FARM DEBT REVIEW BOARD ANDFARM LAND SECURITy BOARD

TABLE OF CONTENTS

1. Farm Land Security Act.

2. Regulations under the Farm Land Security Act.

3. Farm Debt Review Act (Bill C-117).

4. Regulations under the Farm Debt Review Act.

5. Notice of Intent to Realize on Security.

6. Application for an Insolvent Farmer (Section 20).

page1

6

7

12

13

14

7. Application for a Farmer in Financial Difficulty (Section 16) 18(a) Consent for Examination of Financial Affairs. 19

8. Notice of Appointment of Guardian - Farmer (Section 24). 20

9. Notice of Appointment of Other Guardian (Section 24). 22

10. Form letter for reply to Section 20 application. 23

11. Form letter to Creditor after Section 20 application. 25

12. Notice of Extension of Stay of Proceedings. 26

13. Covering letter for service of Stay of Proceedings. 27

14. Covering letter for third extension of Stay of Proceedings. 28

15. Notice of End or Termination of Stay of Proceedings. 29

16. Background Pamphlet - Farm Debt Review Act. 30

17. List of Farm Debt Review Boards. 32

18. Review Process Flow Chart. 33

19. Farm Debt Review Act - Guidelines of Lenders. 35

20. Summary of Farm Debt Review Act issues. 41

21. Procedural comparison of the Farm Debt Review Board and FarmLand Security Board. 45

22. Farm land Security Poard Menbers 48

23.. IFann Debt Review Poard Members

24. Fieldpersons for both Poards

25. Amended rbtice of AppointIrent of Guardian - Fanner

49

50

51

26. Government of Sask M:mth1y Statistical Report, Dec. 31,1986

27. Farm Debt Review Board's Activity During November 1986

28. Farm Debt Review Board Monthly Report, Dec., 1986

53

54

55

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1984-85

CHAPTER f-8.01

An Act respecting the Security of FarmLand in Saskatchewan

(Assented to December 19, 1984)

HER "AJESTY, by and with the advice and consent of the LegislativeAssembly ~f Saskatchewan, enacts as follows:

Short title

Interpretation.. action"

"board"

"court"

"fa,.. land"

"fa,..er"

"f.....ing..

" ..ort;a;e"".ort;agee"

1 This Act .ay be cited as The Fa~ Land Security Act.

2 In this Act:Ca) "action" lIeans an action with respect to fa~ land:

(i) by a .ortgagee, or his personal representatives orassigns, for foreclosure of the eQuity of rede.Ption, forsale or possession or for the recovery of any Moneyspayable under a .c~g.ge; or(ii) by. vendor, or his personal representatives orassigns, for specific perforNance or c.ncellation of anagree.ent for sale, for sale or possession of the landsold under the agree.ent for sale or for any other reliefthat .ay be granted under the agreement for s.le;

(b) "board" .e.ns the F.,.. L.nd Security Board establishedpursu.nt to section 4;(c) "court" .eans Her lIIajesty's Court of Queen's Bench forSaskatchew.n;Cd) "fa~ land" lIeans l.nd in Sask.tchewan that is used forthe purposes of fa,..ing and is subject to a Mortgage;Ce) "fa~er" lIeans • Mortgagor or a purch.ser under an.greeWlent for the sale of far. land or the personalrepresent.tives or assigns of a .ortgagor or • purch.ser under.n agree.ent for sale;(f) "farlling" includes live stock raising, poultry raising,dairying, till.ge of the soil, bee-keeping, fur fa,..ing or anyother activity undertaken to produce agricultural products;Cg) "WIOrtgage" includes an agreeunt for the sale of land;Ch) ".ortg.gee" includes a vendor under an agreMent for theule of land.

Purpose 3 The purpose of this Act is to .fford protection to farllersagainst loss of their far. land.

Fa,.. Land Security Board4(1) The Far. Land Security Board is established consisting ofthose persons appointed by the Lieutenant Governor in Council.(2) One ..e..ber of the board is to be designated as its chai,..an bythe Lieutenant Governor in Council.(3) The board May:

Ca) eppoint co-..ittees consisting of any individuals anddelegate to those COMmittees any of its powers pursuant toclauses 9(7)(a) and (b);(b) hire any eMployees and fix their terMS and conditions ofe..ploy.ent or retain any advisors;

that it considers necessary in connection with carrying out itsduties pursuant to this Act.(4) In performing their duties pursuant to this Act, the board andits committees have all of the povers of commissioners pursuant toThe Public Inquiries Act.

Application of Act5 This Act applies to all 1I0rtgages on f.,.. land in Saskatchewan,including a .ortga;e .ade pursuant to the FarM Credit CorporationAct CC.n.da), as a.ended fra- tiMe to till., or in favour of anyOiher corporation created by or pursuant to any Act of theParlia.ent of Canada.

Crown bound 6 The Crown is bound by this Act.

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FAR" LAND SECURITY 1984-85

Actions stayed or prohibited7(1) Notwithstanding any other Act or law or any agree~ent enteredinto before or after Dec~ber 4, 1984 but subject to section 9:

(a) all applications for leave to ca-mence an action underThe Land Contracts (Actions) Act with respect to fa~ land.ade before the coming into force of this Act, are adjou~ed

~~ until after Dece~ber 31, 1985 or, where an order is.ade pursuant to section 13, December 31, 1986;(b) all actions co..enced with respect to farM land beforethe co.ing into force of this Act, are adjourned sine rlieuntil after December 31, 1985 or, where an order is .a~pursuant to section 13, December 31, 1986;(c) no person shall co~ence an action with respect to far.land or .ake an application for leave to co.mence an actionunder The Lind Contracts (Actions) Act with respectto far. land until after December 31, 1985 or, where an orderis made pursuant to section 13, December 31, 1986;<d) all actions commenced before December 4, 1984 to r.alizeagainst a security collateral to a .ortgage on far. land aread50urned~~ until after December 31, 1985 or, where anorder is made pursuant to section 13, December 31, 1986; and(e) no person shall co~ence an action to realize against asecurity coLlateraL to a .ortgage on farm land during theperiod commencing on ~ecember 4, 1984 and ending an DeceMber31, 1985 or, where an order is Made pursuant to section 13,Dece~ber 31, 1986.

(2) The period of tiMe commencing on December 4, 1984 and endingon December 31, 1985 or, ~here an order is made pursuant to section13, December 31, 1986 is not to be included in calculating thetime, pursuant to The Limitation of Actions Act or pursuant to anyother llw or rule of court, for commencing or continuing any Ictionor .aking any applicaticn for the enforcement or recovery 01 anysum of Money secured by a mortgage with respect to farm Lind.

Extension of time for redemption8(1) Notwithstanding the teMfts of any order nisi or decree nisi inan action but subject to section 9, the ti.e for renemotion~rthe order or decree is extended until January 1, 1986 or, where anorder is ~ade pursuant to section 13, January 1, 1987.(2) Where a finaL order was .ade in an action before December 4,1984, the .atter .ay proceed notwit~standing this Act.

AppLication to court9(1) Subject to the other provisions of this section, where a.o~gagee Makes an application with respect to a .ortgage on fa~

Land, the court May, on any terms and conditions that it considersjust and equitabLe, order that sections 7 and 8 do not aoply.(2) Where In order is .ade pursuant to subsection (1):

(a) the .ortgagee .ay c~ence or continue an action withrespect to that .ortgage; and(b) The Land Contracts (Actions) Act does not appLy to thatMortgage.

(3) During the period COMmencing on December 4, 1984 Ind ending onDecember 31, 1985 or, where an order is .Ide pursuant to section13, December 31, 1986, any action that is COMmenced without anorder pursuant to this section is a nullity, and any orde~ .adewith respect to an action or a proposed action without an orderpursuant to this section is void.(4) No order shall be Made pursuant to subsection (1) unless Itleast 120 days' notice of an intention to apply to the court hasbeen given to the far.er and to the board.(5) A notice .entioned in subsection (4) shall:

(a) contain the infor.ation prescribed in the regulations; and(b) be served by registered .ail with post officeacknowledgement of receipt card or personal service.

(6) No .ortgagee shall serve a notice pursuant to subsection (4)until on or after January 1, 1985.

c.F-8.01

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FAr.~ ~AND SECURITY 1984-85

(7) On receipt of a notice pursuant to subsection (4), the boardshill:

CI) investigate the financial affairs of the firmer;(b) atte~pt to mediate bet~een the farmer and the aortgagee;(c) before the hearing of the application, provide a ~ritten

report to the court respecting Iny Natters that it considersrelevant to the application, including its vie~s about ~hether

the farmer:Ci) has a reasonable possibility of aeeting hisobligations under the mortgage; andCii) is .aking a sincere and reasonable effort to .eethis obligations under the .ortgage; Ind

Cd) provide I copy of a report .entioned in clluse Cc) to thefar.er and the aortgagee.

CS) Where an application is .Ide pursulnt to subsection (1), thecourt:

Ca) shall presume that the farmer:Ci) hiS a reasonable possibility of .eeting hisobligations under the aortgage; IndCii) is aaking I sincere Ind relsonable effort to aeethis obligations under the .ortgage.

Cb) shall consider and shill give pri.ary consideration to •report of the board aade pursuant to subsection (7);(c) .ay consider:

(i) the obligations of the faraer to any creditor otherthan the .ortgagee;(ii) the provisions of the .ortgage concerning the dateand ter.s of repayaent;(iii) the state of cultivation of the fara land;Civ) the value and condition of the farM land;(v) the state of accounts bet~een the farmer and themortgagee;(vi) the earning capacity, inCOMe and assets of thefarmer;Cvii) the proportion of the inCOMe of the farmer and hisspouse that is required to aeet hi·s debt obligations;(viii) any general or local agricultural, econe-ic andcliaatic conditions, including hail, flood, drought,frost or Igricultural pests;(ix) whether the far.er has requested or receivedfinancial assistance from any source;(x) any conditions Ind circumstlnces beyond the controlof the farMer, including his inability to .arket anagricultural commodity, the price of any Igriculturllco~modity and the cost of production; and(xi) any conditions and circumstlnces in Iddition tothose .entioned in subclauses (i) to Cx) that the courtconsiders relevant to the application; and

Cd) shall .Ike any inquiries with respect to the conditionsInd circumstlnces set out in subclauses (c)(i) to (xi) that itconsiders necessary to dispose of the application.

(9) The court Nay:Ca) require the parties to furnish particulars respecting thematters set out in subsection (8);(b) adjourn an IPplication aade pursuant to subsection (1)for Iny period of tiae that it considers appropriate.

(10) On an application pursuant to subsection (1), in addition toany other burden of proof that lies with the aortgagee, the.ortgagee has the burden of proof to establish that:

Ca) the fareer has no reasonable possibility of aeeting hisobligations under the aortgage; orCb) the fareer is not Naking a sincere Ind reasonable effortto .eet his obligations under the .ortgage;

and unless the court is satisfied that the burden of proof has beendischarged, it shall dis~iss the application.(11) Notwithstanding subsection (10), the court shall dismiss Inapplication aade pursuant to subsection (1) if it is satisfied thatit is not just .nd equitable according to the purpose and spirit ofthis Act to make the order.(12) Where an application pursuant to su~ection (1) has beendismissed, subject to section 13, no further application pursuantto subsection (1) shall be made with respect to the aortgage onthat fara land.

c.F-B.01

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FARM LAND SECURITY 1984-85

Writs of execution

(13) Th~ costs of an application pursuant to this s~ct;on .re inthe discr~tion of th~ court.

10C1> During th~ period commencing on Decemb~r 4, 1984 .nd endingon December 31, 1985 or, where .n order is ma~e pursuant to section13, December 31, 1986, notwithstanding section 23 of Th~ ExecutionsAct, no f.rm land shall be sold by a sheriff under a writ ofexecution against lands, whether issued before or after December 4,1984, unless, on application, the court orders t~at this subsectiondon not apply, and subsections 9C4> to (13) apply mutatis lIIut.ndisto an applic.tion pursuant to this subsection.(2) Subject to subsection (4), during the period commencing onDecember 4, 1984 and ending on Deeemb~r 31, 1985 or, wher~ an orderis made pursuant to section 13, December 31, 1986, notwithstandingsection 185 of The Land Titles Act, where farm land has been solrlund~r a writ of ex~eution on lands prior to December 4, 1984 andwhether or not an order confirming the sale has been lIIade, no orderconfirming the sale shall be made and no transfer shall beregistered pursuant to section 185 of Th~ Land Titl~s Act, IS theclse may be, unless, on IPPlication, the court orders that thissubsection does not loply .nd confirms the sale or orders theregistration, and subs~ctions 9(4) to (13) apply mutatis lIIutandisto an application pursuant to this subsection.(3) Where an order is .ade pursuant to subs~ction (1), leave isnot required pursuant to section 23 of The Executions Act.(4) Where an ord~r is .Ide pursuant to subs~ction (2) confirein; Isale of farm land, subsections 185(2) and (3) of The Land TitlesAct .poly.(5) In this section and section 19 and, for the purposes of anapplication pursuant to this section, in section 9:

(a> "f.rm l.nd" includes land in Saskatchewan that is usedfor the purposes of firming Ind is subject to I writ ofexecution;(b) "farmer" includes the owner of farlll land;(c) ".ortgage" includes a writ of execution; and(d) "lIIortgagee" includes the ellecution creditor under a writof ellecution.

Farmers' Counselling and Assistance Act reports11 Notwithstanding section 13 of The Farlllers' Counselling andAssistance Act, a panel constituted pursuant to that Act lIIayrelease to the board any report and any records related to a reportpursuant to tbat Act and the board .ay consider such areport and records and make reference to them in any reportpursua~t to subsection 9(7).

Appeal of Court of Appeal12 An appeal lies to the Court of Apoeal on a Question of la.. froman order of the court ~ade pursuant to section 9 or 10.

Lieutenant Governor in Council .ay extend time13(1) The Lieutenant Governor in Council m~y, by Orrler, extend theperiod of operation of this Act to Decembe~ 31, 1986.(2) Where th~ Lieutenant Governor in Council elltends the t;~e

pursuant to subsection (1), an apPlication lIIay be made pursuant tosection 9 or 10, as the case .ay be, and the provisions of thosesections apply mutatis mutandis to such aoplications.

Agreements to w,ive Act void14(1) Every agreement or bargain, verbal or written, elloress orimplied, whether entered into before or after December 4, 1984,that this Act or .ny provision of it or any provision of any Actsimilar to this Act shall not appl~ or that any benefit or remedyprovided by such an Act shall not be available, or which in .ny waylimits, Modifies or abrogates or in effect limits, _odifies orabrogates any such benefit or rellledy, is null, void and of noeffect.(2) Where, but for this Act, a mortgagee would have permitted afarmer to renew a lIIortgage on farm land, the mortgagee shall per.itthe farMer to renew the mortgage.

c.F-8.01

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FARM LAND SECURITY 1984-85

Confidentiality 15 Except for the purposes of this Act, every member of the boardand every other person involved in the administration of this Actshall hold all infon.etion received by hi~ pursuant to this Act inconfidence.

Immunity from liability16 No member of the board or a COMmittee of the board or employeeor advisor of the board acting or purporting to act pursuant tothis Act is liable for any loss or damage suffereM hy any person byreason of anything done or omitted to be done by him in good faith.

Offence 17C1> Every person who contravenes any provision of this Act isguilty of an offence and liable on summary conviction to a fine ofnot .ore than $10,000.(2) Every director, officer or agent of a corporation who~irected, authorized, assented to, acquiesced in or participated inthe COMmission of an offence by the corporation pursuant tosubsection (1) is guilty of an offence and liable on SUMmaryconviction to a fine of not .ore than *10,000, whether or not thecorporation has been prosecuted or convicted.C» No prosecution is to be instituted pursuant to this sectionwithout the consent of the Attorney General.

Appropriation 18 Sums required for the purposes of this Act are to be paid outof Moneys approPriated by the Legislature for the purpose.

19 The Lieutenant Governor in Council .ay .ake regulations:Ca> exe~ting:

(i) any faraer or .ortgage. or any class of farMers orMortgagees; or(ii) any contract or agreeMent or any class of contractsor agreements;

from the application of this Act or any provision of this Acton any teras and conditions that the Lieutenant Governor inCouncil considers appropriate;(b> prescribing the information that is to be contained in anotice pursuant to subsection 9(4).

Coming into force 20 This Act comes into force on the day of assent but isretroactive and is deemed to have been in force on and fromDecember 4, 1984.

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Df:CE~l!lf." :I~. 1!'~4-------_.CHAPTER F·S.OJ REG 1

The Farm Land Security ActSl'ctil>n 19

Order in Counci11460/S4, dated December 20.1984.

IFiled Dt:cember 20.19841

ORDER

His Honour the Lieutenant Governor in Council. on therecommendation of the Minister of Agriculture, pursuant tosection 19 of The Farm Land Sccurity Act. makes The FarmLand Security Regulations in accordance with the attachedSchedule.

SCHEDULE

1 These regulations may be cited as The Farm Land Security Tn"

Regulations.

2 In these regulations. ~Act· means The Farm Land Securit.'· I.~~:-r".".t'oo

Act.

3 A notice pursuant to subsection 9(4) of the Act shall :;::~~:nL...rcontain:

(a) in the case of an application in respect of a mortgageon farm land:

(i) the name of the judicial centre where theapplication pursuant to section 9 is proposed to be made;(ii) the mortgagee's name and address:(iii 1 the mortgagor's name and address;(ivI the property description of the farm land that issubject to the mortgage in connection with which theapplication pursuant to section 9 of the Act is to be made;(v) with respect to the mortgage:

(A) the date of execution;(B) the amount of the mortgage;(e) the mortgage balance outstanding;(0) the interest rate;(E) the instalments payable;(F) the arrears on the principal;(Gl the arrears of interest;(HI the total arrears;m the amount and dates of all instalments paidduring the three years immediately preceding thedate of the notice;(J) the mortgage renewal date; and

(vi) a copy of the mortgage;

(bl in the case of an application in respect of a writ ofexecution on farm land:

(i) the name of the judicial centre where theapplication pursuant to section 10 is proposed.to be made;(ii1 the name ofthe execution debtor;\iii) the name of the execution creditor;(iv) the property description of the farm land that issubject to the writ of execution in connection with whichan application pursuant to lection 10 of the Act is to bemade;(v) with respect to the writ of execution:

(A) the date it was issued; and(B) the amount of the debt to be collected pursuantto it; and

(vi> a copy ofthe writ of execution.

}::',n" ,n'.. 4 These regulations come into force on January 1. 1985.

UEPRINTC-117

Firlit Session, Thirty-third Parliament,33-34-35 Eli1.abcth II. 1984·85·86

THE HOlJSF. OF COMMONS OF CANADA

BILL C-117

An Act to facilitate financial arrangements betweenfarmers and their creditors

." PASSEl) BY THE HOUSE OF CO:\1:\10NSJUNE 26. 1986

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CHAPTER 33

33-34-35 ELIZABETH II

[Assented to 27th June, 1986]

HER MAJESTY

(b) who has ceased paying his currentobligations in the ordinary course ofbusiness as they generally become due,or(c) the aggregate of whose property isnot, at a fair valuation, sufficient, or ifdisposed of at a fairly conducted saleunder legal process would not be suffi­cient, to enable payment of all his obli­gations, due and accruing due;

"Minister" means the Minister of Agricul­ture;

"prescribed", in the case of a form or theinformation to be given on a form, meansprescribed by the Minister and, in anyother case, means prescribed by regula­tion;

"regulation" means a regulation made by theGovernor in Council under this Act;

"review panel" means a review panelappointed under section 17 or 28;.

"secured creditor" means(a) any creditor holding a mortgage,hypothec, pledge, charge, lien or privi­lege on or against the property of afarmer or any part thereof as securityfor a debt due or accruing due from thefarmer,(b) any individual, partnership, corpo­ration or cooperative association withwhom a farmer has entered into anagreement for sale or conditional salescontract relating to any property used oroccupied by the farmer or to whom suchan agreement or contract has beenassigned, and(c) any bank to whom security on theproperty of a farmer or any part thereofhas been given under sec~ion 178 of theBank Act.

"securedcreditor"ocrI""eill',,,,,,,,1/.

"rel/iew panel"ocomitlo

"regulation".,egillmll"t.

"Minister"oministn-

"prescribed"VII,sion"n,/"iuslluillmllnt

INTERPRETATION

2. In this Act,"Board" means a Farm Debt Review Board

established pursuant to section 4;"business day" means a day other than

Saturday or a holiday;"farmer" means any individual, partnership,

corporation or cooperative association thatis engaged in farming;

"farming" means the production of field­grown crops, cultivated and uncultivated,and horticultural crops, the raising of live­stock, poultry and fur-bearing animals, theproduction of eggs, milk, honey, maplesyrup, tobacco, wood from woodlots, fibreand fodder crops and the production orraising of any other prescribed thing oranimal;

"insolvent farmer" means a farmer(a) who is for any reason unable tomeet his obligations as they generallybecome due,

SHORT TITLE

I. This Act may be cited as the FarmDebt Review Act.

Her 'Majesty, by and with the advice andconsent of the Senate and House of Com­mons of Canada, enacts as follows:

An Act to facilitate financial arrangementsbetween farmers and their creditors

"insoll/entfarmer"",,'ieu/tllu,inso/I/"b/e.

*

"farmin,"",,,ieu/tu,e.

Definitions

WCarmcr""",ieu/tnra

"business clay".jou, oUI/,,,b/e.

Short title

"Board".bun"u.

*Different from F.L.S.B. as, if a personis renting his land he is not protected. Binding on Her

Majesty3. This Act is binding on Her Majesty in

right of Canada or a province.

Establishmentof Boards

Term of office

Re-appoint­ment

Remuneration

Expenses

Chairman

Absence orincapacity

Employees

Status ofemployees

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Establishment of Boards

4. (1) The Governor in Council mayestablish for each province. or for suchregions of Canada as may be designated bythe Governor in Council. a Farm DebtReview Board consisting of a Chairman andnot more than ten other members appointedby the Governor in Council.

(2) A member'of a Board shall be appoint­ed to hold office during pleasure for a termnot exceeding five years.

(3) A member of a Board is eligible to bere-appointed in the same or another capacity_

5. The members of a Board shall be paidsuch remuneration as may be fixed by theGovernor in Council.

6. Each member of a Board is entitled tobe paid reasonable travel and living expensesincurred by him in the performance of hisduties under this Act while absent from hisordinary place of residence.

7. The Chairman of a Board is the chiefexecutive officer of the Board and has super­vision over and direction of the work andstaff of the Board and shall preside at meet­ings of the Board.

8. In the event of the absence or incapaci­ty of the Chairman of a Board or if the officeof Chairman is vacant, such member of theBoard as is elected by the majority of mem­bers thereof shall act as Chairman.

9. (1) Such employees as are necessary forthe proper conduct of the work of a Boardshall be appointed in accordance with thePublic Service Employment Act but theMinister may assign employees of theDepartment of Agriculture to serve on thestaff of a Board without additional remuner­ation.

(2) Employees appointed under subsection(I) shall be deemed to be employed in the

Public Service for the purposes of the PublicService Superannuation Act.

Appointment of (3) A Board may appoint experts to assistexperts it in any matter relating to any application

made under this Act and may, subject to theapproval of the Treasury Board, fix theremuneration and expenses of those experts.

Rules 10. (1) A Board may make rules respect-ing the management of its internal affairsand generally for the conduct of its activities.

Idem (2) The Minister may make rules respect-ing the management of the internal affairs ofa Board and generally for the conduct of itsactivities and the members of the Board shallcomply with any such rules made by theMinister.

Inconsistency (3) In the event of any inconsistency be-tween any rules made by a Board undersubsection (l) and any rules made by theMinister under subsection (2), the rulesmade by the Minister shall prevail to theextent of the inconsistency.

List of persons 11. (1) Each Board shall prepare a listcontaining the names of persons who areavailable to serve on review panels in theprovince or region of Canada for which theBoard was established.

Qualifications (2) The persons referred to in su?secti~n

(1) must have knowledge and expenence magriculture or in financial matters.

Farm Debt Review Panels

Constitution of 12. Each review panel shall consist of tworeview panels persons appointed by the Chairman of a

Board, after consultation with the othermembers of the Board, from among the per­sons whose names appear on the list referredto in section 11 and one person appointed bythe Chairman from among the members ofthe Board.

Chairman of 13. The member of a review panel who isreview panel appointed from among the members of a

Board shall preside as chairman of. thereview panel.

Remuneration

Expenses

Application

Appointment ofreview panels

Priority

Responsibilitiesof review panel

Arrangement

Application

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14. The members of a review panel shallbe paid such remuneration as may be fixedby the Governor in Council.

15. Each member of a review panel isentitled to be paid reasonable travel andliving expenses incurred by him in theperformance of his duties under this Actwhile absent from his ordinary place ofresidence.

FARMERS IN FINANCIAL DIFFICULTY

16. Any farmer who is in financial dif­ficulty may apply, in the prescribed formcontaining the prescribed information, to theBoard established for the province or regionof Canada in which the farmer resides for areview of his financial affairs or for assist­ance in facilitating an arrangement with hiscreditors.

17. (1) Subject to subsection (2), where aBoard receives an application made undersection 16, the Chairman of the Board shallappoint a review panel with respect to theapplication in accordance with section 12.

(2) A Board shall deal with applicationsmade under section 16 in such order andwithin such time as it may consider neces­sary having regard to the seriousness andurgency of the cases at hand.

18. A review panel appointed under sec­tion 17 shall examine the financial affairs ofthe farmer concerned and may offer advice,meet with the farmer and any of his creditorsand assist the farmer and his creditors toenter into an ~rrangement.

19. Where a farmer enters into anarrangement with any creditor pursuant tosection 18, the review panel shall see to itssigning by the parties thereto.

INSOLVENT FARMERS

20. (1) Any insolvent farmer may apply,in the prescribed form containing the pre­scribed information, to the Board establishedfor the province or region of Canada inwhich the farmer resides for a review of his

Namcsofcreditors

Board to advisecreditors

Notice

Time of notice

Stay ofprocecclings

Board shanappointprdian

financial affairs and for a stay of any pro­ceedings against him by his creditors.

(2) An application under subsection (I)shall include the names and addresses of thecreditors of the farmer who makes theapplication.

11. On receipt of an application made bya farmer under section 20. a Board shall givenotice thereof, in the prescribed form con­taining the prescribed information, to eachperson whose name is listed as a creditor inthe application.

22. (1) Every secured creditor whointends to realize on any security of a farmershall give the farmer written notice, in theprescribed form containing the prescribedinformation, of his intention to do so and inthe notice shall advise the farmer of the rightof an insolvent farmer to make an applica­tion under section 20.

(2) The notice referred to in subsection (1)shall be· given to the farmer in the prescribedmanner at least fifteen business days beforethe taking of any action by the secured credi­tor to realize on the security.

23. Subject to sections 26, 29 and 32, andnotwithstanding any other law, on receipt bya Board of an application made by a farmerunder section 20, no creditor of the farmershall, for a period of thirty days after thereceipt of the application by the Board, haveany remedy against the property of thefarmer or shall commence or continue anyproceedings or any action, execution or otherproceedings, judicial or extra-judicial, for therecovery of a debt, the realization of anysecurity or the taking of any property out ofthe possession of the farmer.

24. (1) Subject to subsection (2), as soonas practicable after the receipt of an applica­tion made by a farmer under section 20, aBoard shall appoint one of the followingpersons to be the guardian of the assets ofthe farmer:

(0) the farmer;(b) any other qualified person chosen bythe Board; or

)

Farmer asluardian

Ellpenses ofluardian

Idem

Duties andfunctions ofauardian

Idem

Termination of'layofproccedinas

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(c) any other qualified person nominatedby any secured creditor or securedcreditors.

(2) Where, in the opinion of a Board, thefarmer is qualified to be the guardian of hisassets and no other person is nominated byany secured creditor to be appointed guard­ian, the Board shall appoint the farmer asguardian.

(3) Where a Board appoints a personreferred to in paragraph (l)(b) to be theguardian of the assets of a farmer, theexpenses of the guardian shall be paid by theBoard.

(4) Where a Board appoints a personreferred to in paragraph (t)(e) to be theguardian of the assets of a farmer, theexpenses of the guardian shall be paid by thesecured creditor or secured creditors whonominated that person.

1S. (1) A farmer who is appointed guard­ian of his assets shall comply with any direc­tives issued to him by the Board.

(2) A person, other than the farmer, whois appointed guardian of the assets of thefarmer shall

(a) prepare an inventory of the assets ofthe farmer;(b) verify periodically the presence andcondition of those assets;(e) advise the Board of any act or omis­sion on the part of the farmer that wouldjeopardize those assets; and(d) comply with any directives issued tohim by the Board.

16. If a farmer contravenes or is negligentin complying with any directives issued tohim by a Board pursuant to subsection 25(1)or if the Board is of the opinion that thefarmer has, by any act or omission on hispart, jeopardized his assets or obstructed theguardian in the performance of his dutiesand functions under subsection .25(2), theBoard may direct that the period referred toin section 23, as it may have been extendedunder section 29, be terminated and, wherethe Board so directs, that period shallterminate.

Termination ofappointment

Appointment ofreview panel

ResponsibiJiesof review panel

Stay ofprocccdiniselltended

Idem

Notice

Arranlement tobe put inwritinl

Appointment oftruatcc

17. The appointment of a guardian undersection 24 terminates on the expiration ortermination of the period referred to in sec­tion 23, as it may have been extended undersection 29.

18. (1) As soon as practicable after thereceipt by a Board of an application made bya farmer under section 20, the Chairman ofthe Board shall appoint a review panel tofacilitate an arrangement between thefarmer and his creditors.

(2) A review panel appointed under sub­section (1) shall review the financial affairsof the farmer concerned and shall meet withthe farmer and his creditors for the purposeof facilitating an arrangement between them.

19. (1) Where a Board considers an exten­sion of the period referred to in section 23 tobe essential to the formulation of an arrange­ment between a farmer and his creditors, theBoard may extend that period for a period ofthirty days.

(2) Where a Board considers an extensionof the period referred to in section 23, asextended under subsection (1), to be essentialto the formulation of an arrangement be­tween the farmer and his creditors, theBoard may extend that period for a max­imum of two further periods of thirty dayseach.

(3) A Board shall give notice, in the pre­scribed form containing the prescribed infor­mation, of any extension granted under sub­section (1) or (2) to each person whose nameis listed as a creditor in the application inrespect of which the extension is granted.

30. Where a farmer enters into anarrangement with any creditor pursuant tosubsection 28(2), the review panel shall seeto its signing by the parties thereto.

31. (1) A Board may appoint a licensedtrustee to perform such duties with respect toany arrangement entered into pursuant tosubsection 28(2) as may be prescribed byregulation or as may be determined by theBoard.

ElpenlCS oftrustee

Termination ofllayofproc:eedings

New applica­tions

Idem

DilputCi

Communicationof information

-11-

(2) The expenses of a licensed trusteeappointed under subsection (l) shall be paidby the Board.

32. On the signing of an arrangementunder section 30, the period referred to insection 23, as it may have been extendedunder section 29, shall terminate.

GENERAL

33. (1) Notwithstanding any other provi­sion of this Act, where a farmer makes anapplication to a Board under section 20 butdoes not enter into an arrangement with anycreditor within the period referred to in sec­tion 23, as it may have been extended undersection 29, the farmer is not entitled to makea new application under this Act for a periodof two years after the date on which theapplication was made unless, before makingthe new application, the farmer obtains thewritten consent of the Board.

(2) Notwithstanding any other provisionof this Act, where a farmer makes anapplication to a Board under section 20 andenters into an arrangement with a creditorwithin the period referred to in section 23, asit may have been extended under section 29,the farmer is not entitled to make a newapplication under this Act for a period of twoyears after the termination of the arrange­ment unless, before making the new applica­tion, the farmer obtains the written consentof the Board.

34. Nothing in this Act prevents any partyto an arrangement made under this Act fromtaking a dispute arising therefrom to a courtof competent jurisdiction for disposition.

35. (1) Except as authorized by subsection(2), no pers(\n shall knowingly communicateor knowingly allow to be communicated toany person any information obtained from afarmer or from any creditor of a farmerunder this Act or knowingly allow any personto inspect or have access to any suchinformation.

Elception

Personalliability

Regulations

Report toParliament

Reference toparliamentarycommittee

Review andreport toParliament

Coming intoforce

(2) A person engaged in the administra­tion of this Act may communicate or allow tobe communicated or allow inspection of oraccess to any information referred to in sub­section (1) to or by any other person engagedin the administration of this Act or anyperson otherwise legally entitled thereto.

36. No member of a Board or reviewpanel and no employee of a Board or personacting on behalf of a Board is personallyliable for any act or omission done in goodfaith in the performance of his duties orfunctions under this Act.

37. The Governor in Council may makeregulations prescribing any matter or thingthat by this Act is to be prescribed byregulation.

38. (I) The Minister shall, within threemonths after the termination of each calen­dar year or, if Parliament is not then sitting,on any of the first fifteen days next ther ")ter that either House of Parliament is sitlto_c ;lay before Parliament an annual report onthe activities of the Boards established pur­suant to section 4.

(2) The report laid before Parliament pur­suant to subsection (1) stands permanentlyreferred to such committee of Parliament asis established to review matters related toagriculture.

39. Such committee of the House of Com­mons as may be designated or established bythe House for that purpose shall, at the endof the calendar year in which this Act comesinto force, undertake a review of the overalleffectiveness of this Act and shall, withinsuch time as the House "may authorize,submit a report to Parliament thereonincluding a statement of any changes thecommittee would recommend.

COMING INTO FORCE

.40. This Act shall come into force on aday to be fixed by proclamation. which isAugust 5, 1986.

-12-

REGULATIONS RESPECTING 'rHE MANNER IN WHICH ASECURED CREDITOR IS TO GIVE NOTICE TO A FARMER

OF HIS INTENTION TO REALIZE ON A SECURITY

Short Title

1. These Regulations may be cited as the Farm Debt SecuredCreditors Notice Regulations.

Interpretation

2. In these Regulations,

"Act" means the Farm Debt Review Actl

"Adult" means a person who is or appears to be of the'age of majoritYI

"Farmer's" residence" means'

(a) in the case of a farmer who is an individual, the placewhere the farmer lives,

(b) in the case of a farmer that 18 a partnership, theprincipal place of business of the partnership, and

(c) in the case of a farmer that 1s a corporation orcooperative association, the head office of thatcorporation or cooperative.

Notice

3. The notice required to be given by a secured creditor to afarmer under subsection 22(1) of the Act shall be given by

<a) leaving the notice with the farmer personally or with anyadult at the farmer's residence,

(b) prepaid registered mail delivered to the farmer personallyor any adult at the farmer's residencel

(c) prepaid priority post delivered to the farmer personallyor any adult at the farmer's residenee,

(d) telex message sent to and received at the farmer'sresidence; or

(e) facsimile message sent to and received at the farmer'sresidence.

EXPLANATORY NOTEtThis notr is not eart of the Re~ulationS)

Theae regulations prescribe the manner In wblc a secured creditor. ia to give notice to a farmer of his intention to realize on asecurity of the farmer.

.+-13-

Government Gouvernement NOTICE OF INTENTof Canada du Canada TO REALIZE ON SECURITY

Section 22 01 theFarm Debt Revjew Act

PREAVIS DE ~EALI,SATIONDE SURETE

Article 22 de la Lol sur I'examende I'endettement agrlcole

As required under section 22 01 the Farm Debt Review ActConlormement ill'artlcle 22 de la loi sur I'examen de

I'endettement agrlcole, ~-~=-~------------

(debtor/deblleur)

ofdomicllie au --:---:-_-:--:-_~----------

(address/adresse)

is hereby notilled that it is the intent 01est, par la presente, aVise qu'i1 est dans I'intention de --:-~~--------------

(credllor/creancler)

to realize on security beingde realiser la surete qUi est --:-__~~----_:_--:____:_-------

(type(s) of secunty/genre(s) de sureUl)

(type(s) of seCltrtty/genre(S) dll surete)

on I sur =====':7"' _(assel(s)/blBn(s))

(assel(s)!blen(s))

and you are hereby notilled 01 your right to make application undersection 20 01 the Farm Debt ReView Act lor a review 01 your financialallalrs and to obtain a stay 01 proceedings against this actionprovided you are actually engaged in larming and:

al unable to meet your obligations as they generally become due; or

ceased paying'your current obligations in the ordinary course ofbusiness as they generally become due; or

cl the aggregate 01 your property is not, at a fair valuation,sufficient, or il disposed of at a lairly conducted sale under legalprocess would not be sullicient, to enable payment of all yourobligations, due and accruing due, .

You may apply for a stay of proceedings by makingan application to the Farm Debt Review Board at:

II vous est possible de demander une suspension de cette action endeposant une demande au Bureau d'examen de I'endettement

agricole, situe au:

et vous etes, par la presente, avise de votre droit de deposer unedemande d'examen en vertu de I'article 20 de la Loi sur I'examen dej'endettement agricole pour un examen de votre situation Iinanciereet d'obtenir une suspension de toute procedure, a condition quevous soyez un agriculteur et:

al qu'i1 vous soit impossible de vous acquitter de vos obligationsau tur et amesure de leur echeance; ou

bl que vous ayez cesse d'acquitter vos obligations courantes dansIe cours ordinalre de vos aflaires au lur et a mesure de leurecheance; ou

cl que la totalite de vos biens ne soit pas suffisante, d'apres unejuste estimation, ou ne sulliralt pas, s'i1 en etait dispose larsd'une vente regulierement ellectuee par autorite de justice pourpermettre j'acquittement de toutes vos obligations echues et iIechoir,

(FORB Address and phone number)/(Adresse €It numero de telephone du BEEA)

Application forms are available Irom the above orOn peut se procurer les lormulaires au BEEA precite ou au _

Any application must be received by theFarm Debt Review Board within fifteenbusiness days of receipt of this notice.

Dated this day of1e ce jour de ----__ 19__

Relerence No. I NO de relerence

Toute demande doit etre deposee devant Ie Bureaud'examen de I'endettement agricole dans les quinzelours ouvrables suivant la reception de cet avis.

atiI

S,YllalUre of Secured Creditor or aulhortzed representativeSIgnature du Crt3anCIcr garanb au du representant autonse

Copy I Copie: 1 Farmer I Agriculteur

AGRl19918&081

2 Farm Debt Review Board I Bureau d'examen de I'endettement agricole 3 Creditor I Creancier

Governmentof Canada

Gouvernementdu Canada

-14-

APPLICAnON FORMULAIRE DE DEMANDE POUR UNFOR AN INSOLVENT FARMER AGRICULTEUR INSOLVABLE

SECTION 20 OF THEFARM DEBT REVIEW ACT

ARTICLE 20 DE LA LOI SUR L'EXAMEN DEL'ENDETTEMENT AGRICOLE

Application Is hereby made byUne demlnde est, par II presente, depose. _

par

ofdomicllie IU

Location I Legal Description of home propertyLieu I Description cadastrlle de II residence domiclllalre _

Telephone numberHum.ro de t81.phone _

under SectIon 20 of the Farm Debt Review Actfor a revIew, (check one)

en vertu de I'artlcle 20 de la Lol sur "examen deI'endettement agricole, en vue d'un examen (cocher unecase) .

I / we are unable to meet my / our 0 Je suls (nous sommes) incapables de nousobligations as they generally acqultter de mes(nos) obligations au fur et

become due; amesure de leur echeance;

orlou

1/ we have ceased paying my / our current D J'al (nous avons) cesse d'acquitter mes (nos) obligationsobligations In the ordinary course of business as • courantes dans Ie cours ordlnaire de mes(nos) affaires au

they generally become due; fur et a mesure de leur echeancej

orl au

The aggregate of my / our property Is not, at a faIrvaluation, sufficient, or If disposed of at a fairly

conducted sale under legal process would not besufficient to enable payment of all my / our

obligations, due and accruIng due;

and lIWe hereby request a stay of any proceedingswhich have been or may be commenced by any of

. my/our creditors,

AS PART OF THIS APPLICATION 1/ WE HEREBYATTACH A LIST OF ALL CREDITORS WITH THEIRADDRESSES IN APPENDIX "A", AND A LIST OFFARM ASSETS IN APPENDIX "S",

AGR nOJ ll,"'O7)

o La totallte de mes (nos) biens n'est pas sufflsante,d'apres une juste estimation, ou ne sufflralt pas, s'li enetalt dispose lors d'une vente regulierement effectuee parautorlte de justice pour permettre I'acqulttement detoutes mes (nos) obligations echues et aechoir;

et je demande (nous demandons) par la presente unesuspension de tout recours qui .a ete ou pourrait etreentame par I'un ou "autre de mes (nos) creanclers.

J'INCLU (NOUS INCLUONS) UNE LISTE DE TOUS LESCREANCIERS ET LEURS ADRESSES, EN ANNEXE "A", ETUNE LISTE DES BIENS AGRICOLES, EN ANNEXE "B", LESDEUX ANNEXES FAISANT PARTIE INTEGRANTE DE CETTEDEMANDE.

Ae'erence No.1 NO de re'erence

, I we, the undersigned, hereby authorize the Farm;)ebt Review Board, the Farm Debt Review Panel, Its.3mployees, agents and contractors, to request andobtain any Information of a financial natureconcerning my/our farming operationsat _

In the province of _

from whomever can give such information •Additionally, lIwe consent to tho.. agents.employees and contractors, referred to above,having access to any and all records, books, papers,and other documentation concemlng my/ourfinancial affairs and will allow them access to suchbooks, papers and other documentation, all for thepurpose of conducting an examination of thefinancial affairs of my/our farming operationspursuant to the "Farm Debt Review Act."

-15-

Je, Ie 10uI.lgne, autorlse (nous, leI souIslgn"s,autorlso.ns) par la presente Ie Bureau d'examen deI'endettement agrlcole, Ie Comite d'examen duflnancement agrlcole, leurs employes, agents et

. adJudicataire., a demander et a racuellllr tOuteInformation de nature flnaneiere touchant mes(nol)entreprl... agrleole. sltuee.a dan. I.province de , dequlconque possecte cette information. De plus,J'autorlse (nous autorlsons) les agents, employes etadJudicataire. susmentlonnes a consulter leado.sle,., IIvres, pap/e,. at autre. documentstouchant mes(nos) affalres flnancleres, et Je leurpermet (nou. leur permettrons) d'avoir acees ace.livre., papi'" et autres documents pour I'examende lasltuadon Onaneiere de mon(notre) entreprl..agrlcole .elon Ie. terme. de la Lol sur I'e..men deI'endettement agrleole.

cs.yof____ jour de 19_ ,

Dlted this cs.y of0.. ce jourde 19_ ata---_---__-- _

(Where farmer IS a person Of partnership)

(La OU l'agnculleUr est un par1JCulierou une SOCl8t8 de personnes)

Farmer (Stgnaturel de I'agnculteur

Farmer (Signature) de I'agnculleur

Farmer (Signature) de I'agriculteur

~~~~rn to:Q:ctaumer a:

, nJJ(M.OJl

ORIOU

Corporate SealSceau de lacorporatiOn

(Where farmer is a company or cooperative)(La oil l'agnculleUr est une compagnie ou une SOCiete coop8rative)

Officer (SignaMel de I'agent

OfflC8f (Signature) de I'agent

-16-

LIST OF ALL CREDITORS I L1STE DE TOUS LES CREANCIERS APPENDIX "A" ANNEXE "A"Name I Nom Address,' Aaresse

Notice of Seizure of Assets received from I AVIs ae slllsle des biens est ret;u de:

AGJ120J II~OII

-17-

LIST OF FARM ASSETS I LISTE DES BIENS AGRICOLES APPENDIX "S" ANNEY'= "S"

Cash I L1quidltti,: $,-------------Markelaole Securities i Titres n&gociab'es :

...,-------------Accou'\!S Receivable I Comptes a recevoir

livestock - Type and Oua"",y ! Type et quantlte du betall

Grain, Produce, Forage - Type and Quantity I Type et quantltti de eereales et de fourrage

Farm Supplies I Foumltures agrleotes :1-'--------------

Quota IContlgent :1-:-------------

land,Buildlngs,and Improvements-legal Deacrlptlowterraln,bitiments et ameliorations-Oesignatlon eadastrale :

Machinery and Equipment • Description I Machlnerie et equlpement - Description

Other As..ts - Description I Autres biens - Description

•• Governmentnf Canada

Gouvernementdu Canada

-18-

APPLICATION FOR A FARMERIN FINANCIAL DIFFICULTV

Section 16 of the Farm DebtReview Act

DEMANDE D' UN AGRICULTUEUR ENDIFFICULTE FINANCIERE

Article 16 de la Loi sur I'examen deI'endenement agrlcole

Application Is hereby made byUne demande est, par la presente, deposee _. par

otdomicille au

Location / Legal Description ot home proper1yLieu / Description cadastrale de la residence domicilialre

Telephone numberNumero de telephone ---------

under Section 16 ot theFarm Debt Review Act (check one):

en vertu de I'artlcle 16 de la Loi sur I'examende I'endettement agricole(cocher une case):

D tor a review only / pour examen seulement

or/ou

D tor a review and assistance in taellitating an arrangement with creditorspour examen et assistance en vue de 1aciliter la conclusion d'un arrangement avecles creanciers

Dated this day 01Date ce jourde----------- 19 __

ata---------------------(Where farmer is a person or partnershIp)

(La ou I'agnculteur est un partlculie,ou une societe de personnes)

Farmer (Signature) de I'agnculteur

Farmer (Signature) de "agriculteur

Farmer (Signature) de !'agriculteur

Return To:Retourner a:

AGA 1200 186 01)

OR/aU

Corporate Sea'Sceau de lacorporation

(Where farmer is a company or cooperative)

(La ou j'agriculteur est une compagnie ou une societe cooperative)

Officer (Signature) de "agent

Officer (Signature) de "agent

Reterence No. / NO de reterence

.+ Government01 Canada

Gouvernementdu Canada

-19-

CONSENT FOR EXAMINATIONOF FINANCIAL AFFAIRS

AUTORISATION POUR L'EXAIVIEND'UNE SITUATION FINANCIERE

I / we, the undersigned, hereby authorize the FarmDebt Review Board, the Farm Debt Review Panel, Itsemployees, agents and contractors, to request andobtain any Information of a financial natureconcerning my/our farming operationsat, _

In the province of _

from whomever can give such information .Additionally, IIwe consent to those agents,employees and contractors, referred to above,having access to any and all records, books, papers,and other documentation concerning my/ourfinancial affairs and will allow them access to suchbooks, papers and other documentation, all for thepurpose of conducting an examination of thefinancial affairs of my/our farming operationspursuant to the "Farm Debt Review Act."

Dated this day ofDate ce jour de 19__

Je ,Ie soussigne, autorise (nous, les soussignes,autorisons) par la presente Ie Bureau d'examen deI'endettement agricole, Ie Comite d'examen dufinancement agricole, leurs employes. agents etadjudicataires, a demander et a recueillir touteinformation de nature financiiue touchant mes(nos)entreprises agricoles situeesa danslaprovince de , dequiconque possede cette information. De plus,l'autorise (nous autorisons) les agents, employes etadjudlcataires susmentionnes a consulter lesdossiers, Iivres, papiers et autres documentstouchant mes(nos) affaires flnancieres, et je leurpermet (nous leur permettrons) d'avoir acces acesIivres, papiers et autres documents pour I'examende la situation flnanciere de mon(notre) entrepriseagricole seton les termes de la Loi sur I'examen deI'endettement agricole.

ata---------------------

(Where farmer is a person or partnership)

(Lil au I'agnculteur est un partlculierau une Sool/3te de personnes)

Farmer (Signature) de I'agriculteur

OR/OU (Where farmer is a company or cooperative)

(Lil au l'agncuUeur est une compagnie au une societe cooperatIve)

Return to:Relourner a:

AGR 3214186071

Farmer (Signature) de j'agnculteur

Farmer (Signature) de I'agriculteur

Corporate SealSceau de lacorporation

Officer (Signature) de I'agent

Officer (SIgnature) de I'agent

Reference No. / NO de nlference

•• Governmentof Canada

Gouvernementdu Canada

-20-

NOTICE OF APPOINTMENTOF GUARDIAN - FARMER

AVIS DE NOMINATIOND'UN GARDIEN - AGRICULTEUR

Effecttve ImmediatelyA comptlll' de ce jOur, _

ofdomICil.. au _

II hereby appointed Guardian 0' the all8tl forelt nomm', par la prnente, gardlen d.. blenl de _

aa required under section 24 0' the Farm Debt Review Act.con'orm'ment a I'artlcle 24 de la Lo! aur I'examen de I'endenement agrICole.

The Guardian 0' the aueta shalt

(1) make an Inventory of all applicable farm aaleta 0' the farma, andaubmlt thla Inventory to the General Manager of the Farm DebtReview Board;

(2) not Incur any additional debts beyond normal operatingexpenses without the express written consent 0' the GeneralManager;

(3) when nec....ry In the best Intemts 0.' the buslnns takeconservatory mellum and almllarty dllpose 0' property thIt IIperiahable, or which II likely to depreciate rapidly In value, orwhich would be sold In the normal course of business;

(4) not sell any assets of a capital nature, luch II breeding stock,maChinery, equipment, bUildings or lind without the prior writtenconsent 0' the General Manager;

(5) Inlure and keep insured all property 'or such amounts andagainlt such hazards al would be prudent In the normal courseof bualnest;

(6) depoelt in a bank account In the name of the farm, all revenu..from the farm operation I... norma' operatlllQ Ind IIvIIlQexpenSlll;

(7) subject to (6) abOve, not withdraw or remove monl.. from thebank account without the prior written approvil 0' the GeneralManager;

(8) keep proper bOOks, written recorda 'or the bUliness andIUpportatlve documents In such. a manner II to be fullyaccountable 'or the administration 0' the business and makeluch bOOkl and recordl available 'or IneP8et1on to the GeneralManager at all relsonlbte timn;

(9) not pay any salaries, wagel, bOnus.. or drawings to the owneraor shareholders or the relatlona thereo', nor pay any dividends,without the prior written coneent of the General Manlger;

(10) comply with any directlvea illued by the General Manlger.

AGA 120418(,07)

Le gardlen d.. biens dolt

(1) preparer un inventslre des biens de I 'entreprise agricole 81 'esoumenre au gestionnalre general du bureau d'examen derendenementagrtco~

(2) ne contracter aucune dene lupplementalre au dela d.. etepensncourant.. d'exploltation sans I'autorisatlon ecrite et expllclte dug..tlonnlire gen'ra~

(3) lorsqu'll est nliceIsalre at dans Ie mellleur Interet del'explOltatlon, voir i II conservation des biens 81, de mime, aI'ecoulement d.. biens perlssabl.., au rlIquant de perdrerapldement de 'a valeur, ou qui seralent vendus dans Ie courtnormal des affalres;

(4) ne vendre aucun bien en capital, tel queles anim.ux dereprOduction, la maChlnerie, I'equlpement, les b8tlmenta au Ieterrain, sans avoir prealablement obtenu rautorisatlon ecrite dug..t1onnalre genera~

(5) assurer at voir au renouvellemenl des aSluranc.. de toualesbiens, pour I.. sommes et selon 185 risqu.., tel que Ie auggere laprudence dans Ie coura normal des affaires;

(6) depoaer dana un compte bancalre, au nom de I'exploltatlonagricole, tOUI I.. revenus provenant de eette exploitation •I'exceptlon des depensn normalement engage.. pour ...ubslstance at I'exploltation;

(7) soua""""'e de (6) cl-dessu., ne paa ratlrer ou Irena'.... delsommes du compte bancaire, sans avolr prealablement ObtenuI'autorisation ecrtte du gestlonnaire general;

(8) tenir i jour les IIvres comptablel at les documents jUltlflCltlfl defaqon i ce qu'lls refletent adequatemenl I'admlnistratlonflnanciire de I'exploitation at les menre, i la disposition dugestionnalre general pour fin d'examen i tout moment jugeraisonnable;

(9) ne verser aucun salalre, gage, prime ou prelevement auxproprletaires au aux actlonnaires, au aux parents de cea demiera,ni payer aucun dividende, aans avolr prealablement obtenuI'autorisatlon ecrlte du gestlonnalre general;

(10) se conformer aux dlrectrivea du gestlonnalre general.

(over/au verso)

-21-

This appointment as Guardian of the assets Is In effectuntil such time as It Is terminated In writing, and It Isunderstood that such appointment Is non-remuneratlve.

Dated tIIla day ofOat. ~ lourde---------- 19__

Cene nomination en tant que gardlen des biens resteraen vlgueur jusqu'a I'entente ecrlte de son expiration et IIest entendu qU'une telle charge n'est pas remunl!ree.

at.-----------------

Farm Debt Review Board Bureau d'examen de I'endettement agricole

IJe -------_-------- _(name of GuardIan)(nom du gardien)

~rtlfy tIIat I have received thla notice of appointment Of Guardian,tIIat I hIIve read the notice of appointment of Guardian; tIIat Iunderstand my responalbllltl.. aa guardian and that I hereby acceptappointment aa Guardian and the responalbllltl.. thereof.

certlfl. que I'ai pria connalssance de cet avis de nomination de gardlen:que Ie comprenda I.. reaponsabllltell Inherentea acette fonctlon et quej'accepte, par la pr"ente, la charge de gardlen et lea ,esponsabillt"en decoulant.

Dated tills day ofOat. ce jour de 19_

Witness I T6moin

Return To:Retourner *=

AGR uoo 116<071

at.--------------------

Signature of Guardian I Signature du gardien

Reference No. I NO de ,eli,rence

•• Governmentof Canada

Gouvernementdu Canada

-22-

NOTICE OF APPOINTMENTOF OTHER GUARDIAN

AVIS DE NOMINATION D'UN GARDIENAUTRE QUE L'AGRICULTEUR

Effective ImmediatelyA compterde ce jour, _

ofdomlcille au _

is hereby appointed Guardian of the assets forest nomme, par la presente, gardlen des biens de ....;. _

as required under section 24 of the Farm Oebt Review Act.conformement ill I'artlcle 24 de la Lol sur I'examen de I'endenement agricole.

The Guardian of the assets shall:

(1)prepare an· inventory of all assets of the farmer,

(2)verify periodically the presence and condition of those assets:

(3)advlse the General Manager of any act or omissiOn on the part ofthe farmer that would jeopardize tIlOH assets;and

(4)comply with any directives issued by the General Manager.

This appointment as Guardian of the assets Is In effectuntil such time as It Is terminated In writing, and Itlsunderstood that remuneration Is the responsibility of:

Dated this day ofDate ce -----Iourde------ 19__

Le gardlen des biens dolt:

(1 )dresser un Inventalre de I'actif de I'agriculteur,

(2)verifler periOdiquement I'etat de I'actlf;

(3)aviser Ie gestionnalre general de tout acte ou omission deI'agrlculteur qui pourrait porteraneinte ill la conservation de "actif;et

(4)se conformer aux directives du gestionnalre general.

Cette nomination en tant que gardlen des biens resteraen vlgueur jusqu'a I'entente ecrlte de son expiration et IIest entendu que la remuneration du gardlen est laresponsablllte de:

atiII---------------------

Farm Debt Review Board Bureau d'examen de I'endeltement agricola

IJe _ (name of Guardian)(nom du gardien)

certify that I have received this notice of appointment of Guardian,that I have read the notice of appointment of Guardian; that Iunderstand my responsibilities as Guardian and that I herebyaccept appointment as Guardian and the responsibilities thereof.

Dated this day ofDate ce -----Iour de 19__

Witness I Tamoin

Return to:Retoumer s:

AGR )lOS (86. 01)

certltle que I'al pris connalssance de cet avis de nomination de gardlen:que Ie comprends les reaponsabilites inherentes ill cene fonctlon et quej'accepte, par la presente, la charge de gardlen et les responaabillt8aen decoulant.

ats-----------------

Signature of Guardian I Signature du gardlen

IReference No. I NO de reference

Governmentof Canada

Gouvernementdu Canada

-23-

Farm Debt Bureau d'examen deReview Board I'endettement agricole

230 - 2100 Broad StreetP. O. Box 8035Regina, SaskatchewanS4P 4C7

Dear

SUBJECT: FARM DEBT REVIEW - REFERENCE NO.

Your application under Section 20 of the Farm Debt ReviewAct was received

Prior to the appointment of a Review Panel and the Reviewprocess we will undertake an assessment of your farmoperations and financial status. This will be done as

. field staff are available.

If re~uired the field representative will prepare acomplete financial statement reflecting the net worth ofyour farm business. In addition a detailed financialanalysis designed to assess your debt servicingcapability will be prepared. In order to aid thepreparation of these two items it would be appreciated ifyou could have on hand all available financial andproduction information plus your income tax returns forthe past two years.

A notice to creditors initiating a stay of proceedingshas been sent to your creditors. In view of the stay ofproceedings it is necessary to appoint a guardian of thefarm assets. As the intent of the Act is to appoint thefarmer as guardian of his own assets in most cases, we

. request that you sign one of the attached "Notice ofAppointment of Guardian - Farmer" forms and return it toour office as soon as possible. Retain the second copyfor reference purposes as to your duties as a guardian.We request your earliest attention to this matter.

You may expect to be contacted by our fieldstaff in thenear future regarding the indepth assessment of yoursituation.

• 2

Canada

-24-

-2-

If you have any questions about the appointment ofguardian or your case in general you may call our officeat (306) 780-5544, collect, or consult our fieldstaffwhen they visit your farm.

Yours sincerely,

James C. LoweInterim General Manager

JCL-dz

enclosures - Appointment of Guardian - Farmer- Guidelines for Farmer Guardians

Govl"rnrnenlof Canada

GOIJVp.rrl~lll~m'

dtJ Canad9

Farm Debt Bure~'J d'ex"men rlqReview Board "endettement agricola

Box 8035310 - 2100 Broad StreetRegina, SaskatchewanS4P 4C7

Dear Sir/Madam:

-25-

We have been advised by a creditor, as required under the new FarmDebt Review Act, of the intent to proceed to foreclose, seize orotherwise realize on assets which you have pledged as security.

As indicated in the notice you have the right to apply underSection 20 of the Act for a ~tay of proceedings. All of yourcreditors will be notified of till" 30 d:1y ~tay and a guardian willbe appointed by the Board. tn the majority of cases, the farmeris appointed as the guardian.

Another option available is to apply underfor a review of your financial affair~ andtating an arrangement with your creditors.there is no stay of proceedings, creditorsno guardian is required. .

Section 16 of the Actassistance in facili­

Under this sectionare not notified and

If you decide to apply under Section 16 and one of your creditorstakes any action to real i7.e ('Tl spruritv, YOII may at any time changethe Section 16 nppl lrnt iOIl I (l :1 SI'('1 inn ZO .111d thC' st~y of proceed­ings would commence the date we rprpive your Section 20 application.

We are enclosing :l.nformat tOr) .1hOllt tllp Act and operation of theBoard, together with Sect ion }() 31lri Sect ion 20 applicat ions.

Additional information can be obtained by telephoning the Boardoffice at (306) 780-5544.

~ James C. Low~v 'Interim General Manager

JCL/br

enclosures - Farm Debt Revie10l Art RrC'chureSection 16 i\ppli~ation

Section 20 Application

Canada

•• Governmentof Canada

Gouvernemelltdu Canada

-26-

NOTICE OF EXTENSIONOF STAY OF PROCEEDINGS

AVIS D'UNE PROLONGATION DE LASUSPENSION DES RECOURS

You are hereby notified that an extension of the stayof proceedings has been granted to

Vous it. avlses par la presente qu'une prolongationde la suspension des recours a ete accordee i _

Ofdomlcllle au _

under section 29 of the Farm Debt ·Revlew Act.

In view of the abOve mentioned extension, the stay of prOCeedingscontinues to be In effect until the

en vertu de I'artlcle 29 de la Lol sur I'examen de I'endettoment agrlcole.

En raison de catte prolongation, la suspension des recours resteraen vigueur jusqu'au

day of_____ jourde---------- 19__

Any creditor wishing further Informationshould contact the undersigned at:

Dated this day ofDate ce /Our de 19__

Tout cre.ncier deslreux d'obtenir de plus amplesrenselgnementa devra communlquer avec Ie soussigne a

ati---------------------

Farm Debt Review Board Bureau d'examen de I 'endaMment agricola

AGR )201116 011

Reference No. I NO Cle reference

Governmentof Canada

Gouvernementdu Canada

Farm Debt Bureau d'examt>n deReview Board I'endeltement agricole -27-

230 - 2100 Broad StreetP. o. Box 8035Regina, SaskatchewanS4P 4C7

Dear Sir/Madam:

Re:

Enclosed is the second of three possible extensions of the Notice toCreditors for Stay of Proceedings with rOe"spect to the." above case underthe Farm Debt Review Act.

For additional information please contact our office at the addressabove or (306) 780-5544.

Yours sincerely,

Farm Debt Review Board

BH/lcn

enclosure

Ca d··•11(,1 a

Governmentof Canada

Gouvernementdu Canada

Farm Debt Bureau d'examen deReview Board I'endettement agricole230 - 2100 Broad StreetP. O. Box .8035Regina, SaskatchewanS4P 4C7

Dear Sir/Madam:

Re:

-28-

Enclosed is the third of three possible extensions of the Notice toCreditors for Stay of Proceedings with respect to the above case underthe Farm Debt Review Act.

For additional information please contact our office at the addressabove or (306) 780-5544.

Yours sincerely,

Farm Debt Review Board

BH/lcn

enclosure

~ 1'·'•.~n~r ~l

•• Governmentof Canada

Gouvernementdu Canada

-29-

NOTICE OF END ORTERMINATION OF

STAY OF PROCEEDINGS

AVIS DE FIN OUDE LEVEE DE LA SUSPENSION

DES RECOURS

You are hereby notltled that pursuant toan application made by

Vous iltes avises par la presente que, par suited'une demande deposee par, _

Ofdomicille au, _

O that the stay of proceedings pursuant to Section 23 of the Act shall not be extended and is at an end.'a suspension des recOurs conforme Ii I'anlcle 23 de la lol ne sera pas prolongee et prend donc fin.

O that the stay of proceedings pursuant to Section 23 of the Act Is hereby terminated pursuant to Section 26 of the Act.la suspension des recours conforme i11'anlcle 23 de la loi est levee en venu de I'anicle 26 de la loi.

O that the extension of the stay of proceedings pursuant to Section 29 of the Act shall not be funher extended and is at an end.la prolongation de la suspension des recours conforme i11'anicle 29 de la loi ne sera pas prorogee et prend donc lin.

O that the extension of the stay of proceedings pursuant to Section 29 of the Act Is hereby terminated pursuant to Section 26 of the Act.la prolongation de la suspension des recours conforme i11'anicle 29 de la loi est levee en vertu de j'article 26 de la loi.

Any creditor wishing further Informationshould contact the undersigned at:

Dated this dllY OfDate ce - Iour de 19__

Tout creancier desireuK d'obtenir de plus amplesrenseignements devra communiquer avec Ie soussigne ill

ati1------------------

Farm Debt ReVIew Board Bureau d'examen de I 'endetlement agncole

olGR)109 (16-07)

Reference No. I NO de reference

I~(';oVt'rnrnt'lll of (,;oLlvcrfl('menl duCaneK1iJ CallQda

FARM DEBT REVIEW ACT

-30-3. a) Insolvent Farmer

i) Any creditor intending to foreclose on a farmoperator must provide that farmer with writ­ten notice, at least 15 business days beforetaking any action, of this intention, and mustadvise that farmer of the right to a reviewunder the Farm Debt Review Act.

BACKGROUND

The Federal Budget of February 26, 1986, announc­ed that legislation would be introduced to establish a farmdebt review board system. The Farm Debt Review Act hasnow become law.

The legislation ensures that farm operations in financialdifficulty, or actually facing a farm foreclosure situation, haveaccess to an impartial third-party review of individual farmcircumstances and possible financing/re-financing options.A voluntary agreement between a farmer and his creditor(s)for mutually satisfactory arrangements will be sought.

HOW THE FARM DEBT REVIEW BOARD SYSTEMWORKS

1. There is a Farm Debt Review Board, headed by aChairperson, in each province with overall responsibilityfor implementing the Farm Debt Review Act.

2. Each province also has a Farm Debt Review Board of­fice with a General Manager responsible for administer­ing the office.

3. The Board has available to it a number of qualified in­dividuals who are eligible to serve on Farm Debt Reviewpanels. For each farm debt review, a separate three­member panel will be established by the Farm DebtReview Board Chairperson.

4. The panels are provided with an in-depth report of farmoperations and financial status by field staff with first­hand knowledge of the particular type of farm opera­tion being reviewed and in handling farm financialproblems.

Procedures

1. All applications under the Farm Debt Review Act shouldbe forwarded to the attention of the Chairperson, FarmDebt Review Board (see attached mailing list).

2. There are two types of applications: for an insolventfarmer, and for a farmer in financial difficulty. Prioritywill be given to applications from insolvent farmers.

ii) Any farmer facing foreclosure can apply fora review by completing the appropriate ap­plication form and attaching a complete listof creditors and a full list of assets.

iii) Upon receipt of an application, the Chairper­son, Farm Debt Review Board, will initiatereview proceedings.

iv) The Chairperson will invoke a stay of pro­ceedings for an initial period of 30 days, andthis stay may be extended at 3D-day inter­vals for a total period of up to 120 days.

v) The Board will notify all creditors of any stayof proceedings and will appoint a guardianof the farmer's assets.

vi) Appropriate field staff will be assigned to in­dividual cases, and a Panel will be establish­ed by the Chairperson to undertake acomplete review.

vii) Field staff will meet individually with the farmoperator, creditor(s), and other interestedparties to prepare an in-depth assessmentof the farm situation. Preliminary ar­rangements that might help resolve pro­blems in a manner satisfactory to each partywill be identified.

viii) Upon receipt and review of a final reportfrom the field staff, including suggestedalternatives for action, the Panel will meetwith field staff, farmers and creditors and willdiscuss the final report with each. An at­tempt will be made to seek an arrangementto continue operations.

ix) If an agreement is reached between thefarmer and the creditor(s), this agreementwill be signed by both parties. This agree­ment will be a legal contract.

-31-3 b) Farmer in Financial Difficulty

i) Any farmer in financial difficulty, but not fac­ing immediate foreclosure, can apply for areview.

ii) Upon receipt of an application, the Chairper­son, Farm Debt Review Board, will initiatereview proceedings.

iii) Appropriate .field staff will be assigned to in­dividual cases, and a Panel will be establish­ed by the Chairperson to undertake acomplete review.

iv) Field staff will meet individually with thefarmer, and if requested by the farmer,with the creditor(s) and other interested par­ties to prepare an in-depth assessment ofthe farm situation. Preliminary arrangementsthat might help improve the farm prospectswill be identified.

v) Upon receipt of a final report from the fieldstaff, the Panel will meet with the farmer, andif requested by the farmer, with thecreditor(s) and other interested parties todiscuss the final report with each. An at­tempt will be made to seek an arrangementthat will contribute to improved viability of thefarm.

vi) If an agreement is reached between thefarmer and the creditor(s), this agreementwill be signed by both parties. This agree­ment will be a legal contract.

British ColUJi>ia

OJaizperson, Fann Iebt Review Boo.nf

Mr. .kin Beny/lnterim G:reral~rFann~ Review Boo.nfRam YJ7 - 000-6th StreetNew Westminster, British ColUJi>iaV8V :N7Tel~: ((i)4) 666-6344

Alrerta

-32-

Olaizperson, Fann Iebt Review Baud

Mr. Arrlre Qmlan:l/Interim G:reral~rFann IAilt Review Boord5 Pan: SalIJel 1-b11an:i, Suite 164Q,Eboc, Q.£tecGIS 4)2Te1qh:re: (418) 648-2426

New Bnnswick.

OJaizperson, Fann Iebt Review Boo.nf

Mr. C. Les Usrer/Interim G:reral MmgerFann Iebt Review BcBni4th FloorCoxrer Point fui.~10179 - 105 St.Bilmton, AlbertaTSJ lE2Tel~: (403) 420-4764

Saskat:cl&m.

OJaizperson, Fann~ Review Boo.nf

Dr• .ares ~lInterimG:reral MmagerFann Iebt Review BcBniP.O. 8035, Ram 3102100 Bn:a:l Street .Regina, Saskatd8o.anS4P 4C7Telepllre: (306) 700-5544

Mmitcm

Olaizperson, Fann Iebt Review Boo.nf

Mr. AI »ttresmlInterim GerEral MmagerFann Iebt Review BcBni303 - 275 Pottage A'WD.EWimipeg,' MmitcmRl3 2mTel~: (204) ~9-8621

Q1tario

Olaizperson, Fann Iebt Review Boo.nf

Mr. Nelsen Bal1/Intetim G:reral'MmagerFann IAilt Review Boon:l420-102 Bloor Street WestTorento, Q1tarioMSS 1M8Telfl'lxre: (416) 973-2625

Olaizperson, Fann Iebt Review BcBni

Mr. Wsyrn ParleelInterim GerEral MlilagerFann Iebt Review Boord2nl Floor633 Q.Een StreetFredericta'l, New Bnnswick.~ 427TeleplIre: (506) 452-369l

Nova Scotia

Olaizperson, Fann Iebt Review Boo.nf

Mr. limy Po.ers/Interim G:reral MmgerFann IAilt Review BoordP.O. Box Hro35 Camen:ial Street, Suite 200Truro, Nova Scotia~ SESTel~: (002) 893-4747

Prin:E Ii:homtl Is1an:i

Olaizperson, Fann IAilt Review Boo.nf

Ms. Noreen Mrrsha1l/Interim GerEral t-tmagerFann Lebt Review BoordP.O. Box 2949141 Kent Street, 2nl FloorQmlottetnm, Prin:E Imard IslaniQA K'5Te1ePlre: (002) 566-7YJ2

NBoia.n:l1an1

Olaizperscn, Fann IAilt Review Boon:l

Mr. Brian G:>ldsw>rtl¥/Interim GerEral M!mgerFann Lebt Review Boord354 Water Street, 2nl FloorSt. .khl's, Ne\.icx.nUarrlAle ~4

Telethre: (709) m-2306

OCTOBER, 19tH)

-33-

REVIEW PROCESS FLOW CHART

Application is madeby farmer

General ManagerDetermines if it isa Voluntary Reviewor/if farmer isinsolvent

Section 16Voluntary

Section 20Insolventr-----------....¥.----------rGeneral :-tanagersends Notice tocreditos andinvokes a Stay ofProceedings

General ManagerHolds Applicationunt il staff andpanel are availablefor a review

FDRD ApP0l-ntsa Guardian

General ManagerAssigns Fieldstaff

Fieldstaff contactsFarmer and preparesrequired report

If report is not received5 days before expirationdate, General }~nager

directs an Extension

Genera 1 !-1anaf.,ersends Not ice ofExtension toFarmer and Creditors

)

-34-

Fieldstaff arranges fora Panel Hearing andnotifies Creditors

'\11/General Manager assignsa Panel Chairman andtwo members

General Manager arrangesaccommodation for panelmembers

Panel meets and d1scussesreport with Fieldstaff

Panel meets with farmerand creditors

Panel discusses resultsof meeting and formulatesa proposal

¥roposal 1S presentedto farmer and then tothe creditors

Panel Prepares a writtenReport

~Panel forwards writtenreport to General Manager

General Manager preparesfiles a report withDepartment Coordinator

Introduction

-35-

FARM DEBT REVIEW ACT

9UIDELINES FOR LENQER~

July 21, 1986Doc. l059Sh

1. The Farm Debt Review Act ensures that farmers in financialdifficulty. including those facing foreclosure. haveaccess to an impartial review of their financialsituation. The objective of the review process is toreach. whenever feasible. a voluntary arrangement betweenthe farmer and the creditors which will enable the farmbusiness to continue.

2. The Act provides a review process for farmers who areinsolvent and for those who are in financial difficultybut who are not yet insolvent. When making applicationunder the provisions for insolvent farmers. a farmer mustindicate that he is insolvent in that (a) he is unable tomeet his debts as they generally become due. (bl he hasceased paying his current obligations in the Ordin&rycourse of business as they generally become due or (c) thevalue of his proper~y is insufficient tn pay all hisobligations. The Act provides for a stay of proceedingsby creditors while the review of the affairs of aninsolvent farmer is being carried out. As is described inmore detail in paragraph 3 of the Guidelines. creditorsmust give a farmer notice of the right of insolventfarmers to a stay of proceedings before realizing on thesecurity of that farmer.

3. Farmers who are in financial difficulty but not insolventmay also apply to the Board for a review of .his financialaffairs or assistance in reaching an arrangement with hiscreditors. These cases will not involve a stay ofproceedings.

4. The overall responsibility for the administration of theAct will rest with the Farm Debt Review Boards that havebeen appointed in each province. These Boards areassisted in the overall administration of the program byGeneral Managers and other support staff.

5. A Farm Debt Review Panel will be appointed to review thecase of each farmer making application to the Board for areview. Each Panel will have three members. The Chairmanof a Panel will be drawn from the members of the Farm DebtReview Board for that province. The other two memberswill be drawn from a list of qualified persons that theBoard for each province has drawn up. The members of eachPanel will be selected to provide the necessary financialand farming expertise needed to carry out the review.

-36-. 2 -

6. The Board has field staff who will meet with and obtaininformation from the farmer and the creditors. The fieldstaff will prepare a detailed report on the status of thefarm operation for consideration by the Panel members.

7. Once the report of the field staff has been prepared, theReview Panel will meet with the farmer and the creditorsand attempt to work out an arrangement that is mutuallysatisfactory to the farmer and the creditors.

Guidelines

1. The Farm Debt Review Act defines a farmer as "anyindividual, partnership, corporation or cooperativeassociation that is engaged in farming". This means thatthose involved in farming on a part-time basis are coveredby the Act.

2. All agricultural production is covered by the Act. Thatis, farming is defined as "the production of fieldgrowncrops, cultivated and uncultivated, and horticulturalcrops, the raising of livestock, poultry and fur-bearinganimals, the production of eggs, milk, honey, maple syrup,tobacco, wood from woodlots, fibre and fodder crops andthe production or raising of any other prescribed thing oranimal".

3. Section 22 of the Act requires any secured creditor whointends to realize on any security of a farmer to givethat farmer written notice of that intention at leastfifteen business days before taking action and requiresthat the creditor notify the farmer of his right to applyto the Farm Debt Review Board for a stay of proceedingsand a review of his situation. A "business day" means aday other than a Saturday, Sunday or holiday.

4. The Act defines a secured creditor as

"any creditor holding a mortgage, hypothec, pledge,charge, lien or privilege on or against the propertyof a farmer or any part thereof as security for a debtdue or accruing due from the farmer",

"any individual, partnership. corporation orcooperative association with whom a farmer has enteredinto an agreement for sale or conditional salescontract relating to any property used or occupied bythe farmer or to whom such an agreement or contracthas been assigned, and"

"any bank to whom security on the property of a farmeror any part thereof has been given under section 178of the Bank Act."

-37-- 3 -

5. To meet the obI igation set out in Section 22 the securedcreditor must, before taking any action to realize onsecurity, complete Form #I AGR 3199 "Notice of Seizure ofAssets" in triplicate. The original is to be sent to thefarmer, the first copy is to be sent to the provincialFarm Debt Review Board and the second copy is for thelender.

6. The Regulations require that the "Notice of Seizure ofAssets" be delivered to the farmer by:

"(a) leaving such notice with the farmer personally orwith any adult living at the farmer's residence;

(b) prepaid registered mail delivered to the farmerpersonally or any adult present at the farmer'sres i-dence;

(c) prepaid priority post delivered to the farmerpersonally or any adult present at the farmer'sresidence;

Cd) telex message received at the farmer's residence; or

Ce) facsimile message received at the 'farmer'sresidence."

7. The period of fifteen business begins on the day after thefarmer receives the "Notice of Seizure of Assets". TheBoards will make every effort to notify lenders as soon aspossible after receiving an application from a farmer.

8. However, if the lender has not received notice from theBoard of an application by the farmer after fifteenbusiness days have passed, it is recommended that thelender confirm with the Board that it has not received anapplication.

9. If the Farm Debt Review Board does not receive anapplication within the fifteen business day period, thelender is free to proceed to realize on the security inthe normal manner.

10. If the Farm Debt Review Board receives an application froma farmer, a stay of all proceedings will be in effect forthirty calendar days from the date of the application. Asdescribed in paragraph 16, this stay may be extended forup to three additional thirty day periods.

11. As indicated in the Farm Debt Review Act, during the stayof proceedings no creditor shall "have any remedy againstthe property of the farmer or shall commence or continueany proceedings or any action, execution or other

-38-- 4 •

proceedings, judicial or extra-judicial, for the recoveryof a debt, the realization of any security or the takingof any property out of the possession of the farmer." Thestay of proceedings applies,therefore, to any seizure ofassets which is underway at the time the application ismade to the Board by the farmer.

12. Immediately on receiving an application from a farmer, theFarm Debt Review Board will notify the farmer's creditorsthat an application has been received and that the stay ofproceedings is in effect. At this time, the Board willalso appoint a "guardian of the assets", notify thecreditors as to who has been appointed to be guardian, andappoint a Review Panel to carry out the review.

13. In most cases the Board will appoint the farmer asguardian of the assets. The Act does provide that theBoard may appoint someone other than the farmer asguardian of the assets and that the Board may uppoint aqualified person nominated by a secured creditor orsecured creditors to the guardian. Where the personnominated by the secured creditor(s) is appointed by theBoard, the expenses of the guardian shall be paid by thesesecured creditor(s) making the nomination.

14. A lender wishing to nominate a person other than thefarmer as guardian should immediately notify the Farm DebtReview Board at the time of filing form N AGR 3199 (seeparagraph 5) or i~mediately after being notified by theBoard that an application has been received from thefarmer. In the later case, it is recommended that thelender notify the Board by telephone and then confirm thenomination in writing. Where more than one securedcreditor wishes to see someone other than the farmerappointed as guardian, they should agree on a nominationbecause the Act provides that the Board shall appoint onlyone person as guardian.

IS. If necessary to complete the review process, the Board mayextend the stay of proceedings for up to an additionalthree periods of thirty days each. Lenders will benotified of such extension through form II AGR 3208 "Noticeof Extension". If the lender has not received notice ofan extension by the end of any thirty day stay, it isrecommended that the General Manager of the Farm DebtReview Board be contacted to confirm that the "Stay ofProceedings" has not been extended. If it has not beenextended, the lender can realize on the security in thenormal manner-.--

-39-.. 5 -

16. During the stay of proceeding the lender will be contactedby the staff of the Farm Debt Review Board for the purposeof obtaining and verifying information on the farmer'sfinancial situation and his outstanding obligations to

. creditors. The lender should verify that the Board'srepresentative has a form II AGR 3207 "Consent forExamination of Financial Affairs" signed by the farmerbefore providing such information.

17. Once the staff of the Farm Debt Review Board has collectedall the required information. meetings will be scheduledbetween the Farm Debt Review Panel and the farmer and thecreditors. It is anticipated that the meetings with thefarmer and the creditors will be separate. The lenderwill receive form #I AGR 3212 "Notice of Meeting" whichwill indicate the date. time. and place of the meeting aswell as the names of the Panel members. If the lender hasreason to beleive that any of the Panel members should notbe on the Panel because of a possible conflict of interestor for any other rea~on. the Review Board should be sonotified.

18. Generally. the Review Panel will be seeking the lenders'suggestions and propo~als for arrangements that would.where this is feasible. permit the continuation of thefarm business. Where such arrangements are identified,the Panel will be seeking the agreement of the farmer andthe creditors.

19. If the farmer and the creditors can reach an agreement.then the Farm Debt Review Panel will ask that thearrangement be drawn up in writing and will see that it issigned by all parties concerned.

20. When an arrangement is signed. the stay of proceedingswill be terminated and the creditors will be so notifiedthrough Form 1# AGR 3209 - "Notice of Termination".

21. The Act provides in Section 26 that the Board mayterminate the stay of proceedings if it is of "the opinionthat the farmer has. by any act or omission on his part.jeopardized his assets cr obstructed the guardian in theperformance of his duties". lfthe Board terminates thestay of proceeding for tncse reasons. the creditors willaga~n be notified by Form AGR 3209. The lender is thenfree to lealizeon the security in the normal manner.

22. It should be noted that any farmer who is insolvent mayapply to the Review Board for a-stay of proceedings and areview of his situation regardless of whether he hasreceived a "Notice of Seizure of Assets" from a creditor •.The provision for the stay of proceedings and reviewprocess in these cases are exactly the same as for casesin which the application by the farmer is triggered by thereceipt of a "Notice of Seizure of Assets".

!

-40-- 6 -

23. The Act also provides than a farmer who is in finanicaldifficulty but not insolvent can also ask for a review ofhis finanlcia1 affairs or for assistance in reaching anarrangement with his creditors. There will be no stay ofproceedings in these cases, but the review process will bethe same as for insolvent farmers. Lenders will again beasked to provide information on the farmer's financialsituation and to meet with the Review Panels, but theywill be under no further obligation.

-41-

ISSUES RAISED IN RELATION TO FARM DEBT REVIEW ACT

Issues and concerns have been raised regarding certainaspects of the Farm Debt Review Act.

The following comments and interpretation of theLegislation may help clarify many of the issues raised.

1. Issue:

Response:

2. Issue:

Response:

Will the application of the Farm DebtReview Act by the farmer, where theProvincial Farm Land Security Act isinvoked, cause an excessive stay ofproceed ing s?

Borrowers have the right to apply for astay of proceedings under the Federal Actduring the stay imposed by the applicationof the Provincial Farm Land Security Act,resulting in an extended stay ofproceedings. However, it is unlikely thatthis new subsequent stay of proceedingswould exceed the initial 30 day period. Ifthe farmer is in agreement witharrangements proposed under the Farm LandSecurity proceedings it is unlikely he/shewould wish to have the Federal Actapplied. In most cases the possiblebenefits to the creditor of an arrangementwould outweigh costs associated with any

. additional period of the stay ofproceed ing s •

There is no guardian appointed and noprotection to creditors where a creditorhas served notice and the farmer has 15days to apply under the Act.

While this is the case all the usual lawsand statutes apply to these situations.The farmer (borrower) is therefore subjectto laws and provisions of creditarrangements relating to fraudulent andother illegal actions. The FDR Act is notunique legislation. Creditors areencouraged to remind the farmer of hisresponsibilities under their creditarrangements and the law.

3. Issue:

Response:

4. Issue:

Response:

-42--2-

The issue of debt recovery actions alreadyinitiated at the time of proclamation mustbe resolved. Does the stay of proceedingsapply to these actions? What stage of adebt recovery action must be reached inorder for the action to be exempted fromthe stay of proceedings?

Section 23 of the Farm Debt Review Act hasthe effect of putting a stop to thecommencement or continuation of "anyproceedings, or any action, execution orother proceedings, judicial orextra-judicial, for the recovery of a debt,the realization of any security or thetaking of any property out of thepossess~on of the farmer". The legalinterpretation provided to AgricultureCanada is that this would put a halt to anyaction already underway unless the"sheriff's sale had already taken place.

In those cases where seizure of assets hasoccurred but disposal or liquidation of theassets has not been achieved due to allegedinterests/claims of others, it is ouropinion that there has been a realizationof security and therefore the stay ofproceedings would not apply. This does notinclude the case where a court order hasbeen obtained to allow for seizure ofassets.

The definition of a farmer and a farm debtis of concern. For example, are only thosepersons principally occupied in farmingeligible for the program; are personseligible, provided that the debt wasincurred in the process of producing farmproducts; or some combination of these orother criteria? How does the legislationseparate farm and non-farm businesses anddebts?

The Farm Debt Review Act does not segregatethe farming operation from the personalassets of the farmer because thefarmer-debtor is typically exposed to thefull extent of his assets on any farm

s. Issue:

Response:

6. Issue:

Response:

-43-

-3-

borrowing. Anyone with a farming operationwho is insolvent may apply for a stay ofproceedings under the Act, on the basisthat this insolvency is a threat to thefarm operation. It must also be recognizedthat'a good number of formerly full-timefarmers have been forced by economiccircumstances to seek off-farm employmentwhile continuing the farming operation on areduced scale. It would not be appropriateto exelude them from the protection of theAct nor should those who have operated afarm continuously on a part-~ime basis beexcluded. It is for these reasons that theprotection of the Act is available topart-time as well as full-time farmers.

During a stay of proceedings, a farm stillneeds to operate. The issue of equitablemanagement of farm receipts during thestay, the sale and purchase of assets, andthe provision of continuing lines ofoperating credit, especially fromnon-secured creditors, is of concern andshould ,be addressed.

During the stay of proceedings, the farmerin many cases will be constituted guardianof assets and the Farm Debt Review Boardwill spell out for him what this means interms of disposition of assets, drawingsfor living expenses, etc.

It is not clear if secured and non-securedcreditors will be treated the same during astay of proceedings. Do unsecuredcreditors generate a stay if they takeaction relative to a debt?

Unsecured creditors, unlike securedcreditors, can commence an action torecover a debt without giving the farmer 1Sdays' notice. However, once the farmer whois insolvent becomes aware of such action,that farmer can apply for a stay ofproceedings and a review of the situation,with much the same effect as in the casewhere the secured creditor initiates theaction. Since actions by unsecuredcreditors typically take several months to

7. Issue:

Response:

8. Issue:

Response:

9. Issue:

Response:

10. Issue:

Response:

-44--4-

complete, the farmer has plenty of time toinvoke the protection of the Act.

Can unsecured assets, such as milk quota insome provinces, be sold during a stay ofproceedings and can this action, ifpermitted, create additional losses forcreditors stopped from realizing by thestay of proceedings? What restrictionswill be placed by the Review Board on thefarmer in this regard?

The Farm Debt Review Board, in constitutingthe farmer guardian of the assets, wouldnormally allow him to make sales in theordinary course of business but this wouldnot extend to sales of capital assets.Sales of quota and capital assets ingeneral could be expected to requirespecific permission from the Board.

Can the costs of guardians appointed by thelender be recovered via later settlements?

This would not be the case although theremay possibly be some discretion on the partof the Board.

Does release of information under Section178 of the Bank Act (if signed by thefarmer) allow for access by creditors tothe farmer's information obtained by theReview Panel (Sec. 35(2»?

Not necessarily, panels can restrict anyinformation they have. If the farmer iswilling then the information would beavailable from him.

What guidelines exist for guardians? Canunsecured creditors be paid from theproceeds of sales or CWB cash advancesduring a stay of proceedings?

Some of the guidelines for guardians arepre-specified (attached), others are uniqueto the situation and are to be specified bythe Board. The guardian's actions will beconsistent with sound business practices.

A presumption of fairness and equityprevails. The Board is unlikely to allowunsecured creditors to be paid to theexclusion of secured creditors. Once againother laws and conditions may apply.

FARM DEBT REVIEW BOARD

(Federal)

Board .•••••.••••..•..••.•••General Manager

EXTENT OF ACT

FARM LAND SECURITY BOARD

(Provincial)

Board ..••••••••••••••..•••• General Manager

1. Basically insolvency Legislation andcovers all assets of farmer

1. Farmers only

1. Land Only - Mortgages, Agreements for Sale,Writs of Execution

APPLICATION OF ACT

1. Farm land

BOARD INVOLVEMENT

Section 16 - Farmer applies for voluntary reviewI - No creditor involvement unless farmer~ and panel agreeI - See form AGR 3200. There is no Stay of

Proceedings under Section 16.

Section 20 - a) Only if farmer applies voluntarilybased on fact that he is insolvent.

- See form AGR 3203b) If farmer has been served with noticeunder Section 22, (Notice of Intentionto Seize), and asks under Section 20for Board intervention.

- As soon as an application is receivedfrom the farmer, the Board sends a thirtyday Notice of Stay of Proceedings uponall creditors. This Stay may be extended forthree 30 day periods for a total of 120 days.

All Cases - Creditor must serve notice on the Board- Board has 120 days to investigate,

mediate, and prepare and submit acourt report if required.

- If·farmer does not wish Board involvementhe is asked to sign a waiver.

Section 16

1. Fieldman meets with farmer and preparesStatement of Affairs.

PROCEDURE

1. Fieldman interviews farmer and prepares a Statement ofAffairs.

3. Panel consists of one Board member who isChairman, and two Panel members.

2. Fieldman's report is submitted to GeneralManager who arranges for a Panel meeting.

I\0.;tI

4. Panel meets with fieldman and reviews thefile and then meet with farmer (& wife)and reviews farmer's affairs and triesa) under Section 16, to assist thefarmer in facilitating an arrangement withCreditors and may meet with the Creditors andassist the farmer and his Creditors to enterinto an arrangement. If arrangment isentered into, Panel must see to the signingof the arrangement by the parties.b) under Section 20, Panel meets withfarmer and Creditors and attempts to workout an arrangement and if arrangement isworked out, Panel must see to the signingof the arrangement by the parties.

2. Fieldman arranges for a Committee hearing.

3. Committee consists of one Board member who is Chairman,and two Committee members."

4. Committee meets with fieldman and reviews file, meets withfarmer or farmer and wife, to determine options.

S. Committee meets with representatives of loaning agencyand attempts to mediate.

6. If mediation successful, fieldman follows-up.

7. Mediation not successful, Committee decides:a) Sincerity of borrowerb) Reasonable possibility to meet commitment under the

mortgage.

8. Board passes motions re: (a) and (b) above, and courtreport is prepared and filed.

S. Under 4(b) the Board may appoint aLicensed Trustee to oversee the carryingout of the arrangement.

1. A Guardian must be appointed in all Section 20cases as soon as practicable after receipt ofapplication.

Guardian can be:a) a farmer himselfb) any other qualified person chosen by

Board, (Board pays).c) qualified person chosen by Creditor,

(Creditor pays)

- Farmer's responsibility as guardian seeform AGR 3204

2. Contravention by farmer of any directions givenby Board, Stay of Proceedings lifted, andCreditor may proceed.

GUARDIAN

1. No provisions for guardian.

I~

~ SUBSEQUENT APPLICATION TO BOARDI

1. No application for a period of two years withoutwritten permission of Board.

1. No restriction.

1. No penalty provided, but confidentialityis covered in Section 35.

10 Mediation

2. No Court Report

CONFIDENTIALITY

1. $10,000.00 fine for Board.

EFFECTIVENESS

1. Mediation

2. Court Report

FARM LAND SECURITY BOARD

BOARD MEMBERS

1. C.A. (Charlie Phelps)R. R. 1Prince Albert, Sask.S6v SP8

2. V.F. (Vic) Keep336 Cedar ~eadows DriveRegina, Sask.S4X 3JS

3. ~r. Enos SproatKip ling, Sask.SaG 2S0

4. ~rs. Ann SavilleBo:< 44Ravenscrag, Sask.SON 2CO

5. ~rs. Bette Harris30x 66Cadette, Sask.

764-7712

545-8679

736-2605

295-4121

862-5986

FARM DEBT REVIEW BOARDS

ACTIVITY DURING NOVEMBER

Notices of Applications Received PanelIntent Financial Reviews

Provo Received Insolvent Difficulty Total Completeci

NEld.P.E.I. 2 1 1N.S. 2 1 1 1N.B. 1 1 5 6 2Que. 48 17 21 38 2Onto 75 26 14 40 1~1a n. 22 16 7 23 6Sask. 123 18 44 62 16Alta. 81 50 17 67 26B. C. 3 5 9 14 5

TOTAL 357 134 118 252 59

FARM DEBT REVIEW BOARD

BOARD MEMBERS

1. Doug Neil - Chairman1447 Grace StreetMoose Jaw, Sask. S6H 3E1

2. Mr. Ken ActonBox 1384Moose Jaw, Sask. S6H 4R3

3. Dick FriesenBox 307Warman, Sask. SOK 480

4. William TurnerBox 266Cupar, Sask. SOG OYO

5. Mrs. Katherine Isabelle TaylorWolseley, Sask.SOG 5HO

6. Mrs. Donna NylanderBox 848North Battleford, Sask.S9A 223

7. Mr. Enos SproatKipling, Sask.SOG 2S0

8. Ann SavilleRavenscrag, Sask. SON 2CO

9. Mr. Vic Keep336 Cedar Meadows DriveRegina, Sask.S4X 3J5

10. Mr. Earl SilcoxBox 549Carlyle, Sask. SOC ORO

11. Mr. Carl RamsayCut Knife, Sask.

692-1676 or 693-2017

693-2674

933-4610

723-4969

698-2788

445-1515 Home445-5555 Work

736-2605

295-4121

545-8679

453-2413

398-4035

FA~~ LAND SECURiTY AND FARM DEBT REVIEW BOARDS - FIELDPERSONS

1. Allen W. KuhlmannVanguard, Sask.582-2001 or 693-0753

2. Laurie EntwistleManor448-4529

3. Ron MartinSilton, Sask.731-3248

4. S ieg OrthnerReg ina, Sask.949-4856

5. Dean VeySaskatoon, Sask.955-3923

6. A1 KirchgessnerSaskatoon, Sask.374-2567

7. John JacquesPangman, Sask.442-2076

8. Chris HaleRouleau, Sask.776-2439 or 787-7740

9. Evelyne ~rankard

Re~ina, Sask.9""9-6180

10. Earl A. ThomasRegina, Sask.9""9-6180

11. Jim ChernickRegina, Sask.779-0038

12. Murray WalkerLangham, Sask.

283-4942

13. Beppie BissonnetteRegina, Sask.545-3218

14. Richard Wellman (Dick)Gray, Sask.738-4637

15. Jim RichardsNorth Battleford, Sask.446-3803

16. Dave AndersonBulyea, Sask.725-4535

17. Ron W. GilmourSaskatoon, Sask.382-7217

18. Dan PattersonMoose Jaw, Sask.

. 799 -4600

19. Grant ClarkeRouleau, Sask.776-2397

20. Lar~y ThompsonCongress, Sask.6""2-4056

21. Blaine HaubrichGlen Bain, Sask.264-3751

Governmentof Canada

Gouvernemcntdu Canada

NOTIce OF APPOINTMENTOF GUARDIAN· FARMER

AVIS DE NOMINATIOND'UN GARDIEN • AGRICUlTEUR

Effecttve Immediately,A compt... de ce )Our, ------------- _

ofdOmICllte IU _

I. hereby appointed Guardian of the aneta '04'est nomme, par la prewnte. gardlen dea bien. de _

a. required under section 24 of the Fann Debt Review Act.conformement a I'artlcle 24 de la L()j sur rexamen de rendettement ~11cOIe.

The Guardian of the assets shall:

(1) make an inventory of all applicable 'ann assets of the farms. andsubmit this inventory to the General Mana;er of the Fann DebtReview Board;

(2) not incur any additional debts beyond normal operating .expenses without the express written consent of the GeneralManager;

(3) when necessary in the best interests of the business takeconservatory measures and similarly dispose 0' property that isperishable. or which is likely to depreciate rapidly in value, orwhich would be sold in the nonnal course 0' business;

(4) not sell any assets of a capital nature, such as br~ing stOCk,machinery, equipment, buildings or land without the prior writtenconsent of the General Manager;

(5) insure and keep insured all property f04' such amounts andagainst such hazards as would be prudent In the normal coul"S8of business;

(6) deposit in a bank account in the name of the farm, all revenues'rom the 'arm operation. The secured creditorspermission is required before securedassets are sold.

(7) subject to (6) above. not withdraw or remove monies from thebank account without the permission aD: thecreditor(s) who held security on theassets sold.

(8) keep proper boOks. written records for the business andsupportative documents in such a manner as to be fUllyaccountable for the administration of the business and makesuch boOks and records available 'or inspection to the GeneralManager at all reasonable times;

(9) not pay any salaries, wages, bonuses or drawings to the ownersor sharehOlders or the relations thereot, nor pay any dividends,without the prior written consent of the General Manager;

(10) comply with any directives issued by the General Manager.

Le gardlen des biens dolt

(1) preparer un inventaire des biens de I 'entreprlse agricole et Iesoumettre au gestlonnaire general du bureau d'examen deI'endettement agricola;

(2) ne contracter aucune dette supph~ment.aireau dela des depensescourantes d'exploitatlon sans I'autorisation ecrite at exptlcite dugestlonnaire genera~

(3) Iorsqu'll est necessalre at dans Ie meilleur interet deI'exploitation. voir it la conservation des biens at. de meme, aI'ecoulement des biens peris5ables, ou risquant de perdrerapidement de la valeur, ou qui seraient vendus dans Ie coursnormal des affaires;

(4) ne vendre aucun bien en capital, tel que les animaux dereproduction, la machlnerie, I'equlpement, les batiments ou Ieterrain, sans avoir pre.alablement obtenu I'autorisation ecrite dugestlonnaire general;

(5) assurer at voir au renouvellement des assurances de taus lesbiens, pour les sommes et selon les risques, tel que Ie suggere laprudence dans Ie cours normal des affaires;

(6) deposer daM un compte bancalre, au nom de I'exploitationagricole, taus lea revenus provenant de cette exploitation aI'exceptlon des depenses normalement engagees pour lasubaistance at I'exploitation;

(7) sous reserve de (6) cl·des5us, ne pas retirer ou trans'erer dessommes du compte bancaire. sans avoir prealablement obtenuI'autonsation ecrite du gestlonnaire general;

(8) tenir it jour les IIvres comptables et las documents justj'icatlfs de'a~n ace qu'i1s retletent adequatement I'administration'inanciere de I'exploitation et les mettre. a la dispoSition dugestionnaire general pour fin d'examen a tout moment jugeraisonnable;

(9) ne verser aucun salaire, gage. prime ou prelevement auxproprietairas au aux actlonnaires, au aux parents de ces demier'S.ni payer aucun dividende. sans avolr prealablement obtenuI'autorisatlon ecrite du gestlonnaire general;

(10) 58 conformer aux directrives du gestlannalre general.

I appointment as Guardian of the assets Is In effect,I such time •• It Is terminated In writing. and It Is'",stood that luch appoIntment I. non-f'emuneratlve.

:~ this day oftlB ce jo4,Ir de 19__

Cette nomination en tant que gardlen del bIens .testaTaen vlgueur Jusqu'a I'entente ectlte de son expiration et'liest entendu qu'une telle charge n'est pal remunere9.

lit

.-------------------

Farm Debt R6V!ew Board Bureau d'examen de I'endettement agncole

IJe ----------------------------------

(name of Guardian)(nom du gardlen)

:ity that I have received thie notice of appointment of Guardian.: !l\ave read the notice of appointment of Guardian; that I~rstand my responsibilities as guardian and that I hereby acceptointment as Guardian and the responsibilities thereof.

:9<1 this day of:e ce jour de 19 __

Witness I Temo.n

II To::--:"'I..~, ~

cenlfle que i'al pOs connaissance de cet avis de nomination de gardie.-:que je comprendsJea responsabilites inMrentes a cene fonetion <at quaj'accepte, par la p4'esente. la charge de gardien et lea responsabili:8sen decoolant.

ata--------------------

Signature of Guardian ( Signature du gardlGfl.

IRefecence No. ( NO de rMeren<;e

)

•111\\\

Government ofSaskatchewan Memorandum

From Ron Rilling, Acting General Manager,Farm Land Security Board

Date December 31, 1986

To

Re

Honourable Grant DevinePremier andMinister of Agriculture

Monthly Statistical Report'as of December 31, 1986

Phone- 787 -514 7

Your File

Our File

Number of Notices Received-------------------------860Number of Farmers Involved-------------------------754

Number of Cases Completed--------------------------5l5Successfully Mediated-------------------236Court Reports Prepared------------------279

--'-----~

Number of Court Reports Prepared-------------------279Number Requesting No Representation----- 52Number Favouring Farmer----------------- 57Number Favouring Creditor---------------130Number of Neutral Reports (No Cornment)--_4~O ~~

279

/'- , --,,'-- /

I/' ,- / -:: - t: ...(--..~~.'

Ron Rilling, Act~ng General ManagerFarm Land Security Board

/lh

c.c. Mr. Jack Drew, Deputy MinisterDepartment of Agriculture

V' VCllldUd au ljanada• ~ ...... ""' ....... n&;;YU::VV OUAtfU

MONTHLYREPORT

HAPPORT MENSUEL DU BUREAUD'EXAMEN DE L'ENDETTEMENT

AGRICOLE/' ProvInce

SASKATCHEWAN IMonth . MoisDECEMBER, 1986

No this MonthNbre cu rnois

No.Year to date "'Nbre a ce jour

....................................................................................

Copies 01 Nollce ollnlent 10 Realize on Security Received (list by type of Institulion on backICopies du preavis de realisation de sureta reyuP-S (indiquer au verso la lisle des institutions de prets)

Applications on File at Start 01 PeriodDemandes au dossier au debut de la periode

Applications receivedDemandes rBeues .. , .. , .. , . , , , , . , , .

Applications WithdrawnDemandes retirees

163

85

1

1086

248

338

6Reason for applicationRaison de la demande

-Insolvent-Insolvabilite _ .

-Financial Difficulty .-DiflicullO linanciere

15

70

160

178

Panel Reviews CompletedExamens effeclues par les comites, , , , , .

Arrangements SignedArrangements signes , , , .

Applications on File at end 01 PeriodDemandes au dossier ala lin de la periode'- .

27

3

51

3

325For Completed Cases Only: Principal Enterprises by Sales Pour les cas termlnes seulement: entreprises principales par ventes

100 Dairy100 Produits laitiers

210 Major Grain Crops210 Principales cultures cerealieres

220 Oilseed Crops220 Culture des oleagineux . , .

)230 Forages230 Fourrage .

No this MonthNbre cu mois

No Year 10 daleNbre il eu jour 400 Poultry

400 Volaille

510 Beel Industry510 Bovins

520 Swine520 Porcins

530 Sheep530 Ovins

540 Other Livcslor:k540 Autres anlmaux de lenne

300 Horticultural Crops 600 Special Crops300 Horticulture viviero 600 Cultures spcCIJliSeeS

Duration 01 Stay 01 Proceedings Duree de la suspensIon des recours

30 days or less30 jours ou moins

No. this MonlhNbre ce mois

No YUilr to daleNtne;\ ce iour 61·90

6190

91·1209t ·120

dayslours

daysJours

31·6031-60

dayslours

not requirednon reqlJlse

Panel Review Rocormnend!ltrolls . Pour Ins exarnens des cOllules: fccornmandations

2

3

4

Not Viable, liqUidation advised due to excessive deblNon Viable, liquidation conseillee en raison de I'ampleur de la delle

Not Viable, Iiquidatron advised because 01 poor managemenlNon viable, liqUidation conselllee en raison de la mauvaise geslion , .

Nol Viablo because no accommodatron roached with creditorsNon viable parce qu'aucun accord n'a pu eIre conclu avec les creanciers ..

Viable with off larm employmentViable avec emploi hars lenne

5 Viable alter obtaining additonnal equityViable apres obtention de capilaux propres additionnels

6

)7

8

Viable after debt restructuringViable apres reslructuration de la delle , , , .

Viable alter rescheduling debtViable apres reechelonnement de la delte , " , , "

Viable with lhe sale of some assetsViable a condition de vendre certains biens .. .. .. .. . .. . .. .. . .. .. .. . .. .. . .. .. . .. .. .

9 Viable with no change in lhe operationViable sans qu'il y ait amodiler I'exploitalion ,.,., " , .. , , , .

NOTICE OF INTENT TO REALIZE ON SECURlTV I PREAVIS DE REALISATION DE SURETE

Source: Type of Instltullon I Type d'institution No this MonthNine ee mois

No Year to daleNine a ee jour

1. Banks I Banques 58 586..........................................2. Trust CompaOlos I Societe fiducialre

09................... 10........................

...... .7.9. .

3. Credit Unions/Caisse Populaires

..... ?~i~.~~.~~~.~I.~~r~.~?~~~~~~~~.~~~~~~t~v~.(~? ~~~d.i~.(.a~.t~~.~.pr~.~i.~~~~~ q.~ .4. Machinery dealerships or companios

Equipement - concesslonnalres ou compagOlos

145.......................

282.......................5. Provincial Credit Corporations

Cooperatives provinciales de credit .......Q.? ~.~ ..6. Farm Credit Corporation I Societe du credit agrlcole

.......Q.~ 0) ..7. Other (specify)

Autres (preciser) .......q.~........ 31.......................TOTAL

163 1086·t······ ..· \

/

160'981 ttZ£ 1I0\'

.. ... .. .. .. .. .. .. $' seo anbl!ljO e saanolle sasuadl;lp sap auuahO~. $ aseo JOO Saml!puadxa a6eJaA'd

. . . .. .. .. . .. . .. .. .. . .. . . . .. .. .. . .. .. . .. .. . .. .. . .. .. . . . .. . . . . .. .. . .. .. .. . .. . . . .. .. .. .. . .. . .. . $ salelol sasuadl;la.. .. . .. . .. .. . .. . .. . $ SaJnllpuadX3 11l10.l

...................................................................................'seo anbllllo fl Sl;lJ:leS~~~;~~~! ::gpa~6::a~~

................................................................ ...................................~aJoeSuoo smof sap lel0.l. Shea lel0.l

mol ao \! IEIO! . Qlep 0llelol

.............. JaUIO OlS'OQo ,a sdwal :S~"AII:le sap 'ln~ • s,soO pUB a.~I.~. ~.(~:~~~~.~ aJ\n'd

Ull!ual alillS 'IBUUOSlild

lIelS Pia!:!

allWo~ op'Sillqwal"l

sJaqwal"l laul!d