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

Section 3 Disposition versions

1978-08-01

3. A lender may also

(a)  grant a loan secured by pledge of agricultural property in favour of the lender, of up to eighty per cent of the value of the property pledged, established by the Office, to any borrower who owns an economic farm and who is a debtor of the lender under this act, or of the Office under the Farm Credit Act or any other act administered by the latter, following or on the occasion of a hypothecary loan granted by the lender under this act or by the Office under the Farm Credit Act, following or on the occasion of the transfer of a debt arising from a hypothecary loan granted under this act or the Farm Credit Act, or following or on the occasion of the sale of a farm to the borrower by the Office under this act, the Farm Credit Act or any other act administered by the latter;

(b)  grant to any borrower who leases an economic farm under a lease which conforms to the standards provided by regulation, a loan secured by pledge of agricultural property in favour of the lender, of up to eighty per cent of the value of the pledged property, established by the Office.

The loan contemplated in subparagraph a of the first paragraph may include, in addition to the security of the pledged property, a hypothec in favour of the lender on the farm of the borrower.

1978, c. 50, s. 3.