The Rural Voice, 1995-06, Page 17make its credit facilities available to a
customer. In the case of C.I.P. Inc. v.
Toronto Dominion Bank, the British
Columbia Court of Appeal considered
the obligations of the bank to a sawmill
company whose line of credit was
conditional upon reductions to fixed
amounts from time to time, certain le-
vels of equity financing and the
application of receivables to reduce the
indebtedness. The bank seized a signi-
ficant deposit to the company's bank
account even before making demand.
In view of the nature of the loan agree-
ment, and the absence of any agreement
or course of conduct which would
require the bank to provide notice
before effecting such a seizure, the
court held that the bank was lawfully
entitled to seize the funds to satisfy the
company's demand obligation.
A farmer's promise to pay the bank
"immediately upon demand" permits
the bank to demand payment of the
outstanding loan at any time. Upon
such a demand, the farmer must look to
alternate sources of financing. While
the farmer attempts to make these
arrangements, at least for some
reasonable period of time, the bank
cannot proceed to realize on the
farmer's assets. In addition, where the
loan is within limits prescribed or
permitted by the bank, the bank may
well have a legal obligation to continue
financing the farm during this period.°
Agrilaw is a syndicated column produced
by the full service London law firm of
Cohen Highley Vogel and Dawson. Paul G.
Vogel, a partner in the firm, practises in the
area of commercial litigation. Agrilaw is
intended to provide information to farmers
on subjects of interest and importance. The
opinions expressed are not intended as
legal advice. Before acting on any
information contained in Agrilaw, readers
should obtain legal advice with respect to
their own particular circumstances.
Agriculture
is the big business
in Huron County.
Candidate for MPP- Huron
Helen
o s
Join our Common Sense Campaign to:
RI Cut personal income tax rates to 1990
levels ( that's 30% ).
RI Cut non-priority government spending.
( No cuts to health care, classroom education,
law enforcement . Investments in agriculture. )
• Support and promote a whole farm
support program, modelled on NISA.
• Relieve the inequities of GRIP.
C Retain the Farm Property Tax Rebate
until the property tax system is reformed.
RI Repeal Bill 91, which is aimed at the
unionization of our family farms.
O Restore the balance between environ-
mental protection and property rights.
RI Replace welfare with workfare.
Common Sense. For Huron.
Ontario
Campaign Headquarters: EXETER 1-800-706-9832 519-235-4400
Area Campaign Offices: CLINTON, GODERICH, WINGHAM
Authorized by the Official Agent for Helen Johns
JUNE 1995 13