A-29.1, r. 1 - Regulation respecting the application of the Act respecting farm-loan insurance and forestry-loan insurance

Section 3 Disposition versions

2012-09-01

3. Net loss in principal: Where the total amount of the net income realized or deficit incurred by the lender in connection with an immovable securing a farm or forestry loan and acquired by way of a taking in payment, during the time the lender remains the owner thereof, added to the sale price of that immovable, if he disposes of it or, as the case may be, decreased by the said price, whatsoever the mode of payment, constitutes an amount less than the total of the sums owing to the lender on the loan in principal, interest costs and accessory expenses at the time of the said acquisition, such difference constitutes the net loss in principal contemplated in subparagraph b of the third paragraph of section 4 of the Act.

In determining, for the purposes of this Regulation the amount of the net income or, as the case may be, of the deficit contemplated in the first paragraph, the lender must not include in his annual expenses a reserve providing for depreciation of the immovable.

R.R.Q., 1981, c. A-29.1, r. 1, s. 3.