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2 1978

AGRICULTURAL CREDIT ACT, 1978

Chapter 5

Charging Orders

Charging money advanced by Corporation.

[cf. 1961, s. 9; 1965, s. 9.]

54. —(1) Where the Corporation proposes to lend or advance or has lent or advanced money to or guarantees the payment of money by—

(a) a registered owner of land, or

(b) a person in occupation of registered land (other than the registered owner of the land) for any one or more of the following purposes—

(i) constructing, altering, improving or repairing buildings on the land,

(ii) making on the land improvements of a permanent character calculated to increase, or facilitate or conduce to the increase of, the productivity of the land,

(iii) any other purpose which will be or is intended to be of permanent or long-term benefit to the farm business conducted on the land,

(iv) paying the costs and expenses of the loan, advance or guarantee and giving security for the repayment of the loan or advance or of any money paid on foot of the guarantee, as the case may be,

or

(c) a personal representative of any such owner exercising a power pursuant to section 48,

the provisions of this section shall have effect.

(2) The Corporation may, subject to any general directions given by the Minister from time to time, make an order (in this section referred to as a charging order) charging the money lent or advanced or to be lent or advanced by the Corporation or liable to be paid by the Corporation on foot of the guarantee, as the case may be, and the interest payable pursuant to the terms and conditions of the loan, advance or guarantee, on the land or on any land of which a person guaranteeing the repayment to the Corporation of the money and interest aforesaid is the registered owner.

(3) A charging order under this section shall operate to charge the money, and the interest thereon, on the land to which the order relates in favour of the Corporation on and from—

(a) the date of the order, or

(b) the date on which the money is lent, advanced or paid by the Corporation,

whichever is the later.

(4) Where a charging order has been made under this section in relation to land, the charging order and the land certificate (if any) issued under the Registration of Title Act, 1964 , relating to the land shall be transmitted to the registering authority and the charge created by the charging order shall be registered by the registering authority as a burden affecting the land.

(5) A charging order shall not be made under this section in relation to a loan, advance or guarantee which the Corporation proposes to give or has given to, or in respect of payments by, any person without the consent of that person.

(6) A charge may be created under this section for the purpose of securing future advances, whether with or without present advances.

(7) References in this Chapter to a person in occupation of land shall, in any case where a person in occupation of land is a person to whom the land is let for any term, be construed as references to the person by whom the land is so let.

Effect of charging order.

[1961, s. 9(4).]

55. —A charge created under this Chapter shall be deemed to be a mortgage made by deed within the meaning of the Conveyancing Acts, 1881 to 1911, and the Corporation shall be the mortgagee for the purposes of those Acts and, accordingly, shall have all the powers conferred by those Acts on mortgagees under mortgages made by deed and a charge created under this Chapter shall, upon registration thereof, be deemed to be a registered charge within the meaning of the Registration of Title Act, 1964 , and the land to which the charge relates shall be deemed, for the purposes of section 39, to have been charged by the registered owner thereof in favour of the Corporation with the repayment of the amount of the charge and the payment of the interest.

Money payable on foot of charge.

[1961, s. 9(5)(6); 1965, s. 9.]

56. —(1) (a) All money payable on foot of a charge created under this Chapter in respect of money lent or advanced by the Corporation to the registered owner of land or his personal representative or paid by the Corporation on foot of a guarantee given by the Corporation of the payment of money by the registered owner of land or his personal representative shall be recoverable from the person who is the registered owner of the land subject to the charge at the time when proceedings for recovery of the money payable on foot of the charge are commenced as a personal liability of that person.

(b) Nothing in this subsection shall relieve any other person from liability in respect of any such money and, as between successive registered owners of the land subject to the charge, all money paid or recovered from a registered owner on foot of a charge and for the payment of which a former registered owner was liable shall be recoverable by the registered owner who has paid it, or from whom it has been recovered, as a debt due to him by the registered owner in default.

(2) (a) All money payable on foot of a charge created under this Chapter in respect of money lent or advanced by the Corporation to a person in occupation of land (other than the registered owner of the land) or paid by the Corporation on foot of a guarantee given by the Corporation of the payment of money by a person in occupation of land (other than the registered owner of the land) shall be recoverable from the person in occupation (whether as registered owner or otherwise) of the land subject to the charge at the time when proceedings for recovery of the money payable on foot of the charge are commenced as a personal liability of that person.

(b) Nothing in this subsection shall relieve any other person from liability in respect of any such money and, as between persons successively in occupation (whether as registered owners or otherwise) of the land subject to the charge, all money paid or recovered from a person in occupation of the land on foot of a charge and for the payment of which a person previously in occupation of the land was liable shall be recoverable by the person who has paid it, or from whom it has been recovered, as a debt due to him by the person in default.

Conditions and variation of charging order.

[1961, s. 9(7).]

57. —(1) Where a charge is created under this Chapter in relation to money lent or advanced to any person by the Corporation or in relation to a guarantee given by the Corporation of the payment of money by any person, the loan, advance or guarantee shall be subject to such conditions (including conditions providing for the payment of interest, the manner of repayment of the money lent or advanced by the Corporation or of any money paid by the Corporation on foot of a guarantee given by the Corporation of the payment of money by the person and payment of the interest, whether by instalments or otherwise, and the time for repayment of any such money and the payment of the interest) as may be determined by the Corporation with the consent of that person when the Corporation agrees to make the loan or advance or give the guarantee, as the case may be, and the conditions may be varied or amended subsequently in any manner whatsoever by the Corporation with the consent of the person liable to repay the money, and the conditions (including conditions as subsequently varied or amended) shall be deemed to be and shall operate as covenants entered into with the Corporation by the person liable to repay the money.

(2) A charging order may, with the consent of the person liable to repay the money to which the order relates, be varied or amended by the Corporation.

(3) Where a charging order is varied or amended under this section, the Corporation shall transmit to the registering authority a certificate under its seal containing particulars of the variation or amendment

(4) Upon transmission to the registering authority of a certificate purporting to be under the seal of the Corporation and to contain particulars of the variation or amendment under this section of a charging order, the variation or amendment shall be registered or otherwise noted by the registering authority in the register in which the charge created by the charging order is registered.

Cancellation of charge.

[1961, s. 9(8).]

58. —Where all money payable on foot of a charge created under this Chapter has been repaid to the Corporation and the registered owner or the person in occupation of the land to which the charge relates requests the Corporation to release the charge, the Corporation shall thereupon transmit to the registering authority a certificate under its seal stating that all money payable on foot of the charge has been repaid to the Corporation, and upon transmission to the registering authority of a certificate purporting to be under the seal of the Corporation and stating that all money payable on foot of the charge to which it relates has been repaid to the Corporation, the entry of the charge in the register in which it is entered shall be cancelled.