Bill C-25

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	SUMMARY
	This enactment amends the Farm Credit Corporation Act by
	(a) changing the name of the Corporation to Farm Credit Canada and making consequential amendments to other Acts and to regulations;
	(b) providing that the primary focus of the Corporation is on farming operations, including family farms;
	(c) authorizing the Corporation to provide business services, as well as financial services, and to provide loans and guarantees to businesses related to farming, as well as to farming operations, including family farms;
	(d) extending the Corporation's capabilities in the provision of financial services by means of the incorporation of subsidiaries, lease financing and equity financing, either directly or through arrangements with other persons or bodies;
	(e) authorizing the Corporation to enter into agreements for the management of financial risk and to pledge securities or cash or give deposits as security for the performance of its obligations under those agreements; and
	(f) making improvements in corporate governance by designating the President of the Corporation as its chief executive officer and by providing for the appointment of an acting Chairperson and an acting President.
	EXPLANATORY NOTES
	Clause 1: The long title reads as follows:
	An Act to continue the Farm Credit Corporation and to repeal certain Acts in consequence thereof
	Clause 2: Section 1 reads as follows:
	1. This Act may be cited as the Farm Credit Corporation Act.
	Clause 3: (1) The definition ``Corporation'' in section 2 reads as follows:
	``Corporation'' means the Farm Credit Corporation continued by subsection 3(1);
	(2) New.
	Clause 4: Subsection 3(1) reads as follows:
	3. (1) The Farm Credit Corporation, established by section 3 of the Farm Credit Act, is continued as a body corporate.
	Clause 5: (1) Subsection 4(1) reads as follows:
	4. (1) The purpose of the Corporation is to enhance rural Canada by providing specialized and personalized financial services to farming operations, including family farms, and to those businesses in rural Canada, including small and medium-sized businesses, that are related to farming.
	(2) to (4) Paragraphs 4(2)(f.1) to (f.5) are new. The relevant portion of subsection 4(2) reads as follows:
	(2) In carrying out its purpose, the Corporation has the power to
	(a) make loans or guarantee loans made to persons or bodies for the following purposes, namely,
	. . .
	(iii) to pay costs associated with carrying on a farming operation,
	. . .
	(v) to acquire, develop or improve real or personal property for use in businesses that primarily produce, transport, store or distribute inputs to or outputs from the farming operations of the persons or bodies, or of a majority of the persons or bodies, to which the loans are made;
	Clause 6: (1) Subsections 7(1) and (2) read as follows:
	7. (1) The Governor in Council shall appoint a Chairperson of the Board and a President of the Corporation for such terms as the Governor in Council considers appropriate, and shall designate one of them as the chief executive officer of the Corporation.
	(2) The chief executive officer is responsible for the supervision of the business of the Corporation.
	(2) Subsection 7(4) reads as follows:
	(4) If the Chairperson is absent or unable to act or if the office of Chairperson is vacant, the President has all of the duties and may exercise all of the powers of the Chairperson during the absence, inability or vacancy.
	(3) New.
	Clause 7: Section 14 reads as follows:
	14. The Corporation may enter into interest rate exchange agreements, currency agreements and any other similar derivative agreements incidental to any borrowing under section 12 or any investment under section 13, on any terms and conditions that it considers appropriate.

Bill C-25

SUMMARY

EXPLANATORY NOTES