ACCOUNTS RECEIVABLE COLLECTION POLICY

1. Objective of the policy

This policy aims to establish rules relating to the administrative management of accounts receivable. The specific objectives of this policy are:

• Ensure rigorous monitoring of billing to users.
• Promote sound management of the port authority's financial resources.
• Promote equity in the management of the port authority's affairs.

2. Definitions

The following terms are defined to clarify their use in the policy:

Port authority

: are non-profit organizations constituted as corporations. Their board of directors and members represent the interests of their communities. Each port authority is a unique and independent legal entity. Port authorities are responsible for the management, operation and maintenance of at least one public fishing port. Their responsibilities are established under a lease concluded with the Small Craft Harbours program.

Active fisherman

: individual or business engaged in regular commercial or recreational fishing activities, demonstrating a level of activity in compliance with the port authority's requirements.

Mooring space

: Designated location in a port used for mooring vessels when they are not at sea.

Guaranteed mooring space

: a mooring space reserved for a user according to established criteria, guaranteeing priority and regular access to port infrastructure.

Recreational boater

: individual or business using the port for recreational purposes other than commercial fishing, such as recreational boating or maritime tourism.

Vessel

: any maritime vehicle authorized to dock at the port, including fishing boats, recreational boaters, service vessels, etc.

Invoice

: a document issued by the port authority regarding the use of one or more service(s) at one of the fishing ports of the Magdalen Islands.

Overdue account

: refers to any invoice not paid within the prescribed time frame.

3. Billing to service users

Use of services

: all users of services offered by the port authority will be billed for each service used.

Billing

: billing will be based on the fee schedule established annually by the port authority.

Payment procedure

• Invoices for port authority members and permanent users are payable without interest within one hundred twenty days (120) following the invoice date.
• Invoices to occasional users or users of services are payable within thirty days (30) following the invoice date.
• Invoices to daily users or recreational boaters of services are payable as of the first day.
• An interest of 2% per month will be added to the amount of the original invoice for any invoice not paid within the prescribed time frame.

4. Default of payment

In case of default of payment or non-compliance with this policy, the debtor will be subject to the applicable collection procedure without further delay.

5. Collection procedure

For any invoice not paid within the prescribed time frame, a payment notice (account statement) will be sent to the debtor.

If payment is not received following the transmission of the payment notice, the following procedure will apply:

• Communication with the debtor to reach a payment agreement.
• If no agreement is reached, submission of the file to the small claims division of the Quebec Superior Court
• The port authority may use any other collection mechanism for the recovery of unpaid amounts.

6. Implementation

The administrative or coordination personnel of the port authority are designated to ensure the full implementation of this policy.