Agricultural Credit Act, 1947

Restrictions on the discounting and purchasing of negotiable instruments by the Corporation.

16.—(1) The Corporation shall not discount or purchase any promissory note, bill of exchange or other negotiable instrument which—

(a) was made by a person to whom the Corporation is expressly forbidden by section 14 of this Act to lend or advance money, or

(b) was made otherwise than for the purpose of obtaining for the maker thereof or for any other person money for expenditure on a purpose for which a loan or advance could lawfully be made to such maker or person.

(2) Subsection (1) of this section shall not apply to, or be construed as rendering unlawful, the investment by the Corporation of moneys in the purchase of bills, notes or other negotiable instruments made by the Minister or by such other person as may be approved by the Minister.

(3) The second reference, in section 9 of the Principal Act, to the restrictions imposed by the Principal Act shall be construed as a reference to the restrictions imposed by this section.

(4) Subsections (1), (2) and (3) of this section shall come into operation on the appointed day.