Farm Debt Mediation Regulations

SOR/98-168FARM DEBT MEDIATION ACT
Registration 1998-03-13
Farm Debt Mediation RegulationsThe Minister of Agriculture and Agri-Food, pursuant to subsection 26(1) of the Farm Debt Mediation ActFootnote a, hereby makes the annexed Farm Debt Mediation Regulations.
Return to footnote aS.C. 1997, c. 21
Ottawa, March 13, 1998
LYLE VANCLIEF
Minister of Agriculture and Agri-FoodInterpretation

1 (1) The definitions in this subsection apply in these Regulations.

Act
Act means the Farm Debt Mediation Act. (Loi)
business day
business day means a day that is not a Saturday or a holiday. (jour ouvrable)
Service
Service means the Farm Debt Mediation Service of the Department of Agriculture and Agri-Food. (Service de médiation)

(2) For the purposes of section 20 and subsection 22(2) of the Act, a person is related to a farmer or a creditor if

(a) in the case of a farmer or a creditor who is an individual, the person is

(i) the spouse of the farmer or the creditor,
(ii) a natural or adopted child of the farmer or the creditor or of the farmer’s or the creditor’s spouse,
(iii) a brother, sister, mother, father, grandmother or grandfather of the farmer or the creditor or of the farmer’s or the creditor’s spouse, or
(iv) an employee or employer of the farmer or the creditor at the time the original application for mediation was filed with the Service; or

(b) in the case of a farmer or a creditor that is a corporation, cooperative, partnership or other association, the person

(i) was an officer, director, partner or employee of the farmer or the creditor at the time the original application for mediation was filed with the Service, or
(ii) directly owns or indirectly owns, controls or holds 25 per cent or more of the shares of the corporation or cooperative.

Appointment of Mediators

2 An administrator may appoint a person as mediator pursuant to paragraph 10(1)(a) of the Act if the person is knowledgeable about or has experience with the mediation of disputes.

Extension of Stay of Proceedings

3 An administrator who considers it essential to the formulation of an arrangement between a farmer and the farmer’s creditors may extend the period of a stay of proceedings referred to in paragraph 7(1)(b) or subsection 13(1) of the Act if

(a) the value of the farmer’s assets will not significantly diminish during the period of the extension;
(b) the majority of the farmer’s creditors will not be unduly prejudiced by the extension; and
(c) there is no indication of bad faith by the farmer.

Method of Notification

4 (1) An administrator shall, where required by the Act or these Regulations to notify or inform a farmer or a farmer’s creditor of anything, notify or inform them in person or by means of telephone, priority post, courier service or, subject to subsection (3), facsimile or electronic mail.

(2) A farmer or a farmer’s creditor is deemed to be notified or informed by an administrator at any of the following times:

(a) on the day they are so notified or informed in person or personally by telephone by the administrator;
(b) on the next business day after the day on which the notice or information is sent by facsimile or electronic mail; or
(c) on the second business day after the day on which the notice or information is sent by priority post or a courier service to their residence or place of business.

(3) A farmer may be notified or informed by an administrator by means of facsimile or electronic mail only if they have indicated in writing to the administrator that they will accept information in this manner.

Appeal Boards

5 For the purpose of dealing with appeals pursuant to subsection 15(2) of the Act, an Appeal Board is constituted in respect of each of the following regions:

(a) Alberta, British Columbia, Yukon Territory and the Northwest Territories;
(b) Manitoba and Saskatchewan;
(c) Ontario;
(d) Quebec; and
(e) New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland.

6 (1) Each Appeal Board is composed of a Chairperson and up to four other members designated by the Minister.
(2) Each member of an Appeal Board shall provide services in accordance with the terms of an agreement referred to in subsection 15(1) of the Act.

(3) Each agreement referred to in subsection 15(1) of the Act shall provide that the member is entitled to, in accordance with any directives of the Treasury Board,

(a) remuneration for services; and
(b) travel and living expenses incurred by the member in the performance of the member’s duties while absent from the member’s ordinary place of residence.

(4) A member shall not accept or hold any office or employment inconsistent with the member’s duties, including performing any of the duties of an expert, mediator or administrator under the Act.
(5) Where it is necessary for the proper conduct of business, the Chairperson of an Appeal Board of one region may appoint a member of that Appeal Board to serve as a temporary member of an Appeal Board of another region.

7 (1) The Chairperson of each Appeal Board shall preside at all meetings of the Appeal Board or a panel referred to in subsection 12(1) and has the supervision over, and direction of the work of, that Appeal Board including

(a) the establishment of panels of members to deal with appeals;
(b) the allocation of work equally among the members;
(c) the temporary appointment of members to an Appeal Board of another region; and
(d) generally, the conduct of the work of the Appeal Board and its internal affairs.

(2) The Chairperson of each Appeal Board shall designate one of the other members as an interim Chairperson.
(3) In the event of the absence or incapacity of the Chairperson, the interim Chairperson may exercise all the powers, duties and functions of the Chairperson.
(4) In the event of the absence or incapacity of an interim Chairperson or if the interim Chairperson is unwilling to act as Chairperson, the remaining members of the Appeal Board shall by a majority vote elect a member to act as temporary Chairperson.
(5) A temporary Chairperson elected in accordance with subsection (4) may exercise all the powers, duties and functions of the Chairperson.

Appeal Procedure

8 (1) A farmer or a farmer’s creditor may appeal a decision referred to in subsection 15(2) of the Act by filing, within the time prescribed by section 11, a Notice of Appeal in the form established by the Minister.
(2) The Notice of Appeal shall be filed with the same office of the Service where the original Application for Mediation was submitted.
(3) A Notice of Appeal or the statement in writing referred to in paragraph 9(3)(b) may be filed with the administrator in the form of an original document, a facsimile copy or an electronic version.

9 (1) On the filing of a Notice of Appeal, the administrator, in accordance with section 4, shall inform the farmer or the farmer’s creditors, as the case may be, that an appeal has been filed.
(2) A farmer or a farmer’s creditor is deemed to be informed that an appeal has been filed at the applicable time set out in subsection 4(2).

(3) A farmer or farmer’s creditor, after having been informed of an appeal, may, where the appeal relates to a termination of a stay of proceedings pursuant to paragraph 14(2)(c) or (d) of the Act, within one business day or, in any other case, within three business days

(a) request the administrator to send them a copy of the Notice of Appeal; and
(b) file with the administrator a statement in writing that clearly sets out their objections to the appeal together with any other relevant information.

10 After a farmer or farmer’s creditor has been given the opportunity in accordance with subsection 9(3) to respond to the appeal, the administrator shall send to the Chairperson of the applicable Appeal Board

(a) all the information upon which the decision of the administrator under appeal was based; and
(b) any statements in writing and other relevant information from a farmer or farmer’s creditor that have been filed.

Time for Filing of Appeals

11 (1) An appeal relating to the eligibility of a farmer to make an application for mediation or the granting of an extension of a stay of proceedings shall be made by a person within four business days after the day on which the person is given notice of the initial stay of proceedings or is informed of the extension in accordance with section 4.

(2) An appeal relating to the termination of a stay of proceedings shall be made

(a) where the termination is directed by the administrator pursuant to paragraph 14(2)(c) or (d) of the Act, within one business day after the day on which the farmer or farmer’s creditor was informed of the termination; or
(b) in any other case, within four business days after the day on which the farmer or farmer’s creditor was informed of the termination.

Conduct of Appeals

12 (1) Each appeal shall be heard by a panel of the Appeal Board that consists of the Chairperson and two other members selected by the Chairperson.

(2) Each panel shall decide each appeal expeditiously and with a minimum of formality on the basis of

(a) the information sent to it pursuant to section 10; and
(b) such other information as it considers relevant to deal with the appeal, if a farmer or a farmer’s creditor, as the case may be, has been informed of, and given a reasonable opportunity to respond to that other information.

13 Every appeal shall be decided by a majority of the members of the panel.

14 A member of the panel may participate in an appeal by means of telephone or other means of effective communication.

15 A panel may dismiss an appeal or reverse the decision of an administrator.

16 Every person who files an appeal or a statement in writing referred to in paragraph 9(3)(b) shall be informed by the administrator of the decision of the Appeal Board by means of a Record of Appeal in a form established by the Minister.

Notice by Secured Creditors

17 (1) The notice required to be given by a secured creditor to a farmer under subsection 21(1) of the Act may be given

(a) in the case of a farmer who is an individual

(i) by leaving a copy of the notice with them,
(ii) by leaving a copy of the notice in a sealed envelope addressed to the farmer with anyone who appears to be an adult and who resides at the farmer’s place of residence, and on the same day or the following day mailing another copy of the notice to the farmer at that place of residence, or
(iii) by sending a copy of the notice by priority post, courier or registered mail addressed to the farmer; and

(b) in the case of a farmer who is a corporation, cooperative, partnership or other association

(i) by leaving a copy of the notice with an officer, director, partner or agent of the corporation, cooperative, partnership or other association,
(ii) by leaving a copy of the notice with a person at any place of business of the farmer who appears to be in control or management of the place of business, or
(iii) by sending a copy of the notice by priority post, courier or registered mail addressed to the last known address of the head office or principal place of business of the farmer.

(2) The giving of the notice in the manner described in subparagraph (1)(a)(ii) or (iii) or (b)(iii) is deemed to be effected seven business days after the day on which the notice is sent.
(3) A person who gives the notice to a farmer need not produce an original document or have it in their possession.

Proof by Affidavit

18 The giving of any notice or information required by the Act or these Regulations may be proved by the affidavit of the person who gave it.

Coming into Force

*19 These Regulations come into force on the day on which the Farm Debt Mediation Act, chapter 21 of the Statutes of Canada, 1997, comes into force.
Return to footnote *[Note: Regulations in force April 1, 1998 see SI/98-52.]