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14 1947

AGRICULTURAL CREDIT ACT, 1947

PART III.

Chattel Mortgages.

Definitions for purposes of Part III.

21. —(1) In this Part—

the expression “the Act of 1926” means the Enforcement of Court Orders Act, 1926 (No. 18 of 1926), as amended by the Enforcement of Court Orders Act, 1940 (No. 23 of 1940);

the expression “chattel mortgage”, when used without qualification, means an instrument under seal made between a recognised borrower of the one part and a recognised lender of the other part which is—

(a) a floating chattel mortgage, or

(b) a specific chattel mortgage, or

(c) both a floating chattel mortgage and a specific chattel mortgage;

the expression “execution order” means an execution order within the meaning of the Act of 1926;

the expression “floating chattel mortgage” means an instrument under seal made between a recognised borrower of the one part and a recognised lender of the other part whereby the recognised borrower charges the stock from time to time on the recognised borrower's land with the payment of any moneys to the recognised lender;

the word “land”, when used in relation to a recognised borrower means the buildings or land or buildings and land in or on which the recognised borrower carries on business;

the expression “the mortgagee”, when used in relation to a chattel mortgage, means the recognised lender to whom the chattel mortgage is given;

the expression “the mortgagor”, when used in relation to a chattel mortgage, means—

(a) if the recognised borrower (party thereto) is an individual who is a farmer,—

(i) in case he is alive and has not become a bankrupt or of unsound mind, the recognised borrower, or

(ii) in case he has died, his heirs, executors, administrators and successors, or the executor de son tort of his estate or the person into whose possession or control, legal or actual, the chattels charged under such chattel mortgage have passed by reason of such death, or

(iii) in case he becomes a bankrupt, his assignee, or

(iv) in case he becomes of unsound mind, his committee or guardian,

(b) if the recognised borrower (party thereto) is a body corporate, the said body corporate;

the expression “recognised bank” means a bank which was appointed a recognised bank under section 24 of the Principal Act or for the time being has been appointed by the Minister to be a recognised bank for the purposes of this Part.

the expression “recognised borrower” means any person being—

(a) an individual who is a farmer, or

(b) a body corporate to which the Corporation may, having regard to section 14 of this Act, lend or advance money;

the expression “recognised lender” means any body, being—

(a) the Corporation, or

(b) a recognised bank;

the expression “specific chattel mortgage” means an instrument under seal made between a recognised borrower of the one part and a recognised lender of the other part whereby the recognised borrower charges specific stock (wheresoever situate) with the payment of any moneys to the recognised lender;

the word “stock” means agricultural stock and includes—

(a) animals and birds of every kind and the progeny and produce of such birds and animals,

(b) agricultural machinery, vehicles and implements,

(c) agricultural crops (whether growing on, or severed from, the land),

(d) machinery, implements, vehicles, fixtures and fittings used in or for the preparation for sale or the manufacture or processing or marketing of any agricultural produce.

(2) Where a chattel mortgage creates both a charge on specific stock and a floating charge on the stock from time to time on particular land, the chattel mortgage shall, for the purposes of this Part, be—

(a) in so far as it creates a charge on specific stock, a specific chattel mortgage, and

(b) in so far as it creates a floating charge on the stock from time to time on particular land, a floating chattel mortgage.

(3) An instrument shall not be excluded from being a chattel mortgage by reason only of one or more persons (in addition to the mortgagor and mortgagee) being a party or parties thereto as surety or sureties only.

(4) References in this Part to stock in relation to a chattel mortgage shall, subject to section 22 of this Act, be construed as references only to stock which is the absolute property of the mortgagor.

(5) References, in the following provisions of this Part, namely paragraph (b) of subsection (6) of section 24 , and sections 26 and 31 , to the county registrar shall,—

(a) in the application of the said provisions to a county or county borough in which there is for the time being an under-sheriff, be construed as references to the under-sheriff for that county or county borough, and

(b) in the application of the said provisions to a county or county borough in which there is for the time being a sheriff, appointed under section 12 of the Court Officers Act, 1945 (No. 25 of 1945), in whom the functions of the county registrar in relation to the execution of execution orders are for the time being vested, be construed as references to the sheriff for that county or county borough.

Effect of chattel mortgage charging specific stock to be purchased subsequently by means of a loan agreed to be made.

22. —Where—

(a) a recognised lender has agreed to make a loan to a recognised borrower wholly or partly for the purchase of specific stock, and

(b) that recognised borrower, for the purpose of giving security for the loan, has, prior to such purchase, executed a specific chattel mortgage of the specific stock, and

(c) the chattel mortgage is duly registered under this Part,

that chattel mortgage shall, notwithstanding anything contained in this Part, create a charge on the said specific stock as on and from the date on which the said stock comes into the ownership and possession of the recognised borrower.

Recognised banks.

23. —The Minister may if he so thinks fit on the application of any bank, appoint such bank to be a recognised bank for the purposes of this Part, and whenever the Minister so appoints a bank to be a recognised bank he shall forthwith give to the Minister for Justice notice of such appointment.

Registers of chattel mortgages.

24. —(1) A register of chattel mortgages shall be set up in every Circuit Court Office and shall be there kept and maintained in accordance with this section and the regulations made thereunder.

(2) Subject to compliance with the conditions prescribed by or under this section for the registration of a chattel mortgage, every chattel mortgage shall be capable of being registered within fourteen days and no longer after its date in the register of chattel mortgages maintained under this section in the Circuit Court Office serving the area in which the land of the mortgagor is situate or, where such land is situate in two or more areas served by separate Circuit Court Offices, in each of the several registers of chattel mortgages maintained under this section in the said Circuit Court Offices respectively.

(3) Any person (including a surety) party to a chattel mortgage or the legal representative of any such person may register such chattel mortgage within fourteen days and no longer after its date in any register of chattel mortgages in which such chattel mortgage is capable of being registered under this section and the mortgagee or, with the consent in writing of the mortgagee, the mortgagor or any surety party thereto or his legal representative may at any time cause such chattel mortgage to be removed from any such register.

(4) Whenever the principal moneys interest and costs secured by a chattel mortgage are fully repaid the mortgagee shall forthwith cause such chattel mortgage to be removed from every register of chattel mortgages in which it is registered under this section.

(5) No chattel mortgage shall be of any force or effect unless and until it is duly registered in accordance with this section and the regulations made thereunder in the register or every register (as the case may be) of chattel mortgages in which it is capable of being registered under this section and a chattel mortgage so registered shall cease to be of any force or effect if and when it ceases to be duly registered in such register or every such register (as the case may be).

(6) The contents of any register of chattel mortgages maintained under this section shall not be published or disclosed nor shall any copies thereof or any part thereof be issued to any person save only and except that—

(a) a recognised lender may at any time by requisition under seal require the county registrar to inspect any such register and to provide such recognised lender with certified copies of any entries therein relating to the stock of any person named in such requisition; and

(b) a county registrar may at any time inspect the register of chattel mortgages maintained in a Circuit Court Office serving the area or any part of the area for which he is the county registrar; and

(c) any person in the service of the State and duly authorised in writing in that behalf by the Minister or the Minister for Agriculture may at any time inspect and take copies of any such register or any part thereof; and

(d) an officer employed in a Circuit Court Office and performing duties formerly performed by the under-sheriff may at any time inspect the register of chattel mortgages maintained in such Circuit Court Office; and

(e) whenever the Supreme Court or any Judge of the High Court or the Circuit Court directs that a copy of the portion of any such register relating to any particular chattel mortgage or alleged chattel mortgage be furnished to them or him, such copy shall be so furnished accordingly and such Court or Judge may disclose or publish such copy or the contents thereof to such extent and in such manner and subject to such conditions as in their or his opinion justice may require.

(7) The Circuit Court or the High Court or the Supreme Court on appeal from the High Court may at any time cause any register of chattel mortgages maintained under this section to be rectified (whether by variation, addition or omission) in such manner as justice may require.

(8) The Minister for Justice may by order make regulations in relation to all or any of the following matters, that is to say:—

(a) the form and contents of the several registers of chattel mortgages maintained under this section;

(b) the keeping and maintenance generally of such registers;

(c) the mode of registering a chattel mortgage in such registers and the evidence to be produced, for the purpose of such registration, of the due execution and stamping of such chattel mortgage;

(d) the mode of removing a chattel mortgage from such registers and the evidence to be produced for the purpose of such removal;

(e) the requisitioning, making and certification of searches by officials of the Circuit Court offices on the several registers of chattel mortgages at the request of those persons or bodies who under this section are authorised to inspect the said registers;

(f) the providing of certified copies of the said registers or of any parts thereof or of any entries therein at the request and on behalf of any recognised lender;

(g) with the consent of the Minister for Finance, the fees to be charged and taken in respect of the registration of chattel mortgages in such registers, the removal of chattel mortgages from such registers, the inspection of such registers and any other matter relating to such registers;

(h) the general preservation of the secrecy of such registers and in particular the evidence of authority to be produced by persons claiming to inspect or take copies of such registers.

(9) Every register of chattel mortgages maintained in a Circuit Court Office under the Principal Act shall be deemed to have been set up under this section.

(10) Regulations made by the Minister for Justice under **section 25 of the Principal Act and in force immediately before the date of the passing of this Act shall continue in force and be deemed to have been made under this section.

(11) The expenses of carrying this section into effect shall to such extent as may be sanctioned by the Minister be paid out of moneys provided by the Oireachtas.

Operation and effect of specific chattel mortgage.

25. —(1) A specific chattel mortgage shall, so long as it is duly registered under this Part and any moneys remain owing for principal or interest or costs on the security thereof, operate and have effect—

(a) to prohibit the mortgagor from selling or otherwise transferring the ownership or possession of any stock comprised therein without giving to the mortgagee at least seven clear days' previous notice in writing of his intention to effect such sale or transfer, and

(b) to prohibit the mortgagor from selling or otherwise transferring such ownership or possession for less than a fair and reasonable price, and

(c) to impose on the mortgagor, in the event of any of the said stock dying or being stolen or being destroyed by fire or other agency, the obligation to notify the mortgagee of such event within seven days after it occurs, and

(d) to impose on the mortgagor, in the event of his selling or otherwise transferring the ownership or possession of any of the said stock, the obligation to give forthwith to the mortgagee notice in writing of such sale or transfer, with such particulars thereof as the mortgagee may require, and

(e) to impose on the mortgagor, in the event of his selling or otherwise transferring the ownership or possession of any of the said stock, the obligation to pay to the mortgagee, within seven days after such sale or transfer, all sums secured by the chattel mortgage or such lesser sum as the mortgagee may in writing agree to accept or to apply the proceeds of such sale or transfer in such other manner as may have been previously authorised by the mortgagee, and

(f) to imply a covenant on the part of the mortgagor to pay to the mortgagee on demand the principal moneys and interest secured by the chattel mortgage at the time and in the manner thereby appointed, and

(g) to impose on the mortgagor the obligation to preserve and keep safe the stock therein comprised and (save as may be otherwise authorised by the chattel mortgage or the mortgagee or as may be necessary for any intended lawful sale) not to remove such stock from his land.

(2) If the mortgagor under a specific chattel mortgage commits a breach (whether by commission or omission) of any provision implied in the chattel mortgage by virtue of subsection (1) (other than paragraph (f) thereof) of this section, or contained therein, the whole of the principal moneys secured by the chattel mortgage shall, on demand by the mortgagee for payment thereof, become and be due and be forthwith payable notwithstanding anything contained in the chattel mortgage.

(3) If the mortgagor under a specific chattel mortgage—

(a) sells or otherwise transfers the ownership or possession of stock which is the subject of such specific chattel mortgage without having given to the mortgagee at least seven clear days' previous notice in writing of his intention to effect such sale or transfer, or

(b) having sold or transferred such stock or any part thereof, does not within seven days after such sale or transfer pay to the mortgagee all sums secured by the chattel mortgage or such lesser sum as the mortgagee may in writing agree to accept,

the mortgagor shall be guilty of a misdemeanour and shall be liable on conviction thereof to a fine not exceeding one hundred pounds or, at the discretion of the Court, to imprisonment for a term not exceeding two years.

(4) A copy of this section shall be endorsed on every specific chattel mortgage, but non-compliance with this provision shall not invalidate the specific chattel mortgage.

Seizure of stock comprised in a specific chattel mortgage at the instance of the mortgagee.

26. —(1) Where—

(a) a specific chattel mortgage is for the time being duly registered under this Part, and

(b) any moneys remain owing for principal or interest or costs on the security thereof, and

(c) either—

the principal moneys secured by the chattel mortgage or any part of such moneys or any interest thereon are or is unpaid for fourteen days after the day appointed by the chattel mortgage for payment thereof, or

a breach of any covenant or condition contained in the chattel mortgage has been committed by the mortgagor,

the mortgagee may serve on the county registrar of the county or county borough in which any of the stock comprised in the chattel mortgage is situate an order (which shall be in the prescribed form, shall certify the sum due on foot of the chattel mortgage and shall contain such particulars as may be prescribed) requiring the said county registrar to proceed in accordance with this subsection, and thereupon the following provisions shall have effect, that is to say:—

(i) the county registrar shall, as soon as may be, seize and remove from the custody of any person (other than a bona fide purchaser for value without notice of the chattel mortgage) and from any place (other than land or premises belonging to such purchaser) within the county or county borough of such county registrar all or any of the stock comprised in the chattel mortgage,

(ii) upon such seizure the county registrar shall, with all convenient speed, cause the stock so seized to be sold, and shall apply the proceeds of such sale in or towards the discharge of expenses, fees and costs of such seizure and sale and of the sum certified in the order to be due on foot of the chattel mortgage, together with interest on the said sum at the rate of three pounds per cent. per annum from the date of the said order to the date of such seizure, and shall pay the surplus (if any) of such proceeds to the mortgagor.

(2) An order under subsection (1) of this section directed to a county registrar shall have the same force and effect as an execution order and shall be a sufficient authority to that county registrar to act in accordance therewith, and that county registrar shall, when acting in accordance with the order, have all such rights, powers and duties as are for the time being vested in or imposed on him by law in relation to the execution of an execution order.

(3) A county registrar executing an order under subsection (1) of this section shall be entitled—

(a) if the money certified in such order to be due exceeds three hundred pounds, to charge and (where appropriate) to add to such money and (in any case) to levy under such order such fees and expenses, calculated according to the scales appointed by paragraph (a) of subsection (1) of section 14 of the Act of 1926, and for the time being in force, as such county registrar would be entitled so to charge or add and to levy if such order were an execution order of the High Court, and

(b) if the money certified in such order to be due exceeds twenty-five pounds but does not exceed three hundred pounds, to charge and (where appropriate) to add to such money and (in any case) to levy under such order such fees and expenses, calculated according to the said scales, as such county registrar would be entitled so to charge or add and to levy if such order were an execution order of the Circuit Court, and

(c) if the money certified in such order to be due does not exceed twenty-five pounds, to charge and (where appropriate) to add to such money and (in any case) to levy under such order such fees and expenses, calculated according to the said scales, as such county registrar would be entitled so to charge or add and to levy if such order were an execution order of the District Court.

(4) The Minister for Justice may make regulations in relation to any matter referred to in this section as prescribed and the word “prescribed” in this section means prescribed by such regulations.

(5) The remedies for the recovery of moneys due under a specific chattel mortgage given by this section to the mortgagee shall be in addition to and not in substitution for any other remedies which the mortgagee may have by law for the recovery of such moneys.

Power of mortgagee to take an inventory of stock the subject of a chattel mortgage.

27. —(1) So long as any moneys remain owing for principal or interest or costs on the security of a chattel mortgage, the mortgagee may between the hours of sunrise and sunset on any day on which a civil process may be served,—

(a) in the case of a specific chattel mortgage, enter any land or premises (other than land or premises belonging to a bona fide purchaser for value without notice of the specific chattel mortgage, of the stock comprised in the specific chattel mortgage) on or in which the said stock is and take an inventory of the said stock, or

(b) in the case of a floating chattel mortgage enter on the land to which the floating chattel mortgage relates and take an inventory of the stock on the land.

(2) If any person obstructs or interferes with the mortgagee in the exercise of the powers conferred on him by subsection (1) of this section, that person shall be guilty of an offence under this section and shall be liable on summary conviction thereof to a fine not exceeding ten pounds.

(3) References in this section to the mortgagee under a chattel mortgage shall be construed as including references to the agents and servants of the mortgagee.

Operation and effect of floating chattel mortgages.

28. —(1) A floating chattel mortgage shall, so long as it is duly registered under this Part and any moneys remain owing for principal or interest or costs on the security thereof, and it has not become fixed as hereinafter provided, operate and have effect—

(a) to create an ambulatory and shifting charge of the principal moneys and interest secured thereby on all stock the property of the mortgagor from time to time on the land to which the chattel mortgage relates (in this section referred to as the land); and

(b) to prohibit the mortgagor from selling any of the stock at any time on the land otherwise than in the ordinary course of business; and

(c) to impose on the mortgagor the obligation of maintaining the stock from time to time on the land at a level of value equivalent (as near as may be having regard to the ordinary course of business) to the value of the stock on the land at the date of the chattel mortgage; and

(d) whenever the mortgagor sells any of the stock for the time being on the land and does not within one month replace such stock by new stock sufficient to bring the value of the stock on the land as near as may be to the value of the stock on the land at the date of the chattel mortgage to impose on him the obligation of paying such (if any) part of the proceeds of such sale as the mortgagee shall require to the mortgagee in reduction or discharge of the principal moneys secured by the chattel mortgage and any interest and costs due thereon and to confer on the mortgagor the right to pay the whole or any part of such proceeds of sale to the mortgagee in reduction or discharge of such principal moneys and interest and costs.

(2) A floating chattel mortgage shall so long as it is duly registered under this Part operate and have effect to imply a covenant on the part of the mortgagor, his heirs, executors, and administrators with the mortgagee to pay to the mortgagee the principal moneys and interest secured by the chattel mortgage at the times and in the manner appointed by the chattel mortgage.

Conversion of floating chattel mortgage into a specific chattel mortgage.

29. —(1) Whenever—

(a) the principal moneys secured by a floating chattel mortgage or any part of such moneys remain unpaid for twenty-eight days after the date appointed by the floating chattel mortgage for payment thereof, or some interest secured by a floating chattel mortgage is in arrear and unpaid for fifty-six days after becoming due, or there has been a breach (whether by commission or omission) by the mortgagor of some provision (other than a covenant for payment of the principal moneys or interest secured thereby) contained in a floating chattel mortgage or implied therein by virtue of subsection (1) of section 28 of this Act, and

(b) the mortgagee has served on the mortgagor a notice in writing declaring that such floating chattel mortgage has become fixed, and

(c) the mortgagee has, before the service of the notice, taken an inventory of the stock then on the land to which such floating chattel mortgage relates, and

(d) the mortgagee, within seven days after the day on which such notice has been served, sends by registered post to the Circuit Court Office or Offices where such floating chattel mortgage is registered, a true copy of the notice and of the inventory,

the following provisions shall have effect, that is to say—

(i) such floating chattel mortgage with effect as on and from the date of the service of the notice shall, for the purposes of this Act, become and be fixed, and shall operate and have effect as a specific chattel mortgage of all stock which is on the said land at the time of the service of the said notice, and sections 25 and 26 of this Act shall apply accordingly,

(ii) on receipt of the copies of the said notice and inventory in any Circuit Court Office, there shall be entered in the register of chattel mortgages the fact that such notice has been served and the particulars of the stock set out in the inventory, and such entry shall, until the contrary is proved, be evidence in any proceedings that the said notice was served and that the stock, particulars of which are so entered in the said register, was on the said land on the date on which the said notice was served.

(2) (a) A notice in writing declaring that a floating chattel mortgage has become fixed shall, for the purposes of subsection (1) of this section, be sufficiently served on the mortgagor if—

(i) in case the mortgagor is an individual, a copy thereof is—

(I) delivered to the mortgagor, or

(II) left for the mortgagor, at the mortgagor's last or most usual place of abode or business in the State, with any person (being the wife or husband or a relative, agent, clerk or servant of the mortgagor) who is aged sixteen years or upwards, or

(ii) in case the mortgagor is a body corporate, a copy thereof is left for the mortgagor, at the mortgagor's place of business, with any agent, clerk or servant of the mortgagor who is aged sixteen years or upwards.

(b) For the purposes of this subsection, a company registered under the Companies Acts, 1908 to 1924, shall be deemed to carry on business at its registered office, and every other body corporate shall be deemed to carry on business at its principal office or place of business.

(3) A copy of section 25 of this Act shall be endorsed on every notice served under subsection (1) of this section but non-compliance with this provision shall not invalidate the notice.

Effect of chattel mortgages in relation to distraints.

30. —A chattel mortgage shall not prevent or restrict the lawful seizure of any stock comprised therein or affected thereby by a duly authorised officer distraining or levying under the Income Tax Acts or a rate collector distraining for rates or a landlord distraining for rent.

Effect of chattel mortgages in relation to execution orders.

31. —(1) A chattel mortgage shall not prevent or restrict the lawful seizure and sale of any stock comprised therein or affected thereby under—

(a) a warrant issued under section 28 of the Land Act, 1933 (No. 38 of 1933),

or

(b) an execution order issued for the enforcement of a judgement or order for the payment of—

(i) moneys due or payable to or for the benefit of the Central Fund, or

(ii) moneys in respect of advances made out of moneys provided by the Oireachtas or the interest on such advances, or

(iii) moneys due or payable to the Irish Land Commission under the Land Purchase Acts, or

(iv) moneys due to the Commissioners of Public Works in Ireland in respect of a local loan, within the meaning of the Local Loans Fund Act, 1935 (No. 11 of 1935), or

(v) moneys due to a rate collector in respect of rates levied by the council of a county, the corporation of a county or other borough, the council of an urban district or the commissioners of a town.

(2) A floating chattel mortgage shall not prevent or restrict the lawful seizure and sale of any stock comprised therein or affected thereby under an execution order issued for the enforcement of a judgment or order for the payment of moneys due or payable to a landlord in respect of rent.

(3) Save as is provided in subsections (1) and (2) of this section no stock comprised in or affected by a chattel mortgage shall be seized or sold under an execution order, unless before such seizure the creditor has previously obtained the consent in writing of the mortgagee or has paid to the county registrar executing such execution order the full amount of the principal moneys and interest and costs then owing and unpaid on the security of such chattel mortgage.

(4) Whenever a creditor pays under subsection (3) of this section to a county registrar the full amount owing on the security of a chattel mortgage, the following provisions shall have effect, that is to say:—

(a) the county registrar shall pay such amount to the mortgagee and the mortgagee shall accept such amount in discharge of the moneys secured by such chattel mortgage notwithstanding anything to the contrary contained in such chattel mortgage and in particular notwithstanding that such moneys are not then due or payable, and

(b) the said amount shall be added to the debt for which execution is leviable under the execution order, and such execution order shall have effect accordingly.

(5) For the purpose of enabling a creditor to take advantage of the provisions of subsections (3) and (4) of this section, the following provisions shall have effect, that is to say:—

(a) whenever a creditor requires an execution order to be executed against any stock the county registrar shall inspect the appropriate register of chattel mortgages and if on such inspection such stock is found to be comprised in or affected by a chattel mortgage such county registrar shall inform the creditor of the existence of such chattel mortgage, the date thereof and the name and address of the mortgagee, and

(b) the mortgagee shall on demand made by the creditor furnish to the county registrar for transmission to the creditor a statement of the full amount of the principal moneys and interest and costs then owing and unpaid on the security of the chattel mortgage.

(6) In this section the word “creditor” means the person at whose instance an execution order is issued, but does not include the mortgagee under a chattel mortgage.

Priorities of chattel mortgages.

32. —(1) Chattel mortgages shall have priority in accordance with the times at which they are respectively registered under this Part.

(2) A bill of sale made before the passing of the Principal Act shall, if and so long as it continues to be valid and enforceable under the Bills of Sale Acts 1879 and 1883, have priority over a chattel mortgage.

(3) Stock comprised in a specific chattel mortgage or in a floating chattel mortgage which has become fixed shall not be deemed to be in the possession, order or disposition of the mortgagor within the meaning of the Irish Bankrupt and Insolvent Act, 1857, or any Act altering or amending that Act.

Disclosure of chattel mortgage to creditor.

33. —(1) It shall be an obligation on every person (in this section referred to as the debtor) who seeks from another person (in this section referred to as the creditor) the grant or continuance of credit to disclose in writing to the creditor (if required in writing by the creditor so to do) whether there is or is not a chattel mortgage subsisting in respect of any of the debtor's stock and the particulars of every (if any) such chattel mortgage.

(2) No creditor shall disclose any information furnished to him by the debtor in pursuance of this section save in so far as such disclosure may be necessary or proper for the purposes of a prosecution under this section or for the institution or conduct of legal proceedings for the recovery of moneys due by the debtor to the creditor.

(3) Every person who shall make in writing a statement in pursuance of this section which is to his knowledge false or misleading in any material respect and every person who shall in contravention of this section disclose any information furnished to him in pursuance of this section shall be guilty of an offence under this section and shall be liable on summary conviction thereof to a penalty not exceeding twenty pounds.

Statement of existing indebtedness by intending mortgagor.

34. —(1) Whenever a recognised borrower (in this subsection referred to as the intending mortgagor) agrees to make and a recognised lender (in this subsection referred to as the intending mortgagee) agrees to take a chattel mortgage (in this subsection referred to as the proposed chattel mortgage), the following provisions shall have effect—

(a) the expression “existing creditor” means any other recognised lender to whom the intending mortgagor is for the time being indebted;

(b) the intending mortgagor shall furnish to the intending mortgagee a statement in writing stating—

(i) whether or not there is or are any existing creditor or creditors, and

(ii) if there is one existing creditor and no more, the name of such existing creditor, and

(iii) if there are two or more existing creditors, the names of such existing creditors;

(c) if—

(i) the provisions of paragraph (b) of this subsection are not complied with, and

(ii) the proposed chattel mortgage is made, and

(iii) there is or are any existing creditor or creditors,

the proposed chattel mortgage shall be deemed to be fraudulent and void as against such existing creditor or creditors;

(d) if the said statement is furnished and it appears therefrom that there is or there are any existing creditor or creditors—

(i) the intending mortgagee shall send by post to that existing creditor or, if there is more than one existing creditor, to each of the existing creditors a notice in writing stating the intention of the intending mortgagee to take the proposed chattel mortgage;

(ii) if the intending mortgagee does not comply with subparagraph (i) of this paragraph in respect of any existing creditor the proposed chattel mortgage shall be deemed to be fraudulent and void as against that existing creditor;

(iii) if the proposed chattel mortgage is made within ten days after the day on which sub-paragraph (i) of this paragraph is complied with, the proposed chattel mortgage shall be deemed to be fraudulent and void as against all existing creditors specified in the statement.

(2) Every person, who makes a statement in writing in pursuance of paragraph (b) of subsection (1) of this section which is to his knowledge false or misleading in any material respect, shall be guilty of a misdemeanour and be liable on conviction thereof to a fine not exceeding two hundred pounds, or at the discretion of the court, to penal servitude for three years or imprisonment for any term not exceeding two years.

Avoidance of bills of sale of stock.

35. —Every bill of sale of stock (whether including or not including any other chattels) made after the passing of this Act shall, notwithstanding anything contained in the Bills of Sale Acts, 1879 and 1883, be void and of no effect and be incapable of being registered under those Acts.

Application of Part III to chattel mortgages under the Principal Act.

36. —Every chattel mortgage, which was immediately before the date of the passing of this Act duly registered in accordance with section 25 of the Principal Act, shall be deemed to have been duly registered under section 24 of this Act, and this Part shall apply to such chattel mortgage accordingly.