ARRANGEMENT OF SECTIONS
1 Short title
3 Payment of bank losses
4 Limitation of liability
5 Guarantee charged upon Consolidated Fund
6 Effect of payment of bank losses
7 Security for guaranteed farm loans
8 Memoranda of charges
9 Release of charges
10 Application of certain provisions of Agricultural Credit Board Act
11 Additional security
15 Discharge of Government from liability
16 Variation of terms of repayment of guaranteed farm loans
17 Exemption from stamp duty and other fees
THE FARM LOANS ACT
[Date of Commencement: 15th November, 1965]
21 of 1965,
47 of 1968,
51 of 1974.
This Act may be cited as the Farm Loans Act.
(1) In this Act-
"bank" means a company licensed under the Banking Act, to carry on banking business;
"borrower" means a person to whom a farm loan has been made;
"crop" means any crop other than a crop for the time being excluded by the Minister by order having effect prior to the date of the loan;
[51/1974 s 2(a).]
"establishment", in relation to any crop, includes the clearing, breaking or reclaiming of land for the production of such crop;
"farm" means land used or intended to be used for the purpose of farming by the person in possession thereof;
"farm electric system" includes all machinery, apparatus and appliances for the generation or distribution of electricity on a farm;
"farm equipment", means implements, apparatus, appliances or machinery of any kind usually affixed to real property, for the purpose of farming, but does not include a farm electric system or any works for the drainage or supply of water;
"farm implements" means tools, implements, apparatus, appliances or machines for the purpose of farming and, without prejudice to the generality of the foregoing, includes vehicles for transporting supplies for farming or products from a farm, but does not include farm equipment or any part of a farm electric system or any works for the drainage or supply of water;
"farm loan" means a loan made by a bank to a farmer for the purpose of financing any project specified in the First Schedule and related to the farm of which the borrower is in possession;
"farmer" means a person who is in possession of a farm;
"farming" means any activities involved in producing crops, or in dairy or poultry farming, or in breeding, rearing or keeping beef cattle or pigs;
"guaranteed farm loan" means a farm loan made in conformity with the provisions of the Second Schedule and not excluded under subsection (2) of section 12;
"livestock" means dairy or beef cattle, pigs or poultry;
"loan period" means a period of three years the commencement of which is fixed as provided by subsection (2) of section 4;
"maintenance", in relation to crops, includes the cultivation and harvesting thereof;
"minister" means the Minister responsible for finance;
"principal amount", in relation to any farm loan, includes any amount advanced to the borrower by the bank for the insurance of property which is subject to any security given for the loan.
(2) The Minister may from time to time by order amend the First Schedule.
[51/1974 s 2(c).]
Subject to the provisions of subsection (1) of section 4 and section 15, the Government shall be liable to pay to a bank the amount of loss sustained by it as a result of a guaranteed farm loan if the manager of the bank or any branch thereof has, in the prescribed manner, certified that he complied with the requirements of sub-paragraph (b) of paragraph 2 of the Second Schedule in relation to that loan.
(1) The Government shall not be liable under this Act to pay to any bank, in respect of losses sustained by such bank as a result of guaranteed farm loans made by it during any loan period, an amount in excess of twenty per centum of the aggregate principal amount of all guaranteed farm loans made by the bank during such loan period.
This section of the article is only available for our subscribers. Please click here to subscribe to a subscription plan to view this part of the article.