F-1.2 - Act respecting farm financing

Section 19 Disposition versions

1988-08-11

19. In no case may the aggregate amount of a loan exceed the lesser of the following amounts:

(1)  $800 000 and

(2)  an amount equal to 85 % of the value established by the Office of all the property offered as security, considered as a whole and subject to section 21, belonging to the borrower and forming part of his farming business.

Subject to the first paragraph, in no case may the portion of the balance of a price of sale that may be considered a loan exceed 85 % of the value established by the Office of the property of the farming business that is the subject of the sale and offered as security.

The balance owing by a borrower on a loan already granted or authorized by the Office is considered part of the aggregate amount of a loan, except the balance owing on a line of credit or special loan authorized by the Office before 11 August 1988 or granted or authorized by the Office from that date. On the other hand, no account is taken of the debts devolved to him by succession subsequently to the last loan granted to him or for which he received authorization.

1987, c. 86, s. 19.