Agricultural Marketing Programs Act — A-3.7 5
Agreements to guarantee repayment of advances 5 (1) Subject to the other provisions of this Act, the Minister may make an agreement with an administrator or with an administrator and a lender for the purposes of (a) guaranteeing to the administrator or, if the agreement is made with an administrator and a lender, to the lender, the repayment of advances that the administrator makes to eligible producers from money borrowed for the purpose of making the advances, together with any interest on the advances; and (b) setting out the obligations of the administrator in relation to the advances and their repayment. Restriction (1.1) An advance guarantee agreement may be made with an administrator and a lender, or with an administrator that is a lender, only if the Minister is satisfied that doing so will reduce the interest payable to the lender and the agreement is made subject to terms and conditions approved by the Minister of Finance. Conditions concerning the guarantee (1.2) If a guarantee under the advance guarantee agreement is made to a lender, or to an administrator that is a lender, the agreement must provide, in addition to any other terms and conditions, that the interest rate on the money provided by the lender, or by the administrator, as the case may be, will not exceed the rate specified in the agreement. Administrator to demonstrate ability (2) An administrator must demonstrate to the Minister that it is capable of meeting its obligations under the advance guarantee agreement. Terms and conditions (3) In addition to identifying the agricultural products and specifying the terms and conditions governing advances and their repayment, an advance guarantee agreement must provide that the administrator agrees (a) to make an agreement with each buyer mentioned in subparagraph 10(2)(a)(i), other than the administrator, to withhold amounts as provided in that subparagraph and to remit them immediately to the administrator; (b) to withhold amounts as provided in subparagraph 10(2)(a)(i) in cases where the administrator is the buyer; (c) to make the advances from money borrowed from a lender; (d) to ensure that the interest rate on the money borrowed by the administrator will not exceed the rate specified in the advance guarantee agreement; (e) to take steps, in accordance with the advance guarantee agreement, to ensure that, before an advance is made (i) in the case of an agricultural product that is storable, (A) it is of marketable quality and stored so as to remain of marketable quality until disposed of in accordance with the repayment agreement, or (B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, (ii) in the case of an agricultural product that is not storable, (A) it is of marketable quality and maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement and either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, or (B) if it is in the course of being produced or is not yet produced, either the amount of the advance is covered by a program listed in the schedule and the amounts that may be received under that program are assignable or the amount of the advance is covered by the security referred to in section 12, and (iii) despite subparagraphs (i) and (ii), in the case of an agricultural product that is livestock, it is of marketable quality and maintained so as to remain of marketable quality until disposed of in accordance with the repayment agreement; (f) to repay the money it borrows from the lender, together with the interest, by paying to