Part IV of The
Saskatchewan Farm Security Act regulates the process of farm equipment
repossession.
The Part of the Act is not administered by the Farm
Land Security Board. Lenders must adhere to the provisions for Notice before seizing or
selling repossessed farm equipment.
The Part applies to vendors or lenders that secure
financing through The
Personal Property Security Act registry. Chartered banks using section 427 of
the Bank Act are not subject to the provisions of this Part. Chartered banks are,
however, subject to the federal Farm Debt Mediation Act if the farmer requires
intervention to retain the asset while negotiations are undertaken.
Provisions of Part IV of the The Saskatchewan Farm
Security Act provide for a notice period of 30 days before a farm implement can be
seized, and a further 30 days before the implement can be sold. The farmer can apply
during either of these notice periods to the Queen’s Bench for a hearing. The Judge
can provide time for the farmer to bring the account current.
A payment accepted by the lender during the notice period
will cancel the notice. Vendors under this Part are restricted to the equipment in
satisfaction of the debt owing. Some lease arrangements are considered financing
arrangements under this legislation, some are not.
Legal advice should be sought if any concerns arise over
the effect of the legislation or if seizure or sale is made without proper Notice.
Further general information is available in a publication
called "Farm Financial Difficulties" available at the following link: www.plea.org.
