made to the terms of a livestock loan to provide for less than one payment under the loan by the borrower in a twelve month period;
(k) defining the expression “farm plan” for the purposes of this Act;
(l) designating animals for the purpose of qualifying for livestock loans under this Act;
(m) prescribing the repayment terms of a livestock incentive loan;
(m.1) prescribing the minimum amount of a livestock incentive loan that may be made to a person;
(m.2) prescribing the maximum outstanding amount of all livestock incentive loans that may be made to a person; and
(n) generally for the better administration of this Act.
1971, c.12, s.8; 1972, c.44, s.5; 1979, c.38, s.5; 1983, c.48, s.2
Offence and penalty
8Any person who makes a statement in an application for a livestock loan that is false in any material respect or who uses the proceeds of such loan for a purpose other than that stated in his application, commits an offence punishable under Part II of the Provincial Offences Procedure Act as a category F offence.
1971, c.12, s.9; 1990, c.61, s.73
Source of funds
9Sums required for the purposes of this Act may be paid out of money appropriated by the Legislature for the purpose.
1971, c.12, s.10
N.B. This Act is consolidated to September 1, 2011.