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

Section 4 Disposition versions

2012-09-01

4. Conditions of claim: Subject to the possibility for a lender other than the agency of submitting in accordance with section 17.1 of the Act a provisional claim for reimbursement of losses and expenses incurred or likely to be and subject to the second paragraph, a claim for repayment of the losses and expenses contemplated in section 4 of the Act and incurred by a lender other than the agency may be made, provided that:

(a)  the lender or, as the case may be, the agency as the latter’s mandatory has realized the security on the loan in respect of which the losses or expenses were incurred, unless such realization is likely to increase the loss sustained by the lender;

(b)  the lender has taken any other adequate means for recovery as in the ordinary course of his business;

(c)  the lender has obtained prior notice from the agency on the expediency of enforcing the loan guarantee by exercising a taking in payment clause; and

(d)  the claim form referred to in section 6 is sent with the documents listed in section 7 to the agency within 60 days after the date on which the transactions required to enforce the guarantee are completed or to take the other means for recovery referred to in subparagraph b.

Where as a result of a default by a borrower or a debtor in respect of a farm or forestry loan granted by a lender other than the agency, the lender has acquired the immovable at the time of a sheriff’s sale or by a taking in payment, he may file a claim for repayment by the Fonds of any net loss in principal contemplated in subparagraph b of the third paragraph of section 4 of the Act as well as the interest and expenses contemplated in the same section, provided:

(a)  the lender has disposed of the immovable by onerous title and, unless advised otherwise by the agency, such disposition made following a call for tenders submitted and received in the manner prescribed by the agency; and

(b)  the claim form contemplated in section 6 is sent to the agency within 60 days after the date of disposition.

R.R.Q., 1981, c. A-29.1, r. 1, s. 4; O.C. 1127-88, s. 2; O.C. 130-92, s. 2.