C-75 - Farm Credit Act

Full text
chapter C-75
Farm Credit Act
FARM CREDITDecember 18 1987August 11 1988
Chapter C-75 is replaced by the Act respecting farm financing (chapter F-1.2). (1987, c. 86, s. 153).
1987, c. 86, s. 153.
DIVISION I
DEFINITIONS
1. In this Act, unless inconsistent with the context, the following expressions and words mean or designate:
(a)  agriculture : the cultivation of the soil or the raising of livestock;
(b)  farm operator : any physical person whose principal occupation is agriculture;
(c)  farmer : a farm operator who is the owner or lessee of a farm; it also designates, in the case of undivided ownership of a farm, several physical persons provided that among them there are one or more farm operators holding at least sixty per cent of the rights of ownership in such farm;
(d)  aspiring farmer : any physical person not less than eighteen nor more than forty years of age who, being the owner or lessee of a farm, practises farming without making it his principal occupation and undertakes to make it his principal occupation within the delays and according to the conditions fixed by regulation;
(e)  farm : any immoveable operated or to be operated within a reasonable delay for agricultural purposes; it also designates any other immoveable which, in the opinion of the Bureau, may reasonably be considered as forming part of a farm in respect of which a loan may be granted;
(f)  economic farm : any farm which, taking into account all of its resources, is capable of producing a revenue which enables the operator thereof to pay the operating costs thereof, including maintenance and depreciation, to fulfil his obligations and to support his family adequately;
(g)  pledged property : the property determined by regulation, which is the object of a pledge of agricultural property under paragraph e of section 11;
(h)  agricultural operations corporation : a corporation constituted under the Companies Act (chapter C-38) whose principal object and principal activity are the operation of an economic farm of which it is the owner or lessee, provided that all of its shareholders are physical persons and at least sixty per cent of the issued shares of each class are owned by farm operators among whom the principal occupation of the majority is the operation of such farm;
(i)  agricultural operations cooperative : a cooperative governed by the Cooperatives Act (chapter C-67.2) whose main object and principal activity is the operation of an economic farm of which it is the owner or lessee, provided that all its members are natural persons, that at least sixty per cent of the common shares are owned by farm operators and that the majority of its members are farm operators among whom the principal occupation of the majority is the operation of such farm;
(j)  agricultural operations partnership : a partnership within the meaning of the Civil Code whose principal object is the joint operation of an economic farm, of which it is the owner or lessee, constituted by a written contract in accordance with the regulations, composed of physical persons and in which at least sixty per cent of the interests are owned by farm operators among whom the principal occupation of the majority is the operation of such farm; this expression also designates several physical persons who are the undivided owners of an economic farm when at least sixty per cent of the property rights in such farm are held by farm operators among whom the principal occupation of the majority is the operation of such farm, each of such persons being considered as a partner for the purposes of this act;
(k)  Bureau : the Office du crédit agricole du Québec;
(l)  loan (prêt): a loan made by the Bureau under this act;
(m)  borrower : a farmer, aspiring farmer, agricultural operations cooperative, agricultural operations corporation or agricultural operations partnership to whom or which a loan is made, and joint borrowers;
(n)  joint borrowers : several physical persons to whom a loan is granted jointly, who jointly operate an economic farm constituted of the aggregate of the farms of which they are the owners or lessees while sharing, according to the proportions determined among them, the income from the aggregate of such farms, provided that at least sixty per cent of the aggregate of the interests in such farm are owned by one or a number of farmers;
(o)  regulation : any regulation made under this act;
(p)  Minister : the Minister of Agriculture, Fisheries and Food.
R. S. 1964, c. 108, s. 1; 1969, c. 41, s. 1; 1972, c. 32, s. 1; 1973, c. 22, s. 22; 1975, c. 34, s. 1, s. 19; 1977, c. 5, s. 14; 1979, c. 77, s. 21; 1982, c. 26, s. 295.
DIVISION II
OFFICE DU CRÉDIT AGRICOLE
2. A bureau is hereby established called the Office du crédit agricole du Québec consisting of five members (régisseurs) who shall remain in their functions for ten consecutive years but who may be discharged for cause. Such members (régisseurs) shall remain in office, notwithstanding the expiry of their term of office, until they have been replaced or reappointed.
R. S. 1964, c. 108, s. 2; 1975, c. 34, s. 2; 1977, c. 5, s. 14.
3. Such Bureau shall have the rights and powers belonging generally to corporations and shall be subject to the obligations resulting therefrom, except where inconsistent with this act.
R. S. 1964, c. 108, s. 3.
4. The Government shall appoint the members (régisseurs); it shall designate one of them as chairman and one as vice-chairman and fix the salary of each.
The vice-chairman shall replace the chairman and exercise his powers and functions during the absence of the latter.
In addition to his right to vote as a member (régisseur), the chairman shall have a casting vote in the case of a tie-vote.
R. S. 1964, c. 108, s. 4; 1969, c. 41, s. 2.
5. The chairman and the other members (régisseurs) and the secretary, functionaries and employees of the Bureau cannot be prosecuted by reason of any official act performed in good faith in the exercise of their functions.
1969, c. 41, s. 3.
6. The Bureau has its head office in the City of Québec; it may, however, transfer it to another locality in the Communauté urbaine de Québec with the approval of the Government; such a change shall come into force on publication of a notice to that effect in the Gazette officielle du Québec.
The Bureau may also have offices at any other place in Québec it considers necessary.
After publication of the notice of the change of address of the Bureau mentioned in the first paragraph, the Bureau shall notify it to the registrar of each registration division in which immoveables hypothecated in favour of the Bureau are situated, and such latter notice shall have the same effect for each of the said immoveables as if it had been given under the provisions of article 2161b of the Civil Code, but the registrar is not required to comply with the provisions of article 2161c of the Civil Code following such a notice.
R. S. 1964, c. 108, s. 5; 1975, c. 34, s. 3; 1977, c. 5, s. 14.
7. The Bureau shall hold its sittings at its corporate seat or at any other place chosen by it. Two members shall form a quorum.
R. S. 1964, c. 108, s. 6.
8. The minutes of the sittings of the Bureau, certified by the secretary or his assistant, shall be authentic; the same shall apply to documents and copies emanating from the Bureau or forming part of its records.
1969, c. 41, s. 4.
9. No vacancy in the Bureau shall have the effect of dissolving it.
R. S. 1964, c. 108, s. 7.
10. The secretary and the other functionaries and employees of the Bureau shall be appointed in accordance with the Public Service Act (chapter F-3.1.1).
1966-67, c. 17, s. 5; 1978, c. 15, s. 140; 1983, c. 55, s. 161.
DIVISION III
POWERS OF THE BUREAU
11. The Bureau may:
(a)  Contract loans by notes, bonds or other securities with the prior authorization of the Government, for such amounts, and at such rates of interest and on such other conditions as may be fixed by the Government, and, if considered necessary, but without being subject to articles 1571 to 1571c, 1572 and 2127 of the Civil Code, transfer, as security for the repayment of the sums borrowed, in such manner and on such conditions as may be fixed by the Government as to the mode of signification of such transfer, all or part of the debts owing to it on loans granted under this act and, with the written consent of the lender given at the time the loan was made or subsequently, substitute for any such debt, any other debt arising from any loan granted under this act;
(b)  Acquire and possess the moveable and immoveable property it may need for the carrying out of this act, and the immoveables hypothecated and the property pledged to it whenever the protection of a loan (prêt) so requires;
(c)  Administer, sell, hypothecate or pledge such property, as the case may be, lease it or otherwise dispose of it by onerous title;
(d)  Grant to any borrower who meets the criteria of need established by regulation a loan secured by first hypothec on all or part of the farm of such borrower, of up to 80% of the value established by the Bureau.
Such a loan (prêt) may be granted, up to 90% of such value, to a farmer who is not less than eighteen nor more than forty years of age and who operates an economic farm, to an aspiring farmer who operates an economic farm or to joint borrowers one of whom is not less than eighteen nor more than forty years of age, provided that his interest in the economic farm operated by them represent, in the opinion of the Bureau, not less than 20% of all of the interests in such farm.
Such a loan (prêt) may also be granted, up to 90% of such value, to an agricultural operations corporation or an agricultural operations partnership which has among its shareholders or members one farm operator who is not less than eighteen nor more than forty years of age and who owns not less than 20% of the shares of each class issued by the corporation, or whose interests in the partnership represent, in the opinion of the Bureau, not less than 20% of all of the interests in such partnership.
Such a loan may also be granted, up to 90% of such value, to an agricultural operations cooperative which has among its shareholder-producers or its members, as the case may be, a farm operator who is not less than eighteen nor more than forty years of age who holds not less than 20% of the issued ordinary shares or of the common shares, as the case may be.
Such a loan (prêt) may also be granted up to 90% of such value, to a borrower who or which does not qualify for the benefits contemplated in the two preceding paragraphs and who or which, to make his farm economic or to increase the yield thereof:
(1) carries out a program for improvement of land and buildings in accordance with the regulations,
(2) increases the area of his farm by acquiring additional land or has so increased it during the three years preceding the date on which the Bureau received the application for a loan, or
(3) carries out a program for conversion of his agricultural operation in accordance with the regulations.
The amount loaned under the preceding paragraph which exceeds the amount which would have been loaned under the first paragraph shall be used exclusively to pay for the additional land acquired or for the carrying out of the program for improvement of land and farm buildings or the conversion of the agricultural operation.
The total amount of a loan (prêt), including the amount of a loan by pledge provided for in paragraph e and that of an additional loan (prêt) provided for in section 29 shall not exceed:
(1) $250 000 in the case of a farmer or aspiring farmer;
(2) $450 000 in the case of an agricultural operations corporation, an agricultural operations cooperative, an agricultural operations partnership or joint borrowers.
A hypothecary loan granted to a borrower may, in addition to being secured by a first hypothec on all or part of the farm of such borrower, be secured at the same time by a hypothec on all or part of another farm. In such case, the Bureau, to determine the maximum amount of the loan, shall take into account the value of all the farms or parts of farms to be hypothecated to secure the said loan.
When the ownership of a farm or part of a farm which is to be hypothecated to the Bureau as security for a hypothecary loan granted by it, is based on an emphyteutic lease, such lease must comply with the standards provided by regulation. In such case, the hypothec granted to the Bureau may rank after the hypothec securing the annual dues stipulated in the said lease, notwithstanding the provisions of the first and eighth paragraphs and of section 29;
(e)   Grant a loan secured by pledge of agricultural property in favour of the Office of up to 80% of the value of the property pledged established by the Office, to any borrower meeting the criteria of need established by regulation who owns an economic farm and who is a debtor of the Office under this Act or is the debtor of a lender under the Act to promote long term farm credit by private institutions (chapter C-75.1), following or on the occasion of a hypothecary loan granted under this Act or under the Act to promote long term farm credit by private institutions, following or on the occasion of the transfer of a debt arising from a hypothecary loan granted under this Act or under the Act to promote long term farm credit by private institutions, or following or on the occasion of the sale of a farm to the borrower by the Office under this act, under the Act to promote long term farm credit by private institutions or under any other act administered by the Office.
Subject to the seventh paragraph of paragraph d, the total amount of such loan (prêt) shall not exceed:
(1) $100 000 in the case of a farmer or aspiring farmer;
(2) $200 000 in the case of an agricultural operations corporation, an agricultural operations cooperative, an agricultural operations partnership, or joint borrowers.
Such a loan (prêt) may include, in addition to the security of the pledged property, a hypothec in favour of the Bureau on the farm of the borrower;
(f)  Grant to any borrower meeting the criteria of need established by regulation who leases an economic farm, a loan secured by agricultural property in favour of the Bureau, of up to 80% of the value of the pledged property established by the Bureau.
The total amount of such a loan shall in no case exceed the maximums provided for in paragraph e and the borrower’s lease must comply with the standards provided by regulation.
The occupant of a farm under a location ticket is considered to be a lessee for the purposes of this Act;
(g)  Before 1 January 1970, grant a settlement loan (prêt) to any farmer between the ages of twenty-one and forty years, who acquires an economic farm for the purposes of cultivation, the total loan (prêt) not to exceed 90% of the value established by the Bureau nor to exceed $25 000.
Such a loan (prêt) may be granted to joint borrowers one of whom is not less than twenty-one nor more than forty years of age, to an agricultural operations corporation or to an agricultural operations partnership who or which acquires for purposes of cultivation an economic farm which has among its shareholders or members one farm operator who is not less than twenty-one nor more than forty years of age and who holds 1/3 or more in value of the shares of any class, or whose interests in the partnership represent, in the opinion of the Bureau, not less than 1/3 of all of the interests in such partnership;
(h)  Define by regulation the expressions “principal occupation”, “principal activity”, “cultivation of the soil”, “raising of livestock”, “program for improvement of land and buildings” and “conversion of the operation”;
(i)  Determine by regulation what is to be comprised in a partnership contract in order for such partnership to be an agricultural operations partnership within the meaning of paragraph j of section 1;
(j)  Determine by regulation the property mentioned in article 1979a of the Civil Code which may be the object of a pledge of agricultural property in favour of the Bureau under paragraphs e and f of this section, and that which may constitute the basis of a loan on a pledge of agricultural property;
(k)  Fix by regulation the delays within which and the conditions according to which a physical person must undertake to make farming his principal occupation to be considered an aspiring farmer;
(l)  Fix by regulation, the general basis of appraisal of farms and pledged property, and also fix the criteria of need for anyone who applies therefor;
(m)  Define by regulation the cases where a loan (prêt) must be accompanied with a mandatory programme of financial operations, and the terms and conditions to which such a loan must be subject, particularly with regard to the application for it, the supervision fees, the obligations of the borrower and any other accessory conditions;
(n)  Determine by regulation the particulars that must be contained in and the formalities which must apply to the lease of a borrower who is the lessee of a farm and the emphyteutic lease of a borrower who occupies a farm under such a lease;
(o)  Fix, by regulation, the proportion of the cost of appraisal of the property, offered as security, payable by the Bureau and by the borrowers, respectively;
(p)  Fix, by regulation, for the loans (prêts) effected, the proportion payable by the Bureau and by the borrowers, respectively, of the costs relating to the search for and the obtaining and registering of titles, and to the radiation of privileges, hypothecs and pledges;
(q)  In each case, indicate the purposes for which the sums loaned shall serve;
(r)  Value the property tendered as security and fix accordingly the amount of each loan (prêt);
(s)  Determine in cases where a person has several important occupations or activities, including farming, which occupation or activity constitutes his principal occupation or activity within the meaning of this Act;
(t)  Establish a working-capital fund not exceeding $500 000 for the disbursements necessary to protect loans, namely, payment of insurance premiums, taxes and assessments, exercising the right of redemption, and acquiring, maintaining, administering, repairing and reselling property guaranteeing loans. As soon as they are recovered, the sums so disbursed must be paid into such working-capital fund.
(u)  Sell, with the authorization of the Government, at such price and on such conditions as it may determine, all or part of the debts arising from loans granted under this Act without being subject to articles 1571 to 1571c, 1572 and 2127 of the Civil Code, but in conformity with the mode fixed by the Government as to the signification of such sale and, with the written agreement of the person acquiring it given at the time of the sale or subsequently, substitute for any such debt any other debt arising from a loan granted under this Act.
R. S. 1964, c. 108, s. 8; 1965 (1st sess.), c. 38, s. 1; 1966-67, c. 17, s. 6; 1969, c. 41, s. 5; 1969, c. 44, s. 26; 1971, c. 85, s. 23; 1972, c. 32, s. 2; 1975, c. 34, s. 4, s. 19; 1978, c. 44, s. 1.
12. Where farmers actually jointly operate an economic farm formed by the aggregate of their farms, they cannot obtain a loan except as joint borrowers.
1975, c. 34, s. 5.
13. Every regulation of the Bureau must, in order to be valid, receive the approval of the Government.
Every regulation made under sections 11, 22, 23, 26 and 31 shall come into force on the date of its publication in the Gazette officielle du Québec or on such later date as is fixed therein.
R. S. 1964, c. 108, s. 9; 1969, c. 41, s. 6.
14. With the authorization of the Government, the Bureau may make an agreement with any government or government body to facilitate the carrying out of this act.
The Government shall have all the powers necessary to enforce such agreements.
1969, c. 41, s. 7.
DIVISION IV
EMPLOYMENT AND SECURITY OF LOANS (Emprunts)
15. The proceeds of loans or sales made by the Office under paragraph a or paragraph u, as the case may be, of section 11 must serve for the granting of loans authorized by this act, the establishment of the working-capital fund required to ensure the protection of loans, the reimbursement of loans previously contracted under the said section or remittances to the Minister of Finance in accordance with section 19 as repayment of amounts borrowed from him.
The loans made by the Office may be guaranteed by the Gouvernement du Québec.
R. S. 1964, c. 108, s. 10; 1977, c. 5, s. 14; 1978, c. 44, s. 2.
16. The sums which the Government may be called upon to pay under such guarantee shall be paid by the Minister of Finance, out of the consolidated revenue fund.
The Government may, for the purpose of reimbursing to the consolidated revenue fund the whole or part of the sums drawn therefrom under this section, authorize the Minister of Finance to contract one or more loans (emprunts), in the manner, at the rate of interest, in the form and for the amount which the Government may determine.
R. S. 1964, c. 108, s. 11; 1977, c. 5, s. 14.
17. Notwithstanding any general law or special act to the contrary, municipal and school corporations, the Conseil scolaire de l’île de Montréal and corporations of parish trustees may invest their sinking-funds in acquiring bonds issued by the Bureau.
Such bonds shall be securities in which may be made the investments referred to in article 981o of the Civil Code; in sections 243 to 274 of the Act respecting insurance (chapter A-32), and in section 8 of the Trust Companies Act (chapter C-41).
R. S. 1964, c. 108, s. 12; 1966-67, c. 81, s. 4; 1969, c. 41, s. 8; 1972, c. 60, s. 28; 1974, c. 70, s. 424, s. 473; 1977, c. 5, s. 14.
18. The Government is authorized to acquire, by purchase, exchange or in any other manner, upon such conditions and for such amounts as it may determine, bonds, debentures or other securities of the Bureau, which latter is authorized to negotiate in consequence with the Government.
The sums required for the acquisition of such bonds, debentures or securities shall be paid out of the consolidated revenue fund.
The Government may, however, authorize the Minister of Finance to borrow, for a period not to exceed thirty years and upon such conditions as it may deem expedient, the sums required for the purposes of this section.
The sums paid to the Bureau by the Government to be used for the purposes of this act constitute loans on such conditions as are determined by the Government, and such loans are not subject to paragraph a of section 11.
R. S. 1964, c. 108, s. 13; 1965 (1st sess.), c. 38, s. 2; 1977, c. 5, s. 14.
19. The capital repayments collected by the Office on its loans shall be remitted to the Minister of Finance to be applied to the capital repayment of the loans contemplated in the second paragraph and to the redemption of the bonds, debentures or other securities issued by the Office that are held by the Government.
Such moneys shall be deposited in a special fund which shall be allocated, first, to the repayment of loans contracted by the Office from lenders other than the Minister of Finance, secondly, to the repayment of loans contracted by the Office from the Minister of Finance, thirdly, to the repayment of loans contracted by the Government under this act, and, fourthly, to the repayment of any other loan or loans contracted by Québec and designated by the Government, the proceeds whereof were used in whole or in part to reimburse the consolidated revenue fund for advances made to the Office.
The sums collected by the Office as interest on its loans shall be remitted to the Minister of Finance to be deposited in a special fund which shall be applied, first, to the payment of the interest payable on loans contracted by the Office from lenders other than the Minister of Finance and, secondly, to the payment of the interest payable on any loan contracted by the Office from the Minister of Finance or on any loan contracted by the Government that is referred to in the second paragraph.
The sums deposited in the special funds contemplated in the second and third paragraphs shall be invested in accordance with the last paragraph of section 63 of the Financial Administration Act (chapter A-6), pending their employment pursuant to the second and third paragraphs, and the interest derived therefrom shall be paid into the consolidated revenue fund.
R. S. 1964, c. 108, s. 14; 1969, c. 41, s. 9; 1970, c. 17, s. 101; 1977, c. 5, s. 14; 1978, c. 44, s. 3.
20. Notwithstanding the provisions of sections 15 to 19, the Government may, on such conditions as it may determine, authorize the Minister of Finance to pay to the Bureau, and the latter, to borrow from the said Minister, any amount considered necessary to make the loans authorized by this act and to pay on every date of maturity the sums due in principal on any loan contracted by the Office in accordance with section 11.
1975, c. 34, s. 6; 1978, c. 44, s. 4.
21. The Minister of Finance is authorized to pay to the Bureau, if it so requests, out of the consolidated revenue fund, the sums required to make up, for each fiscal year of the Bureau, the difference between the amount of interest payable by it on the loans borrowed by the Office from lenders other than the Minister of Finance as well as those borrowed from the said Minister and the amount paid as interest by borrowers from or debtors of the Bureau.
1975, c. 34, s. 6; 1978, c. 44, s. 5.
DIVISION V
LOANS (Prêts)
22. Every loan (prêt) granted under paragraphs d and g of section 11 shall be repayable within a delay of not more than thirty-nine and one-half years, on a basis of progressive amortization determined by regulation, in equal and consecutive semi-annual instalments, including interest computed semi-annually at the rates fixed by regulation.
Every loan (prêt) on a pledge granted under paragraphs e and f of section 11 shall be repayable within the maximum delay contemplated in article 1979a of the Civil Code, on a progressive amortization basis determined by regulation, by semi-annual equal and consecutive payments comprising the interest computed semi-annually at the rate fixed by regulation.
R. S. 1964, c. 108, s. 15; 1969, c. 41, s. 10; 1972, c. 32, s. 3; 1975, c. 34, s. 7.
23. The Office, in determining the constituents of a loan granted by it which bear interest payable to it at the rate fixed by regulation, shall compute, as if a part of that loan,
(a)  in the case of a loan granted to a farmer or an aspiring farmer: the balance owing from the borrower on any loan obtained under this act or under the Act to promote long term farm credit by private institutions which has been granted to him or of which he has assumed payment, and the balance of his relative share in any loan obtained under this act or the Act to promote long term farm credit by private institutions which has been granted to him jointly with any other person or of which he has assumed payment jointly with any other person;
(b)  in the case of a loan granted to an agricultural operations corporation, cooperative or partnership: the balance owing from the borrower on any loan obtained under this act or the Act to promote long term farm credit by private institutions, which has been granted to it or of which it has assumed payment;
(c)  in the case of a loan granted to joint borrowers or to natural persons considered as an agricultural operations partnership under paragraph j of section 1: the balance owing from them jointly on any loan obtained under this act or the Act to promote long term farm credit by private institutions, which has been granted to them or of which they have assumed payment, the balance owing from each of them on any loan obtained under this act or the Act to promote long term farm credit by private institutions, which has been granted to each of them or of which each of them has assumed payment, and the balance of their relative share in any loan granted under this Act or the Act to promote long term farm credit by private institutions obtained by each of them jointly with any other person or of which each of them has assumed payment jointly with any other person.
Where a person, with the authorization of the Office, assumes, personally, or jointly with any other person, the payment of the balance of a loan, the first paragraph applies mutatismutandis in determining the constituents of the said balance which bear interest at the rate fixed by regulation.
1969, c. 41, s. 11; 1972, c. 32, s. 4; 1975, c. 34, s. 8; 1978, c. 44, s. 6.
24. Any instalment of principal or interest unpaid at maturity shall itself, pleno jure and without a putting in default, bear interest at the annual rate, according to the regulations, stipulated in the deed of loan for such instalment, to be computed from its date of maturity.
R. S. 1964, c. 108, s. 16; 1975, c. 34, s. 9.
25. The borrower or his representatives may repay the loan (prêt) beforehand, wholly or in part.
R. S. 1964, c. 108, s. 17.
26. The Bureau may fix the accessory or secondary conditions to which loans (prêts) shall be subject, as to the borrower’s titles, deeds of obligation, the protection of the securities and other similar matter.
In addition to the security provided for the loan (prêt), the Bureau, in the cases specified by regulation, may require from the borrower an insurance policy on his life to secure the repayment of the loan in the case of his death.
The Bureau may also, in the cases and in accordance with the terms and conditions defined by regulation, require any person who applies for a loan to submit, before or after his application, a programme of financial operations acceptable to the Bureau, fix the supervision fees for such a loan and determine in the deed of loan the obligations that the borrower must submit to in regard to such programme.
R. S. 1964, c. 108, s. 18; 1972, c. 32, s. 5; 1975, c. 34, s. 10.
27. A representative or an employee designated by the Bureau may, at any reasonable time, inspect the immovables hypothecated or the property pledged. He may do so at any time if it is required, in the circumstances, to protect a claim or the property securing the loan or to ensure that the borrower’s operation is carried on.
Moreover, in the absence of maintenance or in case of deterioration entailing a depreciation of the security, he may do, at the borrower’s expense, any work and repairs and take any step he considers necessary to ensure that the property is kept in good condition and that the operation is carried on.
The representative or the employee designated by the Bureau shall, on request, identify himself and produce a certificate of his capacity issued by the Bureau.
1972, c. 32, s. 6; 1986, c. 95, s. 122.
28. A representative or an employee designated by the Bureau may also, at any reasonable time, or at any time if it is required, in the circumstances, to protect a claim or the property securing a loan or to ensure that the borrower’s operation is carried on, for the purposes of this Act, of any other Act under the administration of the Bureau or of the Act respecting farm-loan insurance and forestry-loan insurance (chapter A-29.1) or for the purposes of any plan, programme or project the direction or execution of which may be entrusted to it, enter or pass on any immovable, inspect and appraise such immovable, any livestock and any other movable property.
The representative or the employee designated by the Bureau shall, on request, identify himself and produce a certificate of his capacity issued by the Bureau.
1975, c. 34, s. 11; 1978, c. 44, s. 7; 1986, c. 95, s. 122.
28.1. The Bureau may also, for the purposes of the Acts referred to in section 28 or any plan, programme or project the direction or execution of which may be entrusted to it, conduct any investigation it considers necessary. For that purpose, every member of the Bureau and every investigator it designates shall have the powers and attributions conferred on a commissioner by the Act respecting public inquiry commissions (chapter C-37).
1986, c. 95, s. 122.
29. The loans (prêts) granted under paragraphs d, e, f and g of section 11, the Bureau may make to a borrower, when it considers it expedient, an additional loan for a term equal to that provided for in section 22 or for a shorter term, secured by hypothec ranking immediately after any hypothec held by the Office under this Act or by a lender under the Act to promote long term farm credit by private institutions, or by an agricultural pledge invoking a hypothec if it considers it appropriate and on the other conditions which the Bureau determines in the deed of loan.
However, the amount of such additional loan (prêt) by adding thereto the balance of the principal of a loan (prêt) made under paragraphs d, e, f and g of section 11 shall not exceed the maximum provided for in paragraphs d, e and f of section 11 respectively, nor exceed the maximum limit of the obligations of a borrower either towards the Office under this Act or towards a lender under the Act to promote long term farm credit by private institutions, fixed by section 31.
R. S. 1964, c. 108, s. 19; 1969, c. 41, s. 12; 1972, c. 32, s. 7; 1975, c. 34, s. 12; 1978, c. 44, s. 8.
30. The recipient of a settlement loan under paragraph g of section 11 before 1 January 1970 shall be entitled to a remission of 1/3 of the amount loaned, up to $3 000, if he proves to the satisfaction of the Bureau that he has lived on his farm and has cultivated it, without interruption, during the ten years following the date of signature of the deed of loan. Such remission shall be granted only once to any one person.
Such a remission may be granted to joint borrowers, to an agricultural operations corporation or to an agricultural operations partnership who or which has obtained a settlement loan under paragraph g of section 11 provided that the person who qualifies such joint borrowers, agricultural operations partnership or agricultural operations corporation for such remission fulfils mutatis mutandis the conditions contemplated in the preceding paragraph.
In the case of death before the expiration of the ten years above mentioned, the remission may be granted to any person whom the Bureau acknowledges to have continued to discharge the obligations of the borrower.
R. S. 1964, c. 108, s. 20; 1969, c. 41, s. 13; 1969, c. 44, s. 27; 1975, c. 34, s. 19.
31. The total amount owing under this act and the Act to promote long term farm credit by private institutions from a borrower or from a person who assumes or has assumed the payment of a loan must in no case exceed $250 000 in principal in the case of a farmer or an aspiring farmer and $450 000 in principal in the case of an agricultural operations corporation, an agricultural operations cooperative, an agricultural operations partnership or joint borrowers, except with respect to debts which devolve to them by succession or which they have contracted for the acquisition of a property of which the Office has disposed under paragraph c of section 11 of this act or under paragraph g or paragraph h of section 23 of the Act to promote long term farm credit by private institutions.
To establish the amount of $250 000 mentioned in the preceding paragraph, account shall be taken of
(a)  the balance owing personally from a farmer or an aspiring farmer on any loan previously obtained or of which he has assumed payment under either of the aforementioned acts; and
(b)  his relative share in the balance of every similar loan previously obtained jointly with any other person or of which he has assumed payment jointly with any other person.
To establish the amount of $450 000 mentioned in the first paragraph, in the case of an agricultural operations corporation, an agricultural operations cooperative or an agricultural operations partnership, account shall be taken of the balance owing from it on any loan previously obtained or of which it has assumed payment under either jof the aforementioned acts.
To establish the amount of $450 000 mentioned in the first paragraph, in the case of joint borrowers or natural persons considered as an agricultural operations partnership under paragraph j of section 1, account shall be taken of
(a)  the balance owing from them on any loan previously obtained or of which they have assumed payment under either of the aforementioned act;
(b)  the balance owing from each of them on every similar loan previously obtained by him personally or of which he has assumed payment personally; and
(c)  the relative share in the balance owing on every similar loan obtained by each of them jointly with any other person or of which he has assumed payment joinly with any other person.
The total amount owing under this act and the Act to promote long term farm credit by private institutions from a borrower on any loan secured by pledge of agricultural property or from a person who assumes or has assumed payment of such loan must in no case exceed $100 000 in principal in the case of a farmer or an aspiring-farmer, or $200 000 in principal in the case of an agricultural operations corporation, an agricultural operations cooperative, an agricultural operations partnership or joint borrowers, except with respect to debts which devolve to them by succession.
The second, third or fourth paragraph, as the case may be, applies mutatismutandis to establish the amount of $100 000 or $200 000, as the case may be, referred to in the fifth paragraph.
1969, c. 41, s. 14; 1972, c. 32, s. 8; 1975, c. 34, s. 13; 1978, c. 44, s. 9.
32. The authorization of the Bureau must be obtained in order to validate the voluntary transfer or the lease for more than one year of an immoveable guaranteeing a loan (prêt) and for voluntary transfer or lease of the pledged property.
No issue, allotment or transfer of shares of an agricultural operations corporation to which a loan has been granted by the Bureau shall be valid without the authorization of the Bureau.
No issue, allotment, transfer or reimbursement of ordinary shares or common shares, as the case may be, of an agricultural operations cooperative to which a loan has been granted by the Bureau shall be valid without the authorization of the Bureau.
No amendment to the contract constituting an agricultural operations partnership to which a loan has been granted shall be valid without the authorization of the Bureau.
Such authorizations may be given by any member (régisseur) generally designated for such purpose by the Bureau.
R. S. 1964, c. 108, s. 21; 1969, c. 41, s. 15; 1972, c. 32, s. 9; 1975, c. 34, s. 14, s. 19.
33. In the case of a loan made under paragraph e or paragraph f of section 11, any member or employee of the Bureau generally authorized therefor by the Bureau may grant a partial or total release and accept for and on behalf of the Bureau any alteration in the guarantees of moveables.
1972, c. 32, s. 10; 1975, c. 34, s. 15.
34. Every act of the Bureau shall be presumed prima facie to be intra vires of its powers.
R. S. 1964, c. 108, s. 22.
35. If a borrower obtains a loan (prêt) as a result of false declarations or false pretences, if he disposes in any manner of part or all of the pledged property without authorization of the Bureau, if he allows or causes abnormal deterioration of the property acting as security or a diminishing of the security, or if he uses the proceeds or a portion of the proceeds of such loan for purposes other than those for which the said loan was granted to him by the Bureau, the latter may, by mere notice sent to the borrower, by a registered or certified letter to his last address known to the Bureau, declare the borrower deprived of the benefit of the period granted, cancel the said loan, claim repayment thereof with interest and, failing such repayment, exercise any recourse provided by law.
R. S. 1964, c. 108, s. 23; 1972, c. 32, s. 11; 1975, c. 83, s. 84.
DIVISION VI
REALIZING UPON SECURITY
36. When the Bureau is entitled to realize on its security or to recover annual or semi-annual payments or any other debts from its debtors, and on any default by them, it may, notwithstanding any other legislative provision and subject to any other recourse, proceed in accordance with the provisions of this act.
R. S. 1964, c. 108, s. 24; 1972, c. 32, s. 12.
37. The Bureau shall require, by registered or certified letter, the payment of the debt within a delay of thirty days from the mailing of such letter; the latter shall be addressed to the debtor or his representatives, at his or their last address known to the Bureau.
R. S. 1964, c. 108, s. 25; 1975, c. 83, s. 84.
38. Failing payment of the amount claimed within the delay specified in the notice, the Bureau shall present a petition to the Superior Court sitting in the district where the property offered as security is situated, for an order enjoining the seizure of the property in execution.
Such petition, supported by the affidavit of a representative of the Bureau, shall be served by a bailiff or by the secretary-treasurer of the municipality wherein the property offered as security is situated, and must be accompanied by a notice of the place, date and hour when it will be presented. The delay as to such notice shall be that of ordinary actions.
If the Bureau establishes to the satisfaction of the judge that it had no knowledge of the death of a borrower, the collective summons contemplated in article 116 of the Code of Civil Procedure may be made within five years of such death.
R. S. 1964, c. 108, s. 26; 1969, c. 41, s. 16; 1972, c. 32, s. 13.
39. Such petition, from the time of its filing in the office of the court, shall constitute an interruption of prescription.
R. S. 1964, c. 108, s. 27.
40. Such petition may be heard by the prothonotary if the debtor is in default to appear at the hour, date and place fixed in the notice which accompanies the petition; if the debtor appears, the petition shall be heard by the judge.
1969, c. 41, s. 17.
41. Proceedings upon such petition shall be summary and the judge may, at his discretion, authorize the debtor to reply in writing.
R. S. 1964, c. 108, s. 28; 1969, c. 41, s. 18.
42. The judgment on such petition shall be final and without appeal.
1969, c. 41, s. 19.
43. If the proof establishes that the petition is well founded, the judge or as the case may be, the prothonotary shall order the issue of a writ of seizure in execution against the property offered as security.
Such writ shall contain a description, in accordance with article 2168 of the Civil Code, of the hypothecated immoveable and, as the case may be, a description of the pledged property; it shall be executed by the sheriff or one of his officers and the amount due to the Bureau shall be levied with costs.
R. S. 1964, c. 108, s. 29; 1969, c. 41, s. 20; 1972, c. 32, s. 14.
44. Subject to the provisions of this act, all subsequent execution proceedings shall be had according to the provisions of the Code of Civil Procedure.
R. S. 1964, c. 108, s. 30; 1972, c. 32, s. 15.
45. Notwithstanding any general or special provision to the contrary, when executing any writ of seizure of immoveables where the Bureau is the seizing party, the sheriff shall seize, at his office, the hypothecated immoveable, without proceeding to the discussion of moveables.
A duplicate of the minutes of seizure shall be transmitted by the sheriff to the respondent, against whom the writ of seizure of immoveables has been issued, by registered or certified letter to his last address known to the Bureau.
R. S. 1964, c. 108, s. 31; 1965 (1st sess.), c. 80, a. 1; 1972, c. 32, s. 16; 1975, c. 83, s. 84.
DIVISION VII
GENERAL PROVISIONS
46. The hypothec acquired by the Bureau shall rank ahead of the privileges of the Crown in the rights of Québec.
R. S. 1964, c. 108, s. 32.
47. Notwithstanding the provisions of the Civil Code respecting the registration of real rights, every hypothec in favour of the Bureau may be registered in the manner hereinafter prescribed, in the office of the registration division where the hypothecated immoveables are situated.
Registration of the hypothec in favour of the Bureau is effected by deposit.
R. S. 1964, c. 108, s. 33.
48. Notwithstanding any general law or special act to the contrary, the validity of the hypothec securing a loan (prêt) shall not be affected by the failure to obtain or to register the certificate of the Minister of Revenue of Québec.
R. S. 1964, c. 108, s. 34.
49. Notwithstanding article 1029 of the Civil Code, every stipulation for the benefit of the Bureau shall be irrevocable.
R. S. 1964, c. 108, s. 35.
50. The Government may enact:
(a)  That no duty shall be payable to the Crown on the registration of deeds evidencing a loan (prêt), or on the searches made in registration offices, and on the certificates issued by the registrars, for the purposes of a loan (prêt);
(b)  That the publications of notice in the Gazette officielle du Québec, advertising the sale of an immoveable guaranteeing a loan made by the Bureau, shall be gratuitous;
(c)  That the duties and commissions payable to the Crown on the sale of property guaranteeing a loan (prêt) shall not be collected.
R. S. 1964, c. 108, s. 36; 1969, c. 41, s. 21; 1975, c. 34, s. 16.
51. The Government, on such conditions as it may determine, may likewise:
(a)  Change the fees allowed by their tariff to registrars who receive no fixed salary;
(b)  Suspend the application of the registrars’ tariff when they receive a fixed salary.
R. S. 1964, c. 108, s. 37.
52. The Government may authorize the Minister of Agriculture, Fisheries and Food, upon the recommendation of the latter, to pay, out of the moneys voted annually, for that purpose, by the Legislature, to any person fulfilling the functions of registrar and not receiving a fixed salary from the Government, such remuneration as it may determine for the certificates of real rights and the certificates of privileges, hypothecs and pledges furnished for purposes of loans under the authority of this act.
R. S. 1964, c. 108, s. 38; 1972, c. 32, s. 17; 1973, c. 22, s. 22; 1977, c. 5, s. 14; 1979, c. 77, s. 21.
DIVISION VIII
GASPÉ PENINSULA AND ÎLES-DE-LA-MADELEINE
53. In this Division, Credit Union means a savings and credit union governed by the Savings and Credit Unions Act (chapter C-4).
R. S. 1964, c. 108, s. 39.
54. Every person in continuous, peaceable, public and unequivocal possession and as owner, himself or through his auteurs, for at least ten years, of an immoveable situated in the counties of Bonaventure, Gaspé-Nord, Gaspé-Sud and the Îles-de-la-Madeleine, shall, for the purposes of this Division, be deemed the owner of such immoveable and may validly hypothecate it, as security for any loan granted in virtue of this Division by the Bureau or by a Credit Union.
Such hypothec shall have priority of rank over every other privilege and every other hypothec burdening such immoveable.
R. S. 1964, c. 108, s. 40.
55. The Bureau is authorized to make advances to any Credit Union operating in the counties of Bonaventure, Gaspé-Nord, Gaspé-Sud and the Îles-de-la-Madeleine, up to sixty-five per cent of the amount of each loan granted in such counties by such Credit Union in virtue of this Division.
To guarantee such advances the Bureau must exact that such Credit Union transfer to it every claim, whether hypothecary or chirographic, which it holds from its debtor by reason of a loan granted to such latter in virtue of this Division.
The advances made by the Bureau to the Credit Union shall bear interest at the rate of two and one-half per cent per annum, payable semi-annually.
The method of reimbursement and the other conditions of such advances shall be determined by regulations of the Bureau, subject to the approval of the Government.
R. S. 1964, c. 108, s. 41.
56. The Bureau is authorized to borrow, with the guarantee of the Gouvernement du Québec, by an issue of debentures or otherwise, an amount not exceeding $250 000 for the purposes of section 55 of this Act.
R. S. 1964, c. 108, s. 42; 1977, c. 5, s. 14.
DIVISION IX
ADVISORY COMMITTEE
57. The Government may establish an advisory committee to assist the Bureau, composed of:
(a)  persons who have practical competence in the field of agriculture or of forestry;
(b)  specialists in credit or other related matters;
(c)  representatives of the services of the provincial administration.
Such committee shall not have more than twelve members.
The members of such committee shall receive no salary; they shall be indemnified for their expenses incurred in attending meetings and shall receive an attendance allowance fixed by the Government.
The secretary of the Bureau shall act ex officio as the secretary of such committee.
The Government may attach to such committee the functionaries and employees required for its operations; they shall be appointed and remunerated in accordance with the Public Service Act (chapter F-3.1.1).
1969, c. 41, s. 22; 1975, c. 34, s. 17; 1978, c. 15, s. 140; 1983, c. 55, s. 161.
58. The functions of such committee shall be:
(a)  to study, at the request of the Bureau, all problems respecting the carrying out of this act, of any other act for the administration of which the Bureau is responsible and any plan, programme or project the direction or carrying out of which may be entrusted to the Bureau and to submit reports and suggestions to the Bureau in this respect;
(b)  to advise and make suggestions to the Bureau on any matters which the Bureau sees fit to submit to it;
(c)  to perform any other advisory function which the Government or the Bureau may assign to it.
1969, c. 41, s. 22; 1975, c. 34, s. 18.
59. At its discretion, the committee may divide itself into sections or subcommittees for the study of special problems.
1969, c. 41, s. 22.
DIVISION X
FINAL PROVISIONS
60. The books and accounts of the Bureau shall be audited by the Auditor General.
R. S. 1964, c. 108, s. 43; 1970, c. 17, s. 102.
61. The Bureau shall submit to the Minister of Agriculture, Fisheries and Food, on the thirtieth of June of each year, a detailed report of the loans (emprunts) which it has contracted and the loans (prêts) which it has granted during its last fiscal year, and furnish the Minister with any other information which he requires.
R. S. 1964, c. 108, s. 44; 1969, c. 41, s. 23; 1973, c. 22, s. 22; 1979, c. 77, s. 21.
62. The Minister of Agriculture, Fisheries and Food shall be entrusted with the carrying out of this act.
1969, c. 41, s. 24; 1973, c. 22, s. 22; 1979, c. 77, s. 21.
63. (This section ceased to have effect on 17 April 1987).
1982, c. 21, s. 1; U. K., 1982, c. 11, Sch. B, Part I, s. 33.
REPEAL SCHEDULE

In accordance with section 17 of the Act respecting the consolidation of the statutes (chapter R-3), chapter 108 of the Revised Statutes, 1964, in force on 31 December 1977, is repealed, except section 14c, effective from the coming into force of chapter C-75 of the Revised Statutes.