AMENDMENTS SIMPLIFY LOAN PROCESS FOR FARMERS AND CREDIT UNIONS

Released on April 14, 2004

Amendments to the Saskatchewan Farm Security Act will put Saskatchewan's credit unions on a more level playing field with chartered banks.

"These amendments allow farmers to access financing with credit union branches following the same rules that other financial institutions utilize," Agriculture, Food and Rural Revitalization Minister Mark Wartman said. "Credit Unions have a major presence in rural Saskatchewan and are often the only lending institution in a region."

The amendments remove a requirement for credit union customers to obtain legal advice when providing exemptions for security on certain kinds of loans. The Bank Act of Canada, which governs the chartered banks, has no such requirements.

"While the changes make the process easier for Saskatchewan farmers and credit unions, the integrity of the provisions made in The Act remain intact," Wartman said.

The amendments were made after consultation with Credit Union Central, the Agricultural Producers Association of Saskatchewan, the Saskatchewan Association of Rural Municipalities, Farm Credit Canada and other stakeholders.

"The credit union system appreciates government's recognition of the need to keep credit union legislation current," Credit Union Central CEO Sid Bildfell said. "This change means credit unions can now provide the same credit options to members as other federally regulated financial institutions. We now have a competitive footing in this area."

-30-

For More Information, Contact:

Lorne Tangjerd Agriculture, Food and Rural Revitalization Regina Phone: (306) 787-8091

Janelle Lindsey Credit Union Central Regina Phone: (306)566-1684