An Act respecting Farm Credit CanadaFarm Credit Canada ActFarm Credit Canada19934
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20204
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F-2.2141993Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:Short Title
Short titleThis Act may be cited as the Farm Credit Canada Act.1993, c. 14, s. 1; 2001, c. 22, s. 2
Interpretation
DefinitionsIn this Act,Board means the Board of Directors of the Corporation; (conseil)business related to farming means a business that primarily produces, transports, stores, distributes, supplies, processes or adds value to inputs to or outputs from farming operations; (entreprise liée à l’agriculture)Chairperson means the Chairperson of the Board appointed under subsection 7(1); (Version anglaise seulement)Corporation means Farm Credit Canada continued by subsection 3(1); (Société)director means a member of the Board; (Version anglaise seulement)farming includes livestock raising, bee-keeping, dairying, fruit growing, tillage of the soil and any other husbandry activity that the Corporation determines, under subsection 4(3), to be farming for the purposes of this definition; (agriculture)President means the President of the Corporation appointed under subsection 7(1); (Version anglaise seulement)subsidiary has the same meaning as in subsection 83(6) of the Financial Administration Act. (filiale)1993, c. 14, s. 2; 2001, c. 22, s. 3
Corporation Continued
Corporation continuedThe Farm Credit Corporation, established by section 3 of the Farm Credit Act, is continued as a body corporate under the name Farm Credit Canada.Head officeThe head office of the Corporation shall be at Regina or at such other place in Canada as the Governor in Council may, by order, determine.Agent of Her MajestyThe Corporation is an agent of Her Majesty in right of Canada.1993, c. 14, s. 3; 2001, c. 22, s. 4
Purpose, Capacity and Powers
PurposeThe purpose of the Corporation is to enhance rural Canada by providing specialized and personalized business and financial services and products to farming operations, including family farms, and to those businesses in rural Canada, including small and medium-sized businesses, that are businesses related to farming. The primary focus of the activities of the Corporation shall be on farming operations, including family farms.PowersIn carrying out its purpose, the Corporation has the power tomake loans or guarantee loans made to persons or bodies for the following purposes, namely,to acquire, develop or improve farm lands and buildings, or personal property used or to be used in a farming operation,to discharge liabilities or consolidate debts,to pay costs associated with carrying on a farming operation or a business related to farming,to assist in the development of a diversified enterprise on farm lands and buildings, andto acquire, develop or improve real or personal property used or to be used in a business related to farming;acquire and hold security interests of any kind and in any form for loans made, guarantees given or agreements entered into;acquire, by judicial proceedings or in any other manner, any interest in security acquired or held by it, and hold, exchange, lease, sell or otherwise dispose of any such interest;acquire and hold, exchange, lease, sell or otherwise dispose of any interest in real and personal property for use in the management of its business;enter into agreements with any department or agency of the government of Canada or of a province, or with any other person or body;provide specialized counselling services;provide business services and products that complement those available from the public and private sectors;procure the incorporation, dissolution or amalgamation of subsidiaries and acquire or dispose of any shares in them;provide lease financing for assets used or to be used in a farming operation or a business related to farming;acquire and dispose of investments in farming operations or in businesses related to farming, including shares of corporations that carry on those operations or businesses, within parameters that are satisfactory to the Minister of Finance;dispose of farmland acquired by it, provided that the disposal is at fair market value and is done as quickly as possible, and in any case no longer than five years, after the acquisition;provide its business and financial services and products, including loans, guarantees, lease financing and equity investments, directly, through arrangements with other persons or bodies or, in the case of financial services, as a member of a financing syndicate;determine and charge interest on loans made by it and fees for guarantees given and services provided by it;carry out such other duties or functions as may be assigned to it by the Minister of Agriculture and Agri-Food in relation to the administration of any program benefiting rural Canada, or as are assigned to it pursuant to any other Act, to the extent that it is able to recover the costs of carrying out those duties or functions; anddo such other things as it considers are incidental to the exercise of its powers.IdemThe Corporation may, in writing, determine which husbandry activities, other than those mentioned in the definition “farming” in section 2, constitute farming for the purposes of that definition.CapacityIn carrying out its powers, the Corporation has the capacity of a natural person.1993, c. 14, s. 4; 1994, c. 38, s. 25; 2001, c. 22, s. 5; 2003, c. 15, s. 41
Corporate OrganizationBoard of Directors
CompositionThe Corporation shall consist of a Board of Directors comprising a Chairperson, a President and not fewer than three nor more than ten other directors.AppointmentThe directors, other than the Chairperson and the President, shall be appointed by the Minister of Agriculture and Agri-Food, with the approval of the Governor in Council, for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors.Acting directorsThe Governor in Council may appoint one or more persons to act as a director in the event that any director is absent or unable to act.ReappointmentA director whose term of office has expired is eligible for reappointment to the Board in the same or another capacity.Incumbent directorNotwithstanding subsection (2), if a director is not appointed to take office on the expiration of the term of an incumbent director, the incumbent director continues in office until that director is reappointed or until a successor is appointed.1993, c. 14, s. 5; 1994, c. 38, s. 25; 2006, c. 9, s. 255
ManagementThe Board shall direct and manage the affairs of the Corporation and may for those purposes exercise all the powers of the Corporation.MeetingsA meeting of the Board shall be held, at least once every four months, at such place in Canada as the Chairperson may designate for that meeting.QuorumFive directors constitute a quorum of the Board.
Officers, Committees and Staff
Chairperson and PresidentThe 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.Chief executive officerThe President is the chief executive officer and is responsible for the supervision of the business of the Corporation.Duties of ChairpersonThe Chairperson shall preside at all meetings of the Board and shall perform any other duties that are imposed, and exercise any powers that are conferred, on the Chairperson under the by-laws of the Corporation or by resolution of the Board.Acting ChairpersonIf the Chairperson is absent or unable to act or if the office of Chairperson is vacant, the Board may authorize a director to act as Chairperson and that director has all of the duties and may exercise all of the powers of the Chairperson during the absence, inability or vacancy.Duties of PresidentThe President shall perform any duties that are imposed, and may exercise any powers that are conferred, on the President under the by-laws of the Corporation or by resolution of the Board.Acting PresidentIf the President is absent or unable to act or if the office of President is vacant, the Board may authorize an officer or employee of the Corporation to act as President and that officer or employee has all of the duties and may exercise all of the powers of the President during the absence, inability or vacancy. A person may not act as President for a period of more than 90 days without the approval of the Governor in Council.1993, c. 14, s. 7; 2001, c. 22, s. 6
CommitteesThe Board may establish an executive committee and any other committees that the Board considers advisable, and may determine their composition and duties and the tenure of their members.Executive committeeWhere the Board establishes an executive committee pursuant to subsection (1), it may delegate any of its duties and powers to the executive committee.1993, c. 14, s. 8; 2006, c. 9, s. 256
Officers and staffThe Corporation may employ or engage any officers, consultants, agents and employees who are required to carry out this Act, and may fix their remuneration and the terms and conditions of their employment or engagement.DelegationThe Board may delegate to any officer, employee or agent of the Corporation authority to act in all matters that are not by this Act, by by-law of the Corporation or by resolution of the Board specifically reserved to be done by the Board or by a committee of the Board.
Protection from liabilityNo director and no employee of the Corporation or person acting under the instructions of either of them or under the authority of this Act is personally liable for anything done or omitted to be done in good faith in the exercise or purported exercise of any powers conferred by this Act.
Financial Provisions
Capital paymentsAt the request of the Corporation, the Minister of Finance may pay to the Corporation out of the Consolidated Revenue Fundfor the period beginning on the day on which this subsection comes into force and ending on September 30, 2020, amounts not exceeding in the aggregate the amount that the Minister of Finance determines during that period, or, if that Minister redetermines the amount during that period, the most recently determined amount; andon and after October 1, 2020, amounts not exceeding in the aggregate an amount equal to the amount determined by the Minister of Finance under paragraph (a), or, if that Minister redetermined the amount under that paragraph, the last amount so determined.Publication in Canada GazetteAs soon as feasible after determining or redetermining an amount under paragraph (1)(a), the Minister of Finance shall publish a notice of that amount in the Canada Gazette.Capital of the CorporationThe capital of the Corporation consists of the aggregate of the amounts paid to the Corporation pursuant to subsection (1) and the amount of the retained earnings of the Corporation, which latter amount may be positive or negative.[Repealed, 2020, c. 5, s. 53]1993, c. 14, s. 11; 1997, c. 26, s. 93; 2003, c. 15, s. 42; 2004, c. 22, s. 282020, c. 5, s. 53
Debt obligationsThe Corporation may borrow money otherwise than from Her Majesty and is hereby authorized to so borrow by any means, including by the issuance and sale of bonds, debentures, investment certificates, notes and any other evidence of indebtedness of the Corporation.Loans to the CorporationAt the request of the Corporation, the Minister of Finance may, out of the Consolidated Revenue Fund, lend money to the Corporation on such terms and conditions as that Minister may fix.Aggregate liabilitiesThe aggregate ofthe direct liabilities of the Corporation, including debt obligations issued by the Corporation, andthe contingent liabilities of the Corporation, in the form of guarantees given by it,shall not, at any time, exceed twelve times the capital of the Corporation.Power of Governor in CouncilThe Governor in Council may, by order, increase the factor of twelve mentioned in subsection (3) to any factor that does not exceed fifteen.DividendsThe Corporation may pay to the Receiver General such dividends out of the retained earnings of the Corporation as the Board may declare.
InvestmentsThe Corporation may invest any money administered by itin debentures, bonds, stocks, bankers’ acceptances or other securities of or guaranteed by the government of Canada or of a province or by any member of the Canadian Payments Association; orin any other manner that may be approved by the Minister of Finance.
Financial managementThe Corporation may enter into any transaction for the financial management of the Corporation, including any instrument or agreement for the management of financial risks, such as interest rate or currency exchange agreements, options, futures contracts and any other similar agreements.Pledging assetsNotwithstanding section 100 of the Financial Administration Act, the Corporation may pledge any securities or cash held by it or give deposits as security for the performance of its obligations under any financial management instrument or agreement.1993, c. 14, s. 14; 2001, c. 22, s. 7
Fiscal yearNotwithstanding section 121 of the Financial Administration Act, the fiscal year of the Corporation is the period of twelve months beginning on April 1 and ending on the next March 31, unless the Governor in Council directs otherwise.
Debts due to Her MajestyAll amounts due to the Corporation are debts due to Her Majesty and recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided for by law.Appropriate MinisterFor the purposes of subsection 155(1) of the Financial Administration Act, the “appropriate Minister responsible for the recovery or collection of the amount of the indebtedness” within the meaning of that subsection, in respect of debts due to the Corporation, is the Minister of Agriculture and Agri-Food.1993, c. 14, s. 16; 1994, c. 38, s. 25
Repeals and Transitional
[Repeal]
Repeal of R.S., c. F-5The Farm Syndicates Credit Act is repealed.TransitionalUntil such time as all advances made to the Corporation under the Farm Syndicates Credit Act are repaid by the Corporation or otherwise forgiven or written off, the special account referred to in subsection 8(1) of that Act remains open.
RELATED PROVISIONS — 2001, c. 22, s. 8
ReferencesEvery reference to the Farm Credit Corporation in any deed, contract, agreement, instrument or other document executed by the Farm Credit Corporation in its own name is to be read as a reference to Farm Credit Canada, unless the context requires otherwise.
 — 2001, c. 22, s. 9
Continuation of property and rightsAll rights and property of the Farm Credit Corporation continue to be the rights and property of Farm Credit Canada.Continuation of obligations and liabilitiesAll obligations and liabilities of the Farm Credit Corporation continue to be the obligations and liabilities of Farm Credit Canada.Continuation of legal proceedingsAny action, suit or other legal proceeding to which the Farm Credit Corporation is a party that is pending in any court immediately before the day on which this Act comes into force may be continued by or against Farm Credit Canada in like manner and to the same extent as it could have been continued by or against the Farm Credit Corporation.