C-75.1 - Act to promote long term farm credit by private institutions

Section 2 Disposition versions

1978-08-01

2. A lender may grant to any borrower a loan secured by first hypothec on all or part of the farm of such borrower of up to eighty per cent of the value established by the Office.

Such a loan may be granted, of up to ninety per cent of such value, to a farmer who is not less than eighteen nor more than forty years of age 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 interests in the economic farm operated by them represent, in the opinion of the Office, not less than twenty per cent of all the interests in such farm.

Such a loan may also be granted, of up to ninety per cent of such value, to an agricultural operations corporation, an agricultural operations cooperative or an agricultural operations partnership which has among its shareholders or members, as the case may be, or its partners, a farmer who is not less than eighteen nor more than forty years of age who owns not less than twenty per cent of the shares of each class issued by the corporation, or of the ordinary shares or, as the case may be, common shares issued by the cooperative, or whose interests in the partnership represent, in the opinion of the Office, not less than twenty per cent of all the interests in such partnership.

Such a loan may also be granted, of up to ninety per cent of such value, to a borrower who does not qualify for the benefits contemplated in the two preceding paragraphs and who, to make his farm economic or to increase the yield thereof,

(1)  carries out a programme of 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 Office received the application for a loan; or

(3)  carries out a programme of conversion of his agricultural operations in accordance with the regulations.

The amount lent under the preceding paragraph which exceeds the amount that would have been lent under the first paragraph shall be used exclusively to pay for the additional land acquired or for the carrying out of the programme of improvement of land and farm buildings or the conversion of the agricultural operations.

1978, c. 50, s. 2.