BEEF CATTLE

CONTENTS General 1. Definitions 2. Part IV designated product 3. Part VII designated product 4. Designation of delegated authority 5. Fund for Livestock Producers continued Livestock Financial Protection Board 6. Livestock Financial Protection Board continued 7. Agricultural industry groups to be represented on Board 8. Expenses payable by Livestock Financial Protection Board Licensing 9. Application for dealer’s licence or renewal 9.1 Unsuitability, disentitlement — licence and renewal 9.2 Grounds to be considered — financial security analysis 9.3 Requirement to provide security 9.4 Security—amount, payment 9.5 Small dealer exemption 9.6 Term, content of dealer’s licence 9.7 Conditions of dealer’s licence 10. Licence conditions — private treaty sales agreement, etc. Licence Registry 11. Licence registry Agreements to Purchase or Sell Beef Cattle 12. Agreement under s. 6 of the Act 13. Payment 14. Fees payable by licensed dealer to Board 15. Fees 16. Remittance 17. Records Claims 18. Time for payment 19. Claims by licensed dealers 20. Time for submitting claims 21. Notice of claims 22. Assessment of claims re dealers 23. Assessment of claims re producers 24. Refusals re insolvency 25. Payment of claims re dealers — limitation 26. Payment of claims re producers — limitations 27. Payment of claims re co-operatives — limitations 28. Notice of Board’s decision 29. Order by Board to reimburse 30. Order to pay costs associated with proceedings Miscellaneous 31. Agreement re inspectors, s. 65 (2) of the Act 32. Circumstances for issuing compliance orders 32.1 Compliance orders — content 33. Offences — aggravating circumstances 34. Documents deemed to be received Transitional Matters 35. Licences issued under Livestock and Livestock Products Act 36. References in security instruments 37. Circumstances of default, etc. 38. Matters ongoing under former Acts 39. Director — deemed appointment 40. Inspector — deemed designation General Definitions 1. In this Regulation, “AgriCorp” means the corporation established under section 1 of the AgriCorp Act, 1996; (“AgriCorp”) “beef cattle” means cattle, including bulls, cows, heifers, steers and calves that are, (a) sold for slaughter for the production of beef, (b) sold for the purpose of feeding before being slaughtered for the production of beef, or (c) sold for the purpose of breeding to produce cattle described in clause (a) or (b); (“bovin de boucherie”) “beef cattle agent”, in respect of a dealer, means an individual whom the dealer allows to use the dealer’s licence in accordance with subsection 5 (3) of the Act; (“mandataire en matière de bovins de boucherie”) “business day” means Monday to Friday, excluding holidays. (“jour ouvrable”) “Financial Security Analysis document” means the document entitled “Financial Security Analysis for the Beef Cattle Financial Protection Program”, dated March 24, 2026, published by AgriCorp and available on AgriCorp’s website. (“document Analyse de la sécurité financière”) O. Reg. 378/25, s. 1; O. Reg. 86/26, s. 1. Part IV designated product 2. Beef cattle is designated as a Part IV designated product. Part VII designated product 3. Beef cattle is designated as a Part VII designated product. Designation of delegated authority 4. AgriCorp is designated as the delegated authority for the purposes of the Act to administer the following provisions with respect to beef cattle: 1. Sections 5 to 9, 41, 54 to 67, 70 to 78, 106 and 107 of the Act. 2. Sections 9 to 17, 31, 32, 34 to 36 and 40 of this Regulation. Fund for Livestock Producers continued 5. The Fund for Livestock Producers, as continued by Ontario Regulation 560/93 (Fund for Livestock Producers) made under the Farm Products Payments Act, is continued. Livestock Financial Protection Board Livestock Financial Protection Board continued 6. The Livestock Financial Protection Board, as continued by Ontario Regulation 560/93 (Fund for Livestock Producers) made under the Farm Products Payments Act, is continued for the purpose of administering the Fund for Livestock Producers. Agricultural industry groups to be represented on Board 7. For the purposes of the Minister’s appointment of board members, the following agricultural industry groups shall be represented on the Livestock Financial Protection Board by at least one individual: 1. Beef Farmers of Ontario. 2. Dairy Farmers of Ontario. 3. Veal Farmers of Ontario. 4. Ontario Independent Meat Processors Association. 5. Ontario Cattle Feeders’ Association. 6. Ontario Livestock Auction Markets Association. 7. Ontario Livestock Dealers Association. Expenses payable by Livestock Financial Protection Board 8. (1) For the purposes of paragraph 2 of section 44 of the Act, the expenses described in subsections (2) and (3) are prescribed as expenses for which payment from the Fund for Livestock Producers is to be made. (2) Expenses incurred in relation to the following regulatory matters with respect to beef cattle are prescribed, less any amounts covered by fees paid in connection with an application for a licence or renewal of a licence: 1. Licensing under the Act, including, i. the issuance of or refusal to issue a licence, ii. the renewal of or refusal to renew a licence, iii. the suspension of a licence, iv. the revocation of a licence, and v. the imposition of conditions on a licence. 2. The determination of the amount of security a person is required to provide to the Director, if any. 3. Hearings before the Director in connection with licensing under the Act. 4. The issuance of any orders under the Act. 5. Inspections under the Act. 6. Actions taken to determine whether a person should be referred for potential prosecution of an offence under the Act. 7. Communications and educational activities. (3) Expenses incurred in relation to the following matters with respect to the Fund are prescribed: 1. The administration of the Fund. 2. The investigation of claims for payment from the Fund. 3. The adjudication of claims for payment from the Fund. 4. The recovery of money the Board may be entitled to receive under the Act. 5. Communications and educational activities. 6. Legal fees associated with anything in paragraphs 1 to 5. (4) Despite subsections (2) and (3), the Board is not required to pay, (a) expenses related to appeals to the Tribunal respecting any regulatory matters described in subsection (2) and any subsequent appeals; (b) expenses related to judicial reviews respecting any matters described in subsection (2) and any subsequent appeals; (c) expenses related to prosecution of offences under the Act and any subsequent appeals; (d) expenses related to judicial reviews of the Board’s decision to grant or refuse the payment of claims under the Act or expenses related to any subsequent appeals; or (e) legal fees associated with any matters described in subsection (2) or this subsection. (5) If money in the Fund for Livestock Producers is insufficient to pay all claims for payment that the Board determined to be valid as well as the expenses described in subsections (2) and (3), the Board shall first pay the claims for payment before it pays the expenses. Licensing Application for dealer’s licence or renewal 9. (1) A person may apply for a dealer’s licence or the renewal of a dealer’s licence by submitting a completed application in accordance with this section. O. Reg. 86/26, s. 2. (2) The application shall be in a form provided by the Director and shall include, (a) information about the applicant’s business structure and their business name, operating name and business number; (b) if the applicant is a corporation, the names of its shareholders; (c) if the applicant is a partnership other than a limited partnership, the names of the partners; (d) if the applicant is a limited partnership, the names of the general partners; (e) the applicant’s mailing address and contact information for any individuals with signing authority; (f) the category of dealer’s licence being applied for; (g) the applicant’s licence number, in the case of an application for renewal; (h) if the applicant is a new applicant, the applicant’s projected cattle purchases and sales over the term of the licence; (i) the applicant’s total cattle purchases and sales, if any, in the previous fiscal year; and (j) the name of any individual who is proposed to be a beef cattle agent for the applicant. O. Reg. 86/26, s. 2. (3) The applicant shall provide the following supporting documents: 1. If the applicant is a corporation: i. Financial statements from the corporation’s previous fiscal year, accompanied by a compilation engagement report, a review engagement report or an audit opinion prepared by a public accountant licensed under the Public Accounting Act, 2004. ii. An up-to-date corporate profile report, if the applicant is a new applicant or if there have been changes to the corporate profile in the case of an applicant for renewal. 2. If the applicant is not a corporation, a statement of the applicant’s tangible net worth and the applicant’s most recent income tax return with the applicant’s social insurance number removed. O. Reg. 86/26, s. 2. (4) Despite subsection (3), an applicant is not required to submit the supporting documents described in subparagraph 1 i or paragraph 2 of that subsection, as applicable, if the applicant agrees to provide security to the Director in the amount determined under section 9.2. O. Reg. 86/26, s. 2. (5) The Director may request that an applicant provide information in addition to the documents required under subsection (3) if the additional information is reasonably required to allow the Director to conduct the financial security analysis required under section 9.2. O. Reg. 86/26, s. 2. (6) The fees for an application under this section are: 1. $150 per application. 2. An additional $50 for each proposed beef cattle agent. O. Reg. 86/26, s. 2. (7) The deadline for applying for a renewal of a dealer’s licence is 30 days before the licence expires. O. Reg. 86/26, s. 2. Unsuitability, disentitlement — licence and renewal 9.1 (1) The following circumstances are prescribed for the purposes of clauses 56 (1) (e) and 57 (4) (e) of the Act: 1. The applicant previously held a dealer’s licence that was revoked. 2. The applicant or any officer, director or representative of the applicant or any other person having effective control of the applicant’s operations has been found guilty of an offence under the Act or the Livestock and Livestock Products Act. O. Reg. 86/26, s. 2. (2) The following grounds are prescribed for the purposes of clauses 56 (1) (f) and 57 (4) (f) of the Act: 1. The applicant has filed a notice of intention to file or a proposal under the Bankruptcy and Insolvency Act (Canada) or has had all or part of their assets placed in the hands of a trustee for distribution under that Act. 2. A monitor has been appointed under the Companies’ Creditors Arrangement Act (Canada) in respect of the applicant. 3. A receiver or receiver-manager has been appointed in respect of some or all of the applicant’s assets. 4. The applicant has made an application under the Farm Debt Mediation Act (Canada). 5. The applicant fails to provide security as required under this Regulation. O. Reg. 86/26, s. 2. Grounds to be considered — financial security analysis 9.2 (1) Before issuing or renewing a dealer’s licence, the Director shall conduct an analysis of the applicant’s financial security by applying the scoring methods set out in the Financial Security Analysis document. O. Reg. 86/26, s. 2. (2) Subsection (1) applies with respect to each applicant unless, (a) the applicant agrees to provide security to the Director under subsection 9 (4); or (b) the applicant is a new applicant who does not provide the supporting documents described in subparagraph 1 i or paragraph 2 of subsection 9 (3), as applicable. O. Reg. 86/26, s. 2. Requirement to provide security 9.3 (1) The Director shall require the following applicants for a dealer’s licence to provide security: 1. An applicant who, as part of their application, did not submit the supporting documents described in subparagraph 1 i or paragraph 2 of subsection 9 (3), as applicable. 2. An applicant who fails to provide additional information requested under subsection 9 (5). 3. An applicant who receives a score under the Financial Security Analysis document of less than 50 points. O. Reg. 86/26, s. 2. (2) The Director may require the following applicants for a dealer’s licence to provide security if the Director believes on reasonable grounds that the applicant may be unable to meet its financial obligations during the term of the licence: 1. An applicant who receives a score under the Financial Security Analysis document equal to or greater than 50 points and less than or equal to 60 points. 2. An applicant for whom the Director has fewer than three years of the financial information set out in the supporting documents described in subparagraph 1 i or paragraph 2 of subsection 9 (3), as applicable, as provided by the applicant in connection with the application or an application made in respect of the previous year. O. Reg. 86/26, s. 2. (3) The Director shall not require security from an applicant who receives a score under the Financial Security Analysis document of more than 60 points. O. Reg. 86/26, s. 2. Security—amount, payment 9.4 (1) The amount of security to be provided by a new applicant who does not provide the supporting documents described in subparagraph 1 i or paragraph 2 of subsection 9 (3), by an applicant who agrees to provide security or by an applicant from whom the Director requires security shall be determined in accordance with the Financial Security Analysis document. O. Reg. 86/26, s. 2. (2) The applicant shall provide the amount to the Director in the form of, (a) an irrevocable letter of credit issued by, (i) a bank listed in Schedule I or II to the Bank Act (Canada), (ii) a credit union to which the Credit Unions and Caisses Populaires Act, 2020 applies, or (iii) a trust corporation registered under the Loan and Trust Corporations Act; or (b) a bond issued by an insurance company licensed under the Insurance Act. O. Reg. 86/26, s. 2. (3) The security must be valid until at least the end of the third month after the expiry of the licence in respect of which the security is provided. O. Reg. 86/26, s. 2. Small dealer exemption 9.5 (1) An applicant for renewal of a dealer’s licence who satisfies the conditions in subsection (2) is exempt from, (a) the requirement to provide the supporting documents described in subparagraph 1 i or paragraph 2 of subsection 9 (3), as applicable; (b) the financial security analysis required under section 9.2; and (c) the requirement to pay security under section 9.3. O. Reg. 86/26, s. 2. (2) The conditions referred to in subsection (1) are the following: 1. The applicant’s purchases of beef cattle in each week of the term of their current licence do not exceed $5,000. 2. The applicant provides, as part of their application, a signed declaration that their purchases of beef cattle in each week of the term of their renewed licence will not exceed $5,000. O. Reg. 86/26, s. 2. (3) Clause (1) (c) does not apply if, (a) the licensed dealer has failed to make payment as required under the Act; (b) during the term of their previous dealer’s licence, the licensed dealer was found guilty of a Type A offence; (c) during the term of their previous dealer’s licence, a compliance order was issued to the licensed dealer under subsection 67 (2) of the Act with respect to a provision mentioned in any of paragraphs 1 to 7 of subsection 108 (1) of the Act; (d) during the term of their previous dealer’s licence, an administrative penalty related to any of paragraphs 1 to 7 of subsection 108 (1) of the Act was imposed on the licensed dealer under subsection 71 (3) of the Act; or (e) during the term of their previous dealer’s licence, the licensed dealer has been found guilty of an offence under the Livestock and Livestock Products Act. O. Reg. 86/26, s. 2. (4) Despite clause (1) (a), the Director may request that an applicant submit the supporting documents described in subparagraph 1 i or paragraph 2 of subsection 9 (3), as applicable, if more than 5 years have passed since the applicant last provided those documents. O. Reg. 86/26, s. 2. Term, content of dealer’s licence 9.6 (1) A dealer’s licence expires at the end of the month that is six months after the last day of the dealer’s fiscal year in which the licence is issued or renewed. O. Reg. 86/26, s. 2. (2) The licence must contain a licence number and its expiry date. O. Reg. 86/26, s. 2. Conditions of dealer’s licence 9.7 Every dealer’s licence is subject to the following conditions: 1. The dealer shall notify the Director as soon as possible, in writing, of the following: i. Any changes to the nature or form of ownership, or changes to the control over, the dealer’s business. ii. Any changes to the dealer’s banking arrangements. iii. Any material changes to the dealer’s financial position. 2. The dealer shall notify the Director as soon as possible, in writing, of any proposed additions to the proposed beef cattle agents for the dealer and shall pay an additional fee of $50 for each additional individual who is proposed to be a beef cattle agent for the dealer during the term of the licence. O. Reg. 86/26, s. 2. Licence conditions — private treaty sales agreement, etc. 10. (1) Every dealer’s licence is subject to the following conditions: 1. If a licensed dealer wishes to purchase beef cattle from or sell beef cattle to another dealer, whether the second dealer is licensed or not, the licensed dealer and the second dealer shall enter into a private treaty sales agreement that satisfies the requirements set out in subsections (2) and (3). 2. If a licensed dealer wishes to sell beef cattle to a producer, the licensed dealer and the producer shall enter into a private treaty sales agreement that satisfies the requirements set out in subsections (2) and (3). 3. If a licensed dealer wishes to sell or offer for sale beef cattle on behalf of another licensed dealer, the licensed dealer and the second licensed dealer shall enter into an agreement that satisfies the requirements set out in subsections (2) and (3). (2) An agreement referred to in subsection (1) must contain the following information: 1. The names and addresses of the parties to the sale. 2. The licence number of all dealers that are party to the agreement. 3. The date of the sale. 4. A description or identification of the beef cattle. 5. The number of head of beef cattle being sold. 6. The purchase or sales price of the beef cattle. 7. The date of payment for the sale. 8. The fees payable to the Board under subsection 41 (3) of the Act. (3) An agreement referred to in subsection (1) must contain the following terms: 1. A payment made by a dealer or producer to a dealer for the purchase of beef cattle may be made by cheque, direct deposit, electronic payment or any other method of payment agreed to by the producer and dealer. 2. The payment must be received by the dealer, i. by 1 p.m. on the ninth business day after the price determination day, if the amount of the sale is less than $15,000, or ii. by 1 p.m. on the sixth business day after the price determination day, if the amount of the sale is $15,000 or more. 3. For the purposes of paragraph 2, “price determination day” means the day of, i. weighing, if the price is determined on a weight basis, ii. grading, if the price is determined on a carcass grading basis, or iii. purchase, if the price is determined on a per head basis. 4. Any method of payment mentioned in paragraph 1 must enable the dealer to deposit the payment in their bank account within the time required by paragraph 2 and, in the case of a payment made by cheque, the cheque must be dated no later than the day on which the payment is due. Licence Registry Licence registry 11. (1) The Director shall establish a licence registry for licensed dealers known as the Licensed Dealer Registry in English and Registre des marchands titulaires d’un permis in French. O. Reg. 378/25, s. 11 (1). (2) The Director shall make the Registry publicly available on AgriCorp’s website. O. Reg. 378/25, s. 11 (2). (3) The Registry shall include the following information about every licensed dealer: 1. The dealer’s legal name, the name of their business and any other name that is registered to them under the Business Names Act. 2. The name of the individual primarily associated with the licence. 3. The mailing address of the dealer’s business. 3.1 If the dealer meets the description in subsection 9.5 (2), a notation indicating that the dealer is a small dealer. 4. The name of any individual who is allowed to use the dealer’s licence as an agent in accordance with subsection 5 (3) of the Act. 5. Any order to pay an administrative penalty respecting the dealer’s contravention of subsection 5 (1) or section 7 of the Act that was not appealed to the Tribunal or that was confirmed by the Tribunal following an appeal. O. Reg. 378/25, s. 11 (3); O. Reg. 86/26, s. 3. (4) The Director shall keep the Registry up to date by implementing any necessary changes as soon as circumstances permit. O. Reg. 378/25, s. 11 (4). Agreements to Purchase or Sell Beef Cattle Agreement under s. 6 of the Act 12. (1) This section applies to an agreement entered into under section 6 of the Act under which a dealer purchases beef cattle from a producer or sells or offers for sale beef cattle on behalf of a producer. (2) An agreement referred to in subsection (1) must contain the following information: 1. The names and addresses of the parties to the agreement. 2. The dealer’s licence number. 3. The date of the purchase or sale. 4. A description or identification of the beef cattle. 5. The number of head of beef cattle being purchased or sold. 6. The purchase or sale price of the beef cattle. 7. The date of payment for the purchase or sale. 8. The fees payable to the Board under subsection 41 (1) of the Act. Payment 13. (1) A payment made by a dealer to a producer for the purchase of beef cattle may be made by cheque, direct deposit, electronic payment or any other method of payment agreed to by the producer and dealer, subject to subsection (4). (2) The dealer shall ensure that the producer receives the payment, (a) by 1 p.m. on the ninth business day after the price determination day, if the total amount of the sale is less than $15,000; or (b) by 1 p.m. on the sixth business day after the price determination day, if the total amount of the sale is $15,000 or more. (3) For the purposes of subsection (2), “price determination day” refers to the day of, (a) weighing, if the price is determined on a weight basis; (b) grading, if the price is determined on a carcass grading basis; or (c) purchase, if the price is determined on a per head basis. (4) For the purposes of subsection (1), any payment method agreed to by the producer and dealer must enable the producer to deposit the payment in their bank account within the time required by subsection (2) and, in the case of a payment made by cheque, the cheque must be dated no later than the day on which the payment is due. Fees payable by licensed dealer to Board 14. For the purposes of subsection 41 (3) of the Act, a licensed dealer is required to pay fees to the Livestock Financial Protection Board in the following circumstances: 1. The licensed dealer sells beef cattle on behalf of a producer. 2. The licensed dealer sells beef cattle on behalf of another licensed dealer. 3. The licensed dealer sells beef cattle to a dealer or a producer. Fees 15. A fee of 10 cents per head of beef cattle is payable to the Livestock Financial Protection Board, (a) by the producer, when a dealer purchases beef cattle from a producer; (b) by both the producer and the dealer, when a dealer sells beef cattle on behalf of a producer; (c) by both licensed dealers, when the licensed dealer sells beef cattle on behalf of another licensed dealer; and (d) by the licensed dealer, when a licensed dealer sells the beef cattle to a dealer or a producer. Remittance 16. (1) A fee payable to the Livestock Financial Protection Board by a producer under clause 15 (a) or (b) shall be deducted from the amount payable with respect to the sale and remitted on the producer’s behalf by the dealer in accordance with subsections (4) to (6). (2) A fee payable to the Board by a dealer under clause 15 (b) to (d) shall be remitted by the dealer on their own behalf in accordance with subsections (4) to (6). (3) A dealer who deducts and remits a fee on behalf of a producer under subsection (1) shall give the producer a statement of the fee deducted at the time the fee is deducted. (4) A dealer required to remit a fee under subsection (1) or (2) shall, on or before the 15th day of each month, remit the fees payable with respect to the total number of head of beef cattle purchased and the total number of head of beef cattle sold during the previous month. (5) Every remittance under subsection (4) shall be accompanied by a statement of the total number of head of beef cattle purchased and the total number of head of beef cattle sold during the previous month. (6) Despite subsections (4) and (5), a dealer who purchases or sells 1,000 head of beef cattle or fewer in the dealer’s fiscal year shall, within 30 days before their licence expires, (a) remit the fees payable with respect to the total number of head of beef cattle purchased and the total number of head of beef cattle sold during the previous fiscal year; and (b) provide a statement of the total number of head of beef cattle purchased and the total number of head of beef cattle sold during the previous fiscal year. Records 17. A dealer shall keep a copy of all agreements referred to in subsections 10 (1) and 12 (1) for at least 12 months after the dealer made the final payment under the agreement. Claims Time for payment 18. For the purposes of clause 46 (1) (a) of the Act, the prescribed time is 15 days after the day the price becomes payable. Claims by licensed dealers 19. For the purpose of subsection 46 (3) of the Act, a licensed dealer may make a claim for payment out of the Fund for Livestock Producers in respect of a sale to another licensed dealer or to a producer if, (a) in respect of an agreement referred to in subsection 10 (1), the purchaser has failed to make payment to the licensed dealer within the timeline required under subsection 10 (3); (b) a proceeding under the Bankruptcy and Insolvency Act (Canada) or the Companies’ Creditors Arrangement Act (Canada) has been commenced in respect of the purchaser; or (c) the purchaser has ceased to carry on business. Time for submitting claims 20. For the purposes of section 47 of the Act, a producer or a licensed dealer who wishes to make a claim for payment out of the Fund for Livestock Producers shall submit the claim to the Livestock Financial Protection Board within 30 days after the first day on which grounds for making the claim arose. Notice of claims 21. The Livestock Financial Protection Board shall provide written notice of any claims that it receives to the Director and to the dealer or producer in respect of whom the claim is made. Assessment of claims re dealers 22. (1) The Livestock Financial Protection Board may refuse to pay a claim made in respect of a dealer if, (a) the claimant is a producer and the claim was made in respect of a dealer who was not licensed; (b) the claimant did not submit the claim within the time set out in section 20; (c) the claimant received a payment from the dealer in a form that must be deposited but the claimant failed to deposit the payment within five business days and the deposit was declined or failed; (d) the agreement to purchase or sell beef cattle made under section 6 of the Act or the private treaty sales agreement referred to in section 10 did not comply with the Act or this Regulation; (e) the claimant did not promptly notify the Director of the dealer’s failure to pay; (f) the claimant had reason to believe, but failed to promptly notify the Director, that the dealer who purchased the beef cattle, (i) ceased to carry on business, (ii) made a proposal under the Bankruptcy and Insolvency Act (Canada) or the Companies’ Creditors Arrangement Act (Canada), or (iii) had all or part of their assets placed in the hands of a trustee for distribution under the Bankruptcy and Insolvency Act (Canada) or in the hands of a receiver for distribution pursuant to a debenture or like instrument; (g) the claimant and the dealer made an arrangement to extend the time set out in paragraph 2 of subsection 10 (3) or subsection 13 (2), as the case may be; (h) the claimant made an arrangement with the dealer to evade the payment of fees or otherwise did not pay fees required under section 15; or (i) it would be inequitable in the circumstances to pay the claim because, (i) there is or was an association between the claimant and the dealer, and (ii) the conduct of the claimant or, if the claimant is a corporation, the conduct of an officer or director of the claimant or that of a person having power to direct the claimant’s management caused the failure to pay. (2) When determining whether to refuse to pay a claim under clause (1) (a), the Board shall consider whether the claimant knew the dealer was, at the time of the sale, unlicensed on account of the expiry, suspension, revocation or non-renewal of their licence. (3) When determining whether to refuse to pay a claim under clause (1) (b), the Board shall consider whether the claim for payment was submitted in substantial conformity with section 20. (4) When determining whether to refuse to pay a claim under subsection (1) where the claimant is a producer that is a feeder cattle finance co-operative or a breeder cattle co-operative, the Board shall, (a) consider the actions of the producer who sold the beef cattle on behalf of the co-operative; and (b) not refuse the claim on the basis of the actions or conduct of another member of the same co-operative. Assessment of claims re producers 23. The Livestock Financial Protection Board may refuse to pay a claim for payment out of the Fund for Livestock Producers made in respect of a producer if, (a) subject to clause (b), the claimant received a payment from the producer in a form that must be deposited but the claimant failed to deposit the payment by 2 p.m. on the second business day following the day the payment was received and the deposit is declined or fails; (b) in the case of a sale to a producer that is a feeder cattle finance co-operative or a breeder cattle co-operative, the claimant received payment from the co-operative in a form that must be deposited but the claimant failed to deposit the payment by 2 p.m. on the 10th day following the day of the sale and the deposit is declined or fails; (c) the private treaty sales agreement referred to in section 10 did not comply with the Act or this Regulation; or (d) any of the grounds set out in clauses 22 (1) (b), (e), (f), (g), (h) or (i) apply, with necessary modifications. Refusals re insolvency 24. The Livestock Financial Protection Board shall refuse to pay a claim unless, (a) for the purpose of any insolvency proceeding respecting the dealer or producer in respect of whom the claim was made, the claimant assigns to the Board all of the claimant’s rights to the amount claimed; (b) the claimant agrees to take all reasonable steps to preserve any claim the claimant may have in any insolvency proceeding respecting the dealer or producer; and (c) the claimant agrees to promptly provide the Board with any notices it receives in any insolvency proceeding respecting the dealer or producer. Payment of claims re dealers — limitation 25. In the case of a claim made in respect of a dealer, the Livestock Financial Protection Board shall pay out of the Fund for Livestock Producers 95 per cent of the portion of the claim that it determines to be valid. Payment of claims re producers — limitations 26. In the case of a claim made in respect of a producer that is not a feeder cattle finance co-operative or a breeder cattle co-operative, the Livestock Financial Protection Board shall pay the claim out of the Fund for Livestock Producers in accordance with the following: 1. The Board shall pay 95 per cent of the portion of the claim that it determines to be valid or $320,000, whichever is less. 2. No payment shall be made if the portion of the claim that the Board determines to be valid would result in a payment of $5,000 or less. 3. If the Board has made a payment to a claimant in respect of a producer, the Board shall not make any subsequent payments to the same claimant in respect of the same producer until the producer has paid any orders issued under subsection 52 (1) of the Act. Payment of claims re co-operatives — limitations 27. In the case of a claim made in respect of a producer that is a feeder cattle finance co-operative or a breeder cattle co-operative, the Livestock Financial Protection Board shall pay the claim out of the Fund for Livestock Producers in accordance with the following: 1. The Board shall pay 95 per cent of the portion of the claim that it determines to be valid. 2. No payment shall be made if the portion of the claim that the Board determines to be valid would result in a payment of $5,000 or less. 3. If the Board has made a payment to a claimant in respect of the feeder cattle finance co-operative or the breeder cattle co-operative, the Board shall not make any subsequent payments to the same claimant in respect of the same co-operative until the co-operative has paid any orders issued under subsection 52 (1) of the Act. Notice of Board’s decision 28. The Livestock Financial Protection Board shall give notice of a decision on a claim to the Director, the claimant and the dealer or producer in respect of whom the claim was made. Order by Board to reimburse 29. (1) A producer is a prescribed person for the purposes of subsection 52 (1) of the Act. (2) For the purposes of subsection 52 (2) of the Act, the following additional information shall be included in an order to reimburse a claim: 1. A statement that the order to reimburse cannot be appealed. 2. A statement that the amount to be reimbursed is to be paid to the Livestock Financial Protection Board. 3. A statement that the amount to be reimbursed, if unpaid by the date indicated in the order, will accrue interest at the rate determined under subsection 54 (12) of the Act. 4. A statement that steps could be taken to collect if the person fails to pay by the date indicated in the order. 5. A statement that an order made in English can be translated into French on request and an order made in French can be translated into English on request. Order to pay costs associated with proceedings 30. For the purposes of subsection 52 (4) of the Act, the following additional information shall be included in an order to pay the costs of the Livestock Financial Protection Board: 1. A statement that the order may be appealed within 15 days after it is issued, unless the Tribunal extends the time to appeal the order. 2. A statement that serving a notice of appeal operates as a stay of the order until the disposition of the appeal by the Tribunal. 3. The period within which payment must be made. 4. A statement that the costs owing under the order will accrue interest at a rate determined under subsection 54 (12) of the Act if the costs remain unpaid by the latter of, i. the date set out in the order, if there is no appeal to the Tribunal, or ii. the date set out by the Tribunal, if there is an appeal to the Tribunal where the Tribunal confirms the decision or orders the appellant to pay a different amount. 5. A statement that steps could be taken to collect if the person fails to pay by the applicable date in paragraph 4. 6. A statement that an order made in English can be translated into French on request and an order made in French can be translated into English on request. Miscellaneous Agreement re inspectors, s. 65 (2) of the Act 31. For the purposes of subsection 65 (2) of the Act, the following information is prescribed: 1. The duties and responsibilities of the inspector. 2. Requirements for data sharing and data privacy. 3. The compensation of the inspector, if applicable. 4. The term of the inspector’s appointment. Circumstances for issuing compliance orders 32. An inspector is permitted to issue a compliance order under section 67 of the Act in connection with an inspection conducted under section 66 of the Act. Compliance orders — content 32.1 In addition to the information set out in subsection 67 (3) of the Act, a compliance order must include the following information: 1. A statement that an appeal to the Tribunal does not act as a stay of the order. 2. A statement that failure to comply with the requirements of the compliance order by the date indicated in the order constitutes a Type A offence and could lead to further compliance or enforcement actions. 3. A statement that an order made in English can be translated into French on request and an order made in French can be translated into English on request. O. Reg. 86/26, s. 4. Offences — aggravating circumstances 33. (1) For the purposes of subsection 111 (4) of the Act, the following are prescribed as circumstances that increase the gravity of an offence: 1. The person who committed the offence profited as a result of the offence. 2. Another person missed a payment owing to a third party as a result of the offence. (2) A penalty may be increased under subsection 111 (4) of the Act by up to 25 per cent as long as the increase does not result in the penalty exceeding the maximum penalty set out in subsection 111 (1), (2) or (3) of the Act, as the case may be, in respect of the offence. Documents deemed to be received 34. (1) For the purpose of section 116 (1) of the Act, any notice, order or other document given or served under the Act is deemed to be received, (a) on the day of service, if it is served by personal service; (b) on the earlier of the fifth business day after the document was mailed or the day the recipient acknowledges receipt of it in writing, if it was sent by mail; (c) on the second business day after the document was given to the courier, if it is sent by courier; or (d) in cases where it is sent by email or facsimile, on the business day on which it is sent, if it is sent before 4 p.m., or on the next business day, if it is sent after 4 p.m. (2) Subsection (1) does not apply if the recipient is the Director, the Livestock Financial Protection Board or the Tribunal. Transitional Matters Licences issued under Livestock and Livestock Products Act 35. The following rules apply with respect to licences issued under the Livestock and Livestock Products Act that were in effect immediately before that Act was repealed: 1. The licence expires in accordance with the Livestock and Livestock Products Act. 2. Terms and conditions that were imposed on the licence under the Livestock and Livestock Products Act and that were in effect immediately before that Act was repealed continue in effect and may be enforced under the Act. 3. The licence is deemed to be a licence issued under the Act as the circumstances may require. References in security instruments 36. A reference to the director under the Livestock and Livestock Products Act in a security instrument furnished or deposited under that Act is deemed to be a reference to the Director under the Act. Circumstances of default, etc. 37. A claim may be made under Part VII of the Act, with necessary modifications, if, (a) a circumstance described in subsection 3 (1) or (2) of the Farm Products Payments Act or in section 9 or 10 of Ontario Regulation 560/93 (Fund for Livestock Producers) made under that Act arose in respect of livestock before the repeal of the Farm Products Payments Act but no application had been made under that Act as of the date of the repeal; or (b) a transaction in respect of livestock was entered into before the repeal of the Farm Products Payments Act and, after the repeal, a circumstance mentioned in clause (a) arose. Matters ongoing under former Acts 38. (1) An application for payment in respect of beef cattle under the Farm Products Payments Act that had not been finally determined as of the day immediately before that Act was repealed shall be continued under that Act. (2) A proposal, hearing or appeal with respect to a licence under the Livestock and Livestock Products Act that had not been finally determined as of the day immediately before that Act was repealed shall be continued under that Act. Director — deemed appointment 39. The individual appointed as the director under the Livestock and Livestock Products Act is deemed to be appointed as a Director under the Act until the appointment under the Livestock and Livestock Products Act expires or is revoked. Inspector — deemed designation 40. The appointment of an inspector under the Livestock and Livestock Products Act is deemed to be a designation by the Director under the Act and continues until the appointment expires or is revoked. 41. Omitted (provides for coming into force of provisions of this Regulation).