Bill C-38

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	STAY OF PROCEEDINGS
Effect of stay of proceedings	12. Notwithstanding any other law, during any period in which a stay of proceedings is in effect, no creditor of the farmer
	(a) shall enforce any remedy against the property of the farmer; or
	(b) shall commence or continue any proceedings or any action, execution or other proceedings, judicial or extra-judicial, for the recovery of a debt, the realization of any security or the taking of any property of the farmer.
Extension of stay of proceedings	13. (1) Where the administrator considers an extension of the thirty day period referred to in paragraph 7(1)(b) to be essential to the formulation of an arrangement between a farmer and the farmer's creditors, the administrator may, subject to the regulations, extend that period for a maximum of three further periods of thirty days each.
Interim extension of stay	(2) Where
	(a) there is an appeal under section 15 from a decision of the administrator not to extend a stay of proceedings, and
	(b) the stay of proceedings expires before the appeal is decided,
	the administrator shall, on that expiration, extend the stay of proceedings until the appeal is decided.
Notice to creditors	(3) The administrator shall give notice of any extension granted under subsection (1) or (2) to the farmer and to each person whose name is listed as a creditor in the farmer's application.
Where appeal successful	(4) Where, pursuant to an Appeal referred to in paragraph (2)(a), the Appeal Board reverses the administrator's decision, the resulting thirty day extension of the stay of proceedings starts at the expiration of the original stay of proceedings, or at the expiration of the previous thirty day extension thereof, as the case may be.
Obligatory termination of stay of proceedings	14. (1) If the administrator determines, pursuant to paragraph 7(1)(c), that the farmer is not eligible to make the application, the administrator shall direct that the stay of proceedings be terminated.
Discretionary termination of stay of proceedings	(2) If the administrator is of the opinion, based on information received from the mediator or from any other source, that
	(a) either the farmer or the majority of the creditors listed in the application
	(i) refuse to participate in the mediation, or
	(ii) refuse to continue to participate in good faith in the mediation,
	(b) the mediation will not result in an arrangement between the farmer and the majority of the creditors listed in the application,
	(c) the farmer has contravened any directive issued to the farmer by the administrator pursuant to subsection 17(1), or
	(d) the farmer has, by any act or omission, jeopardized his or her assets or obstructed the guardian in the performance of the guardian's duties under subsection 17(2),
	the administrator may direct that the stay of proceedings be terminated.
Notice of termination	(3) Where the administrator directs, pursuant to subsection (1) or (2), that a stay of proceedings be terminated, the Administrator shall so inform the farmer and all the creditors listed in the application.
When termination takes effect	(4) Where the administrator directs, pursuant to subsection (1) or (2), that a stay of proceedings be terminated, the termination takes effect
	(a) on the expiration of the time prescribed for making an appeal under section 15; or
	(b) where an appeal is made under section 15, if and when the appeal is dismissed.
Automatic termination of stay of proceedings	(5) A stay of proceedings terminates on
	(a) the signing of an arrangement under section 19; or
	(b) the farmer's making an assignment under the Bankruptcy and Insolvency Act.
	APPEAL BOARDS
Appeal Boards	15. (1) The Minister may, in accordance with the regulations, constitute one or more Appeal Boards and designate the members thereof, and may enter into agreements for the services of the members, which agreements may include provision for remuneration and travel and living expenses.
Appeals	(2) A farmer or a creditor may, in accordance with the regulations, appeal to an Appeal Board a decision of an administrator relating to
	(a) the eligibility of a farmer to make the application under paragraph 5(1)(a); or
	(b) the extension or termination of a stay of proceedings.
Regulations	(3) The Appeal Board shall deal with an appeal in accordance with the regulations.
Stay not affected	(4) The making of an appeal does not affect a stay of proceedings that is in effect.
Board's decision final	(5) A decision of an Appeal Board is final and is not subject to appeal.
	GUARDIAN OF FARMER'S ASSETS
Administra- tor to appoint guardian	16. (1) Where the administrator issues a stay of proceedings under paragraph 7(1)(b), the administrator shall forthwith appoint one of the following persons as guardian of the farmer's assets:
	(a) the farmer, where the farmer is qualified to be the guardian; or
	(b) in any other case,
	(i) any other qualified person nominated by any secured creditor or secured creditors listed in the application, or
	(ii) any other qualified person chosen by the administrator.
Informing farmer and creditors	(2) The administrator shall forthwith inform the farmer, and all the creditors listed in the application, of the appointment of the guardian.
Expenses of guardian	(3) Where the administrator appoints a person referred to in subparagraph (1)(b)(i) as guardian, the expenses of the guardian shall be paid by the secured creditor or secured creditors who nominated that person.
Expenses of guardian	(4) Where the administrator appoints a person referred to in subparagraph (1)(b)(ii) as guardian, the expenses of the guardian shall be paid by the administrator.
Duties of guardian	17. (1) The administrator may issue directives to the guardian, and the guardian shall comply with any such directives.
Duties of guardian	(2) The guardian shall, in addition to the obligation under subsection (1),
	(a) prepare an inventory of all the assets of the farmer;
	(b) verify periodically the presence and condition of those assets; and
	(c) advise the administrator of any act or omission that would jeopardize those assets.
Termination of guardianship	18. The appointment of a guardian under section 16 terminates on the expiration or termination of the stay of proceedings.
	ARRANGEMENTS
Arrangement to be put in writing	19. Where a farmer enters into an arrangement with any creditor as a result of the mediation, the administrator shall see to its signing by the parties thereto.
	NEW APPLICATIONS
New applications under paragraph 5(1)(a)	20. (1) Notwithstanding any other provision of this Act, where a farmer makes an application under paragraph 5(1)(a), that farmer, or any person who is related to that farmer within the meaning of the regulations, is not entitled to make a new application under that paragraph in respect of substantially the same farming operation for a period of two years after
	(a) the date on which the first application was made, where the farmer did not enter into an arrangement with the creditors during the stay of proceedings, or
	(b) the date on which the arrangement was signed, where the farmer entered into an arrangement with the creditors,
	unless, before making the new application, the person seeking to apply obtains the written consent of the administrator.
New applications under paragraph 5(1)(b)	(2) Notwithstanding any other provision of this Act, where a farmer makes an application under paragraph 5(1)(b), that farmer, or any person who is related to that farmer within the meaning of the regulations, is not entitled to make a new application under that paragraph in respect of substantially the same farming operation for a period of two years after
	(a) the date on which the first application was made, where the farmer did not enter into an arrangement with the creditors within the period prescribed for the mediation, or
	(b) the date on which the arrangement was signed, where the farmer entered into an arrangement with the creditors,
	unless, before making the new application, the person seeking to apply obtains the written consent of the administrator.
	NOTICE BY SECURED CREDITORS
Notice by secured creditors	21. (1) Every secured creditor who intends to
	(a) enforce any remedy against the property of a farmer, or
	(b) commence any proceedings or any action, execution or other proceedings, judicial or extra-judicial, for the recovery of a debt, the realization of any security or the taking of any property of a farmer
	shall give the farmer written notice of the creditor's intention to do so, and in the notice shall advise the farmer of the right to make an application under section 5.
Time of notice	(2) The notice referred to in subsection (1) must be given to the farmer in the prescribed manner at least fifteen business days before the doing of any act described in paragraph (1)(a) or (b).
	GENERAL
Contraven- tion by creditor	22. (1) Subject to subsection (2), any act done by a creditor in contravention of section 12 or 21 is null and void, and a farmer affected by such an act may seek appropriate remedies against the creditor in a court of competent jurisdiction.
Innocent parties protected	(2) Subsection (1)
	(a) does not affect the title to property of a person who purchased the property in good faith from the creditor and who was not then related to the creditor within the meaning of the regulations; and
	(b) does not confer on the farmer any remedy against a person described in paragraph (a).
Disputes	23. Nothing in this Act prevents any party to an arrangement made under this Act from taking a dispute arising therefrom to a court of competent jurisdiction for disposition.
Communica- tion of information	24. (1) Except as authorized by subsection (2), no person shall knowingly communicate or knowingly allow to be communicated to any person any information obtained under this Act from a farmer or from any creditor of a farmer, or knowingly allow any person to inspect or have access to any such information.
Exception	(2) A person engaged in the administration of this Act may communicate or allow to be communicated, or allow inspection of or access to, any information referred to in subsection (1) to or by any other person engaged in the administration of this Act or any person otherwise legally entitled thereto.
Protection of witness	(3) A person engaged in the administration of this Act, including a mediator or expert referred to in subsection 4(4), is not compellable to answer questions concerning the information, or to produce records or other documents containing the information, as evidence in any proceedings not directly concerned with the enforcement or interpretation of this Act or the regulations.
Personal liability	25. No person engaged in the administration of this Act is personally liable for acts or omissions done in good faith in the performance of their duties under this Act.
Regulations	26. (1) The Minister may make regulations
	(a) respecting the designation of persons as administrators pursuant to subsection 4(2);
	(b) for permitting a farmer or creditor to request the administrator to replace the mediator or guardian with a different mediator or guardian;
	(c) respecting the entering into of agreements under subsection 9(3);
	(d) respecting the qualifications and appointment of mediators, and respecting the manner in which and the period within which mediators must perform their duties under subsection 10(2);
	(e) respecting the time by which an administrator must decide whether or not to extend a stay of proceedings pursuant to subsection 13(1);
	(f) respecting the number and constitution of Appeal Boards, the designation of the members thereof, and the manner in which and the period within which appeals under subsection 15(2) shall be made and dealt with;
	(g) respecting the meaning of ``related'' for the purposes of section 20 and for the purposes of subsection 22(2);
	(h) prescribing anything that by this Act is to be prescribed; and
	(i) generally for carrying out the purposes and provisions of this Act.
Forms and their content	(2) The Minister may establish forms and other documents for carrying out the purposes and provisions of this Act and may determine the information to be included in such documents, and, without limiting the generality of the foregoing, may determine the manner of
	(a) amending an application; and
	(b) informing or notifying persons, where such is required by this Act.
Offence	27. Any person who contravenes a provision of this Act or the regulations is guilty of an offence and liable on summary conviction to a fine not exceeding fifty thousand dollars or to a term of imprisonment not exceeding six months, or to both.
Review of Act after thwo years	28. (1) As soon as possible after the second anniversary of the coming into force of this Act and every three years thereafter, the Minister shall undertake a review of the operation of this Act, and may for that purpose consult with representatives of such organizations as the Minister considers appropriate.
Review by Minister	(2) In conducting the review under subsection (1), the Minister shall review the operation of any program or service that is created after this section comes into force for the purpose of undertaking a detailed review of the financial affairs of a farmer in financial difficulty, at the farmer's request.

Bill C-38

STAY OF PROCEEDINGS

APPEAL BOARDS

GUARDIAN OF FARMER'S ASSETS

ARRANGEMENTS

NEW APPLICATIONS

NOTICE BY SECURED CREDITORS

GENERAL