P-20 - Farm Loan Act

Full text
chapter P-20
Farm Loan Act
FARM LOANDecember 18 1987August 11 1988
Chapter P-20 is replaced by the Act respecting farm financing (chapter F-1.2). (1987, c. 86, s. 153).
1987, c. 86, s. 153.
1. In this act:
(1)  Board means the Canadian Farm Loan Board established under the Canadian Farm Loan Act (Revised Statutes of Canada, 1952, chapter 36);
(2)  borrower means a farmer of Québec who has obtained one or more loans under the provisions of the said Act of Canada;
(3)  farm loan bond means a bond issued under the authority of the said Act of Canada;
(4)  loan means any loan made under the authority of the said Act of Canada;
(5)  Corporation means the Farm Credit Corporation established by chapter F-2 of the Revised Statutes of Canada, 1970;
(6)  Bureau means the Office du crédit agricole du Québec established by the Farm Credit Act (chapter C-75).
R. S. 1964, c. 111, s. 1; 1977, c. 5, s. 14.
2. The Government shall pay, during the period of the loan, the difference, not exceeding three per cent (3%), between the annual interest of three per cent (3%) and that charged by the Board to the farmers of Québec on the capital of loans made to them before 8 November 1950 under the Canadian Farm Loan Act.
The Minister of Finance shall pay the Government’s contributory share of such payments to the persons entitled thereto, out of the consolidated revenue fund.
R. S. 1964, c. 111, s. 2; 1977, c. 5, s. 14.
3. The Government, on such conditions as it shall determine, may authorize the Bureau to pay, as from 1 May 1962, on hypothecary loans made by the Corporation or the Board to farmers of Québec, after 8 November 1950 until 1 October 1972, the difference between the annual interest of 21/2% and that owing to the Corporation.
The Government may, on such conditions as it determines, authorize the Bureau to pay on the account of any farmer of Québec who obtains a hypothecary loan from the Corporation from 1 October 1972, the difference between the annual interest he owes the Corporation and the annual interest computed on the equivalent capital of a hypothecary loan which the Bureau may grant at the rate fixed under section 22 of the Farm Credit Act (chapter C-75); any change in the annual interest rate fixed under the said section 22 shall only apply to loans of the Corporation subsequent to the coming into force of such change.
Such difference contemplated in the first and second paragraphs shall be paid only on a loan not exceeding $15 000, and if the loan exceeds such amount it shall be paid only on a portion of the interest proportionate to the fraction of the loan corresponding to $15 000.
In applying the third paragraph to loans made before 1 May 1962, the balance of the principal on that date shall be considered as being the amount of the loan.
R. S. 1964, c. 111, s. 3; 1972, c. 35, s. 1.
4. The Government, on such conditions as it shall determine, may authorize the Bureau to assume, before 1 January 1970, up to an amount of $3 000, one-third of the debt owed to the Corporation by a borrower who has obtained from the Corporation after 1 May 1962 a loan similar to a settlement loan from the Bureau.
To be entitled to such advantage, the borrower must prove 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 advantage shall be granted only once to any one person.
In the case of death before the expiration of the ten years above mentioned, the advantage may be granted to any person whom the Bureau recognizes as having continued to discharge the obligations of the borrower.
R. S. 1964, c. 111, s. 4; 1969, c. 44, s. 25.
5. The Government, on such conditions as it shall determine, may authorize the Bureau to pay, as from 1 May 1964, on loans made to veterans as full-time farmers of Québec, after 26 June 1954 until 1 October 1972, under Part III of the Veterans’ Land Act (Revised Statutes of Canada, 1970, chapter V-4), the difference between the annual interest of 21/2% and that owing on such loans.
The Government may, on such conditions as it determines, authorize the Bureau to pay on any loan granted after 1 October 1972 to a veteran as a full-time Québec farmer under Part III of the Veterans’ Land Act (Revised Statutes of Canada), the difference between the annual interest which he owes on such loan and the annual interest computed on the equivalent capital of hypothecary loan which the Bureau may make at the rate fixed under section 22 of the Farm Credit Act (chapter C-75); any change in the annual interest rate fixed under the said section 22 shall only apply to the loans granted under the Veterans’ Land Act from the coming into force of such change.
Such difference, contemplated in the first and second paragraphs, shall be paid only on a loan not exceeding $15 000 and, if the loan exceeds such amount, it shall be paid only on a portion of the interest proportionate to the fraction of the loan corresponding to $15 000.
In applying the third paragraph to loans made before 1 May 1964, the balance of the principal on that date shall be considered as being the amount of the loan.
R. S. 1964, c. 111, s. 5; 1972, c. 35, s. 2.
6. From 1 November 1975, sections 3 and 5 apply only to the extent and for the period that the loans contemplated therein meet the requirements for the obtaining of a hypothecary loan under the Farm Credit Act (chapter C-75) and the regulations made thereunder.
From the same date, where a loan provided for in section 3 is granted to an individual whose principal occupation is not farming, in accordance with Part IV of the Farm Credit Act (Revised Statutes of Canada, 1970, chapter F-2), the said section does not apply, moreover, until such time as that individual furnishes to the Bureau proof deemed satisfactory that the individual has made farming his principal occupation within the same delays and on the same conditions as those fixed for an aspiring farmer to make farming his principal occupation under paragraph d of section 1 of the Farm Credit Act.
1975, c. 36, s. 1 (part).
7. The hypothec securing the loans made to farmers under this act shall be effected by deed before a notary.
R. S. 1964, c. 111, s. 6.
8. The hypothec securing a hypothecary loan made by the Corporation to a farmer of Québec after 1 May 1964 shall not be invalidated by failure to obtain or to register a certificate of the Minister of Revenue of Québec.
R. S. 1964, c. 111, s. 7.
9. Every person in continuous, peaceable, public and unequivocal possession, as proprietor, by himself or through his predecessors in title, for at least ten years, of an immoveable situated in the electoral districts of Bonaventure, Gaspé-Nord, Gaspé-Sud and the Îles-de-la-Madeleine, shall, for the purposes of a loan made by the Corporation, be deemed to be the owner of such immoveable and may validly hypothecate it as security for such loan.
R. S. 1964, c. 111, s. 8.
10. Notwithstanding article 1029 of the Civil Code, every stipulation for the benefit of the Corporation shall be irrevocable.
R. S. 1964, c. 111, s. 9.
11. Whenever, by the terms of the contract of loan, of sale, or of additional guarantee, the Corporation is entitled to realize upon its security, it may, instead of proceeding by an action in the ordinary way, realize upon the security by means of the proceedings hereinafter provided.
R. S. 1964, c. 111, s. 10.
12. By a notice served upon the debtor or his assigns, in the manner provided in subsection 2 of section 13, the Corporation shall require payment of the debt, in accordance with the terms of the contract, within a delay of thirty days.
Such notice may also be given by registered or certified letter mailed within the same delay to the last address known to the Corporation.
R. S. 1964, c. 111, s. 11; 1975, c. 83, s. 84.
13. (1)  Failing payment of the amount claimed by the Corporation, in accordance with the above notice, the latter shall present a petition to a judge of the Superior Court sitting in the district wherein the immoveable is situated, for an order enjoining the sale of the hypothecated immoveable.
(2)  Such petition shall be served by a bailiff or by the secretary-treasurer of the municipal corporation, and must be accompanied by a notice of the place, date and hour when it will be presented. The delay upon such notice shall be that of ordinary actions.
(3)  Such petition, from the time of its filing in the office of the court, shall constitute an interruption of prescription.
(4)  Proceedings upon such petition shall be summary and the judge may, at his discretion, order the debtor to reply in writing.
(5)  The judgment upon such petition shall be final and without appeal.
R. S. 1964, c. 111, s. 12.
14. If the proof upon the petition establishes that the amount claimed by the Corporation is due, the judge shall order the issue, against the immoveable property or properties which is or are security for the debt, of a writ of seizure of immoveables which might have been issued by the court having jurisdiction if judgment had been obtained for the same amount, and if the delay by law allowed between the judgment and execution had expired.
R. S. 1964, c. 111, s. 13; 1965 (1st sess.), c. 80, a. 1.
15. The writ issued under the above section 14 shall contain a description, in accordance with article 2168 of the Civil Code, of the immoveable or immoveables to be seized and sold, and shall be executed by the sheriff, and the sum owing to the Corporation by the borrower shall be levied in virtue of such writ, with costs.
Subject to the provisions of section 16, all subsequent proceedings shall be had as if judgment had in fact been obtained.
R. S. 1964, c. 111, s. 14.
16. (1)  Notwithstanding any provision to the contrary, the sheriff shall seize, at his office, the immoveable property or properties securing the debt for which a petition has been presented under this act.
(2)  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 address known to the Corporation.
(3)  The publication and posting provided for by article 671 of the Code of Civil Procedure shall not be done by the sheriff but must be effected, at the option of the latter, by a bailiff of the place wherein the immoveable is situated or by a literate person of such place.
R. S. 1964, c. 111, s. 15 (part); 1965 (1st sess.), c. 80, a. 1; 1975, c. 83, s. 84.
17. The Government may enact:
(1)  that no duty shall be payable to the Crown on the registration of deeds setting forth a loan to a borrower, on the searches made in registration offices and on the certificates issued by the registrars, for the benefit of a farmer asking for a loan from the Corporation;
(2)  that the publications of notice in the Gazette officielle du Québec advertising the sale of an immoveable securing a loan made by the Corporation, shall be gratuitous.
R. S. 1964, c. 111, s. 16 (part).
18. The Government may, likewise, on such conditions as it may determine:
(1)  change the fees allowed by their tariffs, to registrars who receive no fixed salary;
(2)  suspend the application of the registrars’ tariff, when they receive a fixed salary.
R. S. 1964, c. 111, s. 17.
19. (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 111 of the Revised Statutes, 1964, in force on 31 December 1977, is repealed effective from the coming into force of chapter P-20 of the Revised Statutes.