This consolidation is unofficial and is for reference only.

For the official version of the regulations, consult the original documents on file with the Office of the Registrar of Regulations , or refer to the Royal Gazette

Part II .

Regulations are amended frequently.

Please check the list of Regulations by Act to see if there are any recent amendments to these regulations filed with our office that are not yet included in this consolidation.

Although every effort has been made to ensure the accuracy of this electronic version, the Office of the Registrar of Regulations assumes no responsibility for any discrepancies that may have resulted from reformatting.

This electronic version is copyright ©

, Province of Nova Scotia , all rights reserved. It is for your personal use and may not be copied for the purposes of resale in this or any other form.

Nova Scotia Farm Loan Board Regulations

made under

Section 8 of the

Agriculture and Rural Credit Act

R.S.N.S. 1989, c. 7

O.I.C. 2018-304 (effective November 29, 2018), N.S. Reg. 205/2018

amended to O.I.C. 2025-277 (effective October 7, 2025), N.S. Reg. 215/2025

Table of Contents

Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.

Click here to go to the text of the regulations .

Citation

Definitions

Eligibility for loan

Applying for loan

Processing applications

Application fee and legal costs

Deposit payable by applicant

Appraisal

Loan limit

Loans requiring approval

Insurance

Security

Security document

Combining or transferring loan

Interest rate, terms and amortization

Prepayment under closed-prepayment loan

Annual prepayment options under closed-prepayment loan

Determining interest rate

Prescribed fees

Citation

1 These regulations may be cited as the Nova Scotia Farm Loan Board Regulations .

Definitions

2 In these regulations

“Act” means the Agriculture and Rural Credit Act ;

“applicant” means an applicant for a loan;

“loan” means a loan made by the Board under the Agriculture and Rural Credit

Act and these regulations;

“partnership” means a partnership as defined in the Partnership Act .

Eligibility for loan

3 To be eligible for a loan,

(

a) an individual must meet all of the following requirements:

(

i) they must meet the criteria in subclause 2(b)(

i) in the definition of

“borrower” in the Act with respect to citizenship and age and, in

particular, they must be at least 19 years old at the time of their

application,

(ii) they must have adequate experience, training or education in

operating an agri-rural business,

(iii) they must be able to adequately protect the assets to be used as

security for the loan during the term of the loan, including by

obtaining and keeping insurance as required by

Section 10;

(

b) a partnership must have a representative who satisfies the requirements for

an individual in clause (a);

(

c) a body corporate must meet all of the following requirements:

(

i) it must meet the criteria for a corporation in subclause 2(b)(ii) in the

definition of “borrower” in the Act;

(ii) it must be in good standing under the laws of the jurisdiction in

which it was incorporated,

(iii) it must be registered with the Nova Scotia Registry of Joint Stock

Companies,

(iv) it must commit to not transfer voting control in whole or in part

during the term of the loan without prior written notice to the Board,

(

v) its officers, directors, employees or agents have adequate experience,

training or education in operating an agri-rural business,

(vi) it must be able to adequately protect the assets to be used as security

for the loan during the term of the loan, including by obtaining and

keeping insurance as required by

Section 10.

Applying for loan

4 An application must include all of the following:

(

a) the application fee, calculated in accordance with

Section 6;

(

b) a statement of the purpose of the loan;

(

c) a business plan in a form acceptable to the Board;

(

d) complete details of the costs relating to the loan, including appropriate

quotations from any suppliers or contractors;

(

e) the applicant’s written agreement to obtain and keep insurance on the assets

to be used as security for the loan on terms satisfactory to the Board, and to

assign the insurance to the Board;

(

f) for an application by an individual, a signed statement of assets and

liabilities;

(

g) audited financial statements or financial statements satisfactory to the

Board;

(

h) for an application by a partnership,

(

i) the full name of each of the partners, together with a statement of

each partner’s interest in the partnership,

(ii) a signed partnership agreement in a form acceptable to the Board;

(

i) for an application by a body corporate,

(

i) the names of its officers and directors,

(ii) the names of all persons who have subscribed for shares, with a

statement showing the amount paid up on all shares authorized or

issued,

(iii) a certified copy of a special or extraordinary resolution of its

shareholders authorizing it to borrow money,

(iv) evidence that it is in good standing, issued by the Registrar of Joint

Stock Companies or equivalent authority in the jurisdiction in which

it was incorporated;

(

j) any additional information the Board requires to assess the application.

Processing applications

5 The Board may establish guidelines for and the manner in which applications are to be

processed by staff.

Application fee and legal costs

(1) Except as provided in subsection (2), the application fee is 0.25% of the amount of

the loan being applied for, with a minimum fee of $400 plus applicable taxes, and

a maximum fee of $2000 plus applicable taxes.

(2) For loans over $20 000 000, the application fee is $3000 plus applicable taxes.

(3) The Board may include the legal costs to close a transaction as part of the loan

amount.

(4) If an application is processed, but is withdrawn by the applicant before

completion, the applicant is liable for all legal costs incurred by the Board in

processing the application.

(5) If an application is not approved, the Board may refund 25% of the application fee

to the applicant.

Deposit payable by applicant

6A

(1) The Board may require an applicant to pay a minimum deposit, as determined by

the Board, on the total loan amount approved by the Board.

(2) A deposit is payable to the Board immediately on notification by the Board that the

loan is approved, subject to receiving the deposit.

(3) A deposit must be credited to the borrower’s account and must be used as part or

all of the first progress payment of the loan.

Appraisal

(1) The Board may at any time require the appraisal of any assets used to secure a loan

to determine the sufficiency of the Board’s security.

(2) The borrower is responsible for the cost of any appraisal required by the Board

under subsection (1).

Loan limit

(1) Except as provided in subsection (2), the maximum amount of a loan is 90% of the

appraised value of the assets securing the loan.

(2) The Board may lend additional funds to an applicant or a borrower based on any of

the following:

(

a) the Board’s assessment of all of the following:

(

i) the managerial ability of the applicant or borrower,

(ii) the ability of the agri-business to repay the loan,

(iii) the value of other security items;

(

b) the Board’s assessment of development policy factors of the Department or

the Board.

Loans requiring approval

9 Any loan or a guarantee of a loan that would result in the borrower’s total indebtedness

to the Board exceeding $5 000 000 must be approved in accordance with the following

table:

Loan Approvals

Total Indebtedness of Borrower to Board

Approval Required

Over $5 000 000 and up to and including $20 000 000

Minister

Over $20 000 000

Governor in Council

Insurance

10 A borrower must obtain and keep insurance on terms satisfactory to the Board on the

assets to be used as security for the loan, and must assign the insurance to the Board.

Security

(1) The Board may take any security or guarantee that it considers appropriate for any

loan and enforce the security or guarantee in accordance with its terms and

conditions.

(1A) The Board may release any security or guarantee on any loan, including a loan or

by the Board if the release does not change the risk to repayment of the loan as it

was originally approved.

(2) The Board may make any payments necessary to protect the security of a loan, and

the borrower is liable for any amounts paid by the Board under this subsection.

(3) In enforcing security held under this Section, the Board may do any of the

following:

(

a) advance money to a receiver;

(

b) guarantee the accounts of a receiver;

(

c) pay or guarantee a payroll of a borrower in default under the security;

(

d) expend money in attracting a person to revive, take over or re-establish a

borrower’s business.

(4) It is a term and condition of each loan that the Board may add to the amount of the

loan the amount of any fees and expenses incurred by the Board to register any

security the Board requires for the loan.

Security document

12 Each security document securing a loan must contain all of the following covenants:

(

a) that the borrower will repay the loan in accordance with the following, all to

be specified in the security document:

(

i) the amortization period and interest rate,

(ii) the payment schedule, specifying whether the loan payments are to

be made weekly, bi-weekly, semi-monthly, monthly, bi-monthly,

quarterly, semi-annually or yearly,

(iii) the dates and times when and place where loan payments are to be

made;

(

b) that the borrower will not remove any gravel, fill or forest products from the

secured property without the prior written permission of the Board;

(

c) that the borrower will keep all secured property, both real and personal,

including improvements to the property, in good condition and state of

maintenance and repair;

(

d) that the borrower will maintain and comply with all relevant standards and

requirements for the secured property, including any relevant registrations,

inspections and licences;

(

e) that, if required by the Board, the borrower will provide the Board with

detailed financial statements covering the borrower’s operations and any

additional information about their operations that the Board specifies,

including copies of personal or corporate tax returns;

(

f) that the borrower will not take any action that may devalue the secured

property without the prior written permission of the Board.

Combining or transferring loan

(1) If a borrower obtains additional funds from the Board at an interest rate different

from that charged on existing indebtedness to the Board, the total indebtedness to

the Board may be combined into 1 principal balance with 1 repayment

schedule at

the composite interest rate.

(2) If a borrower that is a partnership or body corporate is dissolved and 1 or more of

its partners or shareholders will continue as the borrower, the Board may transfer

the balance of the existing loan at the interest rate and on the same terms and

conditions that applied to the existing loan.

(3) If a borrower that is an individual or partnership forms a body corporate to include

the assets held by the Board as security for the loan, the Board may transfer the

balance of the existing loan to the body corporate at the interest rate and on the

(4) The Board may require a party to a loan transfer under subsection (2) or (3) to

provide any information or submit any documentation that the Board considers

necessary to complete the transfer.

Interest rate, terms and amortization

(1) Subject to any deferral or adjustment under subsection (4), the interest rate,

amortization period and term of a loan must be established in accordance with 1 of

the following options:

(

a) a fixed interest rate for an amortization period to a maximum of 30 years

with the loan of the same term;

(

b) a fixed interest rate for a specified term of years with an amortization period

to a maximum of 30 years;

(

c) a variable interest rate for a specified term of years with an amortization

period to a maximum of 30 years.

(2) A loan may be

(

a) open for prepayment at any time during the term of the loan; or

(

b) a closed-prepayment loan in accordance with Sections 15 and 16.

(3) The Board may reduce the amortization period of a loan if, in the opinion of the

Board, conditions warrant the reduction.

(4) The Board may defer or adjust payment of principal, interest and other accruals on

any loan, including a loan previously approved under

Section 9, for any length of

time the Board considers necessary to do any of the following

(

a) to permit the borrower to establish a business;

(

b) to permit the borrower’s business to recover, if the business is suffering

economic hardship as a result of reduced income;

(

c) to permit a financed asset to become operational.

(5) A deferral under subsection (4) must be capitalized.

Prepayment under closed-prepayment loan

(1) A borrower under a closed-prepayment loan who is not in default under the loan

may, at any time during the term of the loan, prepay the whole or any part of the

loan on payment to the Board of a prepayment fee in an amount equal to the

greater of

(a) 3 months’ interest on the loan balance at the established interest rate; and

(

b) interest calculated using the interest rate differential for the period

remaining in the term of the existing loan or 5 years, whichever is shorter.

(2) In clause (1)(b), “interest rate differential” means the difference between an

existing loan’s actual interest rate and the interest rate that would be applicable to a

new loan with a term, calculated in number of months, equivalent to the period

remaining in the term of the existing loan.

Annual prepayment options under closed-prepayment loan

(1) A borrower under a closed-prepayment loan may, if not in default under the loan,

exercise 1 of the following prepayment options once in each calendar year:

(

a) to increase the amount of each payment of principal and interest by an

amount no greater than 10% of the current amount of a payment of

principal and interest;

(

b) to pay down the principal of the loan, without payment of interest, in an

amount that is no greater than 10% of the original amount of the loan,

unless the Board accepts a higher amount in accordance with subsection (2).

(2) The Board may accept, without the payment of interest, a payment that exceeds the

10% limit specified in clause (1)(b), but only if the Board is satisfied that 1 of the

following special circumstances exists:

(

a) proceeds from property insurance on secured assets have been recovered;

(

b) proceeds have been recovered from a subsidy or grant that has been

assigned to the Board;

(

c) proceeds from life insurance on the death of an insured borrower have been

recovered;

(

d) the Board refinances the existing loan with a loan of similar terms and

outstanding principal but that bears a higher interest rate;

(

e) the initial loan approval included a condition that allowed proceeds from the

sale of real or personal property to be applied to the loan.

Determining interest rate

(1) The minimum interest rate for a loan is the Government of Nova Scotia’s all-in

cost of borrowing on similar terms plus 0.50% for the relevant term, including any

prepayment options permitted by

Section 16.

(2) Subject to the minimum interest rate in subsection (1), the Board must fix interest

rates based on the cost of borrowing for the Government of Nova Scotia provided

quarterly by the Department of Finance and Treasury Board, and adjusted to

include any markup that the Board considers appropriate.

(3) The Board may adjust the interest rate on an individual loan for any of the

following factors:

(

a) business risk factors, including debt servicing capacity, security and the

management ability of the borrower;

(

b) development policy factors of the Department of Agriculture and the Board.

Prescribed fees

(1) Subject to subsections (2) and (3), the fees payable to the Board by borrowers are

as set out in the following table:

Fees Payable to the Board

Type of Fee

Fee Amount

Mortgage release fee

$50.00

Refinancing fee

lesser of:

0.125% of loan balance or $100.00

Mortgage assumption fee

$310.00

Loan guarantee fee

1.5% on the outstanding balance, paid

annually

Fee for preparing deed, mortgage,

agreement of sale, chattel mortgage,

lease or any related document

$124.00

Fee for preparing detailed financial

statements, searching legal records and

providing statistical data

$62.00

File review fee

$100.00

Insufficient funds fee

$35.00

(2) The Board may charge to a loan account any fees charged by an external agency

for registration or release of registration of the Board’s security interest.

(3) The Board may exempt a borrower from the file review fee if the borrower meets

the reporting requirements set out in the loan agreement.

Legislative History

Reference Tables

Nova Scotia Farm Loan Board Regulations

N.S. Reg.

205/2018

Agriculture and Rural Credit Act

Note: The

information in these tables does not form part of the regulations and is

compiled by the Office of the Registrar of Regulations for reference only.

Source Law

The current consolidation of the Nova Scotia Farm Loan Board Regulations made

under the Agriculture and Rural Credit Act includes all of the following regulations:

N.S.

Regulation

In force

date*

How in force

Royal Gazette

Part II Issue

205/2018

Nov

29, 2018

date

specified

Dec

21, 2018

65/2021

Apr

27, 2021

date

specified

May 7,

215/2025

Oct 7,

date

specified

Oct

17, 2025

The following regulations are not yet in force and are

not included in the current consolidation:

N.S.

Regulation

In force

date*

How in force

Royal Gazette

Part II Issue

*See subsection 3(6) of the Regulations Act for

rules about in force dates of regulations.

Amendments by Provision

ad. = added

am. = amended

fc. = fee change

ra. = reassigned

rep. = repealed

rs . = repealed and substituted

Provision affected

How affected

6(2) ...................................................

am. 215/2025

6A .....................................................

ad. 215/2025

8(2) ...................................................

rs . 215/2025

9 ........................................................

rs . 215/2025

11(1) .................................................

am. 215/2025

11(1A) ..............................................

ad. 215/2025

12(d) .................................................

am.

215/2025

12(e) .................................................

am.

215/2025

12(f) ..................................................

ad. 215/2025

14(4) .................................................

am.

215/2025

14(4)(a) ........................................

am.

215/2025

14(4)(b) .......................................

am.

215/2025

14(4)(c) ........................................

ad. 215/2025

16(2) .................................................

am.

215/2025

16(2)(d) .......................................

am.

215/2025

16(2)(e) ........................................

ad. 215/2025

18(1) .................................................

rs . 65/2021, 215/2025

Note that changes to headings are not

included in the above table.

Editorial Notes and Corrections:

Note

Effective

date

Repealed and Superseded:

N.S.

Regulation

Title

In force

date

Repealed

date

248/1992

Nova

Scotia Farm Loan Board Regulations

Dec

31, 1992

Nov 29,

Note: Only

regulations that are specifically repealed and replaced appear in this

table. It may not reflect the entire

history of regulations on this subject matter.