Agricultural Credit Act, 1978

• Permanent Page URL

Conversion of floating chattel mortgage into specific chattel mortgage.

[1947, s. 29.]

31.—(1) Whenever—

(a) the principal money secured by a floating chattel mortgage or any part of such money remains unpaid for 28 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 56 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 money or interest secured thereby) contained in a floating chattel mortgage or implied therein by virtue of section 30 (2), and

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

(d) the mortgagee, within 7 days after the day on which the notice has been served, sends by registered post to the Circuit Court Office or Offices where the floating chattel mortgage is registered, a true copy of the notice and of the inventory,

then—

(i) the floating chattel mortgage with effect on and from the date of the service of the notice shall, for the purposes of this Act, become and be fixed, and shall 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 27 and 28 shall apply accordingly;

(ii) on receipt of the copies of the notice and inventory in any Circuit Court Office, there shall be entered in the register of chattel mortgages the fact that the notice has been served and the particulars of the stock set out in the inventory, and that entry shall, until the contrary is proved, be evidence in any proceedings that the notice was served and that the stock, particulars of which are so entered in the register, was on the land on the date on which the 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), 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 Act, 1963 , 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 27 shall be endorsed on every notice served under subsection (1) but non-compliance with this provision shall not invalidate the notice.