September 11, 1950 (21st Parliament, 3rd Session)


Douglas Charles Abbott (Minister of Finance and Receiver General)


Mr. Abbofi:

I am not familiar with the particular circumstances to which the hon. member for Assiniboia refers. I am also not too familiar with the detailed application of the Farm Improvement Loans Act and the methods followed by the banks. I can inform myself as to the conditions to which he refers. Generally speaking, however, the banks are entitled to and do ask for additional security in the case of the larger loans under the act. They take it in different forms, and I suppose the extent to which they ask for security depends upon their assessment of the creditworthiness of the applicant and the credit risk which they are assuming. I will make some inquiries and ascertain whether the practice, to which the hon. member refers, is widespread.

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