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

Section 4 Disposition versions

1978-08-01

4. Besides the loans granted under sections 2 and 3, a lender may grant to any borrower,

(a)  an additional loan for a term not exceeding that provided for in the first paragraph of section 14, secured by a hypothec ranking immediately after any hypothec held by a lender under this act or by the Office under the Farm Credit Act and on such other conditions as may be determined by the Office;

(b)  an additional loan for a term not exceeding that provided for in the second paragraph of section 14, secured by pledge of agricultural property, which may include, if the Office considers it expedient, a hypothec in favour of the lender, and which is granted on such other conditions as may be determined by the Office.

However, the amount of the additional loan provided for in this section, added to the balance owing on the principal of a loan made under sections 2 and 3, must in no case exceed the limits provided for in the said sections, nor the maxima provided for in sections 5 and 6, nor shall it exceed the maximum limit to the obligations of a borrower towards a lender or towards the Office as fixed by section 7.

1978, c. 50, s. 4.