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FEEDER ASSOCIATIONS GUARANTEE ACT
Chapter F‑11
Table of Contents
1 Definitions
2 Guarantee
3 Prohibition re advances
4 Subrogation of rights
5 Regulations
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows:
Definitions
1 In this Act,
(a) “feeder association” means an association incorporated under an Act of the Legislature and having for its object the assisting of its members to acquire livestock for growing and finishing;
(b) “guarantee” means a guarantee given under this Act;
(c) “guaranteed loan” means a loan to a feeder association in respect of which a guarantee is given;
(d) “lender” means a person who makes a loan to a feeder association;
(e) “livestock” means cattle, hogs and sheep;
(f) “Minister” means the Minister determined under section 16 of the Government Organization Act as the Minister responsible for this Act.
RSA 2000 cF‑11 s1;2004 c24 s2
Guarantee
2(1) The Lieutenant Governor in Council, on the recommendation of the Minister, may by order authorize the Minister of Finance to give guarantees on behalf of the Government in respect of the repayment of loans made to feeder associations to finance the acquisition of livestock for growing or finishing, or both, by the members of those feeder associations.
(2) An order under subsection (1) must set out the maximum amount of the total outstanding contingent liability of the Crown as a result of guarantees under this section.
(3) The Minister must prescribe the maximum amount of the aggregate of loans that may be guaranteed in respect of any one feeder association.
(4) At least every 5th calendar year, if during that period subsection (1) has not been repealed and a Government Bill has not been introduced into the Legislative Assembly that, if passed, would have the effect of repealing that enactment, the Minister shall ensure that a member of the Executive Council introduces into the Legislative Assembly a motion that would have the effect of facilitating a debate in the Assembly on the question of whether the enactment should be repealed.
RSA 2000 cF‑11 s2;2006 c23 s30
Prohibition re advances
3(1) If the Minister is of the opinion that a feeder association is not complying with this Act or a regulation made under this Act or that a feeder association is being operated in an unsound manner, the Minister may by order prohibit that feeder association from obtaining any further advances under a guaranteed loan.
(2) On making an order under subsection (1), the Minister shall send a copy of the order by registered mail to or deliver a copy of the order to
(a) the feeder association named in the order,
(b) the lender from whom the feeder association obtained the guaranteed loan, and
(c) the Minister of Finance.
(3) If a lender
(a) after receiving a copy of an order made under subsection (1), and
(b) during the time that the order remains in force,
makes a further advance to the feeder association named in the order under a guaranteed loan, the Minister of Finance may, on written notice to that lender, reduce the liability of the Government under that guarantee to the amount that would have existed if that advance had not been made.
RSA 2000 cF‑11 s3;2006 c23 s30
Subrogation of rights
4(1) If a feeder association defaults in repaying an amount due under a guaranteed loan and the Minister of Finance makes a payment to a lender under a guarantee on account of that default, the Minister of Finance is subrogated, in respect of that guaranteed loan,
(a) to all the rights of the lender under any security or negotiable instruments given to the lender by the feeder association,
(b) to any action that the lender has against the feeder association,
(c) to all rights of the feeder association under any security or negotiable instruments given to the feeder association by its members, and
(d) to any action that the feeder association has against any of its members.
(2) A payment made by the Minister of Finance under a guarantee on account of a default by a feeder association does not affect any liability of or security given by the feeder association under the guaranteed loan and, notwithstanding that a payment was made under the guarantee, the liability of and the security given, if any, by the feeder association
(a) remains and continues in full force and effect, and
(b) may be enforced against the feeder association by the Minister of Finance.
RSA 2000 cF‑11 s4;2006 c23 s30
Regulations
5 The Lieutenant Governor in Council may make regulations
(a) governing the operation of feeder associations;
(b) prescribing the qualifications that must be met by persons wishing to become members of a feeder association;
(c) prescribing the conditions that must be met before the Minister of Finance will guarantee the repayment of a loan;
(d) governing the use of the proceeds of loans that are guaranteed pursuant to this Act;
(e) governing the terms and conditions on which livestock may be purchased or sold by feeder associations;
(f) providing for the content and use of forms under this Act and the regulations;
(g) generally for carrying out the purpose and intent of this Act.
RSA 2000 cF‑11 s5;2006 c23 s30
