This Program Guidelines is established pursuant to section 15(6) of Order-in-Council 504/2016 and is subject to change from time to time. For the most up-to-date information, consult the Ministry's website or call the Ontario Ministry of Agriculture, Food and Agribusiness (OMAFA) at 1-877-424-1300.

In the event of a conflict between this Program Guidelines and Order-in-Council 504/2016, the Order-in-Council 504/2016 will prevail.

Definitions

For the purposes of these program guidelines the terms below will have the following meanings:

"Administrative Agreement" means the agreement between the Minister and the Administrator setting out how the Administrator will administer the Program.

"Administrator" means the Agricultural Credit Corporation (ACC), which the Minister has designated as being responsible for administering the Program;

"Administrator Loan" means an L-Loan;

"Administrator Loan Agreement" means an A-Loan Agreement;

"A-Loan" means a loan by the Administrator to an eligible Producer in accordance with the requirements of the current OIC and these program guidelines so that the Producer can purchase Crop Input Supplies for the purpose of producing Eligible Commodities;

"A-Loan Agreement" means the agreement that sets out the terms and conditions upon which the Administrator will provide a Producer Loan to a Producer;

"A-Loan Credit Review" means a review of the Applicant's creditworthiness and includes the following:

  • A check of the Administrator's own records in respect of the Applicant,
  • Searches under the Personal Property Security Act and the Bank Act (Canada),
  • Loan history under the Agricultural Marketing Programs Act (Canada),
  • A check with one or more reputable credit rating agencies,
  • A check with at least one credit reference provided by Farm Credit Canada, or successor entity, or the applicant's bank, credit union, caisse populaire or trust company licensed to carry on business in Ontario or another province of Canada as a lender of mone
  • Any information provided by the Ministry regarding any money owing to the Crown, and
  • Any other requirements set out under the program guidelines;

"Applicant" means a person that is in the business of producing one or more eligible commodities and has applied to the Administrator for a producer loan;

"Business Day" means any working day, Monday to Friday inclusive, but excluding statutory and other holidays on which the Government of Ontario has elected to be closed for business;

"Business Risk Management Program" means those programs set out in this Program Guidelines;

"Contingency Fund" means a fund in which the Administrator deposits the Producer Contribution into;

"Crop Input Supplies" means supplies and services that are normally associated with the production of crops, including premiums paid for Production Insurance, provided those supplies are not capital in nature;

"Crown" means Her Majesty the Queen in Right of Ontario;

"Eligible Commodities" means corn, soybeans, canola, wheat, barley, oats, mixed grains, potatoes, vegetables for processing, seed corn or any other commodity set out in this Program Guidelines;

"Guarantee" means the payment that the Crown will provide to the Administrator in accordance with the terms and conditions of the OIC, this Program Guidelines and the Guarantee Agreement in the event that a Producer defaults on a Producer Loan;

"Guarantee Agreement" means the agreement set out in a form substantially similar to the agreement attached as Schedule "A" to the OIC, signed by the Minister, or any other officer of the Ministry identified in section 15(4) of the OIC, and the Administrator in relation to a Producer Loan provided under the Program;

"Guaranteed Amount" means the amount of money secured by the Guarantee being provided on behalf of the Administrator under the Program;

"Holdback Fund" means the fund where the Producer Holdback is deposited;

"Interest" means the interest payable in respect of an Administrator Loan or a Producer Loan, as set out in the Administrator Loan Agreement or the Producer Loan Agreement (as the case may be) but does not include any fees, fines, commissions or other similar charges or expenses or any cost of collection or enforcement of a security interest, any repayment of credit advanced or any insurance charge, official fee or any amount required to be paid on account of applicable taxes;

"Lender" includes Farm Credit Canada, or successor entity, as well as any bank to which the Bank Act (Canada) applies or a trust company, credit union or caisse populaire licensed to carry on business as such in Ontario and has been approved by the Minister to provide loans under the program;

"L-Loan" means a loan by the Lender to the Administrator;

"L-Loan Agreement" means the agreement that sets out the terms and conditions upon which the Lender will provide an Administrator Loan to the Administrator;

"Material Adverse Change" means a change in the financial or other condition of the producer, or in the state of circumstances of any property subject to a security interest in relation to the producer loan, that in the opinion of a reasonable and prudent lender would be considered likely to cause a significant diminution in the earnings power or value of the producer's business or in the ability of the producer to perform any of its obligations with respect to the Producer Loan;

"Minister" means the Minister of Agriculture, Food and Rural Affairs or such other Minister who may be designated from time to time as the responsible Minister in relation to the Ministry of Agriculture, Food and Rural Affairs Act or the Program (as the case may be) in accordance with the Executive Council Act or any other Act of the Legislature that allows another Minister to be designated as the responsible Minister, unless the context indicates otherwise;

"Minister Directions" means a direction the Minister issues pursuant to sections 15(9) or 15(10) of the OIC;

"Ministry" means the ministry of the Minister;

"Non-Sufficient Funds" refers to a situation when a bank account does not have sufficient balance to cover a transaction or payment;

"Person" means a legally-recognized entity and may include an individual or a corporation;

"Prime Interest Rate" means the lowest rate of interest at which money may be borrowed commercially;

"Proceeds" means any money, domestic or foreign, money's worth or any other proceeds derived by a producer, directly or indirectly, from one or more eligible commodities;

"Producer" means a person that is in the business of producing one or more Eligible Commodities, meets all of the requirements set out under section 26(2) of the OIC and has been issued a producer loan by the Administrator;

"Producer Contingency Contribution" means the amount of money the Producer pays into the Contingency Fund in respect of each Producer Loan entered into;

"Producer Holdback" means the amount of money the Administrator is required to hold back from each producer loan it provides to a producer under the program;

"Producer Loan" means an A-Loan;

"Producer Loan Agreement" means an A-Loan Agreement;

"Producer Credit Review" means an A-Loan credit review;

"Production Insurance" means a plan of insurance issued under the Agricultural Products Insurance Act, 1996;

"Program" means the Commodity Loan Guarantee Program;

"Program Guidelines" means this document and any other documents governing the operation of the Program and posted on the Ministry's internet site;

"Program Year" means the period of November 1 of one year and October 31 of the following year;

"Requirements of Law" includes all applicable requirements of law, as may be set out in statutes, regulations, by-laws, codes, rules, ordinances, official plans, approvals, permits, licenses, authorizations, decrees, injunctions, orders and declarations or any other similar requirement of law that could be imposed on a person from authorities having jurisdiction over that person; and

"Total Guaranteed Amount" means two hundred million dollars ($200,000,000).

Acronyms

For the purposes of the Program Guidelines the following acronyms mean:

"GSA" means a general security agreement;

"OIC" means Order-in-Council 504/2016, as amended; and

"PMSI" means a purchase-money security interest under the Personal Property Security Act.

Part I — Purpose of Program

Purpose of Program

The purpose of this Program is to facilitate access for Producers to low-interest Producer Loans, through the provision of a Guarantee to the Administrator, so that those Producers can produce Eligible Crops.

Part II — Commencement, Transition, Termination and Review of the Program

Commencement

This Program began in 1992 and has continued through successive Orders-in-Council, including the OIC. The OIC now governs the operation of the Program.

Transition

The Program is continued on the terms and conditions set out in the OIC as of the date that the OIC is signed. All loans entered into prior to the signing of the OIC will be governed by the Order-in-Council and any applicable program guidelines that that loan was entered into under.

Termination

The Minister may — without liability, cost or penalty to the Crown — terminate this program at any time if the Minister determines that the program should not continue.

Where the Minister terminates the program pursuant to this section 9 of the OIC, the following applies:

  1. The Minister will immediately post a notice on the Ministry's website indicating the Program has been terminated;
  2. The Minister will immediately notify the Administrator and direct the Administrator to post a notice on the Administrator's website that the Program has been terminated; and
  3. Any payments owing under the Program will be paid.

The termination of the Program will not affect any obligations that:

  1. The Lender, Administrator or Producer may have to repay any money that the Lender, Administrator or Producer received in which the Lender, Administrator or Producer was not eligible to receive;
  2. The Administrator or Producer may have to repay any outstanding amounts under the Administrator Loan or the Producer Loan; or
  3. The Producer may have to repay any outstanding amounts arising out of the Minister making a payment on the Guarantee.

Review

The Minister may review the Program at any time. The Minister will review the Program at least once every five (5) years from the date in which this OIC is approved to confirm the program is continuing to meet its objectives and is performing on a cost-benefit basis.

Part III — Funding for the Program

Funding For The Program

All funding for the Program will come from the monies appropriated for such purposes by the Legislature. The Minister may provide to any Person any funding that is contemplated or permitted under the Program.

Funding allocated to the program shall only be used for the program.

Part IV — Administration of the Program

The Minister

The Minister is responsible for all aspects of the administration and delivery of the Program.

The Minister's administrative powers include the authority to issue Minister's Directions to a Lender, Administrator or Producer. Where the Minister issues a Minister's Direction to a Lender, Administrator or Producer, the Lender, Administrator or Producer (as the case may be) will follow the Minister's direction.

The Administrator

The Administrator is responsible for administering the Program on behalf of the Minister. The Administrator will administer the Program in accordance with the terms and conditions set out in the OIC and this Program Guidelines. Without limiting the generality of the foregoing, the Administrator will administer the Program in accordance with all applicable Requirements of Law.

The Administrator may charge a fee of $1,000 for every application that it processes under the Program.

The maximum amount of Interest the Administrator may charge on a Producer Loan is no more than the Prime Interest Rate.

The Administrator is not an agent of the Crown within the meaning of the Crown Agency Act and will not hold itself as such.

The Administrator may charge a Non-Sufficient Funds fee of up to $100 for any cheques that are returned due to insufficient balance to cover the transaction or payment. 

The Administrator's directors, officers, employees and servants are not employees of the Crown and will not hold themselves out as such.

The Administrator may, subject to the Minister's approval, establish administrative criteria or guidelines in regards to how it processes Producer Loans and collects any debt owing under Producer Loans.

Eligible Commodities and Maximum A-Loan Valuation Rate

Prior to commencement of a Program Year and subject to any related requirements under the OIC, the Administrator will determine the Eligible Commodities for a Producer Loan and the maximum valuation rate on a crop basis on which a Producer Loan will be based. Should commodities be added or removed at the start of a Program Year, the Administrator will record a program change note which includes a supporting rationale for any change. In setting the maximum Producer Loan valuation rates, the Administrator will use the following process:

  1. An analysis on various market indicators to determine commodity pricing including, but not limited to:
    1. Forecasted prices from Agriculture and Agri-food Canada or any other organization recognized for providing commodity price forecasting;
    2. Current and future pricing from auction houses, grain elevator posted prices, Forward and Future contract pricing;
    3. Receipts and contracts of existing customers, both in the Advance Payment Program and the Commodity Loan Guarantee Program; and,
    4. contact with member organizations which represent these products to discuss price setting and industry forecasts.
  2. Once the commodity forecast prices have been determined, these prices are discounted by 25% to establish proposed maximum valuation rates for producer loans.
  3. The proposed rates be reviewed by the Administrator's executive management.
  4. The recommended maximum rates for producer loans be reviewed and approved by the Administrator's Board of Directors.

Should the Administrator need to alter the Eligible Commodities or maximum Producer Loan valuation rate(s) during a Program Year, the Administrator will record a program change note which includes a supporting rationale. Program change notes will be considered a program record and will be retained for inspection or review as per the Program's record-keeping, reporting and audit requirements. Any Program change notes will not have a retroactive effect on existing Producer Loans.

The Lender

The Minister may approve one or more entities as a lender for the purposes of the Program, provided those Lenders meet the requirements set out in the OIC and this Program Guidelines.

Farm Credit Canada is approved as a lender for the purposes of providing the Administrator Loans under the Program.

Part V — Eligibility Requirements For Loans and Producers Under the Program

Eligibility Requirements For Administrator Loans

Any Administrator Loan entered into under the Program will comply with all of the requirements set out under the OIC and this Program Guidelines. Without limiting the generality of the foregoing, this includes the following:

  1. The Administrator Loan will be repayable by the Administrator at any time without notice, penalty or bonus.
  2. The Administrator Loan will be subject to audit at any time by the Auditor General of Ontario, the Minister or the authorized representatives of the Auditor General of Ontario or the Minister; and
  3. The Administrator Loan Agreement specifically prohibits the use of the Administrator Loan by the Administrator for any other purpose then providing Producer Loans under the Program.

Eligibility Requirements For Producer loans

Any Producer Loan entered into under the Program will comply with the requirements set out under the OIC and this Program Guidelines. Without limiting the generality of the foregoing, this includes the following:

  1. The Producer Loan is made for the purpose of providing a Producer with funds to produce Eligible Commodities;
  2. Prior to entering into the Producer Loan, the Administrator has undertaken a Producer Loan Credit Review and the Producer has passed;
  3. The Producer Loan is secured by:
    1. The Eligible Commodity itself,
    2. Production Insurance for the Eligible Commodity,
    3. The Producer Holdback, and
    4. all Business Risk Management programs that the Producer is enrolled under;
  4. The Producer Loan must be repayable by the Producer at any time without notice, penalty or bonus;
  5. The Producer loan is subject to audit at any time by the Auditor General of Ontario, the Minister or their authorized representatives;
  6. The Administrator is not allowed to assign the Producer Loan to any other Person without the Minister's prior written consent;
  7. The Producer Loan Agreement specifically prohibits the use of the funds being provided under the Producer Loan for any other purpose than allowing a Producer to produce Eligible Commodities;
  8. The Producer Loan Agreement provides that the Producer Loan will be in default upon the occurrence of any one or more of the following:
    1. Any representation made or information provided by the Producer in relation to the Producer Loan is, or was at the time of its making, false or misleading,
    2. The Producer fails to comply with any covenant contained in the Producer Loan Agreement within ten (10) Business Days of the Administrator notifying the Producer of the non-compliance,
    3. The Producer fails to provide information required under the OIC, this Program Guidelines or a Producer Loan Agreement within ten (10) Business Days of the request being made by the Minister or the Administrator (as the case may be),
    4. The Producer fails to cooperate in respect of an audit performed by the Auditor General of Ontario, the Minister or the Administrator or their respective representatives (as the case may be) in relation to the Producer Loan,
    5. The Producer uses any part of the funds provided under the Producer Loan for purposes other than set out in the Producer Loan Agreement,
    6. The Producer abandons all or any part of producing Eligible Commodities or threatens to cease producing Eligible Commodities or any act of bankruptcy,
    7. The Producer sells or conveys assets of the farming operation that formed a basis for the Producer Loan application,
    8. The commodity is used as security for another loan,
    9. Any execution or other legal process of any court becomes enforceable against the Producer,
    10. The Producer makes an assignment for the benefit of the Producer's creditors,
    11. The insolvency of the Producer or the appointment of a receiver, manager, trustee or liquidator in respect of any property of the Producer,
    12. The Producer fails to pay or otherwise perform as and when due, whether by maturity or by acceleration, any obligations, liabilities or indebtedness owed to the Administrator in relation to the Producer Loan; and
    13. The institution of a proceeding in bankruptcy against the Producer, whether voluntary or involuntary, or the institution of proceedings by the Producer to obtain relief against the Administrator or other creditors in general; and
  9. The Producer Loan, or combination of Producer Loans, is in an amount no greater than seven hundred fifty thousand dollars ($750,000.00) per Producer.

Eligibility Requirements For Producers

In order to be eligible under the Program, the Producer must meet and/or comply with all of requirements set out under the OIC. Without limiting the generality of the foregoing this includes the following:

  1. The Producer must be a Person;
  2. The Producer must apply to the Administrator for a Producer Loan and pays the applicable fee;
  3. The Producer does not owe the Administrator any money as a result of any previous defaulted Producer Loans the Producer has received from the Administrator;
  4. The Producer does not owe the Crown any money;
  5. The Producer produces the Eligible Commodities in which the Producer Loan relates in Ontario;
  6. The Producer agrees to undertake and provides the requisite information for the Administrator's Producer Loan Credit Review;
  7. The Producer agrees to:
    1. Assign any payments received under Production Insurance to the Administrator, and
    2. Assign payments under any other Business Risk Management Program the Producer is entered in to the Administrator;
  8. The Producer agrees to satisfy any other security-related requirements necessary to ensure that the Producer Loan is properly secured;
  9. The Producer agrees to pay the Producer Holdback;
  10. The Producer agrees to pay the Producer Contingency;
  11. The Producer agrees to sign the Producer Loan Agreement;
  12. The Producer agrees to provide information requested by the Ministry for policy-review purposes within the timelines set out in the request; and
  13. The Producer owns the Eligible Commodity in which the Produce Loan application relates.

Part VI — Holdback Fund and Contingency Fund Under the Program

Holdback Fund

The Administrator will establish a separate holdback fund (i.e. the Holdback Fund) for the purposes of depositing all Producer Holdbacks. The Administrator will impose a Producer Holdback of 2% on each Producer Loan that the Administrator issues. The Administrator will deposit all Producer Holdbacks into the Holdback Fund. The Administrator will not use any money in the Holdback Fund for its general operating purposes. The Administrator will deposit any interest earned by the money in the Holdback Fund into the Contingency Fund on a yearly basis.

If a Producer is not in default of its Producer Loan, the Administrator:

  1. May allow the Producer to use the Producer Holdback as part of the Producer's repayment of the Producer Loan; or
  2. Will return the Producer Holdback to the Producer if the Producer does not exercise the Producer's right to use the Producer Holdback for repaying the Producer's Producer Loan.

Contingency Fund

The Administrator will establish a separate contingency fund (i.e. the Contingency Fund) for the purposes of depositing all Producer Contingency Contributions and will act as a trustee for the Contingency Fund. The Administrator will impose a Producer Contingency Contribution of 0.4% on each Producer Loan that the Administrator issues. The Administrator will deposit all Producer Contingency Contributions into the Contingency Fund.

The Administrator will not use any money in the Contingency Fund for its general operating purposes. The Administrator will not repay any portion of the Contingency Fund to a Producer under any circumstances.

Part VII — Administrator and Producer Defaults Under The Program

Administrator Default Under An Administrator Loan

The Administrator will be in default of an Administrator Loan if one or more of the events occurs:

  1. Any representation made or information provided by the Administrator in relation to the Administrator Loan is, or was at the time of its making, false or misleading,
  2. The Administrator fails to comply with any covenant contained in the Administrator Loan Agreement within ten (10) Business Days of the Lender notifying the Administrator of the non-compliance,
  3. The Administrator fails to provide information required under the OIC, this Program Guidelines or an Administrator Loan Agreement within ten (10) Business Days of the request being made by the Minister or the Lender (as the case may be),
  4. The Administrator fails to cooperate in respect of an audit performed by the Auditor General of Ontario, the Minister or the Lender or their respective representatives (as the case may be) in relation to the Administrator Loan,
  5. The Administrator uses any part of the funds provided under the Administrator Loan for purposes other than to provide funds to Producers through a Producer Loan so that those Producers may produce Eligible Commodities,
  6. Any execution or other legal process of any court becomes enforceable against the Administrator,
  7. The Administrator makes an assignment for the benefit of the Administrator's creditors,
  8. The insolvency of the Administrator or the appointment of a receiver, manager, trustee or liquidator in respect of any property of the Administrator,
  9. The Administrator fails to pay or otherwise perform as and when due, whether by maturity or by acceleration, any obligations, liabilities or indebtedness owed to the lender in relation to the Administrator loan;
  10. The institution of a proceeding in bankruptcy against the Administrator, whether voluntary or involuntary, or the institution of proceedings by the Administrator to obtain relief against the lender or other creditors in general; and,
  11. A Material Adverse change occurs with the Administrator.

The Lender or the Minister shall immediately notify the other of any default to which they become aware.

Producer Default Under A Producer Loan

If a Producer commits an event of default on the basis that:

  1. The Producer failed to make a payment owing under the Producer Loan, or
  2. The Producer failed to correct the event of default within the specified timeline, the administrator will demand that the Producer repay the Producer Loan immediately.

In the event that the Producer is unable to repay the Producer Loan, the Administrator:

  1. Will use the Producer Holdback to pay any outstanding debt owing under the Producer Loan;
  2. Will, if a debt still exists under the Producer Loan, use reasonable steps, such as entering into a payment schedule with the defaulting Producer, to recover on that outstanding debt from the Producer;
  3. Will, if it is not possible to use other reasonable steps to recover the debt, liquidate any and all security the Administrator holds in relation to that Producer's Producer Loan to pay any outstanding debt owing under the Producer Loan;
  4. Will, if a debt still exists under the Producer Loan, use a part or all of the Contingency Fund to pay any outstanding debt owing under the Producer Loan; and
  5. May, if a debt still exists under the Producer Loan, make a claim on the Guarantee to pay any outstanding debt owing under the Producer Loan.

The Administrator may draw money from the Contingency Fund to pay any outstanding debt owing under a Producer's Producer Loan before liquidating the security that the Administrator holds in relation to that Producer's Producer Loan where the time it would take to properly liquidate the Producer's security could place the Administrator in default of making a payment to the Lender under an Administrator Loan.

The Administrator will, on behalf of the Contingency Fund, be subrogated in and to all the rights of recovery of the Administrator in respect of the Producer Loan, any security and any of the Producer's insurance and is entitled to exercise all of the rights, powers and privileges that the Administrator has or may exercise in respect of the Producer Loan, any security and any of the Producer's insurance, including the right to commence or continue any court action to execute any release, transfer, sale or assignment, or in any way to collect and realize on any security or any of the Producer's insurance or enforce the Producer Loan.

Upon the recovery of any money, the Administrator will deposit that money, minus the Administrator's reasonable collection fees to recover that money, into the Contingency Fund.

The Administrator may impose a one-time fee per Producer Loan of not more than $300 as a late payment fee where the Producer has defaulted on making a payment owing under a Producer Loan.

The Administrator will immediately notify the Minister of the Producer's default. For greater clarity, the Administrator's notice is not due until the Administrator's immediately subsequent monthly report.

Part VIII — The Guarantee

Form and Notice Of Guarantee

Every Guarantee in relation to a Producer Loan under the Program will be in substantially the same form as set out in Schedule "A" of the OIC.

Maximum Amount of Guarantee

The maximum amount payable under the Guarantee will not exceed the aggregate of all Producer Loans eligible to be covered by the Guarantee for those Producer Loans and the applicable Interest on those Producer Loans.

For greater clarity, the maximum amount payable by the Minister under the Guarantee is ninety-eight percent (98%) of the principal and Interest for each individual Producer Loan up to the twenty-five percent (25%) of the Total Guaranteed Amount for all Producer Loans issued under the Program in any given Program Year.

Eligibility of Producer Loans to be Covered By Guarantee

An Administrator-approved Producer Loan will be eligible to be covered by the Guarantee, unless that Producer Loan does not comply with the terms and conditions of the OIC, this Program Guidelines, the Guarantee Agreement or any Minister's Directions.

Review of Producer Loan Prior to Paying Guarantee

Where the Administrator makes a claim under the Guarantee, the Minister will review that Producer Loan to ensure that that Producer Loan was issued in compliance with the terms and conditions of the OIC, this Program Guidelines, the Guarantee Agreement and any Minister's Directions before making any payment under the Guarantee.

No Payment of Guarantee

The Minister will not make any payments on the Guarantee under the following circumstances:

  1. The Administrator has issued a Producer Loan in contravention of the requirements set out under the OIC, this Program Guidelines, the Guarantee Agreement or any Minister's Direction; or
  2. The Administrator has failed to follow the requirements set out in the OIC, this Program Guidelines, the Guarantee Agreement or any Minister's Directions in relation to administering or enforcing the Producer Loan.

Crown's Rights on Payment of Guarantee

If the Minister pays on the Guarantee and the Administrator recovers any money in respect of the Producer Loan afterwards, the Administrator will pay to the Minister and amount equal to the difference of:

  1. The amount paid by the Minister to the Administrator; and
  2. The amount that would have been payable by the Minister to the Administrator if the Producer's indebtedness to the Administrator under the Producer Loan had been reduced by the amount of monies recovered by the Administrator, minus the reasonable expenses the Administrator incurred in relation to the recovery.

Upon making any payment on of a guarantee, the Crown will be subrogated in and all the rights of recovery of the Administrator in respect of the producer loan, any security and any of the producer's insurance and will be entitled to exercise all of the rights, powers and privileges that the Administrator has or may exercise in respect of the producer loan, any security and any of the producer's insurance, including the right to commence or continue any court action to execute any release, transfer, sale or assignment, or in any way to collect and realize on any security or any of the producer's insurance or to enforce the producer loan.

Part IX — General

Record-Keeping

Any Lender that issues an Administrator Loan to the Administrator under the Program will retain all records relating to that Administrator Loan for a period of at least seven (7) years from the date in which the Administrator Loan was issued.

The Administrator will retain all records relating to any Administrator Loans and Producer Loans under the Program for a period of at least seven (7) years from the date in which the Administrator Loan or the Producer Loan (as the case may be) was issued.

Reporting

The Administrator will provide the Minister with an annual report about the Program. The contents of the annual report and the date in which the annual report is to be submitted to the Minister will be set out under the Administrative Agreement.

The Administrator will provide the Minister with any other reports that are set out in the Administrative Agreement in accordance with what is set out under the Administrative Agreement.

Audits

Any Person that participates in the Program as a Lender, Administrator or Producer is subject to an inspection by the Minister, or the Minister's respective delegates between normal business hours. Where an inspection takes place, the Lender, Administrator or Producer (as the case may be) will provide reasonable assistance during the inspection. This includes allowing an inspector access to any person, place or thing required for inspection purposes upon request.

Any Person that participates in the Program as a Lender, Administrator or Producer is subject to audit that may be conducted in relation to the Program for the enforcement of the rules, terms and conditions of the program. Where an audit takes place, the Lender, Administrator or Producer (as the case may be) will provide reasonable assistance during the audit. This includes allowing an auditor access to any person, place or thing required for auditing purposes.

Any Person that participates in the Program as a Lender, Administrator or Producer (as the case may be) will provide all requested information within ten (10) Business Days of the request being made by the Minister or the Administrator, including their respective delegates, unless more time has been provided in the request.

Conflict

In the event of a conflict between the OIC, a Minister's Direction, this Program Guidelines and the Administrative Agreement, that conflict shall be resolved in accordance with the following order:

  1. The OIC prevails over a Minister's Direction, this Program Guidelines and the Administrative Agreement;
  2. A Minister's Direction prevails over this Program Guidelines and the Administrative Agreement; and
  3. This Program Guidelines prevails over the Administrative Agreement.

Money Owing to the Crown

Any payments owing to the Crown as a result of the Minister making a payment on the Guarantee will be considered a debt that is owed to the Crown and may be set-off against any other payment the Crown or Her Majesty the Queen in Right of Canada may owe to the person that owes the Crown a payment in accordance with section 43 of the Financial Administration Act (Ontario) and/or section 155 of the Financial Administration Act (Canada).

The right of set-off is in addition to any other legal remedies the Crown may have in law, equity or otherwise to recover a debt that is owed to the Crown.

The Crown may charge interest on any debt that it is owed under this Program at the applicable interest rate that is being charged by the Crown for debts owing to the Crown.

Provision of False or Misleading Information

Any Producer that wilfully provides or has provided false or misleading information under the Program will have his/her/its/their participation in the Program terminated and will be prohibited from participating in the Program for a minimum of five (5) years.

Collection, Use and Disclosure of Social Insurance Number

The Minister, Lender, Administrator — as well as any other their respective employees or agents — may collect, use and/or disclose an individual's Social Insurance Number where that individual operates a business as a sole proprietor or operates within a partnership as an unincorporated entity for tax, auditing and debt collection purposes.