Agricultural Credit Act, 1978

Borrowing.

[cf. 1961, s. 3; 1972, ss. 3, 7.]

12.—(1) Subject to the approval of the Minister, the Corporation may raise or borrow money (including money in a currency other than the currency of the State) in any manner it thinks fit but the amount of money raised or borrowed and outstanding at any one time shall not exceed £350,000,000.

(2) For the purpose of this section, money raised or borrowed in a currency other than the currency of the State shall be deemed to be the equivalent in the currency of the State of the actual money raised or borrowed, such equivalent being calculated according to the rate of exchange at the time of the raising or borrowing of the money.

(3) Where money is raised or borrowed in a currency other than the currency of the State, the Minister may—

(a) undertake, subject to such terms and conditions as he thinks fit, to bear any loss arising out of changes in the rate of exchange which would increase the cost in the currency of the State of the repayment of the principal of any money raised or borrowed by the Corporation or the payment of interest on such money, or

(b) receive any gain accruing from changes in the rate of exchange which would decrease the cost in the currency of the State of repayment of that principal or payment of that interest.

(4) Stamp duty shall not be chargeable in respect of the issue or transfer of any bonds or other securities issued by the Corporation in pursuance of its powers under this section to secure money raised or borrowed under this section.

(5) The memorandum of association and the articles of association of the Corporation shall be so framed as to authorise the Corporation to borrow money on the security of bonds, debentures or debenture stock issued by it in accordance with the usual practice of limited companies.