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Farm Products Payments Act

R.R.O. 1990, REGULATION 447

FUND FOR PRODUCERS OF CANOLA

Note: This Regulation was revoked on July 1, 2012. See: O. Reg. 70/12, ss. 16, 17.

Last amendment: O. Reg. 70/12.

This is the English version of a bilingual regulation.

1. In this Regulation,

“Association” means the Ontario Canola Growers’ Association designated under the Farm Products Marketing Act; (“Association”)

“Board” means the Grain Financial Protection Board; (“Commission”)

“chief inspector” means the chief inspector appointed under the Grains Act; (“inspecteur en chef”)

“dealer” means a person engaged in the business of buying canola from producers or in selling canola on behalf of producers; (“marchand”)

“Fund” means the Fund for Canola Producers; (“Fonds”)

“licence”, when referring to one held by a dealer, means a licence to engage in business as a dealer under the Grains Act and, when referring to one held by an operator, means a licence to engage in business as an operator under the Grains Act and “licensed” has a corresponding meaning; (“permis”)

“operator” means a grain elevator operator within the meaning of the Grains Act; (“exploitant”)

“producer” means a person engaged in the production of canola. (“producteur”) R.R.O. 1990, Reg. 447, s. 1; O. Reg. 263/97, s. 1.

2. The fund known as the Fund for Canola Producers is continued. R.R.O. 1990, Reg. 447, s. 2.

3. The Board shall administer the Fund. R.R.O. 1990, Reg. 447, s. 3.

4. Canola is designated as a farm product. R.R.O. 1990, Reg. 447, s. 4.

5. Revoked: O. Reg. 322/11, s. 1.

6. (1) If canola is sold on a basis or delayed price contract, payment is due,

(a) for the percentage of the market price payable on account,

(i) if the canola is stored under the Grains Act, not later than 2 p.m. on the next trading day following the day of sale, and

(ii) in any case not covered by subclause (i), within 10 trading days after the day the canola is delivered to the purchaser; and

(b) for the balance of the amount unpaid after payment on account, on the day the producer prices the canola to close out the contract. O. Reg. 263/97, s. 2.

(2) If subsection (1) does not apply, payment for the canola is due,

(a) if the canola is stored under the Grains Act, no later than 2 p.m. on the next trading day following the day of sale; and

(b) in any case not covered by clause (a), within 10 trading days after the day the canola is delivered to the purchaser. O. Reg. 263/97, s. 2.

(3) If a producer has not priced canola to close out a basis or delayed price contract on or before the day on which the grounds for making the claim arose, the contract is considered closed out on that day. O. Reg. 263/97, s. 2.

7. A producer or owner shall notify the chief inspector forthwith if,

(a) the producer has not received payment for canola from a dealer as provided for in section 6;

(b) the producer or owner has reason to believe that a dealer or operator has ceased to carry on business;

(c) an operator who is storing canola on behalf of an owner fails to deliver any of the canola on demand; or

(d) any of the assets of a dealer who has purchased canola from a producer or an operator who is storing canola on behalf of an owner have been placed in the hands of a trustee for distribution under the Bankruptcy and Insolvency Act (Canada) or the Bulk Sales Act or in the hands of a receiver pursuant to a debenture or like instrument. O. Reg. 263/97, s. 2.

8. The following are prescribed as additional conditions to those referred to in subsection 3 (1) of the Act under which a producer may apply for payment from the Fund:

1. Placing of any of the assets of a dealer in the hands of a receiver pursuant to a debenture or like instrument.

2. Ceasing, by a dealer or operator, to carry on business. R.R.O. 1990, Reg. 447, s. 8.

9. (1) An application for payment from the Fund must be made to the Board in a form satisfactory to the Board. R.R.O. 1990, Reg. 447, s. 9 (1).

(2) A separate application must be made to the Board in respect of each dealer against whom a producer has a claim and in respect of each operator against whom an owner has a claim. R.R.O. 1990, Reg. 447, s. 9 (2).

(3) An application to the Board may be made only within the thirty-day period next following the day on which the grounds for making the claim arise. R.R.O. 1990, Reg. 447, s. 9 (3).

10. On receiving an application under section 9, the Board shall give notice of the claim by registered mail, courier or facsimile transmission to the dealer or operator against whom the claim was made and shall notify the chief inspector. O. Reg. 263/97, s. 3.

11. The Board shall refuse to pay a claim that it determines is invalid and it shall,

(a) give notice of the refusal, by registered mail, courier or facsimile transmission, to the applicant and to the dealer or operator; and

(b) notify the chief inspector of the refusal. O. Reg. 263/97, s. 3.

12. The Board shall pay a claim from the Fund if it determines that the claim is valid and shall notify the dealer or operator and the chief inspector of the payment. O. Reg. 263/97, s. 3.

13. (1) A dealer or operator in respect of whom the Board makes a payment from the Fund shall pay the amount of that payment to the Board,

(a) in a lump sum; or

(b) by instalments in accordance with an undertaking approved by the Board. R.R.O. 1990, Reg. 447, s. 13 (1); O. Reg. 263/97, s. 4 (1).

(2) The Board shall notify the chief inspector if a dealer or operator fails to make a lump sum payment or to make an instalment payment as it comes due under an undertaking referred to in subsection (1). O. Reg. 263/97, s. 4 (2).

14. (1) The Board may refuse to make payments in respect of a claim,

(a) subject to subsection (2), if the applicant claims payment in respect of a dealer who is not a licensed dealer or an operator who is not a licensed operator;

(b) if any cheque received by the applicant from a dealer is dishonoured by non-acceptance or non-payment unless the applicant has presented the cheque for payment within five banking days after the date the applicant received it;

(c) if the applicant fails to make the application to the Board within the time prescribed by subsection 9 (3);

(d) if the applicant has made an arrangement with the dealer to extend the time for payment under section 6;

(e) if the applicant is not the producer of the canola in respect of which the claim is made;

(f) if the basis or delayed price contract referred to in subsection 6 (1) is not in writing and signed by the applicant and the dealer;

(g) if the applicant has failed to notify the chief inspector in accordance with section 7; or

(h) if the applicant and the dealer or operator are associated in any way and the conduct of the applicant or, where the applicant is a corporation, of an officer or director of the applicant or person having power to direct the management of the applicant, caused the default in payment or failure to deliver canola and, in the circumstances, it would be inequitable to make a payment from the Fund. R.R.O. 1990, Reg. 447, s. 14 (1); O. Reg. 263/97, s. 5 (1-3).

(2) An applicant may be paid from the Fund if the claim is made in respect of canola sold to or stored by a dealer or operator whose licence was suspended, revoked or not renewed or had expired if, at the time the sale or storage was made, the applicant was unaware of the suspension, revocation, non-renewal or expiry. O. Reg. 263/97, s. 5 (4).

15. (1) The Board, having regard to the circumstances of a case, may extend the period for making an application under subsection 9 (3). R.R.O. 1990, Reg. 447, s. 15 (1).

(2) If the Board extends the period for making an application under subsection (1), it may make a payment from the Fund. R.R.O. 1990, Reg. 447, s. 15 (2).

16. (1) The amount that may be paid out of the Fund to an applicant on any one application is,

(a) in the case of a claim under subsection 3 (2) of the Act, 90 per cent of the market value of the canola in respect of which the claim is made on the day the grounds for making the claim arose;

(b) in the case of a claim made in respect of a basis or delayed price contract mentioned in subsection 6 (1), 90 per cent of the market price payable on the day the contract is closed out or considered closed out, less 75 per cent of the market price of the canola on the day payment on account was made unless the amount is more than 75 per cent, in which case the actual amount is paid;

(c) in the case of a claim by an applicant mentioned in subsection (3), 90 per cent of the amount determined in accordance with subsections (3) and (4); and

(d) in a case not covered by clause (a), (b) or (c), 90 per cent of the amount of the claim. R.R.O. 1990, Reg. 447, s. 16 (1); O. Reg. 263/97, s. 6 (1). 

(2) For the purpose of subsection (1), any default in payment by the applicant to the producer organization under the Advance Payment for Crops Act (Canada) arising from any default in payment by a dealer or a failure by an operator to deliver canola shall be included in the amount of the applicant’s claim. R.R.O. 1990, Reg. 447, s. 16 (2).

(3) The amount of canola in respect of which a claim may be paid out of the Fund shall not exceed the percentage, calculated under subsection (4), of the amount of canola in respect of which the claim is made if the applicant is a producer or owner who,

(a) holds a dealer’s licence and has purchased canola before the day the claim arose; or

(b) holds an operator’s licence. R.R.O. 1990, Reg. 447, s. 16 (3); O. Reg. 263/97, s. 6 (2).

(4) The percentage referred to in subsection (3) shall be calculated by dividing the amount of canola produced by the applicant by the combined amount of canola produced by the applicant, purchased by the applicant in their capacity as a dealer and stored by the applicant in their capacity as an operator. R.R.O. 1990, Reg. 447, s. 16 (4).

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