Fishermen's Loans Regulation

Fishermen's Loans Regulation, M.R. 16/88 R The Fisheries Act , C.C.S.M. c. F90 Regulation 16/88 R Registered January 15, 1988 bilingual version (HTML) Table of Contents Section 1 Definitions 2 Administration of the lending agency 3 Application for a loan 4 Eligibility 5 Purposes of a loan 6 Conditions of loan 7 Appeal Definitions 1 In this regulation, "board" means the Board of Directors of the Manitoba Agricultural Credit Corporation; (« conseil ») "borrower" means a person to whom a loan is made under Part III of the Act; (« emprunteur ») "committee" means The Fishermen's Loan Credit Committee established under subsection 2(2); (« comité ») "fishermen" includes (a) fishermen in partnerships, (b) groups of related fishermen operating together, (c) fisheries co-operatives of which at least 75% of the members are fishermen, and (d) incorporated companies that are organized for the purpose of fishing, that have at least 75% of their controlling shares owned by fishermen, and that are approved by the board; (« pêcheurs ») "full-year fisherman" means a fisherman who is licensed to fish for commercial purposes during both open water and winter fishing, and whose principal occupation is fishing or who agrees that it will be if a loan is made to him; (« pêcheur à l'année ») "loan" means a loan made under Part III of the Act; (« prêt ») "manager" means the manager of the Manitoba Agricultural Credit Corporation; (« directeur ») "part-year fisherman" means a fisherman who is licensed to fish for commercial purposes during either the open water or winter period, but not during both, and whose occupation is fishing or who agrees to engage in that occupation if a loan is made to him. (« pêcheur saisonnier ») Administration of the lending agency 2(1) The functions of the lending agency under Part III of the Act shall be administered on the basis of sound, efficient, and good business practises, and, unless otherwise provided by the Act or this regulation, the usual business practise of the Manitoba Agricultural Credit Corporation, being the lending agency, will be followed in connection with loans insofar as applicable. 2(2) For the better administration of loans, the manager of the lending agency shall appoint a committee to be called "The Fishermen's Loan Credit Committee", consisting of six persons from the lending agency. Application for a loan 3 An applicant for a loan shall complete an application in writing and such other forms as may be required by the lending agency, and may be required to appear before the board, the manager, or such person as may be designated by the board or the manager, and to submit to the satisfaction of the board, the manager, or other designated person, evidence (a) of his age; (b) that he has the ability and capacity necessary to operate as a commercial fisherman; (c) that he is fishing, or intends to fish, as a full-year or part-year fisherman; (d) of his probable net income, his ability to support himself and his family, if any, and his ability to repay the loan if made; (e) of his plans for the future operation and development of his fishing operation; (f) of his assets and liabilities; and (g) of any other matter considered applicable by the board, the manager, or the person designated. Eligibility 4 No loan shall be made unless the applicant (a) is a resident of Manitoba, or will become a resident of Manitoba upon approval of a loan; (b) is at least 18 years of age on the day his application is received by the lending agency; (c) has been actively engaged in freshwater fishing during at least two of the five years immediately preceding the date on which his application for a loan is received in the office of the lending agency, unless the board decides that his knowledge of fishing is sufficient by reason of circumstances such as (i) successful completion of a fishermen's training course approved by the minister, (ii) obtaining a fishing licence, (iii) his experience as a fisherman, or (iv) any other circumstance considered adequate by the board. Purposes of a loan 5 The lending agency may make loans to fishermen for any or all of the following purposes: (a) the purchase of fishing equipment including shore installations; (b) the consolidation of outstanding liabilities incurred for fishing equipment and shore installations presently in use; and (c) such other purposes related to the establishment and development of an economic commercial fishing operation as may be approved by the board. Conditions of loan 6 Loans shall be subject to the following conditions: (a) not more than $30,000. shall be loaned to any one individual full-year fisherman; (b) not more than $18,000. shall be loaned to any one individual part-year fisherman; (c) loans to partnerships, related groups, fisheries co-operatives or limited companies (i) engaged in, or about to engage in, full-year fishing shall not exceed $30,000. per member or $90,000. aggregate, whichever is the lesser, unless approved by the board; or (ii) engaged in, or about to engage in, part-year fishing shall not exceed $18,000. per member or $54,000. aggregate, whichever is the lesser, unless approved by the board; (d) no loan shall be made for less than $400.; (e) no loan shall be made for operating expenses including the purchase of replacement nets and replacement fishing gear; (f) the moneys loaned shall be secured in the best way possible, taking into consideration all of the applicant's assets and all of the assets being purchased with the proceeds of the loan; (g) chattels forming all or part of the security for a loan shall be valued at the estimated amount for which they could be sold at auction; (h) the lending agency may secure a report from a competent valuator, who may or may not be an employee of the lending agency, as to the value of the security to be given by the borrower; (i) except as herein otherwise provided, every loan shall be repayable in at least annual payments sufficient to discharge the debt at the end of the period agreed upon, not exceeding 15 years from the date on which the loan is made; (j) loans may be made (i) up to 80% of the appraised market value of equipment or other suitable assets owned or being purchased by the borrower from the proceeds of the loan, and (ii) up to an additional 5% for each or any one of the following: (A) the acceptance of payment by way of check-off system through the corporation, (B) the successful completion of an approved fisherman's training course, and (C) the borrower's age being under 45 years; (k) the lending agency shall supervise the expenditure of the loan to ensure that the moneys are spent for the purpose for which they were loaned; (l) a borrower, without giving notice or paying any bonus, may, in addition to payments required under any security for the loan, make payments at any time on account of the loan; (m) the lending agency may defer the repayment of any part of the principal of a loan, but interest on the amount owing is payable during the period of deferment, and the principal, the payment of which is deferred, may be amortized over the remainder of the term of the loan; (n) the lending agency may forthwith cancel, by notice in writing, any approval for a loan, or, if a loan has been made, all principal and interest shall, at the option of the lending agency, immediately become due and payable if (i) the borrower defaults under any term or condition of the loan agreement or any security given for the loan, (ii) the borrower has made any incorrect statement in his application for the loan or in support of his application, (iii) any money loaned has not been, or is not being, applied for the purpose for which it was advanced, or is not being carefully and economically expended, or if the security depreciates in value through any negligence of the borrower, (iv) the borrower sells or otherwise disposes of his property given as security or any part thereof or any interest therein, or (v) without the consent of the lending agency, the borrower fails or ceases to carry on the fishing operation; (o) any amount advanced by the lending agency to protect its security is repayable forthwith, and shall be covered by the security taken and bear interest at the contract rate, and any moneys received thereafter by the lending agency may be applied firstly in payment of these advances; (p) insurance is required on the life of a fisherman under the age of 65 through and in favour of the lending agency in an amount and at a premium determined by the manager; (p.1) when requested by the lending agency, insurance is required on the property given by the fisherman as security for a loan, covering such perils and in an amount and at a premium determined by the manager, with loss payable firstly to the lending agency as its interest may appear; (q) the rate of interest on any loan shall be as follows: (i) for fishermen 65 years of age and over, the rate shall be the rate at which the government could, at the time the loan is made, borrow money over a term similar to the repayment period of the loan, rounded up to the nearest half percent, and (ii) for fishermen under 65 years of age, the rate shall be the rate determined under subclause (i) plus one-half of one percent; (r) any capital funds furnished by the Department of Indian Affairs and Northern Development of Canada may be loaned in accordance with the Act and this regulation, and in accordance with any conditions arranged between the minister and that department, with the approval of the lending agency; and (s) from the day the loan is disbursed until the sixth November 1 thereafter, the rate of interest payable by a borrower who (i) is under 35 years of age on the date on which his application is received by the lending agency, and (ii) fulfills all other conditions under this regulation, shall be 2% per annum less than the rate fixed under clause (r). R.M. 166/90 Appeal 7 Where an application for a loan is declined by the lending agency, the applicant may have the application brought by way of appeal before the board, or may appear before the board to present the appeal in person.