Acts and Regulations

F-6 - Farm Machinery Loans Act

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Repealed on 5 June 2015
CHAPTER F-6
Farm Machinery Loans Act
Repealed: 2015, c.12, s.1.
Definitions
1In this Act
“borrower” means a farmer to whom a farm machinery loan has been made;(emprunteur)
“designated period” means a period as prescribed by regulation;(période déterminée)
“farm” means land in New Brunswick used for the purpose of farming;(exploitation agricole)
“farmer” means a person who is in possession of a farm; upon which he is engaged in farming;(agriculteur)
“farming” includes livestock and poultry raising, dairying, beekeeping, fruit growing, vegetable growing, grain growing, maple syrup producing and all tillage of the soil;(agriculture)
“farm machinery” means equipment, machinery, apparatus, appliances, electrical or otherwise, prescribed by regulation for use on or in connection with a farm;(matériel agricole)
“farm machinery loan” means a loan made by a lender to a farmer for the purpose of financing the purchase of farm machinery;(prêt pour achat de matériel agricole)
“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)
“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)
1973, c.7, s.1; 1974, c.14 (Supp.), s.1; 1982, c.25, s.1; 1985, c.4, s.25; 1986, c.8, s.45; 1996, c.25, s.14; 2000, c.26, s.125; 2009, c.36, s.4; 2010, c.31, s.43
Indemnification of lender
2Subject to this Act, the Minister may pay to a lender the amount of loss sustained by it as a result of a farm machinery 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 in an amount of not less than fifteen hundred dollars and neither the loan nor the total of all loans outstanding under this Act by the lender to the borrower is more than thirty thousand dollars;
(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 provided that the loan is repayable in full in not more than eight years and the borrower had the option to repay the loan in full or in part at any time without notice or bonus; and
(h) the borrower is required to make or has made a down payment in an amount of not less than twenty-five per cent of the purchase price of the farm machinery in respect of which the loan was made.
1973, c.7, s.2; 1983, c.32, s.1
Revocation of lender’s privilege
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 farm machinery loans made by the lender after such date.
3(2)The Minister is not liable to make any payment in respect of any farm machinery 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.
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.
1973, c.7, s.3
Liability of Minister respecting bank or credit union
4The Minister is not liable under this Act
(a) to pay to a chartered bank and its branches in the Province, in respect of losses sustained by it as a result of farm machinery loans made by it during a designated period, any amount that would result in the total of the payments made to the 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 farm machinery loans made by the bank pursuant to this Act during that period; or
(b) to pay to a credit union, in respect of losses sustained by it as a result of farm machinery loans made by it during a designated period, any amount that would result in the total of payments made by the Minister in respect of losses sustained by all credit unions as a result of farm machinery loans being made by them during the period being an amount in excess of twenty-five per cent of the aggregate principal amount of farm machinery loans made by all credit unions during that period.
1973, c.7, s.4
Subrogation of Minister to rights of lender
5Where the Minister makes a payment under this Act to a lender in respect of a farm machinery 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 such payment the liability and security shall remain and continue in full force and effect and may be enforced by the Minister against the borrower.
1973, c.7, s.5; 1987, c.6, s.27
Regulations
6The 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 farm machinery loans;
(b) prescribing the procedures to be followed by lenders in making claims for losses sustained by them as a result of making farm machinery 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 farm machinery 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 farm machinery loans to the Minister;
(f) prescribing the nature and kind of security to be taken by lenders for the repayment of farm machinery loans;
(g) prescribing the maximum rate of interest on farm machinery loans in respect of which the Minister shall make payment to lenders for losses sustained by lenders;
(g.1) prescribing the terms of repayment of a farm machinery loan;
(h) providing that in the event of actual or impending default in the repayment of a farm machinery loan the lender may, 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 farm machinery loan to provide for less than one payment under the loan by the borrower in a twelve month period;
(i) defining and prescribing the expression “designated period” for the purposes of this Act;
(j) designating the farm machinery in respect to which a farm machinery loan may be made under this Act; and
(k) generally for the better administration of this Act.
1973, c.7, s.6; 1982, c.25, s.2; 1983, c.32, s.2
Offences and penalty
7A person who makes a statement in an application for a farm machinery loan that is false in any material respect or who uses the proceeds of such loan for a purpose other than that stated in the application commits an offence punishable under Part II of the Provincial Offences Procedure Act as a category F offence.
1973, c.7, s.7; 1990, c.61, s.46
Financing of Act
8Sums required for the purposes of this Act may be paid out of money appropriated by the Legislature for the purpose.
1973, c.7, s.8
N.B. This Act is consolidated to June 5, 2015.