O. Reg. 560/93: FUND FOR LIVESTOCK PRODUCERS

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Farm Products Payments Act

ONTARIO REGULATION 560/93

FUND FOR LIVESTOCK PRODUCERS

Consolidation Period: From January 1, 2020 to the e-Laws currency date.

Last amendment: 466/19.

Legislative History: 469/95, 301/06, 326/11, 328/11, CTR 21 OC 13 - 2, 541/17, 466/19.

This is the English version of a bilingual regulation.

1. In this Regulation,

“director” means the director appointed under the Livestock and Livestock Products Act; (“directeur”)

“livestock” means bulls, cows, heifers, steers and calves that are,

(a) sold for slaughter for the production of beef,

(b) sold for the purpose of feeding before being slaughtered for the production of beef, or

(c) sold for the purpose of breeding to produce cattle referred to in clause (a) or (b). (“bétail”) O. Reg. 560/93, s. 1; O. Reg. 469/95, s. 1; O. Reg. 541/17, s. 1.

2. The Fund for Livestock Producers (the “Fund”) is continued.  O. Reg. 560/93, s. 2.

3. The Livestock Financial Protection Board (the “Board”) is continued as the administrator of the Fund.  O. Reg. 560/93, s. 3.

4. (1) The Board shall be composed of at least five members consisting of,

(a) one member representing the Beef Farmers of Ontario;

(a.1) one member representing the operators of community sales under the Livestock Community Sales Act; and

(b) such other members as the Minister considers advisable.  O. Reg. 560/93, s. 4 (1); O. Reg. 469/95, s. 2 (1); O. Reg. 466/19, s. 1 (1).

(2) The fact that there is a vacancy in the membership of the Board does not prevent the members in office from acting.  O. Reg. 560/93, s. 4 (2); O. Reg. 466/19, s. 1 (2).

(3) Revoked: O. Reg. 466/19, s. 1 (3).

(4) The Minister shall appoint a chair and a vice-chair of the Board from among its members.  O. Reg. 469/95, s. 2 (2).

5. Livestock are designated as a farm product.  O. Reg. 560/93, s. 5.

6. (1) Dealers licensed under the Livestock and Livestock Products Act who sell livestock are designated as producers for the purposes of clause (d) of the definition of “producer” in section 1 of the Act, but the designation is only in respect of sales of livestock by the dealers to,

(a) other dealers licensed under the Livestock and Livestock Products Act; or

(b) other producers.  O. Reg. 328/11, s. 1 (1).

(2) A sale of livestock by a dealer to either of the following entities shall be deemed to be a sale of livestock by a producer to another producer for the purposes of clause (1) (b) and of sections 10, 12 to 17, 19 and 21:

1. A feeder cattle finance co-operative that is eligible under the Ontario Feeder Cattle Loan Guarantee Program.

2. A breeder cattle co-operative. O. Reg. 541/17, s. 2.

7., 8. Revoked:  O. Reg. 326/11, s. 1.

9. On a sale of livestock to a dealer, the following are additional conditions under which a producer may apply for payment from the Fund:

1. All or part of the dealer’s assets are placed in the hands of a receiver under a debenture or similar instrument.

2. The dealer ceases to carry on business.  O. Reg. 560/93, s. 9.

10. (1) On a sale of livestock to a producer, the following are additional conditions under which a producer may apply for payment from the Fund:

1. The producer who buys the livestock fails to pay for it within fifteen days after the day of sale.

2. All or part of the assets of the producer who buys the livestock are placed in the hands of a receiver under a debenture or similar instrument or of a trustee for distribution under the Bankruptcy and Insolvency Act (Canada) or the Bulk Sales Act.

3. The producer who buys the livestock ceases to carry on business.  O. Reg. 560/93, s. 10 (1).

(2) No producer may make an application for payment from the Fund in respect of a sale to another producer unless the sale takes place at least thirty days after this Regulation comes into force.  O. Reg. 560/93, s. 10 (2).

11. (1) If an application for payment from the Fund is made in respect of a sale of livestock to a dealer, the application shall be made to the Board not later than thirty days after the day on which the earliest of the following events occurs:

1. The dealer’s payment becomes due.

2. All or part of the dealer’s assets are placed in the hands of a receiver or of a trustee for distribution under the Bankruptcy and Insolvency Act (Canada) or the Bulk Sales Act.

3. The dealer ceases to carry on business.  O. Reg. 560/93, s. 11 (1).

(2) The application shall be in a form satisfactory to the Board and, if an applicant claims against more than one dealer, there shall be a separate application for each claim.  O. Reg. 560/93, s. 11 (2).

12. (1) If an application for payment from the Fund is made in respect of a sale of livestock to a producer, the applicant shall notify the director promptly of the producer’s failure to pay and the application shall be made to the Board no later than 30 days after the day of sale.  O. Reg. 469/95, s. 4.

(2) The application shall be in a form satisfactory to the Board and, if an applicant claims against more than one producer, there shall be a separate application for each claim.  O. Reg. 560/93, s. 12 (2).

13. Having regard to the circumstances of the case, the Board may make a payment from the Fund if an application for payment is made in substantial conformity with subsection 11 (1) or 12 (1), as the case may be.  O. Reg. 560/93, s. 13.

14. On receipt of an application under section 11 or 12, the Board shall notify the dealer or producer of the claim for payment by registered mail or by courier and also notify the director.  O. Reg. 469/95, s. 5.

15. If the Board decides that a claim is not valid in whole or in part, it shall refuse payment in whole or in part and notify the applicant and the dealer or producer concerned of its refusal by registered mail or by courier, and it shall also notify the director.  O. Reg. 469/95, s. 5.

16. If the Board decides that a claim is valid, it shall pay the applicant and notify the dealer or the producer concerned as well as the director.  O. Reg. 469/95, s. 5.

17. (1) A dealer or a producer in respect of which the Board makes a payment shall reimburse the amount paid or begin reimbursing it by instalments in accordance with an undertaking approved by the Board.  O. Reg. 560/93, s. 17 (1).

(2) The Board shall notify the director if a dealer or a producer does not reimburse the amount paid or fails to make an instalment payment that is due.  O. Reg. 469/95, s. 6.

18. (1) The Board may refuse to pay a claim made in respect of a dealer in the following circumstances:

1. The applicant’s claim for payment is in respect of a dealer who is not a dealer licensed under the Livestock and Livestock Products Act.

2. The applicant presents a cheque for payment later than five business days after it is received from the dealer and the cheque is dishonoured by non-acceptance or non-payment.

3. The applicant does not apply within the time prescribed in section 11.

4. The applicant makes an arrangement with the dealer whereby the latter is given an extension of the time to pay.

5. The applicant does not notify the director promptly of the failure to pay.

6. It would be inequitable in all the circumstances to pay the claim because there is an association between the applicant and the dealer and the applicant’s conduct or, if the applicant is a corporation, the conduct of an officer or director of the applicant or that of a person having power to direct the applicant’s management, caused the failure to pay.  O. Reg. 560/93, s. 18 (1); O. Reg. 469/95, s. 7; O. Reg. 328/11, s. 2.

(2) In exercising its discretion under paragraph 1 of subsection (1), the Board shall take into account whether or not the applicant knew that the dealer was, at the time of the sale, unlicensed on account of the expiry, suspension, cancellation or non-renewal of the licence.  O. Reg. 560/93, s. 18 (2).

(3) When determining whether to refuse to pay a claim under subsection (1) made by an applicant who is a feeder cattle finance co-operative or a breeder co-operative, the Board shall take into account the actions of the member of the co-operative who sold the cattle on behalf of the co-operative. O. Reg. 541/17, s. 3.

19. The Board may refuse to pay a claim made in respect of a producer in the following circumstances:

1. Subject to paragraph 2, in cases where the producer paid the applicant by cheque and the cheque is dishonoured by non-acceptance or non-payment, the applicant presented the cheque for payment at or later than 2 p.m. on the second business day after the cheque is received.

2. In the case of a sale to a feeder cattle finance co-operative or a breeder cattle co-operative where the producer paid the applicant by cheque and the cheque is dishonoured by non-acceptance or non-payment, the applicant presented the cheque for payment at or later than 2 p.m. on the tenth day after the date of the sale.

3. The applicant does not apply within the time prescribed in section 12.

4. The applicant does not notify the director promptly of the failure to pay.

5. The applicant is a producer designated as such under subsection 6 (1) and does not agree in writing to reimburse the Board the full amount of any money the applicant may receive from the buyer in respect of which the applicant made the claim, up to the amount paid from the Fund to the applicant.

6. It would be inequitable in all the circumstances to pay the claim because there is an association between the producer and the applicant and the applicant’s conduct, or if the applicant is a corporation, the conduct of an officer or director of the applicant or that of a person having power to direct the applicant’s management, caused the failure to pay.  O. Reg. 560/93, s. 19; O. Reg. 469/95, s. 8; O. Reg. 328/11, s. 3; O. Reg. 541/17, s. 4.

20. On a claim in respect of a dealer, the Board shall pay out of the Fund 95 per cent of the portion of the claim that it recognizes as valid.  O. Reg. 560/93, s. 20; O. Reg. 328/11, s. 4.

21. (1) The following rules govern payment out of the Fund of a claim made in respect of a producer who is not a feeder cattle finance co-operative or a breeder cattle co-operative:

1. No payment is made if the portion of a claim that the Board recognizes as valid is $5,000 or less.

2. The amount that the Board shall pay is the lesser of 85 per cent of the portion of a claim that it recognizes as valid and $125,000. 

3. Once an applicant has received payment in respect of a producer, the applicant is ineligible to receive payment again in respect of that producer until the producer has reimbursed the Fund the full amount paid on the claim.  O. Reg. 560/93, s. 21 (1); O. Reg. 328/11, s. 5 (1); O. Reg. 541/17, s. 5 (1).

(2) The following rules govern payment out of the Fund on a claim made in respect of a feeder cattle finance co-operative or a breeder cattle co-operative:

1. No payment is made if the portion of a claim that the Board recognizes as valid is $5,000 or less.

2. The amount that the Board shall pay is the lesser of 85 per cent of the portion of a claim that it recognizes as valid and $125,000.

3. Once an applicant has received payment in respect of a feeder cattle finance co-operative on behalf of one of its members or in respect of a breeder cattle co-operative on behalf of one of its members, the applicant is ineligible to receive payment again in respect of that member of the co-operative until either the member or the co-operative has reimbursed the Fund the full amount paid on the claim.  O. Reg. 560/93, s. 21 (2); O. Reg. 328/11, s. 5 (2); O. Reg. 541/17, s. 5 (2, 3).

(3) Paragraph 3 of subsection (2) does not prevent an applicant from receiving payment from the Fund in respect of another member of the feeder cattle finance co-operative or of the breeder cattle co-operative, as the case may be.  O. Reg. 560/93, s. 21 (3); O. Reg. 541/17, s. 5 (4).

(4) For the purposes of this section,

“claim” means,

(a) in respect of a producer who is not a feeder cattle finance co-operative or a breeder cattle co-operative, an application for payment in respect of all sales of livestock made to the producer at a particular location on a particular day,

(b) in respect of a feeder cattle finance co-operative or a breeder cattle co-operative, an application for payment in respect of all sales of livestock made to a particular member buying under the authority of the co-operative at a particular location on a particular day.  O. Reg. 560/93, s. 21 (4); O. Reg. 541/17, s. 5 (5).

21.1 If a feeder cattle finance co-operative or a breeder cattle co-operative makes a claim to the Board with respect to circumstances involving one of its members, the Board shall not refuse the claim on the basis of actions or conduct of another member of the same co-operative. O. Reg. 541/17, s. 6.

22. Omitted (revokes other Regulations).  O. Reg. 560/93, s. 22.

 

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