F-1.2 - Act respecting farm financing

Section 57 Disposition versions

1988-08-11

57. The authorization of the Office, unless it decides otherwise, must be obtained in order

(1)  to validate the voluntary transfer of property securing a loan, line of credit or special loan, except in the case of the transfer of products from the borrower’s farming business carried out in the normal course of his activities;

(2)  to grant, with or without consideration, release of security for a loan, line of credit or special loan;

(3)  to discharge a surety securing a loan, line of credit or special loan, with or without consideration.

Where the Office grants authorization for the purposes of subparagraph 1, it may require the acquirer to assume liability in his own name for payment of the loan and the obligations contracted by the original borrower and to undertake to fulfil the obligations prescribed by the Office.

Notwithstanding subparagraph 2 of the first paragraph, where agricultural tools or machinery or farm implements are used to secure a loan, line of credit or special loan, the lender may, without the authorization of the Office, in the cases and on the conditions prescribed by regulation, grant release.

1987, c. 86, s. 57.