E-12.1 - Act to promote the establishment of young farmers

Section 4 Disposition versions

1982-09-01

4. If, for the purposes of his or its establishment, a farmer or a group operation obtains more than one loan or assumes the payment of more than one loan or obtains one or several loans and assumes, at the same time, the payment of one or several other loans, the amount of $50 000 contemplated in the first paragraph of section 3 includes, for the period during which the grant is applicable, in the following order and up to that maximum amount,

(1)  that part of any loan, according to its rank in time, granted under the Farm Credit Act (chapter C-75) which bears interest at the rate of 21/2% per annum;

(2)  that part of any loan, according to its rank in time, granted under the Act to promote long term farm credit by private institutions (chapter C-75.1), to which, under the said Act, the Bureau’s contribution to the payment of that part of the interest which exceeds 21/2% per annum applies;

(3)  that part of any loan, according to its rank in time, granted pursuant to an application for a loan received by the lender before 23 November 1981 under the Farm Credit Act (Revised Statutes of Canada, 1970, chapter F-2) to which, under the Farm Loan Act (chapter P-20), the Bureau’s contribution to the payment of interest applies;

(4)  that part of any loan, according to its rank in time, granted under the Farm Credit Act (chapter C-75) which bears interest at the rate of 7% or 8% per annum;

(5)  that part of any loan, according to its rank in time, granted pursuant to an application for a loan received before 23 November 1981 under the Act to promote long term farm credit by private institutions, to which, under the said Act, the Bureau’s contribution to the payment of that part of the interest which exceeds 8% per annum applies;

(6)  that part of the first $150 000 of any loan, according to its rank in time, granted under the Farm Credit Act (chapter C-75) pursuant to an application for a loan received after 22 November 1981, to which the rate fixed by regulation under the said Act applies;

(7)  that part of the first $150 000 of any loan, according to its rank in time, granted pursuant to an application for a loan received after 22 November 1981 to which the private institutions’ contribution to the payment of interest determined by regulation under the Act to promote long term farm credit by private institutions applies;

(8)  that part of any loan, according to its rank in time, granted by the Farm Credit Corporation pursuant to an application for a loan received after 22 November 1981 under the Farm Credit Act (Revised Statutes of Canada, 1970, chapter F-2) to which, under the Farm Loan Act, the Bureau’s contribution to the payment of interest applies;

(9)  any part not contemplated in any of the preceding subparagraphs 1 to 8 of any loan, according to its rank in time, granted under any of the Acts referred to in the said subparagraphs.

Where, for the purposes of his or its establishment, a farmer or a group operation assumes the payment of a loan contemplated in the first paragraph and the term remaining to run on the loan is less than 5 years, no account is taken of any part of the balance then due on that loan to form all or part of the maximum amount of $50 000 contemplated in the first paragraph unless all or part of the said balance is required to complete the maximum amount. In that case, the order prescribed in the first paragraph must be followed in respect of the parts of the said balance which are required to complete that amount.

1982, c. 29, s. 4.