Mediation

Marginal note:Appointment of mediator

• 10 (1) Forthwith after the report mentioned in subsection 9(4) has been prepared, the administrator shall

  • (a) in accordance with the regulations, appoint as a mediator any person who is unbiased and free from any conflict of interest relative to the application in question;

  • (b) inform

    • (i) in the case of an application made under paragraph 5(1)(a), the farmer, all of the creditors listed in the application and the Minister, if the Minister was given notice of the application by the administrator under subparagraph 7(1)(a)(iii), of the mediator’s appointment, or

    • (ii) in the case of an application made under paragraph 5(1)(b), the farmer, all of the secured creditors listed in the application, all of the creditors mentioned in a recommendation under paragraph 9(2)(b) and the Minister, if the Minister was given notice of the application by the administrator under subparagraph 7(1)(a)(iii) or is mentioned in the recommendation, of the mediator’s appointment; and

  • (c) provide a copy of the report mentioned in subsection 9(4) to the mediator and to the persons and entities that will be participating in the mediation.

• Marginal note:Duties of mediator

  (2) In accordance with the regulations, the mediator shall examine the report mentioned in subsection 9(4) and meet with the persons and entities referred to in subparagraph (1)(b)(i) or (ii) for the purpose of assisting them to reach a mutually acceptable arrangement, but shall not provide advice to the farmer or a creditor.

Marginal note:Termination of mediation

• 11 (1) In the case of an application under paragraph 5(1)(a), the mediation terminates

  • (a) when a termination of the stay of proceedings pursuant to subsection 14(2) takes effect pursuant to subsection 14(4); or

  • (b) on a termination of the stay of proceedings by virtue of subsection 14(5).

• Marginal note:Termination of mediation

  (2) In the case of an application under paragraph 5(1)(b),

  • (a) if the administrator is of the opinion, based on information received from the mediator or from any other source, that

    • (i) either the farmer or the majority of the creditors referred to in subparagraph 10(1)(b)(ii)

      • (A) refuse to participate in the mediation, or

      • (B) refuse to continue to participate in good faith in the mediation, or

    • (ii) the mediation will not result in an arrangement between the farmer and the majority of the creditors referred to in subparagraph 10(1)(b)(ii),

    the administrator may direct that the mediation be terminated and, where the administrator so directs, the mediation terminates; and

  • (b) the mediation terminates on the signing of an arrangement under section 19.

• Marginal note:Notice of termination

  (3) Where the mediation terminates pursuant to subsection (1) or (2), the administrator shall so inform the farmer and all the creditors who were eligible to participate in the mediation.

Stay of Proceedings

Marginal note:Effect of stay of proceedings

12 Notwithstanding any other law, during any period in which a stay of proceedings is in effect, no creditor of the farmer

• (a) shall enforce any remedy against the property of the farmer; or

• (b) shall commence or continue any proceedings or any action, execution or other proceedings, judicial or extra-judicial, for the recovery of a debt, the realization of any security or the taking of any property of the farmer.

Marginal note:Extension of stay of proceedings

• 13 (1) Where the administrator considers an extension of the thirty day period referred to in paragraph 7(1)(b) to be essential to the formulation of an arrangement between a farmer and the farmer’s creditors, the administrator may, subject to the regulations, extend that period for a maximum of three further periods of thirty days each.

• Marginal note:Interim extension of stay

  (2) Where

  • (a) there is an appeal under section 15 from a decision of the administrator not to extend a stay of proceedings, and

  • (b) the stay of proceedings expires before the appeal is decided,

  the administrator shall, on that expiration, extend the stay of proceedings until the appeal is decided.

• Marginal note:Notice to creditors

  (3) The administrator shall give notice of any extension granted under subsection (1) or (2) to the farmer and to each creditor listed in the farmer’s application.

• Marginal note:Where appeal successful

  (4) Where, pursuant to an Appeal referred to in paragraph (2)(a), the Appeal Board reverses the administrator’s decision, the resulting thirty day extension of the stay of proceedings starts at the expiration of the original stay of proceedings, or at the expiration of the previous thirty day extension thereof, as the case may be.

Marginal note:Obligatory termination of stay of proceedings

• 14 (1) If the administrator determines, pursuant to paragraph 7(1)(c), that the farmer is not eligible to make the application, the administrator shall direct that the stay of proceedings be terminated.

• Marginal note:Discretionary termination of stay of proceedings

  (2) If the administrator is of the opinion, based on information received from the mediator or from any other source, that

  • (a) either the farmer or the majority of the creditors listed in the application

    • (i) refuse to participate in the mediation, or

    • (ii) refuse to continue to participate in good faith in the mediation,

  • (b) the mediation will not result in an arrangement between the farmer and the majority of the creditors listed in the application,

  • (c) the farmer has contravened any directive issued to the farmer by the administrator pursuant to subsection 17(1), or

  • (d) the farmer has, by any act or omission, jeopardized his or her assets or obstructed the guardian in the performance of the guardian’s duties under subsection 17(2),

  the administrator may direct that the stay of proceedings be terminated.

• Marginal note:Notice of termination

  (3) If the administrator directs that a stay of proceedings be terminated under subsection (1) or (2), the administrator shall inform the farmer, all of the creditors listed in the application and the Minister, if the Minister was given notice of the application by the administrator under subparagraph 7(1)(a)(iii).

• Marginal note:When termination takes effect

  (4) Where the administrator directs, pursuant to subsection (1) or (2), that a stay of proceedings be terminated, the termination takes effect

  • (a) on the expiration of the time prescribed for making an appeal under section 15; or

  • (b) where an appeal is made under section 15, if and when the appeal is dismissed.

• Marginal note:Automatic termination of stay of proceedings

  (5) A stay of proceedings terminates on

  • (a) the signing of an arrangement under section 19; or

  • (b) the farmer’s making an assignment under the Bankruptcy and Insolvency Act.

Appeal Boards

Marginal note:Appeal Boards

• 15 (1) The Minister may, in accordance with the regulations, constitute one or more Appeal Boards and designate the members thereof, and may enter into agreements for the services of the members, which agreements may include provision for remuneration and travel and living expenses.

• Marginal note:Appeals

  (2) A farmer or a creditor may, in accordance with the regulations, appeal to an Appeal Board a decision of an administrator relating to

  • (a) the eligibility of a farmer to make the application under paragraph 5(1)(a); or

  • (b) the extension or termination of a stay of proceedings.

• Marginal note:Regulations

  (3) The Appeal Board shall deal with an appeal in accordance with the regulations.

• Marginal note:Stay not affected

  (4) The making of an appeal does not affect a stay of proceedings that is in effect.

• Marginal note:Board’s decision final

  (5) A decision of an Appeal Board is final and is not subject to appeal.