Acts and Regulations

90-152 - Perennial Crop Establishment Loan

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Revoked on 5 February 2020
NEW BRUNSWICK
REGULATION 90-152
under the
Agricultural Development Act
(O.C. 90-934)
Filed December 10, 1990
Under section 44 of the Agricultural Development Act, the Lieutenant-Governor in Council makes the following Regulation:
2018-38
Repealed: 2020-7
1This Regulation may be cited as the Perennial Crop Establishment Loan Regulation - Agricultural Development Act.
2In this Regulation
“Act” means the Agricultural Development Act;(Loi)
“borrower” Repealed: 2010-116
“economic farm unit” Repealed: 2010-116
“farmer” means a person who is engaged in a farming operation or a farming operation combined with a woodlot;(agriculteur)
“farm unit” means a farming operation or a farming operation combined with a woodlot;(entité agricole)
“perennial crop” means a crop which(cultures vivaces)
(a) requires three or more years to establish or grow before the desired product can be harvested or marketed, and
(b) is designated by the Board as a perennial crop;
“perennial crop loan” means a loan granted under section 3;(prêt relatif aux cultures vivaces)
“person” includes a cooperative or association;(personne)
“provincial lending rate” means the rate of interest determined by the Minister of Finance and Treasury Board on a quarterly basis to be the average interest cost to the Province of borrowing money during the previous quarter.(taux provincial)
2001-32; 2010-116; 2019, c.29, s.6
3The Board may grant a loan under subparagraph 10(c)(i) of the Act to a farmer for the purpose of establishing a perennial crop.
2010-116; 2018-38
4(1)The terms and conditions on which a perennial crop loan is to be made are as follows:
(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;
(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;
(b.1) the borrower shall undertake to operate the farming operation in accordance with a mutually agreed on management plan;
(c) a borrower shall operate any woodlot or woodland situated on property named as security for a loan in accordance with an agreed management plan, but the cutting and sale of wood from such woodlot shall be done only by authority of a release or permit issued by the Board;
(d) a borrower shall, at such times as the Board may require, submit a statement showing the details of the operation of his property and conveying a true account of the condition and income producing state of his property;
(e) a member of the Board or a person employed by the Board may at any reasonable time enter upon any property on which it holds a mortgage to observe and evaluate the manner in which the property is being used and managed;
(f) the Board shall take as security for a loan the first mortgage on the property of the borrower or such other security as may appear adequate to the Board;
(g) no security given to the Board to secure a loan shall be for a term in excess of the term of the loan;
(g.1) the term of the loan shall be no more than ten years;
(h) the amount of the loan shall be determined by the Board;
(i) Repealed: 2001-32
(j) the interest rate applicable to the loan shall be fixed at a rate equivalent to the provincial lending rate in effect at the time the loan is approved by the Board, and interest shall be calculated semi-annually on the outstanding principal and accrued interest;
(k) the interest referred to in paragraph (j) shall be capitalized annually and added to the principal amount of the original loan;
(l) Repealed: 2001-32
(m) Repealed: 2001-32
(n) repayment of the loan shall not begin until year five of the term of the loan and shall be made by
(i) an annual interest payment, and
(ii) at the end of the term of the loan, a payment of the outstanding principal; and
(o) notwithstanding paragraph (n), a borrower may at any time during the term of the loan repay the outstanding principal and accrued interest on the loan.
4(2)Repealed: 2001-32
2001-32; 2010-116
5In the event of a conflict between the provisions of this Regulation and those of the General Regulation - Agricultural Development Act, the provisions of this Regulation prevail.
N.B. This Regulation is consolidated to February 5, 2020.