The Nova Scotia Farm Loan Board has called the loan of the Nova Scotia Provincial Exhibition Commission in Truro and taken possession of its properties and assets.
The Farm Loan Board informed exhibition commission chairman Bruce Kennedy of the action Wednesday, Feb. 5.
"It is a tough decision, but the right thing to do," said Agriculture Minister Keith Colwell, who is responsible for the Farm Loan Board. "The board must practise responsible lending, otherwise it wouldn't be able to support businesses in the agriculture industry. It has a responsibility to Nova Scotia taxpayers."
The Nova Scotia Provincial Exhibition Commission has a combined loan balance of nearly $422,000 which includes arrears of more than $170,000.
"By calling the loan, the Farm Loan Board is ensuring the exhibition commission's property can be appreciated at its full market value," said Colwell.
The Department of Agriculture is hiring an accounting firm to audit the Nova Scotia Provincial Exhibition Commission. The audit will soon go to tender.
"We recognize the importance of the exhibition and its facilities to the Truro-Bible Hill community," said Colwell. "Steps will be taken to ensure operation and facilities are properly maintained in the interim. For those who use the exhibition's facilities, it will be business as usual for the time being."