Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698840903640.pdf (New Zealand)
Reprint as at 1 July 2013 Rural Intermediate Credit Act 1927 Public Act Date of assent 1927 No 45 23 November 1927 Contents Title Short title and commencement Interpretation [Repealed] Part 1 Rural Intermediate Credit Board Constitution and Procedure of Board Rural Intermediate Credit Board established [Repealed] Public Trustee to be the principal executive member of the Board [Repealed] Provision for appointment of Deputy Commissioner [Repealed] Page 5 5 5 5 5 5 Note Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this eprint.
A general outline of these changes is set out in the notes at the end of this eprint, together with other explanatory material about this eprint.
1 Rural Intermediate Credit Act 1927 Reprinted as at 1 July 2013 Commissioner may act through officers of the Board [Repealed] Contracts of Board [Repealed] First meeting of Board [Repealed] Appointment of Chairman [Repealed] Deputies of members [Repealed] Minutes of proceedings to be kept [Repealed] Minutes of proceedings to be kept [Repealed] Officers of Board [Repealed] District Boards [Repealed] Functions of the Board [Repealed] Funds of the Board Minister of Finance may make advances to Board not exceeding aggregate of £400,000 [Repealed] Application of moneys advanced to Board under last preceding section [Repealed] Minister of Finance may make advances to Board to provide for preliminary expenses of associations established under this Act [Repealed] Grant to Board from Consolidated Fund towards expenses of administration [Repealed] Debentures issued by Board Board may issue debentures to provide capital for carrying on its business [Repealed] Terms of debentures and conditions attaching thereto [Repealed] Authority for Board to borrow moneys pending issue or sale of debentures [Repealed] Execution of debentures [Repealed] Issue of debentures in London [Repealed] Inscribed stock [Repealed] Exemption from stamp duty [Repealed] Public Trustee to be custodian of securities [Repealed] Board may be required to accept debentures in repayment of any loan made by it [Repealed] Redemption of debentures [Repealed] Trust funds and public moneys may be invested in debentures issued bv Board [Repealed] Income derived
 by person not resident in New Zealand from debentures issued under this Act to be exempt from taxation [Repealed 26 27 28 29 30 31 2 Reprinted as at 1 July 2013 Rural Intermediate Credit Act 1927 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Rights of Debenture·holders.
As to appointment of receiver [Repealed] Accidental defacement of debentures [Repealed] Authority for issue of new debentures to replace lost or destroyed debentures [Repealed] Rural Intermediate Credit Account.

Establishment of Rural Intermediate Credit Account [Repealed] Application of moneys in Rural Intermediate Credit Account.
Temporary investment of surplus funds [Repealed] Audit of Board’s accounts [Repealed] Accounts to be kept and reports to be furnished by Board [Repealed] Application of profits [Repealed] Part 2 Co-operative rural intermediate credit associations Incorporation Incorporation of co-operative rural intermediate credit associations First directors of association Registration of association Proceedings subsequent to incorporation Appointment of directors of associations Chairman and deputy chairman of directors Appointment of secretary and treasurer Expenses of directors Regulations for incorporated associations Objects of associations 48 49 50 51 52 52A 53 54 55 Objects of associations incorporated under Act Term of loans [Repealed] Amount of loans which may be granted Applications for loans by persons other than shareholders Procedure on application for loans under this Part Terms and conditions of loans Application of money repaid Application of paid up capital of association Application of profits 9 9 10 10 10 10 10 10 11 11 12 13 13 13 13 14 14 15 15 15 16 17 18 18 18 3 Rural Intermediate Credit Act 1927 Reprinted as at 1 July 2013 General Right of shareholder to surrender shares in association Transfer of shares Association not to issue share certificate Exemption from company fees Part 3 Advances to farmers without intervention of associations Farmers may apply to District Boards for loans under this Part [Repealed] Form of applications for loans [Repealed] Funds of Board [Repealed] Maximum amount of loan
 that may be granted under this Part [Repealed] Security for loans under this Part [Repealed] Term of loans under this Part [Repealed] Moneys repaid to Board to be available for further loans [Repealed] Accounts to be kept by Boards [Repealed] Part 4 Loans to co-operative societies Application of this Part [Repealed] Board to compile a register of co-operative societies to which this Part of this Act is societies to which this Part of this Act is [Repealed] Board may advance money to co-operative societies on
 security of produce or livestock [Repealed] Societies to furnish periodical reports to Board [Repealed] Part 5 Miscellaneous Exemptions from stamp duties [Repealed] When securities over chattels may take priority over existing securities Books of associations, etc, to be open for inspection by officers of Corporation Annual report by District Intermediate Credit Supervisor [Repealed] Annual report as to operations of Board [Repealed] Regulations [Repealed] Repeal Reprinted as at 1 July 2013 Rural Intermediate Credit Act 1927 Part 1 s 5 Schedule 23 An Act to provide facilities for affording financial assistance by the making of loans for terms not exceeding 5 years to farmers and other persons engaged in primary production Short title and commencement This Act may be cited as the Rural Intermediate Credit Act 1927, and shall come into force on 1 January 1928.
Interpretation [Repealed] Section 2: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Part 1 Rural Intermediate Credit Board Constitution and Procedure of Board Rural Intermediate Credit Board established [Repealed] Section 3: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
Public Trustee to be the principal executive member of the Board [Repealed] Section 4: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Provision for appointment of Deputy Commissioner [Repealed] Section 5: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
5 Part 1 s 6 Rural Intermediate Credit Act 1927 Reprinted as at 1 July 2013 6 7 8 9 Commissioner may act through officers of the Board [Repealed] Section 6: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Contracts of Board [Repealed] Section 7: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
First meeting of Board [Repealed] Section 8: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Appointment of Chairman [Repealed] Section 9: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

10 Deputies of members [Repealed] Section 10: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
11 Minutes of proceedings to be kept [Repealed] Section 11: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

12 Minutes of proceedings to be kept [Repealed] Section 12: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Officers of Board [Repealed] Section 13: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
13 6 Reprinted as at 1 July 2013 Rural Intermediate Credit Act 1927 Part 1 s 19 14 15 District Boards [Repealed] Section 14: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Functions of the Board [Repealed] Section 15: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
Funds of the Board 16 Minister of Finance may make advances to Board not exceeding aggregate of £400,000 [Repealed] Section 16: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

17 Application of moneys advanced to Board under last preceding section [Repealed] Section 17: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
18 Minister of Finance may make advances to Board to provide for preliminary expenses of associations established under this Act [Repealed] Section 18: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

19 Grant to Board from Consolidated Fund towards expenses of administration [Repealed] Section 19: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
7 Part 1 s 20 Rural Intermediate Credit Act 1927 Reprinted as at 1 July 2013 Debentures issued by Board Board may issue debentures to provide capital for carrying on its business [Repealed] Section 20: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Terms of debentures and conditions attaching thereto [Repealed] Section 21: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
Authority for Board to borrow moneys pending issue or sale of debentures [Repealed] Section 22: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Execution of debentures [Repealed] Section 23: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
Issue of debentures in London [Repealed] Section 24: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Inscribed stock [Repealed] Section 25: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Exemption from stamp duty [Repealed] Section 26: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
26 8 Reprinted as at 1 July 2013 Rural Intermediate Credit Act 1927 Part 1 s 33 27 28 29 30 31 32 33 Public Trustee to be custodian of securities [Repealed] Section 27: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Board may be required to accept debentures in repayment of any loan made by it [Repealed] Section 28: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
Redemption of debentures [Repealed] Section 29: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Trust funds and public moneys may be invested in debentures issued bv Board [Repealed] Section 30: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
Income derived by person not resident in New Zealand from debentures issued under this Act to be exempt from taxation [Repealed] Section 31: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Rights of Debenture·holders.

As to appointment of receiver [Repealed] Section 32: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
Accidental defacement of debentures [Repealed] Section 33: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

9 Part 1 s 34 Rural Intermediate Credit Act 1927 Reprinted as at 1 July 2013 Authority for issue of new debentures to replace lost or destroyed debentures [Repealed] Section 34: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Rural Intermediate Credit Account.


Establishment of Rural Intermediate Credit Account [Repealed] Section 35: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Application of moneys in Rural Intermediate Credit Account.

Temporary investment of surplus funds [Repealed] Section 36: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
Audit of Board’s accounts [Repealed] Section 37: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Accounts to be kept and reports to be furnished by Board [Repealed] Section 38: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Application of profits [Repealed] Section 39: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
34 35 36 37 38 39 10 Reprinted as at 1 July 2013 Rural Intermediate Credit Act 1927 Part 2 s 41 Part 2 Co-operative rural intermediate credit associations Incorporation 40 Incorporation of co-operative rural intermediate credit associations (1) Any 20 or more persons engaged in farming operations may apply for registration as a company with limited liability under the Companies Act 1993 under the name of “The [Distinctive name of association] Co-operative Rural Intermediate Credit Association Limited”, by complying with the requirements of that Act in relation to registration, as modified by this Act.
(2) At least 25 shares must be issued to each person named in the (3) (4) (5) application for registration as a shareholder.
Every person named in the application for registration as a shareholder shall, when required by the Corporation (being not later than 1 year after the incorporation of the association and before the grant to the shareholder of a loan under this Act), pay in cash not less than 5 percent of the amount required to be paid under the constitution or by the terms of issue of the shares for the shares issued to that person.
It shall not be necessary to state in the constitution, the number of shares with which the association proposes to be registered.

The directors of the association may issue additional shares at any time to any— (a) (b) Any person who is not a member or a shareholder, as the case may be, in accordance with section 51 of this Act.

Shareholder of the association; or (6) No association shall be registered under this section except with the consent of the Corporation.
Section 40: replaced, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).

41 (1) First directors of association 4 persons who shall be named as directors in an application for registration shall be the first directors of the association.
11 Part 2 s 42 Rural Intermediate Credit Act 1927 Reprinted as at 1 July 2013 (2) Notwithstanding anything in the constitution of the associ- ation, the District Intermediate Credit Supervisor appointed by the Corporation for the district in which the registered office of the association is situated shall, by virtue of his or her office, be and continue to be a director of the association.
Section 41: replaced, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).

42 (1) Registration of association The constitution shall be delivered to the Registrar, who shall retain and register the same.
(2) A statutory declaration by the District Intermediate Credit Supervisor to the effect that the requirements of the Compan- ies Act 1993 or of this Act in respect of registration and of matters precedent or incidental thereto have been complied with shall be produced to the Registrar, who may accept the same as sufficient evidence of such compliance (3) On the incorporation of any association under this Part of this Act the Registrar shall cause a notice thereof to be published in the Gazette.
(5) (4) No fees shall be charged by the Registrar in respect of any matter or thing arising out of the requirements of this section.

The Registrar shall keep as part of the Register of Companies under the Companies Act 1955 or the Companies Act 1993, as the case may be, but in a separate list, a register of all associ- ations registered under this Part of the Act.

Section 42(1): amended, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).
Section 42(2): amended, on 1 January 1972, by section 100 of the Stamp and Cheque Duties Act 1971 (1971 No 51).

Section 42(2): amended, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).

Section 42(4): amended, on 1 January 1972, by section 100 of the Stamp and Cheque Duties Act 1971 (1971 No 51).

Section 42(5): amended, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).
12 Reprinted as at 1 July 2013 Rural Intermediate Credit Act 1927 Part 2 s 46 Proceedings subsequent to incorporation 43 (1) (2) Appointment of directors of associations Every association shall have 4 directors.

The Corporation may from time to time appoint a member or shareholder of the association to be an additional director who shall hold office at the pleasure of the Corporation.

(3) Nothing in this section limits or affects section 41(2) of this Act.
Section 43: replaced, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).

44 45 (1) (2) 46 Chairman and deputy chairman of directors The directors elected or appointed as provided in the last pre- ceding section shall as soon as practicable elect one of their number to be the chairman of directors, and another director to be the deputy of the chairman.
Appointment of secretary and treasurer The directors may appoint a suitable person, whether a director or not, to be the secretary and treasurer of the association, or may appoint 1 such person as secretary and another such per- son as treasurer: provided that not more than one person shall be paid any salary or other remuneration in respect of the duties of the secretary and the treasurer.
The secretary of the association shall forthwith send written notice to the Corporation of all appointments made pursuant to this or the last preceding section, and of all subsequent ap- pointments that may thereafter be made.

Section 45(2): amended, on 1 October 1946, by section 11 of the Rural Inter- mediate Credit Amendment Act 1946 (1946 No 5).
Expenses of directors Except as provided in the last preceding section, no director of an association shall be entitled to receive any payment from the association other than a refund of travelling expenses ac- tually and reasonably incurred by him in attending meetings 13 Part 2 s 47 Rural Intermediate Credit Act 1927 Reprinted as at 1 July 2013 of the directors or otherwise in attending to the business of the association.
47 (1) (2) Regulations for incorporated associations The Corporation may from time to time prepare and promul- gate model regulations and bylaws applicable to all associ- ations incorporated under this Act.

Every such association, when required by the Corporation so to do, shall by resolution adopt such regulations or bylaws, with such variations (if any) as may be approved by the Cor- poration, having regard in any particular case to the special circumstances of the association.
(3) Notwithstanding anything to the contrary in the Companies Act 1955 or the Companies Act 1993, as the case may be, the regulations of an association incorporated under this Act shall not come into force or be amended except with the approval of the Corporation.

Section 47: amended, on 1 October 1946, by section 11 of the Rural Intermedi- ate Credit Amendment Act 1946 (1946 No 5).
Section 47(3): amended, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).

Section 47(3): amended, on 1 January 1957, pursuant to section 474(1) of the Companies Act 1955 (1955 No 63).
Objects of associations Objects of associations incorporated under Act The principal object of an association incorporated under this Act shall be to borrow money from the Corporation, or from any bank or other approved financial institution, and to lend such money to its shareholders on the security of mortgages or other charges on land or chattels, or on approved personal security, for any of the following purposes, namely: (a) the clearing, fencing, draining, and general improve- ment of land in the occupation of the applicant: the erection of buildings on any such land: the purchase of implements, stock, seeds, plants, trees, and other things required in respect of the occupation and use of any land: (b) (c) 48 14 Reprinted as at 1 July 2013 Rural Intermediate Credit Act 1927 Part 2 s 51 49 50 (d) (e) the payment of any mortgage, debt, or other liability of the applicant incurred in relation to farming operations: any other purpose in relation to farming operations that may be approved by the Corporation.
Section 48: amended, on 1 October 1946, by section 11 of the Rural Intermedi- ate Credit Amendment Act 1946 (1946 No 5).

Term of loans [Repealed] Section 49: repealed, on 10 March 1933, by section 31(4) of the Finance (No 2) Act 1932 (1932-33 No 45).
Amount of loans which may be granted No person shall be entitled to receive under the provisions of this Part of this Act any loan or loans so that the amount for the time being outstanding in respect thereof exceeds an amount— fixed from time to time by the Minister by notice in the (a) Gazette; or 10 times the amount,— (i) (b) in the case of a company registered under the Companies Act 1955, of the nominal value of the person’s shares in the association; or in the case of a company registered under the Companies Act 1993, owing under the constitu- tion of the association or the terms of issue for that person’s shares in the association,— (ii) whichever is the lesser.
Section 50: replaced, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).
51 (1) Applications for loans by persons other than shareholders If application for a loan is made to an association by any per- son who is not a member or shareholder of the association, such application shall be deemed to include an application for shares in the association,— (a) in the case of a company registered under the Compan- ies Act 1955, of a nominal value equal to 10 percent of the amount of the loan; or 15 Part 2 s 52 Rural Intermediate Credit Act 1927 Reprinted as at 1 July 2013 (2) (b) the in the case of a company registered under Companies Act 1993, on which the amount payable under the constitution or by the terms of issue equals 10 percent of the amount of the loan,— but in no case less than 25 shares.
Before any such application is approved the applicant shall be required to pay to the association in respect of his or her shares an amount not less than 5 percent of the nominal value of the shares or the amount payable under the constitution or by the terms of issue, as the case may be.

Section 51: replaced, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).
52 Procedure on application for loans under this Part (1) Applications for loans from any association under this Part of this Act shall be in writing in the prescribed form, addressed to the secretary of the association.
(2) On receipt of any such application the directors shall proceed to consider the same, and if the application is approved shall apply to the Corporation to advance to the association the amount required to enable it to comply with the application: provided that where the application is for a loan for a term not exceeding 6 months the association may, with the approval of the Corporation, arrange with any bank carrying on business in New Zealand, or with any other approved financial institution, for a loan to the association to enable it to grant the application: provided further that where the application is for a longer term than 6 months the association, with the approval of the Corpor- ation, may make temporary arrangements with any such bank or financial institution as aforesaid, and may defer application for an advance from the Corporation so long as satisfactory arrangements can be made with such bank or financial institu- tion.
The association shall not grant any application for a loan under this Part of this Act except on such security and subject to such terms and conditions as the Corporation may approve.

(4) All advances made by a bank or other financial institution to an association for the purposes of this Part of this Act shall be (3) 16 Reprinted as at 1 July 2013 Rural Intermediate Credit Act 1927 Part 2 s 52A secured in such manner as the bank or other institution afore- said may require.
(5) All advances made by the Corporation to an association for the purposes of this Part of this Act shall be secured in such manner as the Corporation may require.
(6) Without limiting the foregoing provisions of this section, the Corporation, or any bank or other financial institution as afore- said, may require an association to assign or hypothecate, as security for any advance made to it as aforesaid, any securities given or to be given to the association by any of its sharehold- ers in respect of loans under this Part of this Act.
(8) (7) All securities given to an association by a shareholder therein in respect of any loan granted under this section out of money borrowed by the association from the Corporation shall be de- livered to the District Intermediate Credit Supervisor and for- warded by him to the Corporation for safe custody.

Save as provided in this section, an association shall have no power to borrow money or to create any charge or encum- brance on its assets.
The interest payable on any loan granted by an association to a shareholder therein, as provided in this section, shall not exceed a rate from time to time fixed by the Corporation.

Section 52: amended, on 1 October 1946, by section 11 of the Rural Intermedi- ate Credit Amendment Act 1946 (1946 No 5).

(9) Section 52(7): amended, on 1 October 1946, by section 11 of the Rural Inter- mediate Credit Amendment Act 1946 (1946 No 5).
Section 52(9): amended, on 10 August 1978, by section 2(1) of the Rural Inter- mediate Credit Amendment Act 1978 (1978 No 14).

52A Terms and conditions of loans Every loan granted under this Act by the Corporation or an association may be made repayable upon demand or by such instalments at such times and generally upon such conditions as the Corporation or the association, with the consent of the Corporation, thinks fit.
Section 52A: inserted, on 10 August 1978, by section 3(1) of the Rural Inter- mediate Credit Amendment Act 1978 (1978 No 14).

17 Part 2 s 53 Rural Intermediate Credit Act 1927 Reprinted as at 1 July 2013 Application of money repaid [Repealed] 53 (1) (2) All money received by an association in repayment of any loan shall be forthwith applied in reduction of the indebtedness of the association incurred in respect of the money out of which such loan was granted.
Section 53(1): repealed, on 10 March 1933, by section 31(4) of the Finance (No 2) Act 1932 (1932-33 No 45).
Application of paid up capital of association The paid up capital of any association shall be invested by the association, and shall be so invested only in Government securities or in securities approved by the Corporation: provided that where the association is indebted to the Corpor- ation in respect of any loan the paid up capital of the associ- ation, or a portion thereof, not exceeding the amount of the loan, may be placed on deposit with the Corporation and shall bear interest at the same rate as is payable by the association on the amount of the loan.
The income derived from such investments shall be available to meet the current expenditure of the association.

Section 54(1): amended, on 1 October 1946, by section 11 of the Rural Inter- mediate Credit Amendment Act 1946 (1946 No 5).

Section 54(1) proviso: inserted, on 1 October 1946, by section 8 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
Application of profits Any profits derived by an association in carrying out its objects under this Act may be applied as follows: (a) firstly, in accumulating a reserve of such amount as the Corporation may approve or require, to be invested in the same manner as the paid up capital of the associ- ation: secondly, in payment of dividends to the shareholders, not exceeding in any case 7 percent of the paid up cap- ital: provided that no such dividend shall be paid by an as- sociation until any loan made by the Corporation to that (b) 54 (1) (2) 55 18 Reprinted as at 1 July 2013 Rural Intermediate Credit Act 1927 Part 2 s 57 56 (1) association towards the preliminary expenses incidental to its incorporation has been repaid.
Section 55: amended, on 1 October 1946, by section 11 of the Rural Intermedi- ate Credit Amendment Act 1946 (1946 No 5).
General Right of shareholder to surrender shares in association If any shareholder intimates to the association by notice in writing that he does not wish to obtain a loan from the asso- ciation, or if the application for a loan duly made by a share- holder is declined by the association, or when any shareholder of an association has repaid to the association the full amount of his loan, with interest and other charges (if any) thereon, he shall be entitled to surrender his shares and to receive from the association out of its assets such amount as, with the approval of the Corporation, is agreed upon between the association and the shareholder by way of consideration for such surrender, and upon the acceptance of such surrender by the association the shareholder shall cease to be a member of the association: provided that no surrender of shares shall be accepted under this section so as to reduce the number of shareholders remain- ing in the association below 20: provided also that no shareholder shall be entitled to surrender any shares unless all calls previously made in respect thereof have been paid or satisfied.
(2) All shares surrendered pursuant to this section shall be forth- with cancelled by the association.

Section 56(1): amended, on 8 November 1929, by section 6 of the Rural Inter- mediate Credit Amendment Act 1929 (1929 No 27).

Section 56(1): amended, on 1 October 1946, by section 11 of the Rural Inter- mediate Credit Amendment Act 1946 (1946 No 5).

Section 56(1) second proviso: inserted, on 1 October 1946, by section 9 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
57 Transfer of shares No shares in an association under this Part of this Act shall be assigned or transferred except with the precedent approval of the Corporation.

19 Part 2 s 58 Rural Intermediate Credit Act 1927 Reprinted as at 1 July 2013 58 59 60 61 62 Section 57: amended, on 1 October 1946, by section 11 of the Rural Intermedi- ate Credit Amendment Act 1946 (1946 No 5).
Association not to issue share certificate No share certificate shall be made or issued in respect of any shares in an association under this Part of this Act.

Exemption from company fees Every association under this Part of this Act is exempt from all fees payable by companies under the Companies Act 1955 or the Companies Act 1993, as the case may be.

Section 59: replaced, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).
Part 3 Advances to farmers without intervention of associations Farmers may apply to District Boards for loans under this Part [Repealed] Section 60: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Form of applications for loans [Repealed] Section 61: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
Funds of Board [Repealed] Section 62: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

63 Maximum amount of loan that may be granted under this Part [Repealed] Section 63: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
20 Reprinted as at 1 July 2013 Rural Intermediate Credit Act 1927 Part 4 s 70 64 65 Security for loans under this Part [Repealed] Section 64: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Term of loans under this Part [Repealed] Section 65: repealed, on 10 March 1933, by section 31(4) of the Finance (No 2) Act 1932 (1932-33 No 45).
66 Moneys repaid to Board to be available for further loans [Repealed] Section 66: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

67 68 69 70 Accounts to be kept by Boards [Repealed] Section 67: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
Part 4 Loans to co-operative societies Application of this Part [Repealed] Section 68: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Board to compile a register of co-operative societies to which this Part of this Act is societies to which this Part of this Act is [Repealed] Section 69: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
Board may advance money to co-operative societies on security of produce or livestock [Repealed] Section 70: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

21 Part 4 s 71 Rural Intermediate Credit Act 1927 Reprinted as at 1 July 2013 71 72 Societies to furnish periodical reports to Board [Repealed] Section 71: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).
Part 5 Miscellaneous Exemptions from stamp duties [Repealed] Section 72: repealed, on 1 January 1972, by section 101(1) of the Stamp and Cheque Duties Act 1971 (1971 No 51).
73 When securities over chattels may take priority over existing securities Despite anything to the contrary in the Personal Property Securities Act 1999, any security interest within the meaning of that Act given for the purpose of securing a loan granted by the Corporation, or by any association under this Act, has priority over any security interest that has previously been perfected by registration (as defined in that Act), comprising in whole or in part any of the same chattels, as regards the title to or right to the possession of those chattels, if the secured party under the previously perfected security interest agrees that the security interest given for the purposes of this Act has priority over the previously perfected security interest.
Section 73: replaced, on 1 May 2002, by section 191(1) of the Personal Property Securities Act 1999 (1999 No 126).
74 Books of associations, etc, to be open for inspection by officers of Corporation (1) Any officer of the Corporation shall at all reasonable times have full and free access to all lands, buildings, places, books, and documents being the property of or in the possession of any association indebted to the Corporation in respect of a loan under this Act for the purpose of inspecting the same, and for that purpose may make extracts from or copies of any such books or documents.
22 Reprinted as at 1 July 2013 Rural Intermediate Credit Act 1927 Schedule (2) 75 76 77 Every person who obstructs any such officer in the exercise of his powers under this section commits an offence, and is liable on conviction to a fine of 50 pounds.

Section 74(1): amended, on 1 October 1946, by section 11 of the Rural Inter- mediate Credit Amendment Act 1946 (1946 No 5).

Section 74(2): amended, on 1 July 2013, by section 413 of the Criminal Pro- cedure Act 2011 (2011 No 81).
Annual report by District Intermediate Credit Supervisor [Repealed] Section 75: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Annual report as to operations of Board [Repealed] Section 76: repealed, on 1 October 1946, by section 11 of the Rural Intermediate Credit Amendment Act 1946 (1946 No 5).

Regulations [Repealed] Section 77: repealed, on 1 October 1946, by section 10(4) of the Rural Inter- mediate Credit Amendment Act 1946 (1946 No 5).
78 Repeal The Rural Credit Associations Act 1922 is hereby repealed.

Schedule [Repealed] Schedule: repealed, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).

[Repealed] 23 Notes Rural Intermediate Credit Act 1927 Reprinted as at 1 July 2013 Contents 1 2 3 General About this eprint List of amendments incorporated in this eprint (most recent first) General This is an eprint of the Rural Intermediate Credit Act 1927.
The eprint incorporates all the amendments to the Act as at 1 July 2013.

The list of amendments at the end of these notes specifies all the amendments incorporated into this eprint since 3 September 2007.

Relevant provisions of any amending enactments that contain transitional, savings, or application provisions that cannot be compiled in the eprint are also included, after the principal enactment, in chronological order.

eprint has not been officialised.


About this eprint This For more information about eprints and officialisation, please see http://www.pco.parliament.govt.nz/eprints/.

List of amendments incorporated in this eprint (most recent first) Criminal Procedure Act 2011 (2011 No 81): section 413 Notes 1 2 3 24