CHAPTER 53

An Act respecting Advances to Purchase Seed

Grain.

[Assented to December 19, 1919.]

HEREAS, owing to a severe drought which prevailed Preamble in certain parts of Saskatchewan during the past summer and to other causes the crops in those districts have been a total or partial failure, and settlers are in many instances without sufficient seed grain for the next season's operations and require assistance in procuring the same; and

Whereas, to insure the continued prosperity of the province it is necessary to cultivate and sow every available acre of land and to maintain the production of grain at the highest possible level; and

Whereas companies which have been lending money upon mortgage to farmers in this province have represented that they are willing to advance the sums necessary for the purchase of seed grain to those of their mortgagors whose property, financial position and personal qualities afford a reasonable assurance that such advance can be made with safety; and

Whereas the terms upon which such companies are willing to make advances are those hereinafter set forth and it is expedient in the general interest to grant the said terms to the companies and to all other mortgagees who may wish to take advantage of the same:

Therefore, His Majesty, by and with the advice and consent of the Legislative Assembly of Saskatchewan, enacts as follows:

1. This Act may be cited as The Seed Grain Advances Short title Act, 1920."

2. In this Act, unless the context otherwise requires, Interprethe expression:

tation

1. "Owner" means the registered owner, or a beneficial "Owner" owner in possession of the land, whether entitled under an agreement to purchase or otherwise; and

2. "Advance" includes the mortgagee's reasonable "Advance" costs of making the same.

Mortgagee may make advances

Tacking

Limit of advance

Lien on crop

3. Any mortgagee of land in Saskatchewan, whether under a mortgage heretofore or hereafter made, may make advances of money to the owner of the mortgaged land or any part thereof to enable him to purchase seed grain for use in sowing such land for the crop of 1920.

4. Where the mortgagee makes such an advance, he may add the amount thereof to the amount secured by the mortgage, and such sum shall, notwithstanding anything contained in The Land Titles Act, and without registration in a land titles office, become, from the date of the advance, part of the moneys so secured and shall bear interest at the mortgage rate, shall be a charge upon the mortgaged land, and have the like priority in the same manner as the other moneys so secured, and shall be payable on the first day of November, 1920, or on such other day as may be specified in the application for the advance.

5. Not more than the sum of $250 in all shall be advanced under the provisions hereof in respect of any one quarter section of land, and, where the land is subject to more than one mortgage, no subsequent mortgagee shall be entitled to the benefit of this Act who makes an advance without the written consent of all prior mortgagees.

6. (1) In addition to the rights given by section 4 hereof the mortgagee shall have a lien and charge for the amount of such advance and interest upon all the crops grown upon the mortgaged land in the year 1920, having priority over all other liens and charges except taxes and sums which may be collected in the same manner as taxes and the statutory lien, if any, created by The Municipalities Seed Grain Act, 1917, for seed grain furnished in the year 1919.

(2) Where there exists under the provisions of The Municipalities Seed Grain Act, 1917, a lien on the crop grown during the year 1920, the mortgagee shall also have a first lien and charge upon the crop grown on the said land during the year 1921 having priority over all other liens and charges, except taxes and sums which may be collected in the same manner as taxes.

(3) For the purposes of this section the amount secured by the lien hereby created shall become due and payable on the first day of November, 1920, or on the first day on which the owner shall commence to cut the crop grown on such land, whichever shall be earlier, and the mortgagee shall thereupon in addition to all

other remedies have the right to seize and sell such crop in order to realise the amount secured by his seed grain lien.

7. (1) Any owner who makes application for advances Offences under the provisions hereof and who expends such advances otherwise than in the purchase of seed grain, or who sells or disposes of the seed grain purchased with such advances, or who neglects or fails to sow in a husbandlike manner upon the land described in the application seed grain purchased with such advances shall be guilty of an offence and liable upon summary conviction to a fine not exceeding $500, or to imprisonment for any term not exceeding two years, or to

both.

(2) Prosecutions under this section may be had before any justice of the peace or police magistrate having jurisdiction in the place where the offence was committed or where the accused person resides.

of mortgagee

8. Where a mortgagee in good faith makes an advance Protection purporting to be under the provisions hereof, the securities of such mortgagee created by this Act shall not be prejudiced or impaired by any errors or misstatements. in the application for such advance or in any verbal or written representations made to induce the mortgagee to make the advance, and no mortgagee shall be obliged to see to the application of the moneys advanced.

guarantee

9. The Lieutenant Governor in Council is hereby Government authorised to enter into agreements with mortgagees from time to time for the purpose of guaranteeing or indemnifying such mortgagees against loss by reason of advances made or to be made pursuant to the provisions of this Act, upon the terms and conditions set forth in form A in the schedule to this Act.

10. This Act shall come into force on the day on which Coming it is assented to.

into force

His Majesty the King, acting in respect of the Frovince of Saskatchewan and herein represented and acting by the Honourable

Provincial Treasurer of Saskatchewan, herein called "the Government,

and

of the first part,

the mortgagee."

hereinafter called

of the second part.

Whereas the mortgagee is the holder of mortgages upon a number of parcels of land in Saskatchewan, the owners of which are without sufficient seed grain for next season's operations and require assistance in procuring the same; and

Whereas the mortgagee has been requested to make advances to such owners under the provisions of The Seed Grain Advances Act, 1920; and

Whereas in the case of certain of such owners the existing security of the mortgagee is such as to render further security necessary to support fresh advances; and

Whereas by The Seed Grain Advances Act, 1920, the Lieutenant Governor in Council was empowered to enter into agreements for the purpose of guaranteeing or indemnifying mortgagees against loss by reason of advances made pursuant to its provisions:

Now, therefore, this agreement witnesseth as follows:

1. The government hereby agrees to indemnify the mortgagee against loss by reason of advances made with its approval, to the extent and upon the terms hereinafter set forth, and where an advance is hereafter referred to in this agreement the same shall mean an advance approved by the government in accordance herewith.

2. Where the mortgagee proposes to make an advance under the terms hereof, he shall submit to the government in such form as it may require a statement in writing of the facts respecting the advance, and the government will thereupon with all convenient promptitude either grant or withhold its approval. After an advance has been approved, the approval shall be valid and effectual in favour of the mortgagee unless it is shown that the

mortgagee has wilfully withheld material information in his possession or has wilfully misrepresented any of the facts relating to the advance or to the security therefor.

3. Any approval hereunder may be given by the minister of agriculture or by his deputy.

4. In case the mortgagee, at any time subsequent to an advance which has been added to the amount secured by his mortgage pursuant to the provisions of The Seed Grain Advances Act, 1920, takes proceedings for the sale of the mortgaged land in court or through the land titles office, and in case upon such sale the amount realised is less than sufficient to pay the sum secured by the mortgage, then the government will forthwith after confirmation or completion of the sale, upon proof by affidavit of the amount secured by the mortgage and the amount realised, pay to the mortgagee the deficiency to the extent of a sum equivalent to the sum advanced for seed grain together with interest thereon at the rate of 5 per cent. per annum computed from the date of the advance to the date of payment and compounded yearly on the first day of November.

5. In case the mortgagee, at any time subsequent to an advance which has been added to the amount secured by his mortgage pursuant to the provisions of The Seed Grain Advances Act, 1920, obtains a final order of foreclosure of his mortgage, then at the expiration of six months from the date of the order the government will, subject to the next following clause, pay to the mortgagee an amount equivalent to the sum advanced for seed grain, together with interest thereon at the rate of 5 per cent. per annum computed from the date of the advance to the date of payment and compounded yearly on the first day of November.

6. If, prior to the expiration of such six months, the mortgagee sells the mortgaged land, then the mortgagee shall for the purposes of this agreement be deemed on the date of sale to have completed a sale of the land under legal proceedings, and clause 4 of this agreement shall apply.

7. If, subsequently to the expiration of such six months and payment by the Government as mentioned in clause 5, the mortgagee sells the mortgaged land for a sum such that the amount realised exceeds the amount secured by the mortgage at the date of sale, after credit has been given for the sum theretofore paid by the government, then the mortgagee shall repay to the government, from the first moneys which come into