The Rural Voice, 1989-03, Page 35NEWS
DECISION RESERVED
ON FARROW CASE
Walkerton — On Valentine's Day,
1989, Ken Farrow, a Bruce County
farmer, was in court fighting a financial
divorce action launched last July by the
Bank of Montreal.
Arguing for Ken and Charlotte Far-
row, who own a pig and cattle operation
near Paisley, Ontario, was Kitchener
lawyer Ted Oldfield. Oldfield told
Judge J. I. McKay that the court should
continue an injunction preventing the
Bank of Montreal from cashing a
$155,000 cheque, a provincial govern-
ment guarantee on Farrow's loan.
Oldfield argued that the cheque
would force liquidation on the Farrow
farm, which would spell financial ruin
for the family. The cheque was issued
under OFAAP (the Ontario Farm Ad-
justment Assistance Program). It auto-
matically triggers a bank liquidation to
pay back the government.
Farrow has sued the bank, charging
that it acted in bad faith "by falsely
alleging my loans are in substantial ar-
rears." His lawyer wants the injunction
against the cheque kept in place until the
Farrow suit is heard.
On the other side, bank lawyer
Duncan Grace of London argued that
the injunction should be lifted because
the bank is within its rights to cash the
cheque.
"It's not illegal for the bank to say:
Give us back our $155,000," Grace said.
"This case is high on emotion and thin
on principle. No one is denying (Far-
row) is an honest individual. No one is
denying this case gives the appearance
of unfairness."
After hearing two hours of argu-
ments, Judge McKay reserved his deci-
sion.
The court was told that on July 29,
1988, the bank called both Farrow's
operating loan and a small business
bond, which still leaves the Farrows
with a net equity of $150,000.
The bank's original lawyer stated
that the reason for calling the Farrow
loans was their "substantial arrears,"
which Farrow's lawyer said was not the
case.
The bank's new lawyer, Duncan
Grace, agreed, saying the "substantial
arrears" wording by the original lawyer
"was unfortunate ... because it's not
accurate."
Grace conceded that Farrow depos-
its $2,400 monthly to cover his debt
payments, an amount "in excess of the
$1,800 a month as required."
Both lawyers told the court that Far-
row has been unable to get into the
OFAAP replacement program, OLAP
(the Operating Loan Assistance Pro-
gram). Grace said the bank won't con-
tinue to finance Farrow without the
OLAP government guarantee.
"He justifiably feels frustrated with
the govemment," said the bank's law-
yer. "From the emotional level one
certainly can sympathize with Mr. Far-
row."0
Gord Wainman
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MARCH 1989 33