F-1.2 - Act respecting farm financing

Section 142 Disposition versions

1988-08-11

142. The borrower is forfeited of the benefit of the term and the lender or the Office, in its own name or as a mandatary of the lender, may cancel the loan, line of credit or special loan, claim repayment thereof in capital, with interest, costs and incidents and, failing repayment, exercise any recourse provided by law where the borrower

(1)  obtained the loan, line of credit or special loan as the result of false declarations;

(2)  leases property offered as security for a loan, line of credit or special loan without the authorization of the Office;

(3)  disposes in whatever manner, without the authorization required under section 57, of all or part of the property offered as security for the loan, line of credit or special loan;

(4)  causes or allows abnormal deterioration or diminution of the value of the property offered as security;

(5)  ceases to meet the requirements to be eligible for a loan, special loan or line of credit;

(6)  uses all or part of the proceeds of the loan, special loan or line of credit for purposes other than those for which it was granted;

(7)  uses all or part of the amount of any contribution to the payment of interest paid to him in respect of the loan or special loan for other purposes than making a payment on the loan or special loan, unless the Office decides otherwise; or

(8)  defaults on any obligation contracted in the deed evidencing the loan, special loan or line of credit.

The lender or the Office, as the case may be, shall notify the borrower of its elected course of action by mere notice sent to him by registered or certified mail at his last known address.

1987, c. 86, s. 142.