Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697803828961.pdf (Ireland)
SAORSTAT EIREANN BILLE CAIRDE TALMHAIOCHTA, 1927.

AGRICULTURAL CREDIT BILL, 1927.

Mar do leasuiodh i gCoiste As amended in Committee ARRANGEMENT OF SECTIONS.

PART L Preliminary.

Section.

1.

Short Title.

2.

Definitions generally.

PART II.

The Agricultural Credit Corporation.

3.

Formation and registration of the Corporation.

4.

Name and capital of the Corporation.

# 5.

Subscription of capital of the Corporation.

6.

State liability for capital of the Corporation.

7.
7.

State liability for dividends on the capital of the Corpora- • tion.

% 8.

Aremorandum of Association of the .Corporation.

9.

Objects of the Corporation.

10.

Articles of Association of the Corporation.

11.

Directors of the Corporation.

12.

Limitations on the lending of money by the Corporation.

18.

Issue of debentures by the Corporation.

14.

15.

Exemption from stamp duty.

16.

Powers of Minister in respect of shares held by him.

17.

Charge of moneys on Central Fund.

18.


Offences in relation to loans by the Corporation.

Issue of Certificates of Charge by the Corporation.

PART III.

Chattel Mortgages.

19.

Definitions in relation to chattel mortgages.

20.

Register of chattel mortgages.

21.

Operation and effect of specific chattel mortgage.

22.

Operation and effect of floating chattel mortgages.

23.

Priorities of chattel mortgages.

24.

Effect of chattel mortgages in relation to execution orders.

25.
25.

Avoidance of bills of sale on farming stock.

Schedule.

Certificates of Charge.

[No.

15a of ’27.]

SAORSTAT EIREANN.

BILLE CAIRDE TALMHAIOCHTA: AGRICULTURAL CREDIT BILL, 1927.
BILL entitled 5 AN ACT TO MAKE PROVISION FOR THE FORMATION AND REGISTRATION OF A COMPANY HAVING FOR ITS PRINCIPAL OBJECT THE GIVING OF CREDIT TO PERSONS ENGAGED IN AGRICULTURE AND BUSINESSES ANCILLARY TO AGRICULTURE, TO 10 AUTHORISE THE GIVING OF GUARANTEES BY THE STATE IN RELATION TO THE CAPITAL OF SUCH COMPANY AND SECURITIES ISSUED BY IT, AND TO PROVIDE FOR CERTAIN OTHER MATTERS RELATING TO SUCH COMPANY, AND TO FACILITATE THE BOR- 15 ROWING OF MONEY BY FARMERS ON MORTGAGES • OF THEIR FARMING STOCK AND TO REGULATE THE OPERATION AND EFFECT OF SUCH MORTGAGES.
^ BE IT ENACTED BY THE OIREACHTAS OF SAORSTAT vT EIREANN AS FOLLOWS:— “ on PART I.- Preliminary.

1.

—This Act may be cited as the Agi\: 1927.

2.
—In this Act— * 25 the expression “ the Minister ” means the Minister for Finance; the expression “ the Corporation ” means the Agricultural Credit Corporation to be formed and registered in pursuance of this Act; the expression “ the Directors ” means the Directors of the Cor­ poration ; the word “ agriculture ” includes the pasturing of animals: the word “ farmer M means a person or two or more Dersons jointly or in common -carrying on some form of agriculture on land as a business for profit; 30 the word “ farm ” means the land on which the farmer in rela­ tion to whom the expression is used carries on his business as 35 farmer; ' the word “ mortgage ” means and includes any instrument by which land is charged with or made liable for or security for the payment of money; the expression “ first mortgage ” means a mortgage affecting only 40 land which is not subject to any charge or encumbrance having priority to such mortgage other than terminable land purchase annuities under the Land Purchase Acts, rent-charges in lieu of tithes, or charges created under the Landed Property Improve­ ment (Ireland) Acts, the Drainage and Improvement of Land 45 (Ireland) Acts, 1863 to 1892, or the Drainage Maintenance Acts, 1866 and 1924.
PART n. # '1'iik Agricultural Credit Corporation.

3.

—Immediately upon the passing of this Act the Minister ^^™tration 0f shall take all such steps as appear to him to be necessary 01 the corp0ration.
5 desirable to procure that a limited company (in this Act re­ ferred to as the Corporation) conforming to the conditions laid down in this Act shall be formed and registered under the Com­ panies Acts, 1908 to 1924 to perform the functions specified in this Act and that such company shall be entitled to commence 10 business not later than the 31st day of December, 1927.

4.
4.

—tl) The name of the Corporation shall be “ The Agricul- Name and tural Credit Corporation ” and, notwithstanding anything con- capital of the tinned in the Companies Acts, 1908 to 1924, it shall not be neces­ sary that the word “ limited ” or any other word indicating that 15 the liability of its members is limited should be included in oi added to the name of the Corporation.
/ (2) The capital of the Corporation shall be £500,000 (five hundred thousand pounds) divided into five hundred thousand shares of one pound each of which five shillings shall be payable 20 on application for the share and a further five shillings shall %e payable not less than twenty nor more than forty days after allotment, and the residue shall be payable as and when called by the Directors on not less than thirty days notice.

5.
—(1) Two hundred thousand shares of the Corporation shall ^hscriptfm^t 25 be offered at the one time for subscription only by banks carry- Corporatiop ing on business either wholly or partly in Saorstat Kiieann and as^soon as mav be after the expiration of the time limited with the approval of the Minister for such subscription the remaining three hundred thousand shares of the Corporation and such if 30 any of the said two hundred thousand shares as shall not have been subscribed for by such banks shall be offered at the one time for subscription by members of the general public.
(2) All shares of the Corporation offered for subscription by the general public and not so subscribed for shall at the expiia- 35 tion of the time limited with the approval of the Minister for such subscription be subscribed for by the Minister.

40 15 6.
^(1) In the event of the Corporation going into liquidation State habihty (whether voluntary or compulsory) and being wound up and ^ C(;rpol.ation< its assets proving on such winding-up to be insufficient to pay to the members of the Corporation the full amount of its paid-iip capital, the Minister shall provide and pay to the liquidator in such winding-up such sum as will be sufficient with the assets of the Corporation available for the purpose to pay the full amount of the paid-up capital of the Corporation.
y(2) All moneys paid under this section to the liquidator by the Minister shall (whether the assets of the Corporation are or are not sufficient to pay its creditors in full) be applied by such liquidator in or towards paying to the members-of the Corpora­ tion the full amount of the paid-up capital of the Corporation.

50 7._(1) The Corporation shall not at any time pay to its members dividends at a rate exceeding five per cent, per annum on the amount of its capital for the time being paid-up.
State liability for dividends on the capital of the Corporation.
55 60 (2) If in any half-year either the profits earned bv the Cor­ poration as acertained in accordance with the directions of the Minister are insufficient to pay to its members a dividend for that half-year at the rate of five per cent, per annum on the amount of its capital for the time being paid-up or the Corpora­ tion fails to earn any such profits, the Minister shall so soon as such insufficiency or failure is ascertained advance to the or- poration such sum as with the profits as so ascertained (if any) will be sufficient to pay such dividend, and the moneys so advanced shall be .forthwith applied by the Directors in or towards payment of such dividend.
3 (3) All moneys advanced to the Corporation by the Minister under this section shall be repayable by the Corporation to the Minister on demand with interest from the date of the advance at such rate as shall be fixed by the Minister.

Memorandum of Association of t/ie Corporation.

8.

(1) The Memorandum of Association of the Corporation shall be in such form consistent with the provisions of this Act as shall be approved by the Minister and the Minister for Lands and Agriculture.
5 (2) Notwithstanding anything contained in the Companies Acts, 1908 to 1924 no alteration in the Memorandum of Associa- 10 tion of the Corporation which is made without the previous approval of the Minister and the Minister for Lands and Agri­ culture or is inconsistent with any of the provisions of this Act shall be valid or effective.

Objects of the Corporation.
9.—The objects of the Corporation shall be so stated in its 15 Memorandum of Association that the Corporation shall be entitled and authorised to perform and fulfil the following and no other functions, that is to say:— («) to receive without limit from individuals, co-operative societies, and other persons (including government 20 departments and bodies exercising functions of government whether general or local) deposits of moneys to be carried on its books on deposit repayable to the depositor (either with or without interest) only on ten days or longer notice and not on less than ten ^ days' notice nor on demand nor against cheques; {b) to receive from individuals, co-operative societies, and other persons (including government departments and such bodies as aforesaid) deposits of securities for safe-keeping and management on behalf of the owners 30 thereof and to keep safe and manage on such behalf all securities so deposited and so far as may he lawful to receive and execute trusts in relation to such securities; (r) subject to the provisions of this Act, to lend to any 35 indi\ idual, co-operative society, or other person moneys upon such security as the Directors may, ■ subject to the provisions of this Act, think fit; (d) subject to the provisions of this Act to discount for or purchase from any individual, co-operative society, 40 bank, or other person any promissory note, bill of exchange, or other negotiable instrument; (e) to do all such things as may be incidental or ancillary to the due performance of all or any of the functions hereinbefore mentioned.
‘ <1 .

45 Articles oi Association of the Corporation.

—(1) ™e Articles of Association of the Corporation shall be in such form consistent with the provisions of this Act as shall be approved by the Minister and the Minister for Lands and Agriculture.
(2) Notwithstanding anything contained in the Companies 50 Acts, J908 to 1924, no alteration in or addition to the Articles of Association of the Corporation which is made without the previous approval of the Minister and the Minister for Lands and Agriculture or is inconsistent with any provision of this Act shall be valid or effective.

cr D’ rectors of the Corporation.
11.—The Articles of Association of the Corporation shall provide that the number of directors (including the chairman) shall be ten, of whom four (not including the chairman) shall be nominated by the Minister from time to time as occasion requires and that if and so long as the Minister holds more than two 60 hundred thousand shares of the Corporation the chairman of the Corporation shall be nominated fin addition to the said four directors) by the Minister from time to time as occasion offers.
4 12.—(1) The memorandum and articles of association of the Limitations on Corporation shall be so framed and expressed that the Corpora- * ^y^the lion shall be entitled and authorised to lend or advance money corporation, only to the persons and for the purposes hereinafter stated, that 5 is to say:— (a) to any person for the purpose of purchasing land for agricultural purposes; (b) to any farmer for the purpose of constructing buildings on his farm, or making on his farm improvements of a permanent character calculated to increase or facili­ tate or conduce to the increase of the productivity thereof or for the purpose of purchasing live stock, agricultural machinery or implements, manures, feed­ ing staffs, seeds, or other requisites of agricultural production or marketing; (c) to any co-operative society (subject to the limitations \ hereinafter contained) for the purpose of establishing.
carrying on, or extending its business; (d) to any person engaged in or proposing to engage in an enterprise designed for the service of farmers or of farming communities for the purpose of establishing, carrying on, or extending such enterprise;^ («) to any person (other than a co-operative society) for the purpose of paying off a loan which was originally made to him (whether before or after the passing of this Act) wholly or mainly for a purpose for which a loan could under this section be made to him under this section by the Corporation; (/) to any co-operative society (being a co-operative society to which a loan could be made under this section by the Corporation) for the purpose of paying-otf a loan made to such society (whether before or after thet passing of this Act) wholly or mainly for a purpose for which a loan could under this section be made to such society by the Corporation.
IQ 15 20 25 30 35 (2) The memorandum and articles of association of the Cor­ poration shall also be so framed and expressed that the persons to whom and the purposes for which the Corporation shall be entitled and authorised to lend or advance money as stated in 40 such memorandum and articles in pursuance of this section may be varied (whether by extension, restriction, or otherwise) from time tc time by the Minister and the Minister for Lands ami Agriculture at their joint discretion by orders made by them jointly, but so that such persons and purposes shall not by any 45 such order be extended so as to include— (a) any person who is not engaged or about to engage in agriculture or in a business or enterprise of an agri­ cultural character or calculated directly or indirectly to benefit primarily persons engaged in agriculture, or 5Q (b) any person to whom the Corporation is expressly forbidden by this section to make a loan or advance, or (e) any purpose which is not directly or indirectly related to or concerned with agriculture.
(3) The Corporation shall not make any loan or advance any 55 money to— («) any co-operative society the objects of which do not include at least one of the following objects, that is to say, the giving of agricultural credit, or the produc­ tion or the marketing of agricultural produce, or the sale of agricultural machinery or implements or manures, feeding stuffs, seeds, or other requisites of agricultural production or marketing, or the produc­ tion and distribution or the distribution only of power and light mainly to farmers, or (b) any co-operative society which at the time of the making of the loan or advance carries on the business of selling by retail any goods which are neither agricultural 60 65 L: — produce nor requisites of agricultural production or marketing, or _ (r) the chairman or any director of the Corporation.
(4) So long as any portion of a loan or advance made by -the Corporation to a co-operative society remains owing to the Cor- 5 poration, such society shall not give or continue financial assist­ ance to any person engaged in or carrying on the business of selling by retail any goods which are neither agricultural pro­ duce nor requisites of agricultural production or marketing and shall not itself engage in or carry on any such business, and if 10 any such society contravenes the provisions of this sub-section the Whole of the loan or advance so made to it by the Corporation shall (notwithstanding any agreement to the contrary) forthwith become due and payable by it to the Corporation.
(5) The Corporation shall not discount or purchase any promis- ]5 sory note, bill of exchange, or other negotiable instrument which was made by a person to whom the Corporation is expressly forbidden by this section to lend or advance money or which was made otherwise than for the purpose of obtaining for the maker thereof or for any other person money for expenditure on a 20 purpose for Which a loan or advance could lawfully be made by the Corporation to such maker or person.
Issue of deoentures by the Corporation.

to borrow money on the security of debentures or debenture 25 13.—The Memorandum and Articles of Association of the Corporation shall be so framed as to authorise the Corporation Issue of Certificates of Charge by the Corporation.
stqek issued by it in accordance with the usual practice of limited companies but subject to the limitation that the amount at any time owing by the Corporation on the security of such debentures or debenture stock shall hot exceed the amount of the paid-up capital of the Corporation at that time.
30 14.—(1) The Memorandum and Articles of Association of the Corporation shall he so framed as to authorise the Corporation to borrow’ money on the security of certificates of charge issued by it and shall contain in relation to the issue of such certificates the provisions set forth in the Schedule to this Act or other 35 provisions to the same effect and may also contain such further previsions (not inconsistent with the said provisions set forth in the said Schedule) in relation to the issue of such certificates as may be thought necessary or proper.
(2) Whenever the Corporation proposes to issue a series of 40 certificates of charge and the Minister is satisfied as a result of such inquiry, audit, and investigation as he may think proper to make that all conditions precedent to the issue of such series of certificates have been duly performed the Minister may, subject to the limitations hereinafter mentioned, guarantee in such 45 form and manner as he may think proper the due payment by the Corporation in accordance with the terms of such certificates of the principal moneys and the interest thereon secured by such certificates.
(3) The total amount borrowed by the Corporation on tho*50 security of certificates of charge guaranteed by the Minister under this section in any one year shall not exceed one million pounds and the total amount ow’ing at any one time by the Cor­ poration on the security of certificates of charge guaranteed by the Minister under this section shall not exceed seven million five 55 hundred thousand pounds.
(4) A trustee may, unless expressly forbidden by the instru-i merit (if any) creating the trust, invest any trust funds in his hands, whether at the time in a state of investment or not, in any certificate of charge guaranteed by the Minister under this 60 section.

dam^dut fr°m 1®*—No stamP duty shall be payable on any transfer of shares of the Corporation or of debentures, debenture stock, or certifi­ cates of charge issued by the Corporation.
6 16.—(1) The Minister may hold for so long as he thinks fit Powers of the shares of the Corporation subscribed for by him under this Minister Act and may as and when he thinks fit sell all or any of such shares, but shall not so sell any such share at a price less than the amount for the time being paid up thereon.

by him.

(2) The net proceeds of every sale by the Minister of shares of the Corporation held by him shall be paid into the Exchequer.
(3) All dividends, bonuses, and other moneys received by the Minister in respect of shares of the Corporation subscribed for and held by him shall be paid into the Exchequer.

(4) The Minister may, so long as he holds shares of the Cor- • poration, exercise all or any of the rights and powers from time to time exercisable by the holder of such shares, and where such rights or powers are exercisable by attorney the Minister may if he so thinks proper exercise such rights or powers by his attorney.
17.—(1 )v All moneys required to meet— Charge of (а) payments required to be made by the Minister to the £“oneys Corporation in respect of shares of the Corporation en^ra ^ ■ subscribed for by him under this Act, or (б) sums required by this Act to be provided and paid by the Minister to the liquidator in the winding-up of the Corporation, or (c) sums required by this Act to be advanced by the Min­ ister to_the Corporation for or towards the payment of " dividends to members of the Corporation, or (d) sums which become.payable under any guarantee given under this Act by the Minister in respect of the moneys secured by a series of certificates of charge issued by the Corporation, shall be charged on.
and paid out of the Central Fund or the growing produce thereof.
(2) The Minister may, for the purpose of providing for the payment of sums charged on the Central Fund under this section, or for the repayment to that Fund of all or any part of the sums so advanced, or for paying off any securities issued under this section so far as such payment is not otherwise provided for, borrow money by means of the issue of such securities as he thinks proper, and all sums so borrowed shall be paid into the Exchequer.
(3) The principal of and interest on all securities issued under this section shall be charged on and payable out of the Central Fund or the growing produce thereof.
(4) All moneys recovered by the Minister from the Corpora­ tion in repayment of or as interest on moneys advanced by him to the Corporation for or towards the payment of dividends to the members of the Corporation or in repayment of or as interest on moneys paid by the Minister under any guarantee given by him under this Act in respect of the moneys secured by a series of certificates of charge issued by the Corporation shall be paid into the Exchequer.
18.—(1) Any person who for the purpose of obtaining for himself or any other person or any body of persons corporate or un-incorporate a loan or advance of money from the Corporation wilfully makes whether verbally or in writing a statement which is to his knowledge false or misleading shall be guilty of a mis­ demeanour and be liable on conviction thereof to suffer penal servitude for three years or imprisonment for any term not exceeding two years.
(2) Every person who, having obtained a loan or advance of money from the Corporation on the terms that sttch motley shall he applied by him for a specified purpose, fails to apply such money for such purpose shall be guilty of a misdemeanour and shall be liable on conviction thereof to a fine not exceeding two hundred pounds or in the case of an individual and at the discretion of the court to imprisonment for any term not exceeding twelve months.

7 Offences in relation to loans by the ) Corporation.
Definitions in relation to chattel mortgages.

Register of chattel mortgagee.

PART III.

Chattel Mortgages.

..........

I 19.
—(1) In this Act— ✓ the expression “ chattel mortgage " means an instrument under seal made between a farmer of the one part and the Corporation 5 or a bank of the other part whereby the farmer in consideration of moneys advanced to him by the mortgagee covenants with the mortgagee to repay such moneys with interest and charges in favour of the mortgagee either specific farming stack or (by way of floating charge) the farming stock from time to time on his 10 farm or both specific farming stock and the farming stock from time to time on his farm with the repayment of the said moneys and interest; % the expression “ specific chattel mortgage ” means a chattel mort­ gage whereby*a charge on specific farming stock is created; 15 the expression “ floating chattel mortgage ” means a chattel mortgage whereby a floating charge on the farming stock from time to time on a farm is created; a chattel mortgage whereby both a charge on specific farming stock and a floating charge on the farming stock from time to 20 time on a farm are created is included in the expression “specific chattel mortgage ” in so far as a charge on specific farming stock is thereby created and is included in the expression floating chattel mortgage ” in so far as such floating charge is thereby created; the expression farming, stock ” means and includes animals and birds of every kind reared or kept for profit, the produce of such animals and birds, draught animals of every kind, agricultural machinery and implements, and agricultural crops whether growing in or severed from the land; the words “ mortgagor ” and “ mortgagee ” when used in rela­ tion to a chattel mortgage mean respectively the farmer by whom and the Corporation or bank to whom such chattel mortgage is made.
25 30 • (2) An instrument shall not be excluded from being a chattel 35 mortgage by reason only of one or more persons (in addition to the mortgagor and the mortgagee) being a party or parties thereto as surety or sureties only.

(3) References in this Act to farming stock in relation to a chattel mortgage shall be construed as referring only to farming 40 stock which is the absolute property of the farmer by whom such chattel mortgage is made.

20.
20.

-(l) As soon as conveniently may be after the formation and registration of the Corporation a register of chattel mortgages (in this section referred to as the register) shall be 45 set up in the Central Office of the High.

Court and shall be thence­ forward there kept' and maintained in accordance with this section and the regulations made thereunder.
(2) Any person party to a chattel mortgage (whether as mortgagor, mortgagee, or surety) or the legal representative of 50 any such person may within seven days and no longer after its date register such chattel mortgage in the register and such mortgagee or, with the consent in writing of the mortgagee, such mortgagor or surety or his legal representative may at any time remove such chattel,mortgage from the register.
55 (3) Whenever the principal moneys and interest secured by a chattel mortgage are fully repaid the mortgagee shall forthwith remove such chattel mortgage from the register.
(4) No chattel mortgage shall be of any force or effect unless or until it is duly registered within seven days and no longer after 00 its date in the register in accordance with this section and the regulations made thereunder, and a chattel mortgage so regis­ tered shall cease to be of any force or effect if and when it is duly removed from the register.
8 having regard to the ordinary course of farming) to the value of the farming stock on the farm at the date of the chattel mortgage ; and tj jq !5 (<i) whenever the mortgagor sells any of the farming stock for the time being on the farm to impose on him the obligation of paying such (if any) part of the pro­ ceeds of such sale as the mortgagee shall require to the mortgagee in reduction or discharge of the prin­ cipal moneys secured by the chattel mortgage and any interest due thereon and to confer on the mort­ gagor the right to pay the whole or any part of such proceeds of sale to the mortgagee in reduction or discharge of such principal moneys and interest; and ' (cl to impose on the mortgagor the obligation if so required by the chattel mortgage or by the mortgagee to insure and keep insured all farming stock from time to time on the farm.
(2) Whenever the principal moneys secured by a floating chattel mortgage or any part of such moneys remain unpaid for 20 one month after the date appointed by the chattel mortgage for payment thereof or some interest secured by a floating chattel mortgage is in arrear and unpaid for two months after becoming due or there has been a breach (whether of commission or omis­ sion) by the mortgagor of some provision contained in a floating 25 chattel mortgage or implied therein by virtue of this section (other than a covenant for payment of the principal moneys or interest secured thereby), the mortgagee may serve on the mort­ gagor a notice in writing declaring that such floating chattel mortgage has become fixed and thereupon such floating chattel 30 mortgage shall become and be fixed within the meaning of this section.
(3) When a floating chattel mortgage has become fixed such chattel mortgage shall thenceforward operate and have effect as a specific chattel mortgage of all farm- 35 ing stock which is on the farm at the time of the service of the notice declaring such chattel mortgage to have become fixed and the provisions of this Act in relation to the operation and effect of a specific chattel mortgage shall apply accordingly.
(4) A floating chattel mortgage shall so long as it is duly p) registered under this Act operate and have effect to imply a covenant on the part of the mortgagor, his heirs, executors, and administrators with the mortgagee to pay to the mortgagee the principal moneys and interest secured by the chattel mortgage at the times and in the manner appointed by the chattel mort- 17, uage.
23.—(1) Chattel mortgages shall have priority in accordance priorities cf with the times at which they are respectively registered in the chattel register of chattel mortgages set up under this Act.

.
.

(2) A specific chattel mortgage of any farming stock which is at the date of such chattel mortgage on a farm to which a prior floating chattel mortgage then applies shall be void and of no effect so long but so long only as any principal moneys or interest remain owing on the security of such floating chattel mortgage.

mortgages.
mortgages.

(3) A bill of sale made before the passing of this A^t shall 55 if and so long as it continues to be valid and enforceable under the Bills of Sale Acts, 1879 and 1883 have priority over a chattel mortgage.

(4) Farming stock comprised in a specific chattel mortgage or in a floating chattel mortgage which has become fixed shall not 00 be deemed to be in the possession, order or disposition of the mortgagor within the meaning of the Irish Bankrupt and In- .
* solvent Act, 1857 or any Act altering or amending that Act.

24.—(1) A chattel mortgage shall not prevent or restrict the lawful seizure of any farming stock comprised therein or affected 65 thereby by a landlord distraining for rent or the lawful seizure and sale of any such farming stock under an execution order 11 Sft'ect of chattel mortgages in relation to execution orders.
gage) and from any place (other than land or pre­ mises belonging to such purchaser) all or any of the farming stock comprised in the chattel mortgage; and (6) to impose on the mortgagee the obligation to sell with all convenient speed all farming stock seized and re- 0 moved by him under the chattel mortgage and to apply the proceeds of such sale in or towards the dis­ charge of the principal moneys and interest secured by the chattel mortgage and to pay the surplus (if any) of such proceeds to the mortgagor or his legal ^ representative or assignee; and (c) to prohibit the mortgagor from selling any farming stock comprised in the chattel mortgage without giving at least three days’ previous notice in writing to the mortgagee of his intention to sell the same and from selling any of such farming stock for less than a fair and reasonable price; .
(d) to impose on the mortgagor the obligation, whenever he sells any of the farming stock comprised in the 20 chattel mortgage, of giving forthwith to the mort­ gagee notice in writing of such sale with such parti­ culars thereof as the mortgagee may require and either of paying to the mortgagee the proceeds of such sale or so much thereof as may be necessary to discharge 25 the principal moneys and interest owing on Jhe security of the chattel mortgage or of applying such proceeds in such other manner as may have been previously authorised by the mortgagee ;* and (e) to imply a covenant on the part of the mortgagor his 30 heirs executors and administrators with the mortgagee to pay to the mortgagee the principal moneys and in­ terest secured by the chattel mortgage at the times and in the manner appointed by the chattel mort­ gage ; and 35 (/) to impose on the mortgagor the obligation to preserve and keep safe the farming stock comprised therein and (save as mjiy be otherwise authorised by the chattel mortgage or the mortgagee or may be necessary 40 *-for any intended lawful sale) not to remove such farming stock from his farm.
(2) If and whenever the mortgagor commits a breach (whether of commission or of omission) of any provision implied in a speci­ fied chattel mortgage by virtue of this section (other than the 45 co\ enant for payment of the principal moneys and interest secured by such chattel mortgage) the whole of the principal moneys secured by such chattel mortgage shall become and be forthwith payable notwithstanding anything to the contrary con­ tained in such chattel mortgage.
50 Operation and effect of floating chattel mortgages.
22.—(1) A floating chattel mortgage shall, so long as it is • Inly registered under this Act and any moneys remain owing for principal or interest on the security thereof, and it has not become fixed as hereinafter provided, operate and have effect_ (a) to create an ambulatory and shifting charge of the principal moneys and interest secured thereby on all farming stock from time to time on the farm to which the chattel mortgage relates (hereinafter referred to as the farm); and (b) To prohibit the mortgagor from selling any of the farm­ ing stock at any time on the farm otherwise than in the ordinary course of farming; and * 55 gg (<0 to impose on the mortgagor the obligation of maintain­ ing the farming stock from time to time on the farm 65 at a level of value equivalent (as near as may be 10 having regard to the ordinary course of farming) to the value of the farming stock on the farm at the date of the chattel mortgage; and (<t) whenever the mortgagor sells any of the farming stock for the time being on the farm to impose on him the obligation of paying such (if any) part of the pro­ ceeds of such sale as the mortgagee shall require to the mortgagee in reduction or discharge of the prin­ cipal moneys secured by the chattel mortgage and any interest due thereon and to confer on the mort­ gagor the right to pay the whole or any part of such proceeds of sale to the mortgagee in reduction or ' discharge of such principal moneys and interest; and (c) to impose on the mortgagor the obligation if so required by the chattel mortgage or by the mortgagee to insure and keep insured all farming stock from time to time on the farm.
5 10 15 (2) Whenever the principal moneys secured by a floating chattel mortgage or any part of such moneys remain unpaid for 20 one month after the date appointed by the chattel mortgage for payment thereof or some interest secured by a floating chattel mortgage is in arrear and unpaid for two months after becoming due or there has been a breach (whether of commission or omis­ sion) by the mortgagor of some provision contained in a floating 25 chattel mortgage or implied therein by virtue of this section (other than a covenant for payment of the principal moneys or interest secured thereby), the mortgagee may serve on the mort­ gagor a notice in writing declaring that such floating chattel mortgage has become fixed and thereupon such floating chattel 30 mortgage shall become and be fixed within the meaning of this section.
(3) When a floating chattel mortgage has become fixed such chattel mortgage shall thenceforward operate and have eft’eet as a specific chattel mortgage of all farm- 35 ing stock which is on the farm at the time of the service of the notice declaring such chattel mortgage to have become fixed and the provisions of this Act in relation to the operation and effect of a specific chattel mortgage shall apply accordingly.
(4) A floating chattel mortgage shall so long as it is duly 40 registered under this Act operate and have effect to imply a covenant on the part of the mortgagor, his heirs, executors, and administrators with the mortgagee to pay to the mortgagee the principal moneys and interest secured by the chattel mortgage at the times and in the manner appointed by the chattel mort- 15 sage.
23.— (1) Chattel mortgages shall have priority in accordance priorities of with the times at which they are respectively registered in the chattel register of chattel mortgages set up under this Act.

mortgages.
mortgages.

(2) A specific chattel mortgage of any farming stock which 50 is at the date of such chattel mortgage on a farm to which a prior floating chattel mortgage then applies shall be void and of no effect so long but so long only as any principal moneys or interest remain owing on the security of such floating chattel mortgage.
(3) A bill of sale made before the passing of this Act shall 55 if and so long as it continues to be valid and enforceable under the Bills of Sale Acts, 1879 and 1883 have priority over a chattel mortgage.
(4) Farming stock comprised in' a specific chattel mortgage or in a floating chattel mortgage which has become fixed shall not 60 be deemed to be in the possession, order or disposition of the mortgagor within the meaning of the Irish Bankrupt and In­ solvent Act, 1857 or any Act altering or amending that Act.
24-—O) A chattel mortgage shall not prevent or restrict the Sffect of chattel lawful seizure of any farming.stock comprised therein or affected mortgages in 65 thereby by a landlord distraining for rent or the lawful seizure re,ation to and sale of any such farming stock under an execution order execution orders.

V f' 11 gage) and from any place (other than land or pre­ mises belonging to such purchaser) all or any of the farming stock comprised in the chattel mortgage; and (6) to impose on.
the mortgagee the obligation to sell with r all convenient speed all farming stock seized and re- 0 moved by him under the chattel mortgage and to apply the proceeds of such sale in or towards the dis­ charge of the principal moneys and interest secured by the chattel mortgage and to pay the surplus (if any) of such proceeds to the mortgagor or his legal ^ representative or assignee; and (c) to prohibit the mortgagor from selling any farming stock comprised in the chattel mortgage without giving at least three days’ previous notice in writing to the j- mortgagee of his intention to sell the same and from selling any of such farming stock for less than a fair and reasonable price; (d) to impose on the mortgagor the obligation, whenever he sells any of the farming stock comprised in the 20 chattel mortgage, of giving forthwith to the mort­ gagee notice in writing of such sale with such parti­ culars thereof as the mortgagee may require and either of paying to the mortgagee the proceeds of such sale or so much thereof as may be necessary to discharge 25 the principal moneys and interest owing on the security of the chattel mortgage or of applying such proceeds in such other manner as may have been previously authorised by the mortgagee; and (e) to imply a covenant on the part of the mortgagor his ^ heirs executors and administrators with the mortgagee to pay to the mortgagee the principal moneys and in­ terest secured by fhe chattel mortgage at the times and in the manrfer appointed by the chattel mort­ gage; and 35 (/) to impose on the mortgagor the obligation to preserve and keep safe the farming stock comprised therein and (save as may be otherwise authorised by the chattel mortgage or the mortgagee or may be necessary 40 for any intended lawful sale) not to remove such farming stock from his farm.
(2) If and whenever the mortgagor commits a breach (whether of commission or of omission) of any provision implied in a speci­ fied chattel mortgage by virtue of this section (other than the 45 covenant for payment of the principal moneys and interest secured by such chattel mortgage) the whole of the principal moneys secured by such chattel mortgage shall become and be forthwith payable notwithstanding anything to the contrary con­ tained in such chattel mortgage.
50 Operation and effect of floating chattel mortgages.
22.—(1) A floating chattel mortgage shall, so long as it is duly registered under this Act and any moneys remain owing tor principal or interest on the security thereof, and it has not become fixed as hereinafter provided, operate and have effect— (a) to create an ambulatory and shifting charge of the principal moneys and interest secured thereby on all farming stock from time to time on the farm to which the chattel mortgage relates (hereinafter referred to as the farm); and {0) To prohibit the mortgagor from selling any of the farm­ ing stock at any time on the farm otherwise than in the ordinary course of farming; and D!)
gy (c.) to impose on the mortgagor the obligation of maintain­ ing the farming stock from time to time on the farm 65 at a level of value equivalent (as near as may be 10 »' * fi.
The said first mortgages shall he so placed •under the control of the trustees that the trustees shall hold the same upon trust for the Minister aiid the holders of the certificates issued against such mortgages and that the trustees shall have all necessary and proper powers for raising for the Minister and such holders by 5 means of such mortgages the amount of the principal and interest of such certificates and also power when any such certificates are paid off in full by the Corporation to release to the Corporation so much of such mortgages as shall be equal in nominal amount to the amount of the certificates so paid off and also power at any 10 time at the request of the directors to release to the Corpora­ tion any of such mortgages in exchange for an equal amount of similar mortgages.
7.

Every certificate of charge shall be expressed and shall operate— 15 (a) to bind the Corporation to pay to the holder of the.
certi­ ficate the principal amount thereof within a period of years (not exceeding forty) named therein and to pay interest on such principal gmount at the rate named therein with the consent of the Minister but not ex 20 ceeding by more than three per cent, per annum the average (ascertained in accordance with regulations made in that behalf by the Minister) rate of interest paid by the leading banks in Saorstat Eireann on moneys held by them on deposit account during the 25 twelve months preceding the issue of the certificates; (/i) to confer on the holder of the certificate the full benefit of the trusts on which the said mortgages are placed under the control of the trustees: - (**) to confer on the holder of the certificate the benefit of 30 the guarantee given by the Minister in respect thereof under this Act.
S. Before issuing a series of certificates of charge the directors shall submit the same to the Minister for the purpose of receiv­ ing from him such guarantee as he is authorised by this Act to 35 give.

9.
9.

If and when such guarantee is given by the Minister the directors may issue such certificates of charge to the public in such manner and on such terms as they think 'fit subject to the restriction that no such certificate shall be issued at a less price 40 than the amount of the principal sum secured thereby.

10.
10.

A series of certificates of charge shall as against the mort­ gages held by the trustees as security therefor rank in priority to any debentures or debenture stock issued by the Corporation and to all other debts and liabilities of the Corporation but as against 45 any other assets of the Corporation shall rank as simple contract debts.

13 Saorstat Eireann.

Saorstdt Eireann.

JjlLl.E CA1RDE TALJ1HA10CHTA, 1927.

AGRICULTURAL CREDIT BILL, 1927.

B I L L E Mur do leusuiodh i yCoiste.


dd ngairmtear BILL /la amended in Committee, r entitled Aelit clum soerii do dheanamh chuu ciiideachta do bhunu agus do chlaru ag a mbeidh sc .
mar phriomh-chuspoir eairde do thabhairt do dhaoine ata ag gabhail do thalmhaioch- agus do ghnothaf bhaiueas le tahnhaiocht chun a udaru go dtahharfidh an Stat urraioehtai maidir le eaipital 11a cuideach- tan sail agus le hurruis a thabharfa si amach, agus chun soeru do dheanamh i dtaobh nithe airithe eile bhaiueas leis an gcuideachtain sin.
agus chun a chnr in usacht d’fheirmeoiri airgead d’fhail ar * iasacht ar mhorgaistl ar a stoc feirmeoire- achta agus chun oibriu agus eifeacht na morgaistf sin do rialail.

An Act to make provision for the formation and registration of a company having for its principal object the giving of credit to persons engaged in agriculture and busi­ nesses ancillary to agriculture, to authorise the giving of guarantees by the State in relation to the capital of such company and securities issued by it.
and to provide for certain other matters relating to such company, and to facilitate the borrowing of money by farmers 011 mortgages of their farming stock and to regulate the operation and effect of such mortgages.

.la l Aire Airy id do thug istcuch.

Introduced by the Minister for Finance.

Do horduiodh, ag Dail Eireann, do ckld-hhuala, 5a dh Bcaltaine, 1927.

Ordered, by Dail Eireann, le printed, -—" 5th May, 1927.

BA1LE ATHA CLIATH: FOlLLSITHE AG OIFIG AN tSOLATHAIR.
DUBLIN t PUBLISHED BY THE STATIONERY OFFICE.

Le ceannach tri Messrs. Eason and Son, Ltd., 40 agus 41 Sraid Iochtarach UI Chonaill, Baile Atha Cliath.

To be purchased through Messrs. Eason & Son, Ltd. 40 and 41 Lower O’Connell Street, Dublin.

Clo-bhuailte ag Cahill and Co., Ltd.

Printed by Cahill and Co., Ltd. fLeath Iiaol Gian.]

Wt.

.11—1209 55o.

5/’27.

C.&Co.

(5428) [Threepence Net.]