F-1.2 - Act respecting farm financing

Section 32 Disposition versions

1988-08-11

32. In no case may the total amount of a line of credit exceed

(1)  $500 000, if the applicant is engaged principally in the production of feeder cattle or cereals or in the production of both feeder cattle and cereals;

(2)  $200 000, if the applicant is engaged principally in one or several other kinds of production.

Notwithstanding the foregoing, the total amount owing in principal by a borrower on any line of credit or on any short-term loan authorized by the Office or on any line of credit granted or authorized under this subdivision may exceed $500 000 or $200 000, as the case may be, where the excess is the result of debts devolved to him by succession subsequently to the last line of credit granted to him that has not been repaid in full and become inoperative.

For the purposes of the first paragraph, the amount of a line of credit is deemed owing by the borrower even if it exceeds the amount of the balance actually owed by him on any advance of money made pursuant to that line of credit.

1987, c. 86, s. 32.