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Bank of Montreal not honoring SWP cheques

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    Bank of Montreal not honoring SWP cheques

    Cashed all of our canola in at SWP yesterday the 30th. Went to the bank of Montreal this morning to certify them or cash them, and they would do neither. Told me to bring them to my own financial institution and deposit them as per normal. My own financial institution put a hold on them. Looks like if the SWP owes any producers money it will be collected through the Grain commision against their bond. By the way the Grain Commision will have a mighty big explanation to give if the bond falls short. It was their exact words, that the bond "Far exceeded any liabilities to producers" at January the 15th.

    #2
    JD Green;

    I thought it would be helpful for you to read exactly what the CGC has as a responsibility to us as grain producers... So happy Canada Grain Act reading... give it a shot!

    Here we go:

    "Objects of the Commission

    13. Subject to this Act…, the Commission shall, in the interests of the grain producers, establish and maintain standards of quality for Canadian grain and regulate grain handling in Canada, to ensure a dependable commodity for domestic and export markets.
    1970-71-72, c. 7, s. 11."

    Please again note ..."regulate grain handling in Canada, to ensure a dependable commodity for domestic and export markets."

    Being that this is the whole reason for the existance of the CGC, this places legal responsibility upon the CGC to "regulate".

    Now lets get to stage II...

    "Functions of the Commission

    14. (1) Subject to this Act, the Commission shall, in furtherance of its objects,
    14.(1)(c) conduct investigations and hold hearings on matters within the powers of the Commission;"

    THE CGC "SHALL" conduct investigations..., this is not optional for the CGC security dept.

    "116. (1) The Commission may, with the approval of the Governor in Council, make regulations
    116.(1)(k) respecting the security to be given, by way of bond, suretyship, insurance or otherwise, by applicants for licences and by licensees;"

    Now we switch to the Canada Grain Act Regulations to find out what regulations the Governor in Council made...

    "Primary Elevator Reports"

    Canada Grain Act Regulations,

    "Section 26. Each primary elevator licensee shall submit to the Commission"

    CG Reg. "26(a) every week, a report made on the appropriate form supplied by the Commission or acceptable to the Commission respecting the licensee's operations during the preceding week;"

    So now we have seen that the CGC has a statutory obligation to monitor, VERY specifically, the Licensee very closely... and specifically find out what Primary elevator is up to...

    Now what is the CGC to do with this monitoring info?

    CG Act 49. (1) Where the Commission has reason to believe and is of the opinion that any security given by a licensee pursuant to this Act is not sufficient, the Commission may, by order, require the licensee to give, within such period as the Commission considers reasonable, such additional security as, in the opinion of the Commission, is sufficient.

    Now, it is clear, the CGC had a statutory obligation to insure that SWP/Agpro had enough bond to cover all obligations to producers like you.

    Lets see what you need to do...

    49.(3)...security given by a licensee as a condition of a licence to operate a primary or process elevator or to carry on business as a grain dealer may be realized or enforced in relation to a cash purchase ticket, an elevator receipt or a grain receipt only if

    (a) the licensee fails or refuses to meet any of their payment or delivery obligations to the producer of the grain to which the ticket or receipt relates within such period as may be prescribed after the day on which the grain was delivered to the licensee; and

    (b) the producer of the grain has given notice in writing of the failure or refusal to the Commission within thirty days after the failure or refusal.


    Please note your obligation to notify the CGC...

    Now the bad news... that the ...Liberals created...


    "49.1 (2) The Commission is not liable if a licensee fails to fulfill any payment or delivery obligation owed to a holder of a grain receipt, elevator receipt or cash purchase ticket."

    49.1 (1) The Commission is not liable to a producer who has delivered grain
    (a) to a person who is not a licensee; or
    (b) to a licensee, if the producer has not obtained a cash purchase ticket, an elevator receipt or a grain receipt from the licensee."

    Specifically 49.1(2) IS NOT IN THE SPIRIT OR INTENT OF THE CANADA GRAIN ACT... BUT THE LIBERALS ADDED IT IN 1994 TO GET OUT OF SITUATIONS LIKE ARE OCCURING RIGHT NOW.

    I WOULD SUGGEST THAT THIS SECTION AND CLAUSE ARE QUESTIONABLE... SIMPLY BECAUSE THE CGC HAS A STATUTORY OBLIGATION TO ...REGULATE... TO THE 100% LEVEL, A BOND COVERING PRODUCER LIABILITIES.

    A STRONG CASE SHOULD BE MADE... THAT NABORS FAILURE IS THE CGC'S PROBLEM.

    THE CGC DID NOT REGULATE AND ENFORCE THE CG ACT... AND SECURE ENOUGH BOND TO COVER ALL PRODUCER LIABILITIES...

    THEREFORE THE CGC SHOULD BE LIABLE!

    Comment


      #3
      I've heard (this is rumor) that SWP has pre sold & farmers have pre paid $8MM worth of Invigor canola seed in Sask. & SWP has not paid Invigor for this seed. Invigor will not ship the seed to SWP until they receive payment. Looks like some producers get to pay twice for their canola seed.

      SWP also pre sold NH3 at a very competitive price. This is the first year SWP has presold NH3. (rumor, so take it for what it is worth.)

      Comment


        #4
        Wedino;

        From what I have seen, Agpro/SWP local people have done everything possible, that they can, to take care of these issues...

        It further appears to me that the banks are not happy with SWP, because of the above actions... and so the banks are doing what banks do best....

        The CWB itself has been less than co-operative in helping to resolve the CWB grain in Condo... is this the bankers control over the CWB?

        What possible interest could the CWB have in not allowing CWB grain to be secured and paid for...

        and protect the interests of farmers...

        Why didn't the CWB take delivery of all CWB grain with primary elevator grain receipts that have been issued to farmers...?

        Interesting that the CWB is working for the banks... and ignoring farmers... SHAME!

        If a bank has called a loan on a farmer... the CWB will instantly allow overdelivery of CWB grains to pay the bank loan back...

        But it certainly appears that if the opposite occurs... the farmers needing to get paid... so the bank can not get at their grain...

        The CWB stalls and makes life difficult for farmers...

        Just who does the CWB work for?

        These same issues are relevant for the CGC as well...

        If the CGC has not secured enough funds to cover farmer liabilities... The banks will be the biggest beneficiaries ... as was obviously the case with the Nabors failure.

        It is up to the CGC to look after the "interests of producers... to ensure a dependable commodity"

        Again, this is the objective and purpose of the CGC!

        Could anyone argue... that a producer not being paid, was anything but a failure of the CGC to regulate the licensee... to ensure the producer does get paid... or that the producer's grain is given back, as is assured by an official condo primary elevator grain receipt?

        Comment

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