The Live Stock Loans Guarantee Act

Transcription

1 The Live Stock Loans Guarantee Act being Chapter L-24 of The Revised Statutes of Saskatchewan, 1978 (effective February 26, 1979). NOTE: This consolidation is not official. Amendments have been incorporated for convenience of reference and the original statutes and regulations should be consulted for all purposes of interpretation and application of the law. In order to preserve the integrity of the original statutes and regulations, errors that may have appeared are reproduced in this consolidation.

2 Table of Contents 1 Short title 2 Interpretation 3 Payment of losses of lender 4 Termination of application of Act to a lender 5 Limitation of liability 6 Same 7 Minister subrogated 8 Grants 9 Regulations 10 Offences 11 Expenditures

3 CHAPTER L-24 An Act to Assist Farmers in securing Loans for the purpose of financing the Purchase of Breeding Stock Short title 1 This Act may be cited as The Live Stock Loans Guarantee Act. Interpretation 2 In this Act: borrower (a) borrower means a farmer to whom a live stock loan has been made; designated period (b) designated period means the period: (i) from the first day of November, 1969, to the thirty-first day of August, 1970; (ii) from the first day of September, 1970, to the thirty-first day of August, 1971; (iii) from the first day of September, 1971, to the thirty-first day of August, 1972; (iv) from the first day of September, 1972, to the thirty-first day of August, 1973; or (v) from the first day of September, 1973, to the thirty-first day of August, 1974; farmer (c) farmer means: (i) an individual residing in the province who is not more than sixty years of age and is engaged in and whose principal occupation is farming on land in Saskatchewan; (ii) a partnership, corporation or incorporated co-operative association engaged in and the principal object of which is farming on land in Saskatchewan; or (iii) the council of a band of Indians established pursuant to the Indian Act (Canada) or chosen by the custom mentioned in clause (c) of section 2 of that Act; farming (d) farming includes live stock raising, dairying and all tillage of the soil; lender (e) lender means a bank to which the Bank Act (Canada) applies or a credit union or caisse populaire to which The Credit Union Act applies; live stock loan (f) live stock loan means a loan made to a farmer by a lender for the purpose of purchasing female cattle, female sheep or such other animals as may be designated by the Lieutenant Governor in Council;

4 4 c. L-24 LIVE STOCK LOANS GUARANTEE minister (g) minister means the Minister of Agriculture. 1970, c.40, s.2; 1971, c.24, s.2; 1972, c.68, s.2; 1973, c.60, s.1; R.S.S. 1978, c.l-24, s.2. Payment of losses of lender 3 Subject to this Act, the minister shall pay to a lender the amount of loss sustained by it as a result of a live stock loan if: (a) the loan was made pursuant to an application signed by the borrower in a form prescribed by the regulations stating the purpose for which the proceeds of the loan were to be expended; (b) the loan was made substantially in the manner prescribed by the regulations; (c) the making of the loan was reported to the minister within the time and substantially in the manner prescribed by the regulations; (d) in the case of a loan to the council of a band of Indians, the written approval of the minister or his authorized representative was obtained prior to the making of the loan; (e) the loan is in an amount of not less than $2,000 or more than: (i) $6,000 to an individual; (ii) $12,000 to a partnership, corporation or incorporated co-operative association consisting of two members who are both actively engaged in carrying out the farming operations of the partnership, corporation or association; (iii) $18,000 to a partnership, corporation or incorporated co-operative association consisting of three or more members at least three of which are actively engaged in carrying out the farming operations of the partnership, corporation or association; or (iv) $18,000 to the council of a band of Indians; (f) a responsible official of the lender certified that he had scrutinized and checked the application for the loan with the care required of him by the lender in the conduct of its ordinary business; (g) the rate of interest charged by the lender on the loan is not more than the rate prescribed by the regulations; (h) the terms of the loan provided that the loan was repayable in full in seven years and the borrower had the option to repay the loan in full at any time without notice or bonus; (i) the borrower is required to make or has made a payment in an amount of not less than ten per cent of the purchase price of the live stock in respect of which the loan was made; and (j) the first payment to be made by the borrower on the principal of the loan is due not sooner than two years after the date on which the loan was made. 1970, c.40, s.3; 1971, c.24, s.3; R.S.S. 1978, c.l- 24, s.3.

5 LIVE STOCK LOANS GUARANTEE c. L-24 5 Termination of application of Act to a lender 4(1) Subject to the approval of the Lieutenant Governor in Council the minister may, by a notice in writing, advise a lender that after a date specified in the notice, which date shall be not less than ten days after the date the notice is served, this Act shall cease to operate in respect of live stock loans made by the lender after such date. (2) Where a lender has been served with a notice under subsection (1) the minister is not liable to make any payment in respect of any live stock loan made by the lender after the date specified in the notice. (3) A notice under this section may be served by sending it by registered mail, postage prepaid, to the lender at its head office. 1970, c.40, s.4; R.S.S. 1978, c.l-24, s.4. Limitation of liability 5(1) The minister is not liable under this Act: (a) to pay to a bank, in respect of losses sustained by it as a result of live stock loans made by it during a designated period, any amount that would result in the total of the payments made to the bank by the minister in respect of such losses being an amount in excess of twenty-five per cent of the aggregate principal amount of live stock loans made by the bank during that period; (b) to pay to a credit union or caisse populaire, in respect of losses sustained by it as a result of live stock loans made by it during a designated period, any amount that would result in the total of payments made by the minister in respect of losses sustained by all credit unions and caisses populaires as a result of live stock loans made by them during the period being an amount in excess of twenty-five per cent of the aggregate principal amount of live stock loans made by all credit unions and caisses populaires during that period. (2) In this section live stock loans does not include a live stock loan made to the council of a band of Indians. 1970, c.40, s.5; 1971, c.24, s.4; R.S.S. 1978, c.l- 24, s.5. Same 6(1) The minister is not liable under this Act: (a) to pay to a bank, in respect of losses sustained by it as a result of live stock loans made by it during a designated period, any amount that would result in the total of the payments made to the bank by the minister in respect of such losses being an amount in excess of seventy-five per cent of the aggregate principal amount of live stock loans made by the bank during that period; (b) to pay to a credit union or caisse populaire, in respect of losses sustained by it as a result of live stock loans made by it during a designated period, any amount that would result in the total of payments made by the minister in respect of losses sustained by all credit unions and caisses populaires as a result of live stock loans made by them during the period being an amount in excess of seventy-five per cent of the aggregate principal amount of live stock loans made by all credit unions and caisses populaires during that period. (2) In this section live stock loans does not include a live stock loan made to a farmer as defined by subclauses (i) and (ii) of clause (c) of section , c.24, s.5; R.S.S. 1978, c.l-24, s.6.

6 6 c. L-24 LIVE STOCK LOANS GUARANTEE Minister subrogated 7 Where the minister makes a payment under this Act to a lender in respect of a live stock loan: (a) the minister is subrogated as against the borrower to all the rights, powers, remedies and securities of the lender in respect of the loan; (b) the payment does not affect any liability of the borrower or release any securities given by the borrower in respect of the loan; and (c) notwithstanding any such payment, the liability and security shall remain and continue in full force and effect and may be enforced by the minister against the borrower. 1970, c.40, s.6; R.S.S. 1978, c.l-24, s.7. Grants 8 Subject to the regulations, the minister may pay to or on behalf of a borrower: (a) after the expiration of one year from the date of a live stock loan made to the borrower a grant not exceeding the amount by which the total of the interest paid on the principal of the loan during the first year thereof exceeds the total of the interest on the principal of the loan calculated at the rate of seven per cent per annum for that year; (b) after the expiration of two years from the date of a live stock loan made to the borrower a grant not exceeding the amount by which the total of the interest paid on the principal of the loan during the second year thereof exceeds the total of interest on the principal of the loan calculated at the rate of seven per cent per annum for the second year; and (c) after the expiration of three years from the date of a live stock loan made to the borrower a grant not exceeding the amount by which the total of the interest paid on the principal of the loan during the third year thereof exceeds the total of interest on the principal of the loan calculated at the rate of seven per cent per annum for the third year. 1970, c.40, s.7; R.S.S. 1978, c.l-24, s.8. Regulations 9 For the purpose of carrying out the provisions of this Act according to their intent and of supplying any deficiency therein, the Lieutenant Governor in Council may make regulations as are ancillary thereto and are not inconsistent therewith; and every regulation made under, and in accordance with the authority granted by this section has the force of law; and, without restricting the generality of the foregoing, the Lieutenant Governor in Council may make such regulations, not inconsistent with any other provisions of this Act: (a) prescribing the methods for determining the amounts of losses sustained by lenders as a result of making live stock loans; (b) prescribing the procedures to be followed by lenders in making claims for losses sustained by them as a result of making live stock loans; (c) prescribing the form of any document required for the purposes of this Act;

7 LIVE STOCK LOANS GUARANTEE c. L-24 7 (d) prescribing in the event of default in the repayment of a live stock loan the legal or other measures to be taken by a lender and the procedure to be followed for the collection of the amount of the loan outstanding and the disposal or realization of any security for the repayment thereof held by the lender; (e) prescribing the manner and time within which lenders are required to submit reports of live stock loans to the minister; (f) prescribing the nature and kind of security to be taken by lenders for the repayment of live stock loans; (g) prescribing the procedures for the making of grants under section 8; (h) prescribing terms and conditions of grants under section 8; (i) prescribing the maximum rate of interest on live stock loans in respect of which the minister shall make payment to lenders for losses sustained by the lenders; and (j) providing that in the event of actual or impending default in the repayment of a live stock loan the lender may, notwithstanding anything in this Act, with the approval of the borrower, alter or revise the terms of the loan respecting the amount of any payments to be made by the borrower under the loan or the time when any payments under the loan become due but no alteration or revision shall be made to the terms of a live stock loan to provide for less than one payment under the loan by the borrower in a twelve month period. 1970, c.40, s.8; R.S.S. 1978, c.l-24, s.9. Offences 10(1) Any person who makes a statement in an application for a live stock loan that is false in any material respect or who uses the proceeds of such loan for a purpose other than that stated in his application, is guilty of an offence and liable on summary conviction to a fine of not less than $25 or more than $500 and in default of payment to imprisonment for not less than five days or more than thirty days. (2) Where a person is convicted of an offence under subsection (1) there shall be imposed on him, in addition to any fine, a penalty equal to such amount of the live stock loan made to him in respect of which such offence was committed as has not been repaid by him, with interest thereon at the rate of five per cent per annum to the date of such conviction, and such penalty shall be paid to the lender by which such loan was made, or if payment has been made by the minister to the lender in respect of such loan under this Act such penalty shall be paid to the Minister of Finance, and payment of such penalty shall discharge the liability of such person to repay such loan. 1970, c.40, s.9; R.S.S. 1978, c.l-24, s.10. Expenditures 11 Sums required for the purposes of this Act may be paid out of moneys appropriated by the Legislature for the purpose. 1970, c.40, s.10; R.S.S. 1978, c.l-24, s.11.

8 REGINA, SASKATCHEWAN Printed by the authority of THE QUEEN S PRINTER Copyright 2012