Agricultural Credit Act, 1978

Restrictions on activities of co-operative societies owing money to the Corporation.

[1947, s. 15.]

61.—(1) So long as any portion of a loan or advance made by the Corporation to a co-operative society (in this subsection referred to as the debtor society) remains owing to the Corporation—

(a) the debtor society shall not lend money at interest to any person other than a person to whom the Corporation may lend or advance money;

(b) the debtor society shall not lend money at interest to any body corporate engaged in or carrying on, as a substantial part of its business, the selling by retail of any goods which are neither produced by that body corporate or (if it is a co-operative society) its members nor are requisites of agricultural production or marketing;

(c) the debtor society shall not itself engage in or carry on, as a substantial part of its business, the selling by retail of any goods which are neither produced by the debtor society or its members nor are requisites of agricultural production or marketing;

(d) if the debtor society contravenes paragraph (a), (b) or (c) the whole of the loan or advance or so much of it as remains owing to the Corporation shall (notwithstanding any agreement to the contrary) forthwith become due and payable by the debtor society to the Corporation.

(2) Where the goods sold by a body corporate are mainly goods produced by that body corporate or (if it is a co-operative society) its members, any similar goods occasionally sold by that body corporate may for the purposes of subsection (1) be deemed to have been so produced although in fact produced by other persons and purchased by that body corporate from them.