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

Section 7 Disposition versions

1978-08-01

7. The total amount owing under this act and the Farm Credit Act from a borrower or from a person who assumes or has assumed payment of a loan must in no case exceed $250 000 in principal in the case of a farmer or 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 the Farm Credit Act or under paragraph g or paragraph h of section 23 of this act.

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 of 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 subparagraph ii of paragraph i, account shall be taken of

(a)  the balance owing from them in that capacity on every loan previously obtained or of which they have assumed payment under either of the aforementioned acts;

(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;

(c)  the relative share owing on every similar loan obtained by each of them jointly with any other person or of which he has assumed payment jointly with any other person.

The total amount owing under this act and the Farm Credit Act from a borrower on any loan secured by pledge of agricultural property or from a person who assumes or has assumed payment of such a loan must in no case exceed $100 000 in principal in the case of a farmer or 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.

1978, c. 50, s. 7.