Canada Grain Act — G-10 49
Additional security 49 (1) Where the Commission has reason to believe and is of the opinion that any security given by a licensee pursuant to this Act is not sufficient, the Commission may, by order, require the licensee to give, within such period as the Commission considers reasonable, such additional security as, in the opinion of the Commission, is sufficient. Enforcement or realization of security (2) Any security given by a licensee as a condition of a licence may only be realized or enforced by (a) the Commission; or (b) any holder referred to in section 45 who has suffered loss or damage by reason of the refusal or failure of the licensee to (i) comply with this Act or any regulation or order made thereunder, or (ii) meet any of the licensee’s payment or delivery obligations to that holder on the surrender of any cash purchase ticket, elevator receipt or grain receipt issued by the licensee pursuant to this Act. (2.1) [Repealed, 1994, c. 45, s. 12] Limitation — primary or process elevator or grain dealers (3) Notwithstanding subsection (2), a security given by a licensee as a condition of a licence to operate a primary or process elevator or to carry on business as a grain dealer may be realized or enforced in relation to a cash purchase ticket, an elevator receipt or a grain receipt only if (a) the licensee fails or refuses to meet any of their payment or delivery obligations to the producer of the grain to which the ticket or receipt relates within such period as may be prescribed after the day on which the grain was delivered to the licensee; and (b) the producer of the grain has given notice in writing of the failure or refusal to the Commission within thirty days after the failure or refusal. Limitation — terminal and transfer elevator (4) Notwithstanding subsection (2), a security given by a licensee as a condition of a licence to operate a terminal or transfer elevator may be realized or enforced in relation to an elevator receipt only if the holder of the receipt has given notice in writing to the Commission within thirty days after the failure or refusal of the licensee to meet any of their delivery obligations to the holder. Limitation — prescribed percentage (5) Notwithstanding any other provision of this Act, the Commission may prescribe by regulation the percentage of the value of a cash purchase ticket, an elevator receipt or a grain receipt that may be realized or enforced against security given by a licensee, and the security may be realized or enforced in relation to the cash purchase ticket, elevator receipt or grain receipt only to the extent of the prescribed percentage. Interpretation — failure to meet payment obligations (6) If the failure on the part of a licensee to meet the licensee’s payment obligations is a result of their giving to the producer a cash purchase ticket or other bill of exchange that the bank or other financial institution on which it is drawn subsequently refuses to honour, that failure occurs when the cash purchase ticket or other bill of exchange is given to the producer. (7) [Repealed, 1998, c. 22, s. 6] Insurance (8) The Commission may require an applicant for or the holder of a primary elevator licence, a terminal elevator licence or a transfer elevator licence to obtain insurance, in accordance with the regulations, against loss of or damage to the grain stored in the elevator. R.S., 1985, c. G-10, s. 49; R.S., 1985, c. 37 (4th Supp.), s. 17; 1994, c. 45, s. 12; 1998, c. 22, ss. 6, 25(F)