Grower 99,
Please correct me if I am wrong... but:
I just went through the new statute changing the Canada Grain Act;
In the portion about security, I can see NO obvious changes in security from what we as growers have today. Only thing is; the CGC can contract 3rd parties to assure security is valid and an insurance policy is an option to that end for licence holders (Elevator/Grain Dealers).
No one is asking growers to take out insurance on grain companies... that I can see anywhere.
Here is the changes:
361. Subsections 45(1) and (2) of the Act are replaced by the following:
45. (1) If a person who proposes to operate an elevator or to carry on business as a grain dealer applies in writing to the Commission for a licence and the Commission is satisfied that the applicant and the elevator, if any, meet the requirements of this Act and any conditions that the Commission may specify, the Commission may issue to the applicant the licence of a class or subclass determined by the Commission to be appropriate to the type of operation of that elevator or the business of that grain dealer.
362. The Act is amended by adding the following after section 45:
45.1 (1) Unless exempted by regulation or by order of the Commission, a licensee shall obtain any prescribed security for the purpose of covering the licensee’s potential obligations for the payment of money or the delivery of grain to holders of cash purchase tickets, elevator receipts or grain receipts issued under this Act and shall maintain that security for as long as they are a licensee.
(2) The licensee shall, on request, provide the Commission with proof of that security.
45.2 The Commission may enter into agreements with third parties in respect of any prescribed security.
363. (1) The portion of subsection 46(1) of the Act before paragraph (a) is replaced by the following:
46. (1) The Commission may refuse to issue an elevator licence if the applicant has not obtained security as required by subsection 45.1(1) or fails to establish to the satisfaction of the Commission that
(2) Subsection 46(2) of the Act is replaced by the following:
(2) The Commission may refuse to issue a grain dealer’s licence if the applicant has not obtained security as required by subsection 45.1(1).
364. Section 49 of the Act is replaced by the following:
49. (1) If the Commission has reason to believe that any security obtained by a licensee under this Act is not sufficient, the Commission may, by order, require the licensee to obtain, within any period that the Commission considers reasonable, any additional security that it considers is sufficient.
(2) Despite any other provision of this Act, the Commission may prescribe by regulation the percentage of the value of a cash purchase ticket, an elevator receipt or a grain receipt that may be realized or enforced against security obtained by a licensee, and the security may be realized or enforced in relation to the cash purchase ticket, elevator receipt or grain receipt only to the extent of the prescribed percentage.
(3) If the failure on the part of a licensee to meet the licensee’s payment obligations is a result of their giving to the producer a cash purchase ticket or other bill of exchange that the bank or other financial institution on which it is drawn subsequently refuses to honour, that failure occurs when the cash purchase ticket or other bill of exchange is given to the producer.
(2) Paragraphs 116(1)(k) and (k.1) of the Act are replaced by the following:
(k) respecting the security to be obtained, by way of bond, suretyship, insurance or otherwise, for the purposes of subsection 45.1(1);
(k.1) specify the person or class of persons who may realize on or enforce security obtained by a licensee;
(k.2) specify conditions related to realizing on or enforcing security obtained by a licensee;
(k.3) exempt a licensee from the requirement to obtain security;
If I missed something... let us know!
Cheers!
Please correct me if I am wrong... but:
I just went through the new statute changing the Canada Grain Act;
In the portion about security, I can see NO obvious changes in security from what we as growers have today. Only thing is; the CGC can contract 3rd parties to assure security is valid and an insurance policy is an option to that end for licence holders (Elevator/Grain Dealers).
No one is asking growers to take out insurance on grain companies... that I can see anywhere.
Here is the changes:
361. Subsections 45(1) and (2) of the Act are replaced by the following:
45. (1) If a person who proposes to operate an elevator or to carry on business as a grain dealer applies in writing to the Commission for a licence and the Commission is satisfied that the applicant and the elevator, if any, meet the requirements of this Act and any conditions that the Commission may specify, the Commission may issue to the applicant the licence of a class or subclass determined by the Commission to be appropriate to the type of operation of that elevator or the business of that grain dealer.
362. The Act is amended by adding the following after section 45:
45.1 (1) Unless exempted by regulation or by order of the Commission, a licensee shall obtain any prescribed security for the purpose of covering the licensee’s potential obligations for the payment of money or the delivery of grain to holders of cash purchase tickets, elevator receipts or grain receipts issued under this Act and shall maintain that security for as long as they are a licensee.
(2) The licensee shall, on request, provide the Commission with proof of that security.
45.2 The Commission may enter into agreements with third parties in respect of any prescribed security.
363. (1) The portion of subsection 46(1) of the Act before paragraph (a) is replaced by the following:
46. (1) The Commission may refuse to issue an elevator licence if the applicant has not obtained security as required by subsection 45.1(1) or fails to establish to the satisfaction of the Commission that
(2) Subsection 46(2) of the Act is replaced by the following:
(2) The Commission may refuse to issue a grain dealer’s licence if the applicant has not obtained security as required by subsection 45.1(1).
364. Section 49 of the Act is replaced by the following:
49. (1) If the Commission has reason to believe that any security obtained by a licensee under this Act is not sufficient, the Commission may, by order, require the licensee to obtain, within any period that the Commission considers reasonable, any additional security that it considers is sufficient.
(2) Despite any other provision of this Act, the Commission may prescribe by regulation the percentage of the value of a cash purchase ticket, an elevator receipt or a grain receipt that may be realized or enforced against security obtained by a licensee, and the security may be realized or enforced in relation to the cash purchase ticket, elevator receipt or grain receipt only to the extent of the prescribed percentage.
(3) If the failure on the part of a licensee to meet the licensee’s payment obligations is a result of their giving to the producer a cash purchase ticket or other bill of exchange that the bank or other financial institution on which it is drawn subsequently refuses to honour, that failure occurs when the cash purchase ticket or other bill of exchange is given to the producer.
(2) Paragraphs 116(1)(k) and (k.1) of the Act are replaced by the following:
(k) respecting the security to be obtained, by way of bond, suretyship, insurance or otherwise, for the purposes of subsection 45.1(1);
(k.1) specify the person or class of persons who may realize on or enforce security obtained by a licensee;
(k.2) specify conditions related to realizing on or enforcing security obtained by a licensee;
(k.3) exempt a licensee from the requirement to obtain security;
If I missed something... let us know!
Cheers!
Comment