Acts and Regulations

88-235 - General

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Current to 1 January 2024
NEW BRUNSWICK
REGULATION 88-235
under the
Livestock Incentives Act
(O.C. 88-965)
Filed November 2, 1988
Under section 9 of the Livestock Incentives Act, the Lieutenant-Governor in Council makes the following Regulation:
2018-38
1This Regulation may be cited as the General Regulation - Livestock Incentives Act.
2(1)In this Regulation
“Act” means the Livestock Incentives Act.(Loi)
2(2)In the Act and this Regulation
“farm plan” means a description of the proposed farm operation for a period of three years showing production and value of livestock and crops submitted on a form provided by the Minister.(plan d’exploitation)
LIVESTOCK LOANS
3An application for a livestock loan shall be on a form provided by the Minister.
4(1)The following animals qualify for a livestock loan
(a) cattle, sheep and swine for breeding purposes or for the purpose of feeding and finishing for slaughter, and
(b) foxes and mink for breeding purposes.
4(2)The minimum amount of a livestock loan that may be made to a farmer is one thousand dollars.
4(3)Subject to subsection (4), the maximum amount of a livestock loan that may be made to a farmer is the lesser of
(a) ninety per cent of the purchase price of the livestock as set out in the application for the livestock loan, and
(b) $75,000.
4(4)The maximum amount of all outstanding livestock loans that may be made to a farmer is $75,000.
4(5)A livestock loan shall be evidenced by the promissory note of the borrower in favour of the lender which shall be on a form provided by the Minister.
4(6)The security to be taken by a lender for repayment of a livestock loan shall include
(a) in the case of 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
(i) security under section 178 of the Bank Act on the livestock purchased and on some or all of the livestock owned or to be owned by the borrower,
(ii) a chattel mortgage on the livestock purchased and on some or all of the livestock owned or to be owned by the borrower, or
(iii) both the security referred to in subparagraph (i) and the chattel mortgage referred to in subparagraph (ii); and
(b) in the case of a credit union, a chattel mortgage on the livestock purchased and on some or all of the livestock owned or to be owned by the borrower.
4(7)The requirement in paragraph (6)(a) with respect to security under section 178 of the Bank Act is satisfied if a document purporting to give the security is signed and delivered, notwithstanding that the security is not effective in respect of some or all of the livestock to which the document relates by reason of any statute exempting property from seizure.
4(8)A lender shall require a farmer to deliver to the lender a receipt or a bill of sale from the vendor of the livestock, describing the livestock and acknowledging that the farmer has paid to the vendor of the livestock the purchase price set out in the application for the livestock loan.
4(9)A borrower shall provide the lender with an ear tag number, tattoo, brand or other satisfactory method of identifying the livestock.
2010-117
LOAN TERMS AND REVISION OF LOAN TERMS
5(1)Payments of interest on a livestock loan shall be made at least annually.
5(2)Where a livestock loan is made for the purchase of animals for breeding purposes, repayment on the loan, after the first payment on the principal, shall be made in installments which are payable at least annually.
5(3)Where a livestock loan is made for the purchase of animals for the purpose of feeding and finishing for slaughter,
(a) the loan is due and payable when the animals purchased under the loan have been sold, and
(b) notwithstanding paragraph (a), full repayment on the loan shall not exceed a period of eighteen months after the date of the loan.
5(4)Subject to subsections (1), (2) and (3), the repayment terms of a livestock loan shall have regard to the type of the borrower’s enterprise, the relevant marketing conditions and the repayment of other obligations of the borrower.
RATE OF INTEREST
6The maximum rate of interest per annum charged by a lender in respect of a livestock loan shall be, during the loan period, the aggregate of one per cent per annum and the lender’s prevailing minimum commercial lending rate, sometimes called the “prime lending rate”.
DEFAULT
7Where 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 the loan shall, at the option of the lender, become due and payable.
PROCEDURE FOR CLAIMS
8(1)The amount of loss sustained by a lender as a result of a livestock loan shall be determined by taking the sum of the following:
(a) the unpaid principal amount of the loan;
(b) the uncollected earned interest outstanding until the claim for loss is approved for payment and paid;
(c) any uncollected taxed costs for or incidental to legal proceedings in respect of the livestock 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 livestock 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 livestock loan or in protecting the interests of the Minister.
8(2)A claim for loss by a lender in respect of a livestock loan may be made to the Minister at any time not less than ninety days after the entire amount of the livestock loan becomes due and payable whether the loan becomes due and payable in accordance with section 7 or otherwise.
8(3)A claim for loss shall be on a form provided by the Minister and shall be accompanied by a copy of the borrower’s application for a livestock loan.
8(4)Upon payment of the lender’s claim for loss by the Minister, the lender shall provide the Minister with a receipt, on a form provided by the Minister, together with the promissory note or notes signed by the borrower.
REPORTS TO THE MINISTER
9(1)Every lender shall prepare and mail to the Minister, by ordinary mail within thirty days after the last day of each month, monthly reports on forms provided by the Minister showing particulars of livestock loans made or payments made on livestock loans in the preceding month.
9(2)Every lender shall immediately report to the Minister, on a form provided by the Minister, particulars of any livestock loan which has been in default for a period of six months.
GRANTS
Repealed: 92-80
92-80
10Repealed: 92-80
92-80
11Repealed: 92-80
92-80
12Repealed: 92-80
92-80
13Repealed: 92-80
92-80
14New Brunswick Regulation 71-89 under the Livestock Incentives Act is repealed.
15This Regulation comes into force on November 1, 1988.
N.B. This Regulation is consolidated to May 15, 2018.