BILL No. 14 of 1936 (Second Session).

An Act to amend and consolidate The Debt Adjustment Act, 1933. (Assented to , 1936.) HIS MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, enacts as follows: 1. This Act may be cited as "The Debt Adjustment Act, 1936." PRELIMINARY. 2.

In this Act, unless the context requires a contrary meaning- (a) (b) (c) (d) (e) (I) "Board" means the Debt Adjustment Board con­ stituted pursuant to this Act; "Clerk" means the clerk in a judicial district and the deputy clerk in a subjudicial district; "Judicial district" includes a subjudicial district; "Resident farmer" means a person who is an actual resident of and personally living in the Province of Alberta who- (

i) is personally bona fide engaged in farming operations in the Province; or (ii) being the owner of a farm property, was per­ sonally bona fide engaged in farming opera­ tions thereon but has retired therefrom, and has either leased the said property or sold it under an agreement of sale, or transferred it and taken a mortgage thereon for purchase money on which payments are owing to him; and includes the personal representative or repre­ sentatives, son, daughter, widow or widower of a deceased resident farmer; and includes a company incorporated under any Act of the Province whose sole or main business is farming within the Prov­ ince; and "Resident home owner" means a person who is an actual resident of and personally living in the Prov­ ince of Alberta and occupies as his home any land of which he is the owner, or may be entitled to become the owner by virtue of any agreement of sale, any option to purchase, or the terms of any lease, or any tenant and includes the personal repre­ sentative or representatives, son, daughter, widow or widower of a deceased resident home owner; and "Sheriff" includes the deputy sheriff in a subjudicial district.

3. The Lieutenant Governor in Council may from time to time­ (a) (b) (c) (d) (

e) constitute a Board to be known as the Debt Adjust­ ment Board, to have the general supervision and administration of this Act, consisting of either one, two or three persons, as the Lieutenant Governor may from time to time determine and prescribe the remuneration and duties of the persons appointed as the members of the Board; appoint such officers, clerks and employees as may be deemed necessary who shall be under the direct control of the Board; appoint for any designated areas one or more com­ mittees consisting of not more than three persons for the purpose of co-operating with the Board in the administration of this Act within the designated area and prescribe the powers and duties thereof; prescribe rules and regulations for the due admin­ istration of this Act and as to the procedure upon any proceeding under this Act, and prescribe forms, and prescribe and fix a tariff of the fees to be taken or received by any person on account of service per­ formed by him in the course of any such proceeding or in respect of any act or thing done by such person in pursuance of this Act; protect any property seized under this Act against s~izure in any other proceedings or for any other reason. 4.

The Debt Adjustment Board may appoint such person or persons to act on. its behalf as it deems advisable for the purpose of facilitating the administration of this Act and may, subject to the approval of the Lieutenant Governor in Council, confer upon any person or persons so appointed such powers as it may deem expedient including power to grant or refuse permits; to make compromises between creditors and debtors and to make orders or issue directions which the Board is authorized to make or issue under the provisions of this Act. 5.

All the powers and authority by this Act conferred upon the Board shall be deemed to be conferred upon and shall be exercisable by every member thereof. 6.

The Board and any person authorized by the Board in writing may make all such inquiries as may be from time to time deemed advisable with regard to the property of any resident farmer or any resident home owner and as to the disposition of the property of any such person, and for that purpose the Board or any person authorized by the Board in writing may examine under oath any such resident farmer or resident home owner and his servants and agents, and any person who appears to the Board, or any person authorized by the Board in writing, to have any knowledge of the affairs of the resident farmer or resident home owner,

3 and shaH have all the powers in that behalf which may be conferred upon a commissioner appointed pursuant to The Public Inquiries Act. 7.-

(1) The Board constituted pursuant to this Act shall be a body politic and corporate.

(2) For the purpose of performing any duty or function or exercising any power which is conferred or imposed upon the Board by this Act, any member of the Board is hereby empowered to act for and on behalf of the Board, and any act or thing so done shall be deemed to have been done by the Board.

PART 1. 8.-

(1) Unless the Board or any person designated by the Board under the provisions of this Act, issues a permit in writing giving consent thereto- (

a) no action or suit for any legal, equitable or statu­ tory claims, demand, debt or account or for any money demand, not being indebtedness for rates or taxes payable pursuant to any statute or debts owing to a hospital for hospital services; and (

b) no proceedings by way of execution, attachment or garnishment; and (

c) no action or proceeding for the sale under or fore­ closure of a mortgage on land, or for cancellation, recission or specific performance of an agreement for sale of land or for recovery of possession of land, whether in court or otherwise; and (

d) no action or proceeding to sell land under or in satisfaction of any judgment or mechanic's lien; and (

e) no seizure or distress under an execution or under any lease or any tenancy howsoever created, lien, chattel mortgage, conditional sale agreement, crop payment agreement or in attornment as tenant under any agreement for sale or mortgage, and no sale or other proceeding thereunder either by virtue of rights of property at common law or under a statute passed prior to this Act; (

I) no proceedings by a lessor, mortgagor, vendor or other person claiming possession of a share of crop in any case where the provisions of The Crop Pay­ ments. Act apply; and (

g) such other class of legal or other proceedings as may be brought within the provisions of this

section by order of the Lieutenant Governor in Council- shall be taken, made or continued by any person whomso­ ever against a resident farmer in any case, or against a resident home owner in case the same relate to or affect the land occupied by the home owner as his home or are for the purpose of enforcing any claim whatsoever founded on or arising out of any mortgage, charge, lien of any kind affect­ ing the said land, or any agreement of sale, option to pur­ chase or the terms of any lease or tenancy, however created.

(2) The consent of the Board u!lder this.

section -yvhen­ ever given shall relate back to anythmg done m the actIOn or other proceedings in respect of which the permit is given.

(3) This

section shall not apply to any contract made or entered into by a debtor the whole of the original considera­ tion for which arose after the first day of July, 1936.

(4) Nothing in this

section shall affect any right or remedy for the enforcement of the payment of any irriga­ tion rates or water rentals payable pursuant to any statute or of any water rentals payable pursuant to any agreement for the supply of water for irrigating any land of a resident farmer.

(5) The Board may at any time in its discretion cancel or suspend any permit which has been previously issued under this

section by the Board.

(6) The decision of the Board shall be final and there shall be no appeal therefrom. 9. No permit shall be granted in respect of any proceed­ ings founded on any mortgage or agreement for sale of lands which are being farmed, if those proceedings lead to foreclosure merely by reason of the fact that because of the depreciation in values caused by abnormal economic con­ ditions the security cannot for the time being be sold to realize a price which is commensurate with its fair ordinary value under normal conditions. 10.-

(1) Upon the receipt of any application by or on behalf of a creditor in writing, in such form and containing such particulars as may be prescribed by the regulations for a permit to commence or continue any action or proceedings against a resident farmer or a resident home owner, the Board shall proceed to make such inquiries as it may deem proper into the circumstances, and thereupon may either issue a permit or may refuse or adjourn the application, and as a condition of the refusal or adjournment may give such directions to the resident farmer or resident home owner .as to the conduct of his affairs and the disposition of his property as it deems to be in the best interests of the debtor and his creditors.

(2) The Board may require that any person deal with and dispose of any money, choses in action or property of a resident farmer or resident home owner in his hands in the manner specified in the direction, and every person having in ·his possession any money, choses in action or property of a resident farmer or resident home owner shall comply with any such requirement of which he has notice.

(3) Any direction given under this

section shall be applicable only to so much of the money, crop and live stock of the debtor as is not required for the following purposes: (

a) The payment of any sums necessarily borrowed, or debts necessarily incurred by the resident farmer in growing and harvesting the crop, or any sums necessarily borrowed or debts necessarily incurred by the resident farmer during the period of six months before the sale of any live stock for the purpose of feeding and preparing his live stock for the market and the provision of a sufficient amount

5 of money for the necessarY' subsistence of the resi­ dent farmer and his family and for the continuance of his operations for a period of not longer than until the next ensuing harvest; (

b) The payment of any current taxes and any instal­ ment of consolidated arrears payable in respect of the resident farmer's property for the year in which the direction is given; and

(0) Such other purposes as may be designated by the Lieutenant Governor in Council. 11.-

(1) The period during which proceedings by a creditor are prohibited under this Act shall not be included in the time within which an action or other proceeding is to be commenced under The Limitation of Actions Act, 1935, or under any other statute or law for the time being in force in the Province limiting or prescribing the time within which actions or proceedings are to be commenced; and any party to an action or other proceeding which has been pro­ hibited by this Act shall have the same time for continuing such action or proceeding after the expiry of the said period as he would have had if the action or proceeding had not been prohibited, and shall not be prejudiced by reason of the delay.

(2) For the purpose of this

section the proceedings men­ tioned and described in subsection (1) of

section 8 of this Act shall, in so far as a resident and a creditor of a resident are concerned, and whether or not such creditor has applied or hereafter applies to the Board for the issue, of a permit pursuant to the said subsection (1) be deemed to have been prohibited so long as this Act remains in force, subject to the provision contained in subsection (3).

(3) Upon the issue of the permit or written authority of the Board, the period subsequent to the issue thereof shall be included in the time within which the action or other pro­ ceeding affected thereby is to be commenced under The Limitation of Actions Act, 1935, or under any other statute or law for the time being in force in the Province limiting or prescribing the time within which actions or proceedings are to be commenced.

PART II. 12.

Upon receipt of an application in writing by or on behalf of a resident farmer or any creditor of a resident farmer, the Board shall confer with and advise the resident farmer or his creditor and shall endeavor to bring about an amicable arrangement for the payment of the resident farmer's indebtedness, and for that purpose the Board shall inquire into the validity of all claims made against the resi­ dent farmer and his ability to pay his just debts, either presently or in the future, and shall endeavor to effect an agreement between the resident farmer and his creditors to provide for the settlement of the resident farmer's debts, either in full or by a composition, and for the purpose of any such inquiry the Board shall have all the powers in that behalf conferred by this Act.

6 13. An agreement arrived at between the resident farmer and any creditor and made by or through the agency of the Board may be informal or by parole, or partly written and partly by parole, and may be contained wholly or in

part in letters written by or to the Board and such agree­ ment may alter, modify, or rescind in 1Vhole or in part the terms of any mortgage, contract or agreement theretofore subsisting between the parties, or by the terms of which the rights of any of the parties are affected. 14.

The Board shall endeavour to bring about an agree­ ment between the resident farmer and his creditors whereby the secured or unsecured debts of the resident farmer are reduced to an amount which, in the opinion of the Board, is in accordance with the ability of the resident farmer to pay either presently or in the future, having regard to the pro­ ductive capacity of the farm and equipment which the resi­ dent farmer is operating. 15.

If an agreement is arrived at between the resident farmer and his creditors whereby the creditors agree to a reduction, compromise or composition of their claims, the Board may determine from time to time the amount and manner of payment of the indebtedness of the resident farmer to his creditors under the said agreement and may give directions accordingly and if, at the expiration of a period of time prescribed by the Board, on a further hear­ ing, it appears that the resident farmer has not complied with the directions given, the Board may, unless in its opinion, conditions justify the default, issue a permit under

Part I of this Act, at any time it deems necessary to prevent the resident farmer from defeating the claims of his creditors. 16. Any agreement made by a resident farmer and his creditor or creditors under the provisions of this part shall be valid and binding upon the parties thereto and shall be enforceable in law although made without consideration.

PART III. 17. In this Part- (a) "Clerk" means the Clerk of the District Court of the district in which the debtor resides or carries on business; (b) "Debtor" means any person, firm or corporation other than a resident farmer as defined in this Act. 18. The Lieutenant Governor in Council may from time to time appoint a suitable person as an Official Referee for the purpose of discharging the duties hereinafter set forth. 19.

Upon receipt of an application by or on behalf of a d~btor or any. creditor of a debto,r, the Referee may confer wIth and advIse the debtor or hIS creditor with a view to bringing about an amicable arrangement for the payment of the debtor's indebtedness, and for that purpose the Referee

7 may make such inquiries as he deems necessary respecting the claims maue against the debtor and his ability to pay his just debts, either presently or in the future, and shall endeavour to effect an agreement between the debtor and his creditor or creditors to provide for the extension of the time for payment of the debtor's debts or for the settlement of the debtor's debts, either in full or by a reduction or com­ position, and for the purposes of such inquiry, the Referee shall have all the powers in that behalf which may be con­ ferred upon a commissioner appointed pursuant to The Public Inquiries Act. 20.-

(1) If in any particular case the Referee is of the opinion that it would not be just or reasonable for the creditors of the said debtor or any of them to take or con­ tinue proceedings which may lead to the seizure or sale of the real or personal property of the debtor, he shall file his certifi'cate in writing to that effect with the Clerk and in that event no such proceedings shall be taken or continued against the debtor.

(2) The Referee may at any time in his sole discretion cancel any certificate issued by him by filing a notice to that effect in the office of the Clerk with whom the certificate was filed.

(3) The decision of the Referee shall be final and there shall be no appeal therefrom. 21. The Referee may from time to time give such directions as he may in his sole discretion deem proper as to the conduct of the debtor's affairs and the disposition of his property as the Referee deems to be in the best interests of the debtor and his creditors.

PART IV-GENERAL 22. In any case where a proposal has been formulated for a resident farmer pursuant to the provisions of The Farmers' Creditors Arrangement Act, and has been con­ firmed by the Board of Review under the provisions of the said Act, and the said resident farmer has failed, due to causes beyond his control, to carry out the terms of the said proposal, no creditor of the said resident farmer shall com­ mence or continue any of the proceedings set out in

section 8 hereof, unless the Board or any person designated by the Board issues a permit in writing giving consent thereto: Provided that this

section shall not apply in any case where proceedings have been taken or continued against the debtor under the provisions of The Farmers' Creditors Arrangement Act, or The Bankruptcy Act, or in any case where the debtor has made a voluntary assignment under The Bankruptcy Act. 23. No chattel mortgage given by a resident farmer from and after the first day of May, 1934, to secure any past indebtedness, shall have any force or effect whatsoever

8 unless the same has been approved in writing by the Debt Adjustment Board within sixty days next after the date of the execution thereof. 24.-

(1) Notwithstanding anything contained in The Crop Payments Act, being

chapter 138 of the Revised Statutes of Alberta, 1922, or in any agreement for sale or mortgage to which that Act applies or in any share crop lease collateral to such an agreement or mortgage the right of a vendor or a mortgagee or his assignee shall not in respect of a crop grown in any year subsequent to the year 1935 operate so as to make deliverable to the mortgagee or vendor more than one-third of the crop grown in any such year, less the cost of threshing attributable to one-third of the crop.

(2) Any purchaser or mortgagor may in any year sub­ sequent to the year 1935 out of the share Of crop deliverable to a vendor or mortgagee pay one year's taxes upon the land on which the crop is grown and in such case upon produc­ tion of the receipt by the proper officer for such payment the vendor or mortgagee shall be entitled only to one-third share of the crop less the amount shown upon such receipt, and less the cost of threshing as aforesaid. 25.

Every Supreme Court Clerk and District Court Clerk and every sheriff and every Registrar of Land Regis­ tration Districts shall, without fee, perform all services required to be rendered by the Board and keep a record of every instrument filed by it in its office pursuant to this Act, and may issue certified copies thereof, and every certified copy shall be evidence of the issue and filing of such instru­ ment without proof of the signature or official character of the officer signing the same. 26.

If any person makes wilful default in complying with any order, direction or condition given by the Board, or wilfully takes or continues any action or proceeding or makes or continues any seizure, or sells or disposes of a chattel in violation of the provisions of this Act, or the regulations, or if any resident in respect of whom directions ha ve been given in pursuance of this Act makes any dis­ position of anything, either real or personal property in contravention of the provisions of this Act, or makes default in complying with any directions given by the Board under the provisions of this Act, or in complying with any order direction or condition given or imposed by the Board, the~ he shall be liable upon

summary conviction to a fine not exceeding two hundred and fifty dollars and in default of payment to a term of imprisonment with hard labour not exceeding three months,or to both. ' 27. All documents purporting to be issued in pursuance of this Act by the Board and to be signed by the Chairman or any member of the Board, shall be receivable in evidence. ?-nd shal~, unless the contrary is shown, be deemed to have been so Issued and signed, and it shall not be necessary to prove the handwriting or official position of the Chairman or member of the Board.

9 28. Proof that any letter or package containing any documents permitted by this Act or the regulations to be served by post was properly addressed and put into the post office, and of the time when it was so put in and of the time requisite for its delivery in the ordinary course of the post shall be evidence of the fact and time of the receipt of the letter or package by the person to whom it was addressed. 29.

Neither the Board nor any member thereof, nor any­ one acting on the instructions of the Board, or under the authority of this Act or the regulations or the Referee appointed under this Act shall be personally liable for any loss or damage suffered by any person by reason of anything in good faith done or omitted to be done, pursuant to or in the exercise or supposed exercise of the powers conferred by this Act or The Debt Adjustment Act, 1933, or any regulations made pursuant to either of the said Acts. 30.

Every action, order or decision of the Board or the Referee as to any matter or thing, in respect of which any power, authority or discretion is conferred on the Board or the Referee under this Act shall be final and shall not be questioned, reviewed or restrained by injunction, pro­ hibition or mandamus or other process or proceeding in any Court, or be removed by certiorari or otherwise in any Court. 31.-

(1) In case the Parliament of Canada enacts legis­ lation as to the adjustment of debts, the Lieutenant Gov­ ernor in Council may for the purpose of preventing conflict between that legislation and this Act, from time to time by Proclamation published in The Alberta Gazette- (

a) suspend the operation of this Act or any specified part or provision or provisions thereof for a specified period or until further Proclamation; and (

b) declare that this Act or any specified part, provision or provisions thereof shall be no longer applicable to any specified class or classes of persons for a specified period or until further Proclamation; and (

c) cancel or vary any previous suspension or declara­ tion.

(2) Every Proclamation shall take effect upon the pub­ lication thereof in The Alberta Gazette or upon such later date as may be named in the Proclamation for that purpose. 32.-

(1) The Lieutenant Governor in Council may, at any time and from time to time, by Proclamation published in The Alberta Gazette- (

a) authorize, in so far as the same may be within the legislative authority of the Province of Alberta, thp postponement of the payment of all or any debts. liabilities or obligations, existing or future, how­ ever arising, or of the enforcement of all or any liens or incumbrances, or other securities, whether created before or after the coming into force of this Act;

10 (

b) prohibit in any judicial district the issue of any process out of anyone or more of the Courts of the Province in all or any classes of civil actions, or the execution of process already issued in such actions, or stay proceedings in civil actions and matters of any description pending in such Courts, or extend or otherwise vary the exemption privileges which execution debtors now enjoy.

(2) The powers conferred upon the Lieutenant Governor in Council by subsection (1) may be exercised generally or may by the terms of the order be restricted to certain designated areas within the Province, the residents of which by reason of drought, hail, frost or other adverse conditions are in need of the protection provided by this section. 33.

The Lieutenant Governor in Council may by Pro­ clamation at any time repeal this Act and declare that The Debt Adjustment Act, 1933, or any provision or provisions thereof designated thereby be in force as and from a day specified for that purpose, and thereupon The Debt Adjust­ ment Act, 1933, or such of its provisions as may be desig­ nated in the Proclamation shall have and continue to have the same force and effect as the same had immediately before the coming into force of this Act; and as and from the day upon which this Act comes into force the provisions of The Debt Adjustment Act, 1933, shall cease to have any force and effect unless and until the same are proclaimed to be in force pursuant to this section. 34.

The provisions of this Act shall not be so construed as to authorize the doing of' any act or thing which is not within the legislative competence of the Legislative As­ sembly. 35. The Debt Adjustment Act, 1933, being

chapter 13 of the Statutes of Alberta, 1933, is hereby repealed. 36. This Act shall come into force on the day upon which it is assented to.

.No. 14 SECOND SESSION EIGHTH LEGISLATURE 1 EDWARD VIII 1936 BILL

An Act to amend and consolidate T~ Debt Adjustment Act, 1933. Received and read the First time ........................................ . Second time Third time ....................................... . HON. MR. HUGILL. EDMONTON: A. Shnltka, King's Printer 1936 Title: 1936 (8th, 2nd) Bill 14,

An Act to amend and consolidate The Debt Adjustment Act, 1933