F-1.2 - Act respecting farm financing

Section 141 Disposition versions

1988-08-11

141. The Government may, by regulation,

(1)  define the expressions “principal occupation”, “principal activity”, “raising of crops”, “raising of livestock”, “agricultural operations corporation”, “agricultural operations partnership”, “agricultural operations cooperative”, “joint operators”, “designated production”, “natural disaster” and “establishment”;

(2)  define the expression “resident in Québec” for the purposes of section 15 and the expressions “breeding stock”, “livestock intended exclusively to produce meat or eggs”, “unforeseen and uncontrollable collapse in the selling prices of a designated production” and “cessation or significant reduction in a designated production”;

(3)  designate a form of crop growing or livestock raising as agriculture, define any group of persons that may be considered a group operation and prescribe the special requirements which must be fulfilled by the group;

(4)  prescribe the requirements which must be fulfilled by a farming business that must call upon the resources of another farming business in order not to cease being considered economic;

(5)  fix the maximum time that a farming business should allow a person considered an aspiring farmer to make farming his principal occupation and prescribe any other requirements which must be fulfilled by the person to be eligible for a loan;

(6)  determine the content and conditions of a certificate authorizing a loan, a line of credit or a special loan;

(7)  fix the general bases of appraisal of property to secure a loan, which may vary according to the nature of the property;

(8)  prescribe the criteria of need for a loan, special loan or line of credit for anyone who applies therefor;

(9)  prescribe the requirements which must be met by any person with respect to his farming experience or vocational training;

(10)  determine, among the property which may be the object of a pledge or transfer, that whose value may be taken into account to establish the maximum amount of a loan, line of credit or special loan;

(11)  determine the standards with which the ordinary lease and the emphyteutic lease of a farm contemplated in a subparagraph 4 of the first paragraph of section 13 must comply;

(12)  determine the cases where a business may be situated outside an agricultural region established or an area reserved in accordance with the Act to preserve agricultural land (chapter P-41.1);

(13)  fix the amortization bases and the terms and conditions relating to the repayment of a loan, which may vary depending on whether it is a long-term, medium-term or short-term loan;

(14)  specify and list the purposes for which a loan may be obtained;

(15)  fix the terms and conditions relating to the review of the borrower’s financial situation during the term of his line of credit;

(16)  establish in what cases, on what conditions and within what limits the repayment of expenses relating to wages or living expenses out of a line of credit may be authorized by the Office;

(17)  prescribe the expenses referred to in paragraph 4 of section 35 and establish within what limits the repayment thereof out of a line of credit may be authorized by the Office;

(18)  prescribe in what cases and on what conditions the Office may authorize the repayment of a balance owing on a loan contemplated in paragraph 5 of section 35 out of a line of credit;

(19)  determine the time limits and the terms and conditions relating to the keeping of vouchers;

(20)  fix the maximum amount and term, the terms of repayment and any other conditions that apply to special loans and the additional term, following the critical period, during which a special loan may be granted;

(21)  determine in which cases the authorization of the Office is required, the nature of the security for a special loan, the date before which it must be granted and that before which the loan must be contracted for, the term and the terms and conditions of disbursement and the conditions on which the payment of the balance of a special loan may be assumed by a third person;

(22)  fix the period and the cases in which a borrower is not bound to pay any amount on the principal of a special loan, prescribe the payment by the Government of part of the interest on a special loan and determine the extend and term of such a contribution and the terms and conditions relating thereto;

(23)  prescribe the standards that apply to the program of conversion of operations contemplated in section 45 and the limits as to living expenses for which a special loan may be granted;

(24)  prescribe the conditions relating to the assumption of a special loan contemplated in section 48;

(25)  fix, with reference to the preferential rate within the meaning of the regulations, the maximum interest rate on a loan, a line of credit or a special loan and the periods and criteria for the readjustment of the interest rate, and determine the rules for fixing a weighted interest rate;

(26)  prescribe, for the purposes of the third paragraph of section 57, in what cases and on what conditions a lender may grant total or partial release of movable security or agree to any alteration thereof;

(27)  prescribe all cases, other than the case contemplated in section 59, where a sum received by the borrower must be allocated to the total or partial repayment of the loan;

(28)  prescribe the cases, the extent, the term, the terms and conditions and the date of payment of the contribution to the payment of interest;

(29)  prescribe the cases, the extent, the term and the conditions relating to the reduction of the interest rate, determine the dates on which and the terms according to which it applies and determine, for the purposes of the third paragraph of section 78, the date on which a natural person contemplated in the said section must be at least 18 years of age but not yet 40 years of age and the requirements which must be met by such a person;

(30)  prescribe the cases where the right contemplated in section 80 may be transferred, and on what conditions;

(31)  prescribe the conditions of eligibility for a capital subsidy or interest subsidy, the standards, which may vary according to the category of persons, with which the recipient of a subsidy must comply, the terms and conditions on which a capital subsidy may be increased and the rules for establishing the percentage referred to in section 86;

(32)  prescribe the standards with which the establishment plan or utilization plan filed by the applicant for a subsidy must comply and the manner, terms and conditions of fixing or paying the amount of the subsidy; such manner and conditions may vary according to the category of persons to whom the subsidy is granted and according as it is a capital subsidy or an interest subsidy;

(33)  fix the proportion of the costs of appraisal of property offered as security and of the administrative charges relating to a loan, a line of credit or a special loan to be paid by the Office and the borrower, respectively;

(34)  prescribe any other necessary or useful measure for the carrying out and proper operation of this Act.

1987, c. 86, s. 141.