The Rural Voice, 1990-03, Page 23promissory notes at the changed rate. The
bank's negligence in failing to notify the
plaintiffs, firstly, of the fact that the bank
was charging them interest at the rate of
prime plus 2.75 per cent and, secondly, of
the changes in the prime rate ... created
the situation where on the bank's demand,
the plaintiffs were compelled to pay off
the entire amount owing on their loans,
together with the excess interest charges
under a practical, although not legal,
compulsion to pay."
Although similar attacks upon in-
terest overcharges have been success-
ful in Ontario, some Ontario courts
have been reluctant to permit bank
customers credit for interest over-
charges. They have denied recovery
on the basis that payment was made
under a mistake of law, or because the
customer had signed an account ver-
ification agreement stipulating that, if
the customer did not object within 30
days of receipt of a monthly statement
to the amount alleged to be owing, the
customer was deemed to have accept-
ed the bank's accounting.
Both of these arguments were re-
jected by the court in the Blanchard
case and there are other recent deci-
sions binding on Ontario courts which
may similarly defeat these arguments.
A farmer faced by his banker's
demand for payment and notice of the
bank's intention to realize upon its
security should consider whether or
not he may have paid excessive inter-
est. If so, he may be able to obtain a
court order preventing the bank from
taking steps to realize upon its security
until the bank is able to satisfy the
court as to the amount actually owing.
Not only may such court pro-
ceedings result in a reduction of the
farmer's liability to the bank, but the
time necessary to resolve such pro-
ceedings may provide the farmer with
the opportunity he needs for an order-
ly resolution of his financial problems
or to obtain alternate financing.0
Agrilaw is a column produced by
Cohen, Melnitzer, a full-service London
law firm with expertise in legal issues
affecting the farm community. Paul G.
Vogel is a partner in the firm. The
opinions expressed are not intended as
legal advice. Before acting on any in-
formation contained in Agrilaw, readers
should obtain legal advice with respect
to their own circumstances. If there are
issues you would like to see discussed in
Agrilaw, write The Rural Voice.
SILVA-SAW PORTABLE SAWMILLS
Engineered for Production & Profit
. Save on time and
transportation costs
.! Saw logs on site
SIL® Q from
Enercraft
A. FOUR models to A. One man operation
choose from
.AHydraulic log h Do custom work for
turning option others
Call or wale for a tree brochure
474 Welham Road. Barrie. Ontario
Canada L4M 6E7
Telephone: (705( 734-1211
Fax: (7051 734-3764
WEED AND SEED
vittiffeo alt
10.;7'
300 HONDA Fourfrax ATV equipped with
Demco sprayer and Herd broadcast seeder
Sprayer
• Boom width 40", 80", 144"
• Spray gun for spot spraying
• 14 gal. polyethylene tank
• Front or rear mount
Seeder
• 1.2 bu. hopper
• Grey iron base and S.S. pivot plate for durability
• 12 V motor and direct drive fan
• Agitator for positive material feed
Lynn Hoy Enterprise Ltd.
Hwy. 86 just east of Hwy. 4 by Wingham 357-3435
HOURS: MONDAY To FRIDAY 8 a.m.-5:30 p.m. SATURDAY 8 a.m.-12 noon
MARCH 1990 19