Agricultural Credit Act, 1978

Chapter 5

Charging Orders

Charging money advanced by Corporation.

[cf. 1961, s. 9; 1965, s. 9.]

54.—(1) Where the Corporation proposes to lend or advance or has lent or advanced money to or guarantees the payment of money by—

(a) a registered owner of land, or

(b) a person in occupation of registered land (other than the registered owner of the land) for any one or more of the following purposes—

(i) constructing, altering, improving or repairing buildings on the land,

(ii) making on the land improvements of a permanent character calculated to increase, or facilitate or conduce to the increase of, the productivity of the land,

(iii) any other purpose which will be or is intended to be of permanent or long-term benefit to the farm business conducted on the land,

(iv) paying the costs and expenses of the loan, advance or guarantee and giving security for the repayment of the loan or advance or of any money paid on foot of the guarantee, as the case may be,


(c) a personal representative of any such owner exercising a power pursuant to section 48,

the provisions of this section shall have effect.

(2) The Corporation may, subject to any general directions given by the Minister from time to time, make an order (in this section referred to as a charging order) charging the money lent or advanced or to be lent or advanced by the Corporation or liable to be paid by the Corporation on foot of the guarantee, as the case may be, and the interest payable pursuant to the terms and conditions of the loan, advance or guarantee, on the land or on any land of which a person guaranteeing the repayment to the Corporation of the money and interest aforesaid is the registered owner.

(3) A charging order under this section shall operate to charge the money, and the interest thereon, on the land to which the order relates in favour of the Corporation on and from—

(a) the date of the order, or

(b) the date on which the money is lent, advanced or paid by the Corporation,

whichever is the later.

(4) Where a charging order has been made under this section in relation to land, the charging order and the land certificate (if any) issued under the Registration of Title Act, 1964 , relating to the land shall be transmitted to the registering authority and the charge created by the charging order shall be registered by the registering authority as a burden affecting the land.

(5) A charging order shall not be made under this section in relation to a loan, advance or guarantee which the Corporation proposes to give or has given to, or in respect of payments by, any person without the consent of that person.

(6) A charge may be created under this section for the purpose of securing future advances, whether with or without present advances.

(7) References in this Chapter to a person in occupation of land shall, in any case where a person in occupation of land is a person to whom the land is let for any term, be construed as references to the person by whom the land is so let.