Canadian Agricultural Loans Act program: Request for Revision of Loan Terms (Schedule 2)

You can use either the Web version or the PDF (579 KB). Please complete, print and send the form by mail or fax.

Please send to:

Canadian Agricultural Loans Act (CALA)
Financial Guarantee Programs Division
Agriculture and Agri-Food Canada (AAFC)
1341 Baseline Road, Tower 7, 7th Floor
Ottawa, Ontario K1A 0C5
Fax: 613-773-2020

Protected "B" once completed

The information you provide on this document is collected under the authority of the Canadian Agricultural Loans Act for the purpose of obtaining a loan. Personal information will be stored in Personal Information Bank AAFC PPU 165, and will be protected under the provisions of the Privacy Act. The Collection Registration Number is AGR/POL-465-02960.

Loan Registration Number (AAFC)

Loan Details

Purpose

Interest paid to (yyyy-mm-dd)

Balance outstanding
$

A) Loan terms - Present terms

1. Present terms

Amount
$ (A)

2. Present terms

Amount
$ (B)

3. Present terms

Amount
$ (C)

Present terms - total
$ (A + B + C)

B) Loan terms - Terms for which approval sought

1. Terms for which approval sought

Amount
$ (D)

2. Terms for which approval sought

Amount
$ (E)

3. Terms for which approval sought

Amount
$ (F)

Terms for which approval sought - total
$ (D + E + F)

Security held (give present estimated value)
$

Reason for revision:

Date (yyyy-mm-dd)

Signature of Borrower: (by hand only)

Signature on behalf of Lender: (by hand only)

Government Use Only

Revision Approved

Date received (yyyy/mm/dd)

Signature on behalf of AAFC: (by hand only)

Instructions

A Schedule 2 must be submitted to Agriculture and Agri-Food Canada for the Minister's approval prior to any Revision of Terms being made with the exception of the following:
1. Extending the term for repayment of the loan within the maximum terms specified in the Act;
2. Changing the amount of the periodic instalments;
3. Changing the periods between instalments; or
4. Changing the method of charging interest from fixed to variable and vice-versa.
The above scenarios would fall within the "Blanket Authority Process" whereby the lender would revise the terms of a loan without the pre-approval of the Minister if the risk of repayment has not been increased. In these cases, a Schedule 2 must be completed and retained on the borrower's file.
For all Schedule 2's (blanket or not) the lender must include the following documentation:
1. In the lender's own words; that the producer will be able to meet his obligation under the revised terms;
2. Adequate security has been taken to secure the loan until full repayment is made;
3. Any interest payment arrears have been paid in full.
Lenders are reminded that any revision to the repayment terms:
1. Must provide for the payment of at least one annual principal instalment; and
2. Must not result in extending the repayment period beyond 10 years with the exception of "land" loans which have a maximum repayment period of 15 years.
Security cannot be released or substituted by a lender before a loan is paid in full unless authority to do so is obtained from the Minister in the form of a Schedule 2.
CALA defines the default date as the day after the day on which a payment under a loan was scheduled to have been made, but was not made.
The lender should take care in completing this form and in acquiring the necessary documentation.
For additional information please refer to Section 15 of the Lender's Guidelines.