F-1.2 - Act respecting farm financing

Section 34 Disposition versions

1988-08-11

34. Without prejudice to the lender’s right to terminate a line of credit under a term forfeiture clause stipulated in the line of credit agreement, the lender shall terminate it where, following a periodical review, the Office requires him to do so by informing him

(1)  that the borrower does not have a sufficient inventory of farm materials or products related to the farming business he operates or anything in their place as current assets to guarantee the outstanding balance on the line of credit, or

(2)  that the survival of the business is otherwise in doubt.

1987, c. 86, s. 34.