AGRICULTURAL CREDIT BOARD ACT

ARRANGEMENT OF SECTIONS

Preliminary

   1   Short title

   2   Interpretation

Establishment and Functions of the Board

   3   Establishment of Agricultural Credit Board

   4   Functions of Board

   5   [Repealed by Act 3 of 2004 s 3.]

   6   Regulations

Financial

   7   Funds and resources of the Board

   8   Reserve fund

   9   Borrowing powers

   10   Accounts and audit

   11   Annual report

Agricultural Loan Societies

   12   Agricultural loan societies

   13   Cancellation of registration

   14   Scheme for withdrawable deposits

   15   Audit of accounts of agricultural loan societies

   16   Board may appoint member of committee of management

   17   When Board may take over management and control of agricultural loan society

   18   Consequences of taking over of management and control

   19   Revesting of management and control in committee

   20   Gazetted notice to be evidence of the taking over or revesting of management and control

   21   Security given to the Bank by an agricultural loan society

   22   Specific assignment to the Bank of debt unnecessary

   23   Restrictions on agricultural loan societies indebted to the Bank

   24   Power of agricultural loan societies to make loans

   25   Restrictions on loans by agricultural loan societies

Security for Loans

   26   Security for loans

   27   Charge on crops and movable property

   28   Memoranda of charges and of certain mortgages

   29   Effect of a charge

   30   Lender's rights and obligations under a charge

   31   Borrower's obligations under a charge

   32   Lender's power to insure

   33   Release of charges and certain mortgages

   

Miscellaneous

   34   Policy directions

   35   Minister may specify rehabilitation periods and certify organisations

   36   Loans may be made notwithstanding contracts to the contrary

   37   [Repealed by Act 11 of 1983 s 19.]

   38   [Repealed by Act 11 of 1983 s 20.]

   39   Recovery of debts

   40   Appointment as agents

   41   Exemption from income tax, stamp duty and other fees

   42   Bank's or Board's officers and servants not to borrow or receive gifts from societies

   43   Offences

   44   Punishment of offences

   45   Transfer of assets and liabilities

   46   Construction of references to certain organisations

   47   Savings

      SCHEDULE

THE AGRICULTURAL CREDIT BOARD ACT

[Date of Commencement: 19th January, 1961]

Law 70 of 1960.

Acts
2 of 1970,
11 of 1983,
3 of 2004.

Preliminary (sections 1-2)

1   Short title

   This Act may be cited as the Agricultural Credit Board Act.

2   Interpretation

   In this Act, unless the context otherwise requires-

   "agricultural loan society" means a body registered under section 12;

   "agriculture" includes any activities relating to horticulture, afforestation, apiculture, fish-culture, fishing, the development and maintenance of pastures, the cultivation of crops and the keeping or breeding of livestock or poultry, and "agricultural" shall be construed accordingly;

   "approved organisation" means any organisation, other than an agricultural loan society, carrying on, encouraging or promoting agricultural activities and certified by the Minister to be an approved organisation for the purposes of this Act;

[11/1983 s 2(a).]

   "the Bank" means the Agricultural Credit Bank of Jamaica Limited, a company registered under the Companies Act;

   "the Board'' means the Agricultural Credit Board established by this Act;

   "borrower" means any person to whom any loan is made by an agricultural loan society;

[11/1983 s 2(b).]

   "lender" means, in relation to any loan made under this Act by any agricultural loan society, the society by which such loan is made;

[11/1983 s 2(c).]

   "rehabilitation loan" means a loan made under this Act during a rehabilitation period for the rehabilitation of agriculture;

   "rehabilitation period" means a period beginning on such day as may be specified by order under section 35, being any day on or after which the agricultural activities of this Island have suffered damage from flood, hurricane or any other natural disaster, and ending on such other day as may be specified in like manner.

Establishment and Functions of the Board (sections 3-6)

3   Establishment of Agricultural Credit Board

   (1) There shall be established for the purposes of this Act a body to be called the Agricultural Credit Board.

   (2) The provisions of the Schedule shall have effect as to the constitution of the Board and otherwise in relation thereto.

4   Functions of board

   (1) It shall be the duty of the Board to assist in the development and maintenance of the agricultural activities of this Island and in promoting the welfare of persons by fostering, supervising and, subject to the provisions of this Act, regulating agricultural loan societies by making grants to agricultural loan societies and approved organisations and fostering, supervising and, subject to the provisions of this Act, by controlling agricultural loan societies.

[3/2004 s 2(a).]

   (2) For the purpose of the discharge of its duty under subsection (1), the Board may-

   (a)   enquire into the administration, accounts and proceedings of any agricultural loan society; and

   (b)   subject to the provisions of this Act, take over the management and control of such society.

[3/2004 s 2(b).]

   (3) In addition to any powers possessed by the Board by virtue of this or any other enactment, the Board shall have power, subject to the provisions of this Act, to do anything and to enter into any transaction which in the opinion of the Board, is necessary to ensure the proper discharge of its functions.

[11/1983 s 3.]

5   [Repealed by Act 3 of 2004 s 3.]

6   Regulations

   The Board may, with the approval of the Minister, make regulations-

   (a)   providing for the control, governance and administration of agricultural loan societies;

   (b)   prescribing forms for the purposes of this Act;

[3/2004 s 4(a).]

   (c)   relating to the development of adequate information, control, evaluation and reporting systems within agricultural loan societies to facilitate the process of accountability and effective management;

[3/2004 s 4(b).]

   (d)   relating to the development of specific and measurable objectives and performance targets in respect of agricultural loan societies, including establishing criteria as regards the minimum standards of solvency to be maintained by those societies;

[3/2004 s 4(b).]

   (e)   providing for the qualification requirements of auditors of agricultural loan societies, the frequency and scope of audits and the furnishing of information to the Board by auditors;

[3/2004 s 4(b).]

   (f)   prescribing interest rates and general terms and conditions in respect of the grant of loans by agricultural loan societies under this Act, and policy procedures as to unpaid loans;

[3/2004 s 4(b).]

   (g)   prescribing the qualifications and requirements for registration by agricultural loan societies and their members under this Act;

[3/2004 s 4(b).]

   (h)   prescribing provisions for encouraging the growth and profitability of agricultural loan societies, including provisions as to asset classification, asset diversification, capital adequacy and asset liquidity; and

[3/2004 s 4(b).]

   (i)   providing for such other matters as may be required for the efficient discharge by the Board of its duty under this Act.

[3/2004 s 4(b).]

Financial (sections 7-11)

7   Funds and resources of the Board

   The funds and resources of the Board shall consist of-

   (a)   such sums as may be provided annually for the purpose in the Estimates of Revenue and Expenditure of the Island;

   (b)   [Deleted by Act 11 of 1983 s 5.]

   (c)   sums borrowed by the Board for the purpose of meeting any of its obligations or discharging any of its functions;

   (d)   all other sums or property which may in any manner become payable to or vested in the Board by virtue of the provisions of subsection (1) of section 45 or in respect of any matter incidental to its powers and duties.

[11/1983 s 5(a) and (b).]

8   Reserve fund

   (1) The Board shall establish and maintain a reserve fund.

   (2) The Board shall pay into the reserve fund-

   (a)   the amount standing to the credit of the reserve fund of the Agricultural Loan Societies Board immediately before the 19th January, 1961;

   (b)   all sums received by the Board, by virtue of the provisions of subsection (1) of section 45, in respect of the repayment of any loan made under the Banana Industry Aid Law , the Banana Industry Aid Law, 1932 , and the Banana Industry Aid Law, 1933 , and the payment of interest on any such loan; and

[11/1983 s 6(a).]

   (c)   one-third, or such other proportion as the Board with the approval of the Minister may from time to time determine, of all sums received by the Board prior to the 10th of June, 1983, in respect of payment of interest on loans made by the Board prior to the aforesaid date.

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[11/1983 s 6(b).]

   (3) The reserve fund shall not be utilised other than for such purposes as the Minister may approve.

9   Borrowing powers

   (1) Subject to the provisions of subsection (2), the Board may borrow sums required by it for meeting any of its obligations or discharging any of its functions.

   (2) The power of the Board to borrow shall be exercisable only with the approval of the Minister, as to the amount, as to the sources of the borrowing and as to the terms on which the borrowing may be effected. An approval given in any respect for the purposes of this subsection may be either general or limited to a particular borrowing or otherwise, and may be either unconditional or subject to conditions.

10   Accounts and audit

   (1) The Board shall keep accounts of its transactions to the satisfaction of the Minister and such accounts shall be audited annually by the Auditor-General or by an auditor appointed by the Minister.

   (2) The members, officers and servants of the Board shall grant to the auditor appointed to audit the accounts of the Board under the provisions of subsection (1) access to all books, documents, cash and securities of the Board and shall give to him on request all such information as may be within their knowledge in relation to the operation of the Board.

11   Annual report

   (1) The Board shall in each year prepare and present, on or before the first day of October, to the Minister a report on its proceedings during the twelve months ending on the thirty-first day of March in such year, including a complete report of its financial position.

   (2) A copy of such report shall be laid on the Table of the Senate and House of Representatives.

Agricultural Loan Societies (sections 12-25)

12   Agricultural loan societies

   (1) Any body of persons established for the purpose, inter alia, of encouraging and promoting the agricultural interests of its members and making loans to its members for agricultural purposes, may apply to the Board for registration under this Act, and the Board may in its discretion register such body.

   (2) Everybody of persons which immediately before the 19th January, 1961, was a registered society under the Agricultural Loan Societies Law shall be deemed, on the 19th January, 1961, to be registered under this Act, and the Board shall enter the name of such society in a register of agricultural loan societies as soon as practicable after the 19th January, 1961.

   (3) Every body of persons registered under this Act shall, upon such registration, become an agricultural loan society.

13   Cancellation of registration

   (1) The Board may in its discretion remove the name of any agricultural loan society from the register and thereupon such society shall cease to be an agricultural loan society.

   (2) The Board shall forthwith, upon the removal of the name of an agricultural loan society from the register, notify such society of such removal.

   (3) Where the Board decides to remove the name of an agricultural loan society from the register, then unless such society is a body of persons established under any law which provides for the payment of the debts and distribution of the assets thereof upon the winding up or dissolution thereof, the Board subject to subjection (5) shall, at the time of the removal of the name of such society from the register, appoint a receiver who shall be entitled to enter into possession and assume control of all property of the society and shall realise the assets thereof and after payment of the debts due by the society shall distribute the surplus, if any, pro rata among the shareholders.

[11/1983 s 7(a).]

   (4) The remuneration of the receiver shall be fixed by the Board or the Bank, as the case may be, and shall be a first charge payable out of the assets of the society.

[2/1970 s 2; 11/1983 s 7(b).]

   (5) Where an agricultural loan society has, at the time of removal of the society's name from the register, any outstanding loan due to the Bank, the Bank, instead of the Board, shall appoint a receiver.

[11/1983 s 7(c).]

14   Scheme for withdrawable deposits

   (1) Where any agricultural loan society intends to accept any money on deposit by way of savings from any member thereof, it shall, before doing so, prepare a scheme in accordance with subsection (2).

[3/2004 s 5.]

   (2) Every scheme prepared under this section shall make provision for-

   (a)   the maximum period during which a deposit may be retained by the society,

   (b)   the maximum amount which any member may have on deposit;

   (c)   the conditions on which deposits may be accepted by the society;

   (d)   the rate of interest which may be paid by the society on such deposits;

   (e)   the proportion of any such deposits which may be invested by the society;

   (f)   such other matters incidental to the acceptance of deposits as the society may consider necessary.

   (3) Where any agricultural loan society receives deposits in accordance with any scheme prepared under this section, such society shall not be deemed to be carrying on the business of banking for the purposes of section 18 of the Industrial and Provident Societies Act, and the provisions of that section shall not apply to such society.

   (4) Every scheme shall be prepared in a form approved by the Minister and shall in all other respects be subject to the approval of the Board.

   (5) No agricultural loan society shall accept any money on deposit by way of savings except in accordance with a scheme approved by the Board.

15   Audit of accounts of agricultural loan societies

   (1) The Board shall audit or cause to be audited the accounts of every agricultural loan society once at least in every year, and may appoint the auditor for such purpose, and, where the accounts are audited by the Board, the provisions of subsections (2) and (3) shall apply to the Board as they apply to an auditor appointed under this subsection.

   (2) The officers and servants of every agricultural loan society in respect of which an auditor is appointed under this section shall grant to such auditor access to all the books, documents, cash and securities of such society and shall give him on request all such information as may be within their knowledge in relation to the operation of such society.

   (3) Where an auditor appointed under this section finds that the accounts of the society in respect of which he is appointed have not been kept in a proper manner, he shall serve notice of that fact on the society and shall have power to carry out such further inspections of the accounts of the society as he may consider necessary to determine whether the neglect or failure to keep such accounts in a proper manner has been remedied.

[2/1970 s 3.]

16   Board may appoint member of committee of management

   (1) The Board may, where it considers it necessary so to do, appoint any person to be a member of the committee of management of any agricultural loan society, whether such person is a member of such society or not.

   (2) The Board shall, upon the appointment of any person under this section to be a member of the committee of management of an agricultural loan society, cause notice of such appointment to be served on the committee of management of such society.

   (3) Any person appointed under this section to be a member of the committee of management of an agricultural loan society shall have, in relation to the management of such society, all the rights and powers, including the right of voting, of a member of such committee, and in the event of a majority of such committee being opposed to the views of such person in any particular matter, such matter shall, if such person so requires, be referred to the Board whose decision shall be complied with by such committee.

   (4) No appointment shall be made under this section unless the Board is satisfied-

   (a)   that it is in the interest of the operation of the society that such an appointment should be made, and

   (b)   that if such an appointment is not made it may become necessary to take over the management and control of the society under section 17.

17   When Board may take over management and control of agricultural loan society

   (1) The Board may take over the management and control of any agricultural loan society-

   (a)   where the auditor appointed under section 15 certifies-

         (i)   that the accounts of such society have not been kept in a proper manner and that the failure or neglect to keep such accounts in a proper manner has continued for a period of twenty-eight days after service on the society of a notice of that fact; or

         (ii)   that the payment of debts due to such society in respect of shares, loan, interest or otherwise is not being enforced; or

         (iii)   that he has been unable to obtain satisfactory information as to the affairs or assets of such society;

   (b)   where the committee of management of such society-

         (i)   fails to comply with any decision given by the Board under subsection (3) of section 16; or

         (ii)   prior to the 10th of June, 1983 obtains a loan from the Board by any false representation; or

[11/1983 s 8(a)(i).]

         (iii)   without the consent of the Board uses any loan from the Board being a loan made prior to the 10th of June, 1983 for any purpose other than a purpose for which such loan was made;

[11/1983 s 8(a)(ii).]

   (c)   where such society defaults for at least sixty days in the payment of any money owing by such society to the Board in respect of any loan made prior to the 10th of June, 1983; or

[11/1983 s 8(b).]

   (d)   where a request that the Board should take over the management and control of such society is made in an application-

         (i)   by the majority in number of the members of such society; or

         (ii)   pursuant to a resolution of the committee of management of such society confirmed by a special general meeting; or

         (iii)   by the Bank.

[11/1983 s 8(c).]

   (2) The Board shall cause notice of its intention to take over the management and control of an agricultural loan society to be served on the committee of management thereof and from the date of service of such notice the Board shall be deemed to have taken over the management and control of such society.

18   Consequences of taking over of management and control

   Where the Board has taken over the management and control of an agricultural loan society-

   (a)   the Board shall have all the rights, powers and privileges of the society and of the committee of management and any council thereof, and such other powers, including power to sue and be sued on behalf of such society, as may be necessary, for the proper conduct of the affairs of the society whether for the purpose of continuing the operations of the society or for the purpose of winding up the affairs thereof;

   (b)   every officer and servant of such society shall deliver to the Board all books, documents, cash and securities of the society in the custody, control or possession of such officer or servant;

   (c)   the Board may-

[11/1983 s 9.]

         (i)   where such society was taken over at the request of the Bank, after consultation with the Bank; or

         (ii)   in any other case, in its discretion, appoint any person to manage the affairs of such society, and any person so appointed shall, subject to the general or special directions of the Board, have all the powers of the Board in relation to the management and control of such society.

19   Revesting of management and control in committee

   (1) Where the Board has taken over the management and control of an agricultural loan society, the Board may at such time as it thinks fit, revest the management and control of such society in the committee of management thereof, and if no committee of management is in existence the Board may-

   (a)   call a special general meeting of the society to elect a committee of management in which the management and control of the society may be revested; or

   (b)   appoint a provisional committee of management for the management and control of the society during such period as the Board may consider necessary.

   (1A) If the management and control of an agricultural loan society was taken over at the request of the Bank, the powers of the Board under subsection (1) shall be exercised in relation to that agricultural loan society only with the approval of the Bank.

[11/1983 s 10.]

   (2) Where the Board has decided to revest the management and control of an agricultural loan society in the committee of management or in a provisional committee of management, the Board shall cause notice of its decision to be served on the committee of management, or the provisional committee of management, as the case may be, and from the date of service of such notice the management and control of such society shall be deemed to be revested in such committee of management, or provisional committee of management.

   (3) Upon the revesting of the management and control of an agricultural loan society in the committee of management or a provisional committee of management thereof, all acts done by the Board in the management and control of the society while the Board had such management and control shall be deemed to have been done on behalf of the committee of management of the society.

20   Gazetted notice to be evidence of the taking over or revesting of management and control

   Any notice published in the Gazette to the effect that the Board has taken over the management and control of an agricultural loan society, or has revested the management and control of such society in the committee of management or a provisional committee of management of such society, shall be conclusive evidence in all Courts of the fact contained in such notice.

21   Security given to the Bank by an agricultural loan society

   (1) Every security given to the Bank by any agricultural loan society in respect of a loan made to such society by the Bank, shall include all the share capital, assets and property, real or personal, of such society at the time of the execution of such security and any property, real or personal, acquired subsequently by such society and not expressly and with the permission of the Bank excluded from such security.

[11/1983 s 11(a) and (b).]

   (2) The recording of notice in the proper office of record that any agricultural loan society has given security to the Bank shall be sufficient notice of the effect of such security to all persons concerned.

22   Specific assignment to the Bank of debt unnecessary

   It shall not be necessary for an agricultural loan society to make to the Bank a specific assignment of any debt due to the society so as to enable the Bank to take proceedings for the recovery of such debt, but the execution by such society to the Bank of the security referred to in section 21 shall confer on the Bank all the rights and powers of the society in relation to debts due to such society.

[11/1983 s 12.]

23   Restrictions on agricultural loan societies indebted to the Bank

   (1) No agricultural loan society which is indebted to the Bank shall-

   (a)   hypothecate any security given to such society in respect of a loan made by such society to any member;

   (b)   except in accordance with the permission in writing of the Bank-

         (i)   borrow money from any person other than the Bank;

         (ii)   sell any of its assets; or

         (iii)   consent to the sale or gift by any person of the whole or any part-of any security given by such person to such society.

   (2) Every hypothecation made in contravention of this section shall be null and void.

[11/1983 s 13.]

24   Power of agricultural loan societies to make loans

   Subject to the provisions of sections 25 and 26 every agricultural loan society shall have power to make its members, out of sums loaned by the Bank to such society-

[11/1983 s 14.]

   (a)   loans for agricultural purposes;

   (b)   rehabilitation loans in cases where the lands, buildings or crops of members of such society have suffered damage from flood, hurricane or any other natural disaster;

   (c)   loans for the construction, improvement, maintenance and repairs of farm buildings.

25   Restrictions on loans by agricultural loan societies

   (1) [Repealed by Act 3 of 2004 s 6.]

   (2) No agricultural loan society shall, except with the prior approval in writing of the Board-

   (a)   make a loan or be a party to any financial accommodation to any member of the committee of management or any officer of such society; or

   (b)   permit any of its funds to be used for the personal purposes of any such member or officer, other than the payment of the duly authorised salary of such officer.

[11/1983 s 15.]

Security for Loan (sections 26-33A)

26   Security for loans

   Every loan made by an agricultural loan society under this Act shall be secured in any one or more of the following ways that is to say-

   (a)   by a mortgage of any land belonging to the borrower;

   (b)   by a charge created under section 27;

   (c)   in such other manner as may be acceptable to the Bank.

[11/1983 s 16.]

27   Charge on crops and movable property

   (1) Where it is proposed to make any loan under this Act to any person for the cultivation of crops or for reaping and making merchantable any crops, the repayment of such loan and payment of interest thereon may be secured by a charge on such crops in favour of the lender.

   (2) The repayment of any loan made under this Act and payment of interest thereon may be secured by a charge in favour of the lender on such movable property belonging to the borrower on the date of the charge as the lender may approve.

   (3) Every charge under this section shall be created by instrument in the prescribed form and shall describe the crops or the property affected thereby.

28   Memoranda of charges and of certain mortgages

   (1) Where any loan made under this Act is secured by a charge created under section 27 or by a mortgage of any land not under the operation of the Registration of Titles Act, a memorandum of such charge or mortgage shall, as soon as practicable after the creation of such charge or mortgage, be prepared in the prescribed form and transmitted by the lender to the Deputy Keeper of the Records.

   (2) The Deputy Keeper of the Records shall keep a record of every memorandum received by him under this section, and such record shall be sufficient notice of the existence of the charge or mortgage to which the memorandum refers and may be inspected by any person without payment of any fee.

   (3) Where any charge created under section 27 affects crops growing on land which is under the operation of the Registration of Titles Act, the lender shall, at the time of transmission of the memorandum of such charge to the Deputy Keeper of the Records, transmit a copy of such memorandum to the Registrar of Titles who shall, upon receipt thereof, cause a caveat to be entered against the title to the land described in the memorandum.

   (4) Notwithstanding anything to the contrary contained in any Act, where any loan made under this Acts secured by a charge created under section 27 or by mortgage of any land not under the operation of the Registration of Titles Act, it shall not be necessary to record such charge or mortgage unless and until it is deemed advisable to enforce it.

   (5) Every charge or mortgage of which a memorandum is recorded in accordance with the provisions of this section shall have the same force and effect as if such charge or mortgage had been fully recorded.

   (6) Every person interested in any property, real or personal, affected by any such charge or mortgage shall be entitled to have access to the original for all proper purposes and at all reasonable times.

29   Effect of a charge

   A charge created under section 27-

   (a)   shall have effect notwithstanding anything contained in the Bills of Sale Act and the instrument creating such charge shall not be deemed to be a bill of sale within the meaning of that Act;

   (b)   shall not be liable to be defeated by any sale of, or by a subsequent charge of any nature imposed upon, the crops or property specified in the instrument creating it.

30   Lender's rights and obligations under a charge

   (1) A charge under section 27 shall, so long as such charge continues in force, confer or impose upon the lender-

   (a)   a right from time to time to enter upon any land on which the crops or property subject to the charge may be and to inspect such crops or property;

   (b)   a right to enter upon any land on which the crops or property subject to the charge may be and to take possession of such crops or property-

         (i)   where the borrower fails to pay to the lender any money owing under the charge within thirty days after payment thereof becomes due;

         (ii)   where the borrower fails to discharge any of the obligations imposed upon him by section 31;

         (iii)   where the borrower does any act prohibited by this Act;

   (c)   a right, where possession of any crops has been taken pursuant to the provisions of paragraph (b), to reap, and after reaping, to sell such crops by public auction or, in default of sale by public auction, by private treaty;

   (d)   a right, where possession of any property has been taken pursuant to the provisions of paragraph (b), to sell the property by public auction or, in default of sale by public auction, by private treaty,

   (e)   an obligation, in the event of any power of sale under this section being exercised, to apply the proceeds of sale-

         (i)   firstly, in or towards payment of the expenses properly incurred in taking possession of any crops or property or in reaping and making merchantable any crops;

         (ii)   secondly, in or towards payment in their order of priority of any incumbencies on such property or crops which rank prior to the charge and of which the lender has notice;

         (iii)   thirdly, in or towards payment pro rata of all amounts owing to the lender under the charge and to any person whose incumbrances on such property or crops rank pari passu with such charge, and to pay the balance, if any' to the borrower or, where the lender has notice of any other incumbrance on the property sold, to the person legally entitled to give a discharge therefor.

   (2) Where the lender desires to take possession of any crops or property pursuant to the provisions of paragraph (b) of subsection (1) and the borrower refuses to deliver up immediate possession of such crops or property to the lender or hinders the lender from obtaining possession thereof, the lender may file in the Resident Magistrate's Court for the parish in which such crops or property are situated an affidavit, stating-

   (a)   the sum owing on account of the loan for principal and interest;

   (b)   which of the events specified in paragraph (b) of subsection (1) has occurred;

   (c)   that the borrower refuses to deliver up immediate possession of such crops or property to the lender, or has hindered the lender from taking possession thereof, as the case may require.

   (3) A copy of the charge under which the lender claims the right to take possession of any crops or property shall be attached to the affidavit required to be filed under subsection (2) in relation to such crops or property.

   (4) Where an affidavit is filed in accordance with the provisions of this section the Resident Magistrate may grant to the lender a warrant of possession of the crops or property to which such affidavit relates, and such warrant shall confer upon the lender the power to enter any premises upon which such crops or property may be for the purpose of reaping and taking possession of such crops or taking possession of such property.

[2/1970 s 5.]

31   Borrower's obligations under a charge

   A charge created under section 27 shall, so long as it continues in force, impose upon the borrower the following obligations, that is to say-

   (a)   where any crops are subject to the charge-

         (i)   to maintain the cultivation of such crops in a good and husbandlike manner, and

         (ii)   to deal with and dispose of all the crops and produce reaped or gathered from the land described in the instrument creating the charge in such manner as may by agreement be provided in such instrument and until so dealt with or disposed of, to hold such crops and produce in trust for the lender;

   (b)   to keep in good and substantial repair all property subject to the charge;

   (c)   to permit the lender or any person authorised in writing for the purpose by the lender to inspect from time to time the crops or property subject to the charge;

   (d)   not to sell except either with prior notice to the lender or in the manner agreed on and provided in the instrument creating the charge any crops or property subject to the charge;

   (e)   not to remove, dismantle, or in any way alter any property subject to the charge without the prior consent in writing of the lender.

32   Lender's power to insure

   (1) Subject to the provisions of subsection (2) the lender is hereby empowered to insure and keep insured, in such office or under any insurance scheme in such name or names and in such amounts as the lender may determine, any property subject to a charge under section 27 against loss or damage occasioned by fire, earthquake, civil commotion or hurricane, and the premium paid in respect of such insurance, with interest thereon at the rate of five per centum per annum shall merge in and form part of the charge.

   (2) Where any property subject to a charge is already insured the lender may effect an additional insurance thereon to the extent and amount (if any) which the lender may consider necessary.

   (3) The receipt of the lender for any moneys payable under any policy taken out or under any insurance scheme entered into under this section shall be sufficient discharge therefor.

   (4) All moneys received in respect of any policy of insurance or under any insurance scheme upon any property subject to a charge under section 27 shall be applied at the election of the lender either in or towards the discharge of the amounts secured to the lender, or in making good the loss or damage in respect of which such moneys are received.

33   Release of charges and certain mortgages

   (1) Where any loan made under this Act is secured by a charge created under section 27 or by a mortgage of any land not under the operation of the Registration of Titles Act, the lender shall, upon payment of all the moneys owed to the lender in respect of such loan, prepare a release in the prescribed form stating that the crops or property specified in the memorandum to which such release relates are released from the charge or mortgage.

   (2) Every release prepared under this section shall be transmitted to the Deputy Keeper of the Records who shall upon receipt thereof, make the appropriate entry in his records to show that the crops or property specified in the memorandum to which the release relates have been released from the charge or mortgage.

   (3) Where any release relates to a memorandum of which a copy was transmitted to the Registrar of Titles in accordance with the provisions of subsection (3) of section 28, a copy of such release shall be transmitted to the Registrar of Titles who shall, upon receipt thereof, remove the caveat entered, under subsection (3) of the said section 28, against the title to the land specified in the memorandum.

   (4) Notwithstanding anything to the contrary contained in any law, every release transmitted to the Deputy Keeper of the Records in accordance with the provisions of this section shall operate as a full and effectual release of the charge or mortgage in respect of which it was made.

[11/1983 s 17.]

Miscellaneous (sections 34-47)

34   Policy directions

   The Minister may, after consultation with the chairman, give to the Board directions of a general character as to the policy to be followed in the exercise and performance of its functions in relation to matters appearing to him to concern the public interest, and the Board shall give effect to any such directions.

35   Minister may specify rehabilitation periods and certify organisations

   The Minister shall have power-

   (a)   to make orders specifying the days on which rehabilitation periods shall begin and end;

   (b)   to certify organisations to be approved organisations for the purposes of this Act and to direct that any approved organisation shall, from such time as he may specify, cease to be an approved organisation.

36   Loans may be made notwithstanding contracts to the contrary

   An agricultural loan society may make a loan to any person under this Act notwithstanding any provision to the contrary contained in any contract made between such person and a third party

[11/1983 s 18.]

37   [Repealed by Act 11 of 1983 s 19.]

38   [Repealed by Act 11 of 1983 s 20.]

39   Recovery of debts

   (1) All debts due to the Bank may be recovered, without limit of amount, in a Resident Magistrate's Court.

[2/1970 s 6; 11/1983 s 21.]

   (2) Subsection (1) shall apply to an agricultural loan society and to approved organisations in like manner as it applies to the Bank.

40   Appointment as agents

   The Board and agricultural loan societies may be appointed to be agents of the Government of this Island.

41   Exemption from income tax, stamp duty and other fees

   (1) The Board or an agricultural loan society shall be exempt from-

   (a)   income tax; and

   (b)   general consumption tax in relation to any article imported into Jamaica or purchased in Jamaica by the Board or agricultural loan society and shown to the satisfaction of the Commissioner of Customs to be required for the use of the Board or agricultural loan society in the performance of its functions.

[3/2004 s 7(a).]

   (2) Notwithstanding anything to the contrary contained in any law-

   (a)   the Board or an agricultural loan society shall be exempt from any portion of stamp duty, transfer tax, recording and registration fees payable by the Board or agricultural loan society, as the case may be, in respect of deeds, instruments, writing or receipts executed by or on behalf of the Board or agricultural loan society; and

   (b)   an agricultural loan society shall be exempt from any fee payable under section 334 of the Companies Act in respect of the registration of any declaration of value of its assets under section 124A of the Companies Act.

[3/2004 s 7(a).]

   (3) The operation of any deed, instrument, writing or receipt in respect of which exemption from stamp duty, general consumption tax, transfer tax, recording or registration fees is made by this section shall not be prejudiced or affected by such exemption.

[11/1983 s 22; 3/2004 s 7(b).]

   (4) The provisions of paragraph (a) of subsections (1) and (2) shall be deemed to have come into operation on the 1st day of January, 1961.

[3/2004 s 7(c).]

42   Bank's or Board's officers and servants not to borrow or receive gifts from societies

   No officer or servant of the Bank or Board shall, without prior permission in writing from the Bank or Board, as the case may be, borrow or receive by way of gift any money from any agricultural loan society, or stand surety for any borrower from an agricultural loan society.

[11/1983 s 23.]

43   Offences

   (1) Every person who-

   (a)   obtains a loan from an agricultural loan society by means of any false representation;

   (b)   having obtained a loan from an agricultural loan society, contravenes or fails to comply with the provisions of sub-paragraph (ii) of paragraph (a) or paragraph (c), (d) or (e) of section 31,

   (c)   wilfully applies any loan made to him by an agricultural loan society to any purpose other than the purpose for which such loan was made; or

   (d)   being an officer or servant of an agricultural loan society-

         (i)   contravenes or fails to comply with the provisions of section 15 or 18; or

         (ii)   is knowingly a party to the contravention by such society of the provisions of section 14, 23 or 25, shall be guilty of an offence against this Act.

   (2) No prosecution for any offence described in paragraph (a), (b) or (c) of subsection (1) shall be begun or proceeded with after repayment of the loan has been made.

[11/1983 s 24.]

44   Punishment of offences

   Every person guilty of an offence against this Act shall be liable on summary conviction before a Resident Magistrate to a fine not exceeding five hundred thousand dollars or in default of payment thereof to imprisonment with or without hard labour for a term not exceeding three months.

[3/2004 s 8.]

45   Transfer of assets and liabilities

   (1) All the assets and liabilities of the Agricultural Loan Societies Board existing immediately before the commencement of this Act are hereby transferred to and vested in the Board established under this Act.

   (2) The assets and liabilities of the Board established under this Act including any security pledged to the Board by an agricultural loan society, in so far as they relate to the lending functions of the Board immediately before the 10th of June, 1983, are hereby transferred to and vested in the Bank as from the aforesaid date.

[11/1983 s 25(a) and (b).]

46   Construction of references to certain organisations

   (1) References in any enactment, regulations, mortgage, notification or other instrument to the Agricultural Loan Societies Board or the Banana Industry Aid Board shall, unless the context otherwise requires, be construed as references to the Board established under this Act.

   (2) References in any enactment, regulations, mortgage, notice or other instrument to a society registered under the Agricultural Loan Societies Law shall, unless the context otherwise requires, be construed as references to an agricultural loan society.

47   Savings

   (1) Subject to the provisions of subsection (1) of section 45 and section 46, the provisions of the Agricultural Loan Societies Law (hereby repealed) shall be deemed to continue to apply to loans made thereunder and outstanding on the 19th January, 1961.

[11/1983 s 26(a).]

   (2) Subject to the provisions of section 46 and notwithstanding the repeal of the Banana Industry Aid Law , the Banana Industry Aid Law, 1932 and the Banana Industry Aid Law, 1933 , the provisions of those Laws shall be deemed to continue to apply to loans made under those Laws and outstanding on the 19th January, 1961.

   (3) The provisions of this Act as in force immediately prior to the 10th of June, 1983 shall, subject to subsection (2) of section 45 and subsections (4) and (5) of this section, be deemed to continue to apply to loans made under those provisions and outstanding at the aforesaid date.

[11/1983 s 26(b).]

   (4) and (5) [Repealed by Act 3 of 2004 s 9.]

SCHEDULE
AGRICULTURAL CREDIT BOARD

(Section 3)

1   Constitution of the Board

   The Board shall consist of such number of persons, not being less than three, as the Minister may from time to time determine.

2   Appointment of members

   The members of the Board shall be appointed by the Minister by instrument in writing and, subject to the provisions of this Schedule, shall hold office for such period, not exceeding two years, as the Minister may direct in such instrument.

3   Reappointment

   Every member of the Board shall be eligible for reappointment.

4   Chairman

   The Minister shall appoint one of the members of the Board to be the Chairman thereof.

5   Acting appointments

   If the Chairman or any other member of the Board is absent or unable to act, the Minister may appoint any person to act in the place of the Chairman or such other member.

6   Resignations

   (1) Any member of the Board, other than the Chairman, may at any time resign his office by instrument in writing addressed to the Minister and transmitted through the Chairman, and from the date of receipt by the Minister of such instrument such member shall cease to be a member of the Board.

   (2) The Chairman may at any time resign his office by instrument in writing addressed to the Minister and such resignation shall take effect as from the date of the receipt by the Minister of such instrument.

7   Revocation of appointments

   The Minister may at any time revoke the appointment of any member of the Board if he thinks it expedient so to do.

8   Gazetting of appointments

   The names of all members of the Board as first constituted and every change in the membership thereof shall be published in the Gazette.

9   Incorporation

   (1) The Board shall be a body corporate having perpetual succession and a common seal with power to acquire, hold and dispose of land and other property of whatever kind.

   (2) The seal of the Board shall be kept in the custody of the Chairman or of any officer of the Board authorised by the Board in that behalf and shall be affixed to instruments pursuant to a resolution of the Board in the presence of the chairman or one other member of the Board and an officer thereof.

   (3) The seal of the Board shall be authenticated by the signatures of the Chairman or any other member of the Board authorised to act in that behalf and an officer thereof authorised to act in that behalf.

   (4) All documents other than those required by law to be under seal, made by, and all decisions of the Board may be signified under the hand of the chairman or any other member or officer of the Board authorised to act in that behalf.

   (5) The Board may sue and be sued in its corporate name and may for all purposes be described by such name.

10   Procedure and meetings

   (1) The Board shall meet at such times as may be necessary or expedient for the transaction of its business, and such meetings shall be held at such places and times and on such days as the Board may determine.

   (2) The chairman may at any time call a special meeting of the Board and shall call a special meeting within seven days of the receipt of a written requisition for that purpose addressed to him by any two members of the Board.

   (3) The Chairman shall preside at all meetings of the Board at which he is present, and in case of his temporary absence the members present and constituting a quorum shall elect a Chairman from among their number.

   (4) The quorum of the Board shall be three, including the Chairman or acting Chairman.

   (5) The decisions of the Board shall be by a majority of votes and, in addition to an original vote, the Chairman or acting Chairman shall have a casting vote in any case in which the voting is equal.

   (6) Minutes in proper form of each meeting of the Board shall be kept and shall be confirmed as soon as practicable thereafter at a subsequent meeting.

   (7) Subject to the foregoing provisions of this Schedule the Board may regulate its own proceedings.

   (8) The validity of the proceedings of the Board shall not be affected by any vacancy amongst the members thereof or by any defect in the appointment of a member thereof.

11   Protection of members

   No member of the Board shall be personally liable for any act or default of the Board done or omitted to be done in good faith in the course of the operation of the Board.

12   Officers and servants

   The officers and servants of the Board shall be such officers and servants as the Governor-General may from time to time appoint.

13   Remuneration of members

   There shall be paid from the funds of the Board to the Chairman and other members of the Board such remuneration (whether by way of honorarium, salary or fees) and such allowances as the Minister may determine.

14   Office of Chairman or member not a public office

   The office of Chairman or member of the Board shall not be a public office for the purposes of Chapter V of the Jamaica Constitution.

{/akeebasubs}


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