Agricultural Credit Act, 1978

PART III

Chattel Mortgages

Definitions for Part III.

[1947, s. 21; 1961, s. 12.]

23.—(1) In this Part—

“the Act of 1926” means the Enforcement of Court Orders Act, 1926 , as amended by the Enforcement of Court Orders Act, 1940 ;

“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;

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

“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 to the recognised lender of any money advanced or to be advanced to the recognised borrower;

“land”, 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 or which he uses in connection with his business;

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

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

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

(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 the 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, that body corporate;

“recognised bank” has the meaning assigned by section 25;

“recognised borrower” means any person to whom money may be lent or advanced or who may be provided with other credit facilities by a recognised lender or who gives or agrees to give security to a recognised lender for the payment of money by himself or any other person;

“recognised lender” means any body, being—

(a) the Corporation, or

(b) a recognised bank;

“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 to the recognised lender of any money advanced or to be advanced to the recognised borrower;

“stock” includes—

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

(b) insects and fish of every kind and the progeny and produce of such insects and fish,

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

(d) trees (whether growing on or severed from the land),

(e) any product derived from any of the foregoing,

(f) machinery, implements, vehicles, fixtures, fittings and materials used in or for the production, manufacture, processing, preparation for sale or marketing of any agricultural or fishery 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 24, be construed as references only to stock which is the absolute property of the mortgagor.