Agricultural Credit Act, 1978

"farm" means the land or buildings or the land and buildings on or in which the farmer in relation to whom the word is used, carries on some form of agriculture;

"farmer" means an individual who carries on or intends to carry on some form of agriculture and includes—

( a ) two or more individuals who jointly or in common carry on or intend to carry on some form of agriculture,

( b ) the personal representative of a deceased person who, for the benefit of the estate of the deceased person, carries on or intends to carry on some form of agriculture,

( c ) the trustee of a settlement who, for the benefit of the persons beneficially entitled under the settlement, carries on or intends to carry on some form of agriculture,

( d ) any body corporate which carries on or intends to carry on, as its principal business, some form of agriculture, and

( e ) two or more bodies corporate which jointly or in common carry on or intend to carry on, as their principal business, some form of agriculture;

"the Land Commission" means the Irish Land Commission;

"the Minister" means the Minister for Finance;

"settlement" means the deed, will or other instrument, parol declaration or construction of law, by virtue of which the trustee, in relation to whom the word is used, is such trustee;

"stock" has the meaning assigned by section 23;

"trustee" includes a trustee under a trust created by parol and also a trustee by construction of law.

(2) A reference in this Act to a Part or section is to a Part or section of this Act unless it is indicated that reference to some other enactment is intended.

(3) A reference in this Act to any enactment shall be construed as a reference to that enactment as amended by any subsequent enactment.

Central Fund.

4.—All money from time to time required by the Minister to meet sums which may become payable by him under this Act shall be paid out of the Central Fund or the growing produce thereof.

Payment into Exchequer of money paid to Minister.

5.—Money paid to the Minister by the Corporation in pursuance of any provision of this Act shall be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister may direct.

Expenses.

6.—The expenses incurred by the Minister in the administration of this Act shall be paid out of money provided by the Oireachtas.

Repeals.

7.—(1) The enactments mentioned in the Schedule are hereby repealed to the extent specified in the third column.

(2) All instruments made under an enactment repealed by this Act shall, if in force immediately before the commencement of this Act, continue in force as if made under this Act.

PART II AGRICULTURAL CREDIT CORPORATION

Memorandum of association.

8.—(1) The objects of the Corporation shall be so stated in its memorandum of association that its principal functions shall include—

( a ) (i) lending and advancing money, subject to the provisions of this Act,

(ii) acquiring, underwriting, holding, selling and otherwise dealing with, shares, stocks, debentures, debenture stocks and other securities of any body corporate.

(iii) drawing, accepting, endorsing, discounting, purchasing and otherwise dealing with, bills of exchange, promissory notes and other negotiable instruments,

(iv) providing such other credit facilities as it thinks proper (including giving guarantees to any person in relation to the payment of money, and of interest on the money, or the repayment of money paid by that person on foot of loans, advances or other credit facilities granted by that person and the payment of interest on such money),

(v) engaging in the provision of hire-purchase and leasing facilities and for that purpose acquiring, disposing of and otherwise dealing with stock, and

(vi) arranging for the provision of credit facilities for any person by any other person (and acting as agent for any person in relation to the payment and collection and receipt of money in respect of such facilities),

for any purpose which, in the opinion of the Corporation will, or is likely to, increase, whether directly or indirectly, the productivity of, or be otherwise of benefit to, agriculture, horticulture or fisheries, on such terms and subject to such conditions as the Corporation thinks fit, and

( b ) the receipt, on such terms and subject to such conditions as the Corporation thinks proper, of deposits of money (including money in a currency other than the currency of the State) from any source and the receipt of deposits of securities for safe keeping and management and, so far as may be lawful, the execution of trusts in relation to the securities.

(2) For the purposes of this section money received on deposit by the Corporation in a currency other than the currency of the State shall be deemed to be the equivalent in the currency of the State of the money actually received, such equivalent being calculated according to the rate of exchange at the time of receiving the deposits.

(3) Nothing in this section shall prevent or restrict the inclusion among the objects of the Corporation as stated in its memorandum of association of all such objects and powers as are reasonably necessary or proper for or incidental or ancillary to the due performance of the principal functions aforesaid and are not inconsistent with this Act.

Participation in agricultural projects.

9.—The Corporation may do all or any of the following:

( a ) undertake, promote, engage or participate in, manage or supervise any scheme or project which, in the opinion of the Corporation, will, or is likely to, increase, whether directly or indirectly, the productivity of, or be otherwise of benefit to, agriculture, horticulture or fisheries,

( b ) appoint and remunerate clerical, technical and managerial staff for schemes and projects referred to in paragraph (a) and assist and advise in relation to the appointment of such staff,

( c ) provide the whole or part of the money required for any scheme or project referred to in paragraph (a),

( d ) agree with the undertakers or promotors of any scheme or project referred to in paragraph (a) to pay and discharge the whole or a part of any losses incurred by them in relation to that scheme or project,

( e ) form or take part in the formation of bodies corporate for the purpose of undertaking, promoting, engaging or participating in, managing or supervising schemes or projects referred to in paragraph (a) and acquire, hold and dispose of the capital, or such part of the capital as it thinks fit, of any such bodies corporate,

( f ) subject to the provisions of the Industrial and Provident Societies Acts, 1893 to 1971, acquire, hold and dispose of the capital, or such part of the capital as it thinks fit, of any body corporate undertaking, promoting, engaging or participating in, managing or supervising schemes or projects referred to in paragraph (a), and

( g ) assist in and facilitate, in any manner it thinks proper, the formation, promotion, establishment, reconstruction or reorganisation of bodies corporate referred to in paragraph (e).

Directors.

10.—(1) The number of directors of the Corporation (including the chairman) shall not be less than three or more than seven.

(2) If, at the time appointed by the articles of association of the Corporation for appointment of the directors, the Minister holds not less than one half in nominal value of the issued capital of the Corporation, he shall be entitled to nominate a majority (being the smallest majority in any particular case) of the directors.

(3) The remuneration of the chairman and the other directors shall be determined from time to time by the Minister for the Public Service.

Share capital.

11.—(1) The share capital of the Corporation shall be £20,000,000 divided into shares of £1 each.

(2) Shares may be allotted and issued to and taken up by the Minister.

(3) With the approval of the Minister shares may be allotted and issued to other persons.

(4) The Minister may purchase and sell shares of the Corporation.

(5) The Minister may exercise in respect of any shares held by him all the rights and powers of a holder of such shares and, where a right or power is exercisable by attorney, exercise it by attorney.

(6) The Minister may, for the purpose of compliance with so much of the Companies Act, 1963 , as requires that there shall always be at least seven members of the Corporation or for the purpose of providing a person appointed or about to be appointed a director with any qualification required by the articles of association, do either or both of the following things:

( a ) transfer to any person one share for the time being held by the Minister,

( b ) require any member of the Corporation to transfer any such share held by him to the Minister or to any other person nominated in that behalf by the Minister.

(7) Every member (other than the Minister) of the Corporation or the personal representative of such member shall hold in trust for the Minister any shares transferred to him under subsection (6) and shall be accordingly bound to pay every dividend, bonus and other money received by such member on or in respect of such shares to the Minister for the benefit of the Exchequer and to transfer, as and when required by the Minister, such shares to the Minister or to a person nominated in that behalf by the Minister.

(8) Every dividend, bonus and other money received by the Minister in respect of shares held by, or in trust for, him shall be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister may direct.

Borrowing.

12.—(1) Subject to the approval of the Minister, the Corporation may raise or borrow money (including money in a currency other than the currency of the State) in any manner it thinks fit but the amount of money raised or borrowed and outstanding at any one time shall not exceed £350,000,000.

(2) For the purpose of this section, money raised or borrowed in a currency other than the currency of the State shall be deemed to be the equivalent in the currency of the State of the actual money raised or borrowed, such equivalent being calculated according to the rate of exchange at the time of the raising or borrowing of the money.

(3) Where money is raised or borrowed in a currency other than the currency of the State, the Minister may—

( a ) undertake, subject to such terms and conditions as he thinks fit, to bear any loss arising out of changes in the rate of exchange which would increase the cost in the currency of the State of the repayment of the principal of any money raised or borrowed by the Corporation or the payment of interest on such money, or

( b ) receive any gain accruing from changes in the rate of exchange which would decrease the cost in the currency of the State of repayment of that principal or payment of that interest.

(4) Stamp duty shall not be chargeable in respect of the issue or transfer of any bonds or other securities issued by the Corporation in pursuance of its powers under this section to secure money raised or borrowed under this section.

(5) The memorandum of association and the articles of association of the Corporation shall be so framed as to authorise the Corporation to borrow money on the security of bonds, debentures or debenture stock issued by it in accordance with the usual practice of limited companies.

Advances by Minister.

13.—(1) The Minister may make advances to the Corporation.

(2) Advances under this section shall be made on such terms as to repayment, interest and other matters as may be determined by the Minister.

Guarantee of borrowing.

14.—(1) The Minister may guarantee, in such form and manner and in such money (including money in a currency other than the currency of the State) and on such terms and conditions as he thinks fit, the due repayment by the Corporation of the principal of any money raised or borrowed by the Corporation or the payment of interest on such money or both the repayment of the principal and the payment of the interest and any such guarantee may include a guarantee of payment by the Corporation of incidental expenses arising in connection with the borrowing.

(2) The Minister shall not so exercise the powers conferred by subsection (1) that the amount, or the aggregate amount, of principal which he may at any one time be liable to pay on foot of any guarantee or guarantees under that subsection for the time being in force, together with the amount of principal (if any) which the Minister has previously paid on foot of any such guarantees and which has not been paid by the Corporation to the Minister, exceeds £350,000,000.

(3) Where a guarantee under this section is or has been given, the Corporation shall, if the Minister so requires, give to him such security as he may specify for the purpose of securing to the Minister the repayment of any money which he may be liable to pay or has paid under the guarantee.

(4) The Minister shall, as soon as may be after the expiration of every financial year, lay before each House of the Oireachtas a statement setting out with respect to each guarantee under this section given during that year or given at any time before, and in force, at the commencement of that year—

( a ) particulars of the guarantee,

( b ) in case any payment has been made by the Minister under the guarantee before the end of that year, the amount of the payment and the amount (if any) repaid to the Minister on foot of the payment,

( c ) the amount of principal covered by the guarantee which was outstanding at the end of that year.

(5) Money paid by the Minister under a guarantee under this section shall be repaid to the Minister (with, if the Minister so requires, interest thereon at such rate or rates as the Minister specifies) by the Corporation within two years from the date of payment by the Minister.

(6) Where the whole or part of money required by subsection (5) to be repaid to the Minister has not been repaid in accordance with that subsection, the amount so remaining outstanding shall be repaid to the Central Fund out of money provided by the Oireachtas.

(7) Notwithstanding the provision of money under subsection (6) to repay the amount to the Central Fund, the Corporation shall remain liable to the Minister in respect of that amount and that amount (with, if the Minister so requires, interest thereon at such rate or rates as the Minister specifies) shall be repaid to the Minister by the Corporation at such times and in such instalments as the Minister specifies and, in default of repayment as aforesaid and without prejudice to any other method of recovery, shall be recoverable as a simple contract debt in any court of competent jurisdiction.

(8) In relation to a guarantee under this section in money in a currency other than the currency of the State—

( a ) each of the references to principal in subsections (2) and (4) shall be taken as referring to the equivalent in the currency of the State of the actual principal, such equivalent being calculated according to the rate of exchange act the time of the giving of the guarantee,

( b ) the reference to money in subsection (5) shall be taken as referring to the cost in the currency of the State of the actual money paid.

Guarantee against losses.

15.—(1) The Minister may—

( a ) guarantee, in such form and manner and on such terms and conditions as he may specify, the due repayment to the Corporation of the principal of any money paid by the Corporation on foot of loans, advances, guarantees to persons in relation to the payment of money by other persons or other credit facilities (including hire-purchase facilities) given, provided or arranged by the Corporation or in respect of which it undertakes any commitments or the payment of interest on such principal or both the repayment of the principal and the payment of the interest, and

( b ) recoup the Corporation, on foot of a guarantee under this section, on such terms and conditions as he may specify in respect of any losses incurred by the Corporation in relation to such loans, advances, guarantees or other credit facilities.

(2) The Minister shall not so exercise the powers conferred by subsection (1) that the amount or the aggregate amount of principal which he may at any one time be liable to pay on foot of any guarantee or guarantees under that subsection for the time being in force exceeds £10,000,000.

(3) Money paid by the Minister under a guarantee under this section shall to repaid to the Central Fund out of money provided by the Oireachtas.

(4) Where the whole or any part of the money paid by the Minister on foot of a guarantee under this section is subsequently recovered by the Corporation, the amount recovered shall be repaid by the Corporation to the Minister.

Accounts.

16.—(1) The Corporation shall keep, in such form as may be approved by the Minister, all proper and usual accounts of all money received or expended by it including a profit and loss account and a balance sheet and, in particular, all such special accounts as the Minister may from time to time direct.

(2) As soon as may be after the end of each accounting year, accounts kept under this section shall be submitted by the Corporation to an auditor for audit and, immediately after the audit, a copy of the profit and loss account, the balance sheet and any other such accounts kept pursuant to a direction of the Minister and the auditor's report on the accounts shall be presented to the Minister who shall cause copies thereof to be laid before each House of the Oireachtas.

(3) The Corporation shall supply the Minister with such information regarding the performance of its functions as he may from time to time require.

(4) The Corporation shall not under subsection (3) furnish or be required to furnish any information which would disclose the affairs of any particular depositor, borrower or applicant for a loan.

Membership of Oireachtas.

17.—(1) Where a director of the Corporation is nominated as a member of Seanad Éireann or for election to either House of the Oireachtas, he shall, on accepting nomination as a member of Seanad Éireann or on nomination for such election (as the case may be), cease to be a director of the Corporation.

(2) A person who is for the time being entitled under the Standing Orders of either House of the Oireachtas to sit in that House shall, while so entitled, be disqualified from becoming a director of the Corporation.

(3) Where a person who is an employee of the Corporation is nominated as a member of Seanad Éireann or for election to either House of the Oireachtas, he shall, on accepting nomination as a member of Seanad Éireann or on nomination for such election (as the case may be), stand seconded from employment by the Corporation and shall not be paid by, or entitled to receive from, the Corporation any remuneration or allowances—

( a ) in case he is nominated as a member of Seanad Éireann, in respect of the period commencing on his acceptance of the nomination and ending when he ceases to be a member of that House,

( b ) in case he is nominated for election to either such House, in respect of the period commencing on that nomination and ending when he withdraws his candidature, fails to be elected or ceases to be a member of that House, as the case may be.

(4) A person who is for the time being entitled under the Standing Orders of either House of the Oireachtas to sit in that House shall, while so entitled, be disqualified from becoming an employee of the Corporation.

Appointment of staff.

18.—(1) Subject to subsection (2), appointments to situations in the service of the Corporation shall be made in accordance with such arrangements for securing the appointment of suitable and qualified persons as shall from time to time be determined by the directors, after consultation with the Local Appointments Commissioners, and such arrangements shall include a provision for giving to suitable and qualified candidates, who possess a knowledge of the Irish language of a standard not less than that fixed by the directors, credit in respect of such knowledge.

(2) Subsection (1) shall not apply to—

( a ) appointments made in the ordinary course of promotion, or

( b ) appointments of casual employees, or

( c ) appointments of industrial workers, or

( d ) the hiring of persons to perform subordinate duties.

Remuneration of chief officer.

19.—There shall be paid by the Corporation to its chief officer such remuneration and allowances as the Corporation, with the consent of the Minister for the Public Service, shall determine.

Superannuation of staff.

20.—Any alteration in the terms, in operation at the commencement of this Act, governing the grant of pensions, gratuities, allowances or other payments on resignation, retirement or death, to or in respect of a member of the permanent staff of the Corporation, including its chief officer, or any other arrangement to provide for benefits additional to the terms referred to above shall not take effect unless the said alteration or arrangement has the consent of the Minister for the Public Service.

Evidence of debt to Corporation.

21.—In any proceedings for the recovery by the Corporation of any money owning to the Corporation, a certificate purporting to be sealed with the seal of the Corporation stating that a specified sum of money was due at the date of the certificate to the Corporation by a specified person shall, at any time within one month after the date of the certificate and without proof of the seal of the Corporation or of the due affixing thereof to the certificate, be evidence that the sum specified in the certificate is and remains due and owing to the Corporation by the person and on the account or accounts specified in the certificate.

Alteration of memorandum and articles of association.

22.—It shall be lawful for the Corporation to make such alterations in its memorandum or articles of association as are necessary to make them consistent with this Act and such alterations shall be in such form as is approved by the Minister.

PART III CHATTEL MORTGAGES

Definitions for Part III.

23.—(1) In this Part—

"the Act of 1926" means the Enforcement of Court Orders Act, 1926 , as amended by the Enforcement of Court Orders Act, 1940 ;

"chattel mortgage", when used without qualification, means an instrument under seal made between a recognised borrower of the one part and a recognised lender of the other part which is—

( a ) a floating chattel mortgage, or

( b ) a specific chattel mortgage, or

( c ) both a floating chattel mortgage and a specific chattel mortgage;

"execution order" means an execution order within the meaning of the Act of 1926;

"floating chattel mortgage" means an instrument under seal made between a recognised borrower of the one part and a recognised lender of the other part whereby the recognised borrower charges the stock from time to time on the recognised borrower's land with the payment to the recognised lender of any money advanced or to be advanced to the recognised borrower;

"land", in relation to a recognised borrower, means the buildings or land or buildings and land in or on which the recognised borrower carries on business or which he uses in connection with his business;

"the mortgagee", in relation to a chattel mortgage, means the recognised lender to whom the chattel mortgage is given;

"the mortgagor" in relation to a chattel mortgage, means—

( a ) if the recognised borrower (party thereto) is an individual—

(i) in case he is alive and has not become a bankrupt or of unsound mind, the recognised borrower, or

(ii) in case he has died, his heirs, executors, administrators and successors, or the executor de son tort of his estate or the person into whose possession or control, legal or actual, the chattels charged under such chattel mortgage have passed by reason of the death, or

(iii) in case he becomes a bankrupt, his assignee, or

(iv) in case he becomes of unsound mind, his committee or guardian,

( b ) if the recognised borrower (party thereto) is a body corporate, that body corporate;

"recognised bank" has the meaning assigned by section 25;

"recognised borrower" means any person to whom money may be lent or advanced or who may be provided with other credit facilities by a recognised lender or who gives or agrees to give security to a recognised lender for the payment of money by himself or any other person;

"recognised lender" means any body, being—

( a ) the Corporation, or

( b ) a recognised bank;

"specific chattel mortgage" means an instrument under seal made between a recognised borrower of the one part and a recognised lender of the other part whereby the recognised borrower charges specific stock (wheresoever situate) with the payment to the recognised lender of any money advanced or to be advanced to the recognised borrower;

"stock" includes—

( a ) animals and birds of every kind and the progeny and produce of such animals and birds,

( b ) insects and fish of every kind and the progeny and produce of such insects and fish,

( c ) agricultural crops (whether growing on or severed from the land),

( d ) trees (whether growing on or severed from the land).

( e ) any product derived from any of the foregoing,

( f ) machinery, implements, vehicles, fixtures, fittings and materials used in or for the production, manufacture, processing, preparation for sale or marketing of any agricultural or fishery produce.

(2) Where a chattel mortgage creates both a charge on specific stock and a floating charge on the stock from time to time on particular land, the chattel mortgage shall, for the purposes of this Part, be—

( a ) in so far as it creates a charge on specific stock, a specific chattel mortgage, and

( b ) in so far as it creates a floating charge on the stock from time to time on particular land, a floating chattel mortgage.

(3) An instrument shall not be excluded from being a chattel mortgage by reason only of one or more persons (in addition to the mortgagor and mortgagee) being a party or parties thereto as surety or sureties only.

(4) References in this Part to stock in relation to a chattel mortgage shall, subject to section 24, be construed as references only to stock which is the absolute property of the mortgagor.

Chattel mortgage of specific stock.

24.—Where—

( a ) a recognised lender has agreed to make a loan to a recognised borrower wholly or partly for the purchase of specific stock, and

( b ) that recognised borrower, for the purpose of giving security for the loan, has prior to the purchase, executed a specific chattel mortgage of the specific stock, and

( c ) the chattel mortgage is duly registered under this Part,

that chattel mortgage shall, notwithstanding anything contained in this Part, create a charge on the specific stock on and from the date on which the stock comes into the ownership and possession of the recognised borrower.

Recognised banks.

25.—(1) Every bank which immediately before the commencement of this Act, was a recognised bank for the purposes of Part III of the Agricultural Credit Act, 1947 , shall continue to be a recognised bank for the purposes of this Part.

(2) The Minister may, on the application of any bank, appoint the bank to be a recognised bank for the purposes of this Part and he shall thereupon give to the Minister for Justice notice of the appointment.

(3) The Minister may by notice in writing withdraw, giving the reason or reasons therefor, the recognition of a bank as a recognised bank and shall thereupon give to the Minister for Justice notice of the withdrawal.

(4) A bank which is for the time being recognised under this section is in this Part referred to as a recognised bank.

Registers of chattel mortgages.

26.—(1) A register of chattel mortgages shall be kept and maintained in every Circuit Court Office in accordance with this section.

(2) Subject to compliance with the conditions prescribed by or under this section for the registration of a chattel mortgage, every chattel mortgage shall be capable of being registered within one month and no longer after its date in the register of chattel mortgages maintained under this section in the Circuit Court Office serving the area in which the land of the mortgagor is situate or, where the land is situate in two or more areas served by separate Circuit Court Offices, in each of the several registers of chattel mortgages maintained under this section in the said Circuit Court Offices respectively.

(3) Any person (including a surety) party to a chattel mortgage or the legal representative of any such person may register the chattel mortgage within one month and no longer after its date in any register of chattel mortgages in which the chattel mortgage is capable of being registered under this section and the mortgagee or, with the consent in writing of the mortgagee, the mortgagor or any surety party thereto or his legal representative may at any time cause the chattel mortgage to be removed from any such register.

(4) Whenever the principal money, interest and costs secured by a chattel mortgage are fully repaid the mortgagee shall forthwith cause the chattel mortgage to be removed from every register of chattel mortgages in which it is registered under this section.

(5) No chattel mortgage shall have effect until it is registered in pursuance of this section in the register or every register (as the case may be) of chattel mortgages in which it is capable of being registered under this section and a chattel mortgage so registered shall cease to have effect on ceasing to be duly registered in such register or every such register (as the case may be).

(6) The contents of any register of chattel mortgages shall not be published or disclosed nor shall any copies thereof or any part thereof be issued to any person except that—

( a ) a recognised lender may at any time by requisition under the hand of the solicitor or law agent of such recognised lender require the county registrar to inspect the register and to provide the recognised lender with certified copies of any entries therein relating to the stock of any person named in the requisition;

( b ) a sheriff or county registrar may at any time inspect the register of chattel mortgages maintained in a Circuit Court Office serving the area or any part of the area for which he is the sheriff or county registrar;

( c ) any person in the service of the State and duly authorised in writing in that behalf by the Minister or the Minister for Agriculture may at any time inspect and take copies of any such register or any part thereof;

( d ) an officer employed in a Circuit Court Office and performing duties formerly performed by the undersheriff may at any time inspect the register of chattel mortgages maintained in that Circuit Court Office; and

( e ) whenever the Supreme Court or any Judge of the High Court or the Circuit Court directs that a copy of the portion of any such register relating to any particular chattel mortgage or alleged chattel mortgage be furnished to them or him, the copy shall be so furnished accordingly and the Court or Judge may disclose or publish such copy or the contents thereof to such extent and in such manner and subject to such conditions as in their or his opinion justice may require.

(7) The Circuit Court or the High Court or the Supreme Court on appeal from the High Court may at any time cause any register of chattel mortgages to be rectified (whether by variation, addition or omission) in such manner as justice may require.

(8) The Minister for Justice may make regulations in relation to all or any of the following matters:

( a ) the form and contents of the several registers of chattel mortgages;

( b ) the keeping and maintenance generally of the registers;

( c ) the mode of registering a chattel mortgage in a register and the evidence to be produced, for the purpose of registration, of the due execution and stamping of the chattel mortgage;

( d ) the mode of removing a chattel mortgage from a register and the evidence to be produced for the purpose of removal;

( e ) the requisitioning, making and certification of searches by officials of the Circuit Court Offices on a register at the request of those persons or bodies who under this section are authorised to inspect the register;

( f ) the providing of certified copies of a register or of any parts thereof or of any entries therein at the request and on behalf of any recognised lender;

( g ) with the consent of the Minister for Finance, the fees to be charged and taken in respect of the registration of chattel mortgages in a register, the removal of chattel mortgages from a register, the inspection of registers and any other matter relating to the register;

( h ) the general preservation of the secrecy of the registers and in particular the evidence of authority to be produced by persons claiming to inspect or take copies of a register.

(9) Every register of chattel mortgages maintained in a Circuit Court Office under the enactments repealed by this Act shall be a register for the purposes of this Part and every chattel mortgage registered therein shall be deemed to have been duly registered under this Part and this Part shall apply to it accordingly.

(10) Regulations made or deemed to have been made under section 24 of the Agricultural Credit Act, 1947 , and in force immediately before the commencement of this Act shall continue in force and be deemed to have been made under this section.

(11) The expenses of carrying this section into effect shall to such extent as may be sanctioned by the Minister be paid out of money provided by the Oireachtas and any fees received pursuant to this section shall be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister may direct.

Effect of specific chattel mortgage.

27.—(1) A specific chattel mortgage shall, so long as it is duly registered under this Part and any money remains owing for principal or interest or costs on the security thereof, operate and have effect—

( a ) to prohibit the mortgagor from selling or otherwise transferring the ownership or possession of any stock comprised therein without giving to the mortgagee at least 7 days' previous notice in writing of his intention to effect the sale or transfer,

( b ) to prohibit the mortgagor from selling or otherwise transferring ownership or possession for less than a fair and reasonable price,

( c ) to impose on the mortgagor, in the event of any of the stock dying or being stolen or being destroyed by fire or other agency, the obligation to notify the mortgagee of such event within 7 days after it occurs,

( d ) to impose on the mortgagor, in the event of his selling or otherwise transferring the ownership or possession of any of the stock, the obligation to give forthwith to the mortgagee notice in writing of the sale or transfer, with such particulars thereof as the mortgagee may require,

( e ) to impose on the mortgagor, in the event of his selling or otherwise transferring the ownership or possession of any of the stock, the obligation to pay to the mortgagee, within 7 days after the sale or transfer, all sums secured by the chattel mortgage or such lesser sum as the mortgagee may in writing agree to accept or to apply the proceeds of the sale or transfer in such other manner as may have been previously authorised by the mortgagee,

( f ) to imply a covenant on the part of the mortgagor to pay to the mortgagee on demand the principal money and interest secured by the chattel mortgage at the time and in the manner thereby appointed, and

( g ) to impose on the mortgagor the obligation to preserve and keep safe the stock therein comprised and (save as may be otherwise authorised by the chattel mortgage or the mortgagee or as may be necessary for any intended lawful sale) not to remove such stock from his land.

(2) If the mortgagor under a specific chattel mortgage commits a breach (whether by commission or omission) of any provision implied in the chattel mortgage by virtue of subsection (1) (other than paragraph ( f )), or contained therein, the whole of the principal money secured by the chattel mortgage shall, on demand by the mortgagee for payment thereof, become and be due and be forthwith payable notwithstanding anything contained in the chattel mortgage.

(3) If the mortgagor under a specific chattel mortgage—

( a ) sells or otherwise transfers the ownership or possession of stock which is the subject of the mortgage without having given to the mortgagee at least 7 days' previous notice in writing of his intention to effect the sale or transfer, or

( b ) having sold or transferred the stock or any part thereof, does not within 7 days after the sale or transfer pay to the mortgagee all sums secured by the chattel mortgage or such lesser sum as the mortgagee may in writing agree to accept.

the mortgagor shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding £500 or, at the discretion of the Court, to imprisonment for a term not exceeding 2 years or to both.

(4) A copy of this section shall be endorsed on every specific chattel mortgage, but non-compliance with this provision shall not invalidate the specific chattel mortgage.

Seizure of stock under specific chattel mortgage.

28.—(1) Where—

( a ) a specific chattel mortgage is for the time being duly registered under this Part, and

( b ) any money remains owing for principal or interest or costs on the security thereof, and

( c ) either—

the principal money secured by the chattel mortgage or any part of such money or any interest thereon is unpaid for 14 days after the day appointed by the chattel mortgage for payment thereof, or

a breach of any covenant or condition contained in the chattel mortgage has been committed by the mortgagor,

the mortgagee may serve on the sheriff (or, if there is not a sheriff, the county registrar) of the county or county borough in which any of the stock comprised in the chattel mortgage is situate an order in the prescribed form requiring him to proceed in accordance with this subsection, and thereupon—

(i) the sheriff or county registrar shall, as soon as may be, seize and remove from the custody of any person (other than a bona fide purchaser for value without notice of the chattel mortgage) and from any place (other than land or premises belonging to such purchaser) within the county or county borough of the sheriff or county registrar all or any of the stock comprised in the chattel mortgage;

(ii) upon such seizure the sheriff or county registrar shall, with all convenient speed, cause the stock so seized to be sold, and shall apply the proceeds of such sale in or towards the discharge of expenses, fees and costs of the seizure and sale and of the sum certified in the order to be due on foot of the chattel mortgage, together with interest on the said sum at the rate applicable to the chattel mortgage from the date of the said order to the date of such seizure, and shall pay the surplus (if any) of such proceeds to the mortgagor.

(2) An order under subsection (1) directed to a sheriff or county registrar shall have the same effect as an execution order and shall be a sufficient authority to him to act in accordance therewith, and he shall, when acting in accordance with the order, have all such rights, powers and duties as are for the time being vested in or imposed on him by law in relation to the execution of an execution order.

(3) A sheriff or county registrar executing an order under subsection (1) shall be entitled to charge and (where appropriate) to add to the money certified in the order to be due and (in any case) to levy under the order such fees and expenses, calculated according to the scales appointed under section 14 (1) (a) of the Act of 1926, as he would be entitled to charge or add and to levy if the order were an execution order of a court of competent jurisdiction.

(4) The Minister for Justice may make regulations in relation to any matter referred to in this section as prescribed and "prescribed" in this section means prescribed by such regulations.

(5) The remedies for the recovery of money due under a specific chattel mortgage given by this section to the mortgagee shall be in addition to and not in substitution for any other remedies which the mortgagee may have by law for the recovery of such money.

Inventory of stock under chattel mortgage.

29.—(1) So long as any money remains owing for principal or interest or costs on the security of a chattel mortgage, the mortgagee may between the hours of sunrise and sunset on any day on which a civil process may be served—

( a ) in the case of a specific chattel mortgage, enter any land or premises (other than land or premises belonging to a bona fide purchaser for value, without notice of the specific chattel mortgage, of the stock comprised in the specific chattel mortgage) on or in which the said stock is and take an inventory of the said stock, or

( b ) in the case of a floating chattel mortgage, enter on the land to which the floating chattel mortgage relates and take an inventory of the stock on the land.

(2) If any person obstructs or interferes with the mortgagee in the exercise of the powers conferred on him by subsection (1), that person shall be guilty of an offence under this section and shall be liable on summary conviction thereof to a fine not exceeding £50.

(3) References in this section to the mortgagee under a chattel mortgage shall be construed as including references to the agents and servants of the mortgagee.

Effect of floating chattel mortgage.

30.—(1) A floating chattel mortgage shall, so long as it is duly registered under this Part and any money remains owing for principal or interest or costs on the security thereof, and it has not become fixed as hereinafter provided, have effect—

( a ) to create an ambulatory and shifting charge of the principal money and interest secured thereby on all stock the property of the mortgagor from time to time on the land to which the chattel mortgage relates (in this section referred to as the land), and

( b ) to prohibit the mortgagor from selling any of the stock at any time on the land otherwise than in the ordinary course of business, and

( c ) to impose on the mortgagor the obligation of maintaining the stock from time to time on the land at a level of value equivalent (as near as may be having regard to the ordinary course of business) to the value of the stock on the land at the date of the chattel mortgage, and

( d ) whenever the mortgagor sells any of the stock for the time being on the land and does not within one month replace such stock by new stock sufficient to bring the value of the stock on the land as near as may be to the value of the stock on the land at the date of the chattel mortgage, to impose on him the obligation of paying such (if any) part of the proceeds of such sale as the mortgagee shall require to the mortgagee in reduction or discharge of the principal money secured by the chattel mortgage and any interest and costs due thereon and to confer on the mortgagor the right to pay the whole or any part of such proceeds of sale to the mortgagee in reduction or discharge of such principal money and interest and costs.

(2) A floating chattel mortgage shall so long as it is duly registered under this Part have effect to imply a covenant on the part of the mortgagor, his heirs, executors and administrators with the mortgagee to pay the mortgagee the principal money and interest secured by the chattel mortgage at the times and in the manner appointed by the chattel mortgage.

Conversion of floating chattel mortgage into specific chattel mortgage.

31.—(1) Whenever—

( a ) the principal money secured by a floating chattel mortgage or any part of such money remains unpaid for 28 days after the date appointed by the floating chattel mortgage for payment thereof, or some interest secured by a floating chattel mortgage is in arrear and unpaid for 56 days after becoming due, or there has been a breach (whether by commission or omission) by the mortgagor of some provision (other than a covenant for payment of the principal money or interest secured thereby) contained in a floating chattel mortgage or implied therein by virtue of section 30 (2), and

( b ) the mortgagee has served on the mortgagor a notice in writing declaring that the floating chattel mortgage has become fixed, and

( c ) the mortgagee has, before the service of the notice, taken an inventory of the stock then on the land to which the floating chattel mortgage relates, and

( d ) the mortgagee, within 7 days after the day on which the notice has been served, sends by registered post to the Circuit Court Office or Offices where the floating chattel mortgage is registered, a true copy of the notice and of the inventory,

then—

(i) the floating chattel mortgage with effect on and from the date of the service of the notice shall, for the purposes of this Act, become and be fixed, and shall have effect as a specific chattel mortgage of all stock which is on the said land at the time of the service of the said notice, and sections 27 and 28 shall apply accordingly;

(ii) on receipt of the copies of the notice and inventory in any Circuit Court Office, there shall be entered in the register of chattel mortgages the fact that the notice has been served and the particulars of the stock set out in the inventory, and that entry shall, until the contrary is proved, be evidence in any proceedings that the notice was served and that the stock, particulars of which are so entered in the register, was on the land on the date on which the notice was served.

(2) ( a ) A notice in writing declaring that a floating chattel mortgage has become fixed shall, for the purposes of subsection (1), be sufficiently served on the mortgagor if—

(i) in case the mortgagor is an individual, a copy thereof is—

(I) delivered to the mortgagor, or

(II) left for the mortgagor, at the mortgagor's last or most usual place of abode or business in the State, with any person (being the wife or husband of a relative, agent, clerk or servant of the mortgagor) who is aged sixteen years or upwards, or

(ii) in case the mortgagor is a body corporate, a copy thereof is left for the mortgagor, at the mortgagor's place of business, with any agent, clerk or servant of the mortgagor who is aged sixteen years or upwards.

( b ) For the purposes of this subsection, a company registered under the Companies Act, 1963 , shall be deemed to carry on business at its registered office, and every other body corporate shall be deemed to carry on business at its principal office or place of business.

(3) A copy of section 27 shall to endorsed on every notice served under subsection (1) but non-compliance with this provision shall not invalidate the notice.

Effect of chattel mortgage on distraints.

32.—A chattel mortgage shall not prevent or restrict the lawful seizure of any stock comprised therein or affected thereby by a duly authorised officer distraining or levying under the Income Tax Acts or a rate collector distraining for rates or a landlord distraining for rent.

Effect of chattel mortgage on execution orders.

33.—(1) A chattel mortgage shall not prevent or restrict the lawful seizure and sale of any stock comprised therein or affected thereby under—

( a ) a warrant issued under section 28 of the Land Act, 1933 , or

( b ) an execution order issued for the enforcement of a judgement or order for the payment of—

(i) money due or payable to or for the benefit of the Central Fund, or

(ii) money in respect of advances made out of money provided by the Oireachtas or the interest on such advances, or

(iii) money due or payable to the Land Commission under the Land Purchase Acts, or

(iv) money due to the Commissioners of Public Works in Ireland in respect of a local loan, within the meaning of the Local Loans Fund Act, 1935 , or

(v) money due to a rate collector in respect of rates levied by the council of a county, the corporation of a county or other borough, the council of an urban district or the commissioners of a town.

(2) A floating chattel mortgage shall not prevent or restrict the lawful seizure and sale of any stock comprised therein or affected thereby under an execution order issued for the enforcement of a judgment or order for the payment of money due or payable to a landlord in respect of rent.

(3) Save as is provided in subsections (1) and (2) no, stock comprised in or affected by a chattel mortgage shall be seized or sold under an execution order, unless before the seizure the creditor has previously obtained the consent in writing of the mortgagee or has paid to the sheriff or county registrar executing the execution order the full amount of the principal money and interest and costs then owing and unpaid on the security of the chattel mortgage.

(4) Whenever a creditor pays under subsection (3) to a sheriff or county registrar the full amount owing on the security of a chattel mortgage—

( a ) the sheriff or county registrar shall pay the amount to the mortgagee and the mortgagee shall accept the amount in discharge of the money secured by the chattel mortgage notwithstanding anything to the contrary contained in the chattel mortgage and in particular notwithstanding that the money is not then due or payable, and

( b ) the amount shall be added to the debt for which execution is leviable under the execution order, and the execution order shall have effect accordingly.

(5) For the purpose of enabling a creditor to take advantage of the provisions of subsections (3) and (4)—

( a ) whenever a creditor requires an execution order to be executed against any stock, the sheriff or county registrar shall inspect the appropriate register of chattel mortgages and if, on that inspection, the stock is found to be comprised in or affected by a chattel mortgage he shall inform the creditor of the existence of the chattel mortgage, the date thereof and the name and address of the mortgagee, and

( b ) the mortgagee shall on demand made by the creditor furnish to the sheriff or county registrar for transmission to the creditor a statement of the full amount of the principal money and interest and costs then owing and unpaid on the security of the chattel mortgage.

(6) In this section "creditor" means the person at whose instance on execution order is issued, but does not include the mortgagee under a chattel mortgage.

Priorities of chattel mortgages.

34.—(1) Chattel mortgages shall have priority in accordance with the times at which they are respectively registered under this Part.

(2) Stock comprised in a specific chattel mortgage or in a floating chattel mortgage which has become fixed shall not be deemed to be in the possession, order or disposition of the mortgagor within the meaning of the Irish Bankrupt and Insolvent Act, 1857.

Disclosure of chattel mortgage to creditor.

35.—(1) It shall be an obligation on every person (in this section referred to as the debtor) who seeks from another person (in this section referred to as the creditor) the grant or continuance of credit to disclose in writing to the creditor (if required in writing by the creditor so to do) whether there is or is not a chattel mortgage subsisting in respect of any of the debtor's stock and the particulars of every (if any) such chattel mortgage.

(2) No creditor shall disclose any information furnished to him by the debtor in pursuance of this section save in so far as such disclosure may be necessary or proper for the purposes of a prosecution under this section or for the institution or conduct of legal proceedings for the recovery of money due by the debtor to the creditor.

(3) Every person who makes in writing a statement in pursuance of this section which is to his knowledge false or misleading in any material respect and every person who, in contravention of this section, discloses any information furnished to him in pursuance of this section shall be guilty of an offence and shall be liable on summary conviction thereof to a penalty not exceeding £50.

Avoidance of bills of sale of stock.

36.—(1) A bill of sale of stock (whether including or not including any other chattels) made after the commencement of this Act shall, notwithstanding anything contained in the Bills of Sale (Ireland) Acts, 1879 and 1883, be void and be incapable of being registered under those Acts.

(2) For the purposes of subsection (1) and of any enactment repealed by this Act, a floating charge on stock created by a body corporate shall not be, and shall be deemed never to have been, a bill of sale.

PART IV CHARGES ON LAND IN FAVOUR OF THE CORPORATION

CHAPTER I Preliminary

Definitions for Part IV.

37.—In this Part—

"the Act of 1964" means the Registration of Title Act, 1964 ;

"charge" includes mortgage and any other means by which land is charged with or made liable for or security for the payment of money;

references to equitable claims against registered land shall be construed as references to estates and interests in, and incumbrances on, and claims against, such land which at the date of the registration of a priority charge against the land are not entered in a register but are preserved by virtue of the registration of the owner otherwise than with an absolute title and references to an equitable claimant shall be construed accordingly;

"interest in lieu of rent" includes any money payable under that name to the Land Commission under the Land Purchase Acts;

"payment in lieu of rent" includes any money payable under that name to the Land Commission under the Land Purchase Acts;

"interest on purchase money" includes any money payable under that name to the Land Commission under the Land Purchase Acts;

"land purchase annuity" means a terminable annuity payable under that name to the Land Commission under the Land Purchase Acts in repayment of an advance made by that Commission under those Acts;

"mortgage" includes any instrument by which land is charged with or made liable for or security for the payment of money;

"mortgagor" means a person by whom a priority charge is given and the heirs, executors, administrators and assigns of such person;

"periodic (Land Commission) sum" means any sum for the time being payable to the Land Commission being—

( a ) rent, or

( b ) interest in lieu of rent, or

( c ) payment in lieu of rent, or

( d ) interest on purchase money, or

( e ) any annual or other periodic payment whatsoever;

"permanent improvement charge" means, in relation to any land, a priority charge on the land in respect of which it is shown by the mortgagor that—

( a ) the principal sum secured by the charge was advanced by the Corporation solely for permanent improvement purposes, and

( b ) the said principal sum was expended for one or more of those purposes;

"permanent improvement purposes", in relation to a charge on land, means any one or more of the following purposes—

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

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

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

( d ) paying the costs and expenses of borrowing the money secured by the charge and giving security for the repayment thereof;

"priority charge" means—

( a ) in relation to registered land, a charge on the registered land to which priority is given by section 39;

( b ) in relation to unregistered land, a charge on the unregistered land to which priority is given by section 42;

"puisne claim" means, in relation to unregistered land, any estate or interest in, or incumbrance on, or claim against the land which is postponed in priority by virtue of section 42 to a priority charge on the land;

"puisne claimant" means, in relation to unregistered land, a person entitled to a puisne claim;

"register" means a register maintained under the Act of 1964;

"registered land" means land the ownership of which is entered in a register;

"the registering authority" means the registering authority under the Act of 1964;

"registration" means registration in a register and cognate words shall be construed accordingly;

"the Registry of Deeds" means the office for registering deeds, conveyances and wills in Ireland;

"unregistered land" means land which is, at the date of the execution of the relevant instrument of charge in favour of the Corporation, subject to a periodic (Land Commission) sum and is not registered land.

Application of Part IV to existing charges.

38.—This Part applies in respect of every charge on land given before the commencement of this Act in favour of the Corporation and subsisting immediately before such commencement and to which this Part would have been applicable if it had been in force at the time the charge was given, and any proceedings taken or thing done before such commencement as respects the charge under any provision of the Acts repealed by this Act shall be deemed to have been taken or done under the corresponding provision of this Act.

CHAPTER 2 Registered Land

Priority of charges in favour of Corporation.

39.—(1) Where a charge in favour of the Corporation for the repayment of a loan is registered as a burden affecting registered land, then, subject to subsection (2) and (3), the charge (including interest and the costs and expenses of all legal proceedings instituted by the Corporation for the purpose of realising the amount at any time owing on foot of the charge) shall as against the land be in priority to and shall override any equitable claim against the land.

(2) Where—

( a ) at the date of an instrument creating a charge on registered land which, but for this subsection, would on registration be a priority charge, a caution to which section 97 of the Act of 1964 applies appears on the register as affecting the land, and

( b ) the caution was lodged by a person claiming to be entitled to an equitable claim against the land, and

( c ) that equitable claim is at any time after the registration of the charge registered as an estate or interest in or burden on the land,

then, notwithstanding subsection (1), the relative priorities of the charge and the equitable claim shall, unless that person agrees to the contrary, be determined as if subsection (1) had not been enacted.

(3) Subsection (1) shall not operate in respect of any charge the effect of which is to make the land subject to the repayment of a total amount of outstanding principal exceeding £25,000 on foot of charges under that subsection.

Equitable interests.

40.—(1) A priority charge on registered land which is not a permanent improvement charge on the land shall as between the mortgagor and equitable claimants (other than the mortgagor) against the land be deemed to be charged on all and every (if any) estate and interest in the land to which the mortgagor was at the date of the registration of the priority charge or becomes at any time thereafter beneficially entitled in indemnification of all equitable claims against the land by equitable claimants other than the mortgagor.

(2) Money paid to the Corporation by, or out of the share, estate or interest of, an equitable claimant (other than the mortgagor) on foot of a priority charge on registered land which is not a permanent improvement charge on the land shall be repaid to the equitable claimant by the mortgagor on demand with interest thereon at the rate applicable to the charge and until so repaid the money and interest thereon shall be a debt due by the mortgagor to the equitable claimant and shall be deemed to be charged in favour of the equitable claimant on all and every (if any) estate and interest to which the mortgagor is beneficially entitled in the land or the proceeds of the sale thereof at the date of payment to the Corporation.

Protection of minors and persons of unsound mind.

41.—(1) Where registered land is subject to a priority charge which is not a permanent improvement charge and an equitable claimant against the land is, at the date of registration of the priority charge, under the age of twenty-one years or of unsound mind, the equitable claimant shall be entitled at any time after registration (but, in case he is under the age of twenty-one years at the time of the registration, not after he attains the age of twenty-five years) to obtain from the Circuit Court an order that the mortgagor shall, by giving security, lodgement of money in Court or such other means as shall be approved of by the Court, give to the equitable claimant an indemnity which in the opinion of the Court adequately protects his equitable claim against the priority charge and that in default of the mortgagor giving such indemnity within three months after the date of the order the registered land be sold by the Court and the proceeds of sale be applied according to law and that in any event the costs of the equitable claimant in relation to the order, the application therefor and all proceedings thereunder when taxed as between solicitor and client be paid by the mortgagor.

(2) An indemnity given by a mortgagor in pursuance of subsection (1) shall be enforceable, with the leave of the Circuit Court and in such manner as that Court directs, whenever the priority charge in respect of which the indemnity was given is enforced to the prejudice of the equitable claim for the protection of which the indemnity was given or in such other circumstances as in the opinion of the Court render it just and equitable that the indemnity should be enforced.

(3) The rights and benefits conferred on any equitable claimant by this section shall be in addition and without prejudice to any other rights or benefits to which he may be entitled under this Act.

(4) No order under subsection (1) shall be granted without notice to the mortgagor unless the Court thinks proper to dispense with notice.

CHAPTER 3 Unregistered Land

Priority of charges in favour of Corporation.

42.—(1) Where—

( a ) a person is in occupation of land which is for the time being subject to a periodic (Land Commission) sum, and

( b ) he is certified by the Land Commission to be the person by whom the sum is payable at the date of the certificate, and

( c ) he (either alone or in conjunction with other persons) within one month after the date of the certificate charges the land in favour of the Corporation with repayment of a loan, and

( d ) the instrument effecting the charge is duly registered in the Registry of Deeds,

then, subject to subsections (2) and (3), the charge (including interest and the costs and expenses at all legal proceedings instituted by the Corporation for the purpose of realising the amount at any time owing to the Corporation on foot of the charge) shall as against the land so charged be in priority to and shall override all estates and interests in and all incumbrances and burdens on the land which may be subsisting at the date of the instrument except the said periodic (Land Commission) sum, compounded arrears of rent within the meaning of the Land Purchase Acts, mortgages in favour of the Land Commission, any land purchase annuity which may subsequently be charged on the land under the Land Purchase Acts, any annuity, rent charge or other periodic payment payable to the Commissioners of Public Works in Ireland, any charge or mortgage in favour of the said Commissioners on foot of any moneys due or payable to them in respect of a local loan within the meaning of the Local Loans Fund Act, 1935 , and any of the charges mentioned in paragraphs (a), (b), (f) and (h) of section 72 of the Act of 1964.

(2) Where at the date of an instrument effecting a charge on land which would, on such instrument being registered in the Registry of Deeds, be entitled, but for this subsection. to priority under this section, a caution to which section 96 of the Act of 1964, as extended by section 43 applies appears in the Land Registry as affecting such land, then, notwithstanding subsection (1), the relative priorities of the charge and of the estate, interest, incumbrance or other claim against the land of the person by whom the caution was lodged shall, unless that person agrees to the contrary, be determined as if subsection (1) had not been enacted.

(3) Subsection (1) shall not operate in respect of any charge the effect of which is to make the land subject to the repayment of a total amount for outstanding principal exceeding £25,000 on foot of charges under that subsection.

Lodgement of cautions by puisne claimants.

43.—(1) Any person claiming to be entitled to an estate or interest in or incumbrance on or claim against any unregistered land which is a puisne claim against the land or would become a puisne claim if a priority charge were created on the land, may (whether the instrument, if any, under which the claim arises is or is not registered in the Registry of Deeds) lodge under section 96 of the Act of 1964 a caution against the registration against the land, on or after the first registration thereof, of any dealing with the land in favour of the Corporation to the prejudice of the claim.

(2) Where a caution is so lodged, subsection (2) of the said section 96 shall not apply to the caution but in lieu thereof the caution shall, on the first registration of the land, be entered on the folio relating to the land as a caution lodged under section 97 of the Act of 1964 and shall have effect accordingly.

Rights of puisne claimants.

44.—(1) A priority charge on unregistered land which is not a permanent improvement charge against the land shall, as between the mortgagor and puisne claimants against the land, be deemed to be charged on all and every (if any) estate and interest in the land to which the mortgagor was at the date of registration of the priority charge or becomes at any time thereafter beneficially entitled in indemnification of all puisne claims against the land by puisne claimants.

(2) Money paid to the Corporation by, or out of the share, estate or interest of, a puisne claimant (other than the mortgagor) against unregistered land on foot of a priority charge which is not a permanent improvement charge on the land shall be repaid to the puisne claimant by the mortgagor on demand with interest thereon at the rate applicable to the charge and until so repaid such money and the interest thereon shall be a debt due by the mortgagor to the puisne claimant and shall be deemed to be charged in favour of the puisne claimant on all and every (if any) estate and interest to which the mortgagor is beneficially entitled in the land or the proceeds of the sale thereof at the date of payment to the Corporation.

Protection of minors and persons of unsound mind.

45.—(1) Where unregistered land is subject to a priority charge which is not a permanent improvement charge and a puisne claimant against the land is, at the date of registration of the priority charge, under the age of twenty-one years or of unsound mind, the puisne claimant shall be entitled at any time after registration (but, in case the puisne claimant is under the age of twenty-one years at the time of registration, not after he attains the age of twenty-five years) to obtain from the Circuit Court an order that the mortgagor shall, by giving security, lodgement of money in Court or such other means as are approved of by the Court, give to the puisne claimant an indemnity which in the opinion of the Court adequately protects his puisne claim against the priority charge and that in default of the mortgagor giving the indemnity within three months after the date of the order the land be sold by the Court and the proceeds of sale be applied according to law and that in any event the costs of the puisne claimant in relation to the order, the application therefor and all proceedings thereunder when taxed as between solicitor and client be paid by the mortgagor.

(2) An indemnity given by a mortgagor in pursuance of subsection (1) shall be enforceable, with the leave of the Circuit Court and in such manner as that Court directs, whenever the priority charge in respect of which the indemnity was given is enforced to the prejudice of the puisne claim for the protection of which the indemnity was given or in such other circumstances as in the opinion of the Court render it just and equitable that the indemnity should be enforced.

(3) The rights and benefits conferred on any puisne claimant by this section shall be in addition and without prejudice to any other rights or benefits to which such puisne claimant may be entitled under this Act.

(4) No order under subsection (1) shall be granted without notice to the mortgagor unless the Court thinks proper to dispense with notice.

Lodgement of cautions by the Corporation.

46.—Whenever the Corporation claims to be an incumbrancer on unregistered land by virtue of an instrument registered in the Registry of Deeds, the Corporation may, notwithstanding anything to the contrary in section 96 of the Act of 1964, lodge with the registering authority a caution under that section, and when the caution is so registered the registering authority may, on the first registration of the land, register the incumbrance created by the instrument as a burden affecting the land with such priority (if any) as is given to the incumbrance by this Act or otherwise by law.

CHAPTER 4 Miscellaneous Provisions in relation to Charges on Land

Charges by tenants for life.

47.—(1) Any person who is a tenant for life within the meaning of the Settled Land Acts, 1882 to 1890, of any land or has under those Acts the powers of a tenant for life in respect of any land may borrow from the Corporation and the Corporation may lend to any such person money for permanent improvement purposes on the security hereinafter authorised.

(2) Money borrowed under this section shall be paid by the Corporation to the trustees for the purposes of the Settled Land Acts, 1882 to 1890, of the settlement under which the borrower is tenant for life or has the powers of a tenant for life or to persons appointed under this section to receive the money, and the money shall be capital money arising under the said settlement within the meaning of the said Acts, and the purpose for which the money is borrowed under this section shall be a purpose for which capital money may be applied under the said Acts, and the said Acts shall apply to the said money accordingly.

(3) Where money is proposed to be borrowed under this section on behalf of an infant full owner of land deemed under section 59 of the Settled Land Acts, 1882, to be a tenant for life and there are not trustees for the purposes of the Settled Land Acts, 1882 to 1890, the Corporation may, with the consent of the President of the High Court, nominate two suitable persons to receive the money and thereupon the persons so nominated shall become and be trustees for the purposes of the said Acts in respect of such money but no further or otherwise.

(4) Where money is proposed to be borrowed under this section and there are not trustees for the purposes of the Settled Land Acts, 1882 to 1890, of the settlement under which the borrower is tenant for life or has the powers of a tenant for life under those Acts and the rateable valuation of the land comprised in the settlement does not exceed £100, the Minister for Agriculture may nominate two suitable persons (other than the borrower) to receive such money and thereupon the persons so nominated shall become and be trustees for the purposes of the said Acts of the said settlement in respect of such money but no further or otherwise.

(5) Where money is borrowed under this section the borrower or the trustees nominated under subsection (3) may charge all the land comprised in the settlement with the repayment to the Corporation of the money so borrowed and the interest thereon and such charge shall have effect as a disposition under the Settled Land Acts, 1882 to 1890, and, where the circumstances are such that such charge, if made under section 39 (1) or 42 (1), would be a priority charge, such charge shall be a priority charge and a permanent improvement charge and Chapter 2 or 3 (as the case may require) of this Part shall apply to such charge accordingly.

Charges by personal representatives.

48.—A personal representative of a deceased person shall be entitled to mortgage or charge the land of the deceased person, by way of priority charge or otherwise—

( a ) to secure the repayment to the Corporation of an advance or advances not exceeding £25,000 and interest thereon, made to him as such for any purpose for which the Corporation is entitled to make an advance to any person, or

( b ) to secure the payment to the Corporation of any money liable to be paid by it on foot of a guarantee of the payment of money not exceeding in amount £25,000 and interest thereon by the personal representative given by the Corporation in respect of the personal representative as such for any purpose for which the Corporation is entitled to give a guarantee in respect of any person,

and any such mortgage or charge shall be deemed to have been given or made in due course and for the purpose of administering the estate of the deceased person.

Sales by Corporation under priority charges.

49.—(1) Whenever the Corporation, in exercise of the powers of sale conferred on it by the Conveyancing Act, 1881, or otherwise as registered owner of a priority charge on registered land, sells the whole or any part of the land on which the priority charge is registered as a burden—

( a ) the power of the Corporation to transfer land so sold to the purchaser shall be exercisable as if the land were registered with an absolute title, and

( b ) such transfer shall have the same effect as if the land were so registered.

(2) Whenever the Corporation, in exercise of the powers of sale conferred on it by the Conveyancing Act, 1881, or otherwise as a mortgagee under and by virtue of a priority charge on unregistered land, sells the whole or any part of the land—

( a ) the power of the Corporation to convey land so sold to the purchaser shall be exercisable so as to convey to the purchaser all the estate and interest of the mortgagor in the land,

( b ) a conveyance of the land by the Corporation, in exercise of its powers as mortgagee, shall operate to convey to the purchaser all the estate and interest of the mortgagor in the land, and

( c ) the conveyance shall have the same effect and operation as if the mortgagor was at the date of the instrument of charge beneficially entitled to the estate or interest in the land created by any agreement or undertaking to purchase entered into or deemed to have been entered into with the Land Commission by him or his predecessors in title in respect of the land freed from all interests, incumbrances and claims other than those saved and excepted by section 42, but subject to all conditions (whether statutory or contained in any such agreement or undertaking to purchase) which affected the mortgagor's estate or interest in the land immediately before the sale by the Corporation.

(3) The purchase money arising from a sale by the Corporation in exercise of its powers of sale (other than a sale by order or direction of the Court) of land subject to a priority charge shall, after discharge of prior incumbrances to which the sale is not made subject, if any, and over which such priority charge has not been given priority by this Act, be applied in discharge of the principal money and interest due on the security of the priority charge and in payment of the costs charges and expenses properly incurred by the Corporation as incident to the sale or any attempted sale of the land and the residue of the purchase money shall be paid to the mortgagor or other person or persons authorised to give receipts for the proceeds of sale of the property charged, provided always that in any case of doubt as to the person or persons entitled to receive the residue the Corporation shall pay it into Court pursuant to the provisions of the Trustee Act, 1893, or the provisions of that Act and of the County Officers and Courts (Ireland) Act, 1877, as the case may be.

(4) If, after the money secured by a priority charge becomes due, the Corporation institutes proceedings in the High Court or in the Circuit Court to realise its security and obtains an order or decree for sale of the land charged or any part thereof in default of payment of the amount due to the Corporation, then on the application of the Corporation. the Court may—

( a ) direct that the land be sold by the Corporation out of Court (with liberty to the Corporation to bid at the sale) at any time after the expiration of the period fixed for payment by the order or decree (notwithstanding that any account of debts and incumbrances, inquiry as to priorities or other account or inquiry directed by the order or decree has not been taken or made at the time of sale), and

( b ) fix the reserve price and the remuneration of he auctioneer, and

( c ) direct that the residue of the purchase money produced by the sale, after payment and discharge thereout of all prior incumbrances to which the sale is not made subject, if any, and over which the priority charge has not been given priority by this Act, and the principal money, interest and costs due to the Corporation together with the costs and expenses of and incident to the sale, be paid into Court to the credit of the suit.

(5) A direction under subsection (4) (c) may be given by the Court in the absence of any evidence that all or any parties interested in the land ordered to be sold are before the Court or are bound by the order or decree for sale and the sale shall not be deemed to be proceedings altogether out of Court.

(6) Nothing in this section shall affect any powers of resumption of land conferred on the Land Commission by the Land Purchase Acts.

Sale by land Commission of land subject to charge.

50.—Where—

( a ) land is offered for sale by the Land Commission under any statutory power in that behalf vested in them, and

( b ) the land is subject to a charge in favour of the Corporation to secure the repayment of money, and

( c ) the money is expressed in the instrument of charge to have been advanced for permanent improvement purposes and for no other purpose,

the land shall be sold subject to the charge in addition to any other charge, incumbrance or liability subject to which the land is required to be sold.

Charges by evicted tenants.

51.—Notwithstanding section 35 of the Land Act, 1927 —

( a ) a priority or other charge in favour of the Corporation created by an evicted tenant on a parcel of land purchased by him under the Land Purchase Acts shall be a good and valid charge on the land, and

( b ) the Corporation may enforce the charge by any process or proceeding of law.

Adaptation of references in other enactments to permanent improvement charges.

52.—Every reference in any enactment (other than this Act) to a permanent improvement charge under this Act or any enactment repealed by this Act shall be construed as a reference to a charge on land in favour of the Corporation to secure any money which is expressed in the instrument of charge to have been advanced for permanent improvement purposes.

Exemption from stamp duty and fees.

53.—(1) Stamp duty shall not be chargeable on any instrument whereby a charge or mortgage in favour of the Corporation is created or released or a charging order under Chapter 5 of this Part or a condition subject to which moneys are lent or advanced. or a guarantee is given, by the Corporation is varied or amended or the consent of the registered owner or the person in occupation of the land to which the charge relates or the personal representative of such owner or person is given to such creation, variation or amendment.

(2) No fee or other payment shall be charged or imposed by the registering authority for the registration in a register or in the Registry of Deeds of a charge or mortgage created in favour of the Corporation or for the cancellation of the entry of a charge or mortgage in favour of the Corporation in a register or in the Registry of Deeds, as the case may be, or for he registration or other notation in a register of the variation or amendment of a charging order in favour of the Corporation.

CHAPTER 5 Charging Orders

Charging money advanced by Corporation.

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

( a ) a registered owner of land, or

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

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

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

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

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

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

the provisions of this section shall have effect.

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

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

( a ) the date of the order, or

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

whichever is the later.

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

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

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

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

Effect of charging order.

55.—A charge created under this Chapter shall be deemed to be a mortgage made by deed within the meaning of the Conveyancing Acts, 1881 to 1911, and the Corporation shall be the mortgagee for the purposes of those Acts and, accordingly, shall have all the powers conferred by those Acts on mortgagees under mortgages made by deed and a charge created under this Chapter shall, upon registration thereof, be deemed to be a registered charge within the meaning of the Registration of Title Act, 1964 , and the land to which the charge relates shall be deemed, for the purposes of section 39, to have been charged by the registered owner thereof in favour of the Corporation with the repayment of the amount of the charge and the payment of the interest.

Money payable on foot of charge.

56.—(1) ( a ) All money payable on foot of a charge created under this Chapter in respect of money lent or advanced by the Corporation to the registered owner of land or his personal representative or paid by the Corporation on foot of a guarantee given by the Corporation of the payment of money by the registered owner of land or his personal representative shall be recoverable from the person who is the registered owner of the land subject to the charge at the time when proceedings for recovery of the money payable on foot of the charge are commenced as a personal liability of that person.

( b ) Nothing in this subsection shall relieve any other person from liability in respect of any such money and, as between successive registered owners of the land subject to the charge, all money paid or recovered from a registered owner on foot of a charge and for the payment of which a former registered owner was liable shall be recoverable by the registered owner who has paid it, or from whom it has been recovered, as a debt due to him by the registered owner in default.

(2) ( a ) All money payable on foot of a charge created under this Chapter in respect of money lent or advanced by the Corporation to a person in occupation of land (other than the registered owner of the land) or paid by the Corporation on foot of a guarantee given by the Corporation of the payment of money by a person in occupation of land (other than the registered owner of the land) shall be recoverable from the person in occupation (whether as registered owner or otherwise) of the land subject to the charge at the time when proceedings for recovery of the money payable on foot of the charge are commenced as a personal liability of that person.

( b ) Nothing in this subsection shall relieve any other person from liability in respect of any such money and, as between persons successively in occupation (whether as registered owners or otherwise) of the land subject to the charge, all money paid or recovered from a person in occupation of the land on foot of a charge and for the payment of which a person previously in occupation of the land was liable shall be recoverable by the person who has paid it, or from whom it has been recovered, as a debt due to him by the person in default.

Conditions and variation of charging order.

57.—(1) Where a charge is created under this Chapter in relation to money lent or advanced to any person by the Corporation or in relation to a guarantee given by the Corporation of the payment of money by any person, the loan, advance or guarantee shall be subject to such conditions (including conditions providing for the payment of interest, the manner of repayment of the money lent or advanced by the Corporation or of any money paid by the Corporation on foot of a guarantee given by the Corporation of the payment of money by the person and payment of the interest, whether by instalments or otherwise, and the time for repayment of any such money and the payment of the interest) as may be determined by the Corporation with the consent of that person when the Corporation agrees to make the loan or advance or give the guarantee, as the case may be, and the conditions may be varied or amended subsequently in any manner whatsoever by the Corporation with the consent of the person liable to repay the money, and the conditions (including conditions as subsequently varied or amended) shall be deemed to be and shall operate as covenants entered into with the Corporation by the person liable to repay the money.

(2) A charging order may, with the consent of the person liable to repay the money to which the order relates, be varied or amended by the Corporation.

(3) Where a charging order is varied or amended under this section, the Corporation shall transmit to the registering authority a certificate under its seal containing particulars of the variation or amendment.

(4) Upon transmission to the registering authority of a certificate purporting to be under the seal of the Corporation and to contain particulars of the variation or amendment under this section of a charging order, the variation or amendment shall be registered or otherwise noted by the registering authority in the register in which the charge created by the charging order is registered.

Cancellation of charge.

58.—Where all money payable on foot of a charge created under this Chapter has been repaid to the Corporation and the registered owner or the person in occupation of the land to which the charge relates requests the Corporation to release the charge, the Corporation shall thereupon transmit to the registering authority a certificate under its seal stating that all money payable on foot of the charge has been repaid to the Corporation, and upon transmission to the registering authority of a certificate purporting to be under the seal of the Corporation and stating that all money payable on foot of the charge to which it relates has been repaid to the Corporation, the entry of the charge in the register in which it is entered shall be cancelled.

PART V AGRICULTURAL CO-OPERATIVE SOCIETIES

Co-operative society.

59.—In this Part "co-operative society" means a society registered under the Industrial and Provident Societies Act, 1893.

Rules of co-operative societies.

60.—The rules of a co-operative society may provide for all or any one or more of the following—

( a ) advances of money by the society to its members on security other than the security of real or personal property, where such advances are made out of money advanced to the society by the Corporation;

( b ) guarantees by the society of the repayment of advances and the payment of interest on advances made by the Corporation to members of the society;

( c ) the society acting as agent for the Corporation in the making of advances by the Corporation to members of the society.

Restrictions on activities of co-operative societies owing money to the Corporation.

61.—(1) So long as any portion of a loan or advance made by the Corporation to a co-operative society (in this subsection referred to as the debtor society) remains owing to the Corporation—

( a ) the debtor society shall not lend money at interest to any person other than a person to whom the Corporation may lend or advance money;

( b ) the debtor society shall not lend money at interest to any body corporate engaged in or carrying on, as a substantial part of its business, the selling by retail of any goods which are neither produced by that body corporate or (if it is a co-operative society) its members nor are requisites of agricultural production or marketing;

( c ) the debtor society shall not itself engage in or carry on, as a substantial part of its business, the selling by retail of any goods which are neither produced by the debtor society or its members nor are requisites of agricultural production or marketing;

( d ) if the debtor society contravenes paragraph (a), (b) or (c) the whole of the loan or advance or so much of it as remains owing to the Corporation shall (notwithstanding any agreement to the contrary) forthwith become due and payable by the debtor society to the Corporation.

(2) Where the goods sold by a body corporate are mainly goods produced by that body corporate or (if it is a co-operative society) its members, any similar goods occasionally sold by that body corporate may for the purposes of subsection (1) be deemed to have been so produced although in fact produced by other persons and purchased by that body corporate from them.

Section 7.

SCHEDULE

ENACTMENTS REPEALED

Number and Year	Short Title	Extent of Repeal
No. 24 of 1927.	Agricultural Credit Act, 1927 .	The whole Act.
No. 30 of 1929.	Agricultural Credit Act, 1929 .	The whole Act.
No. 39 of 1934.	Agricultural Co-operative Societies (Debentures) Act, 1934 .	Section 4 (1): the words "and with such consent of the Minister as is mentioned in this Act" and "capital sum of". Section 5.
No. 14 of 1947.	Agricultural Credit Act, 1947 .	The whole Act.
No. 13 of 1961.	Agricultural Credit Act, 1961 .	The whole Act.
No. 12 of 1965.	Agricultural Credit Act, 1965 .	The whole Act.
No. 6 of 1969.	Agricultural Credit Act, 1969 .	The whole Act.
No. 3 of 1972.	Agricultural Credit Act, 1972 .	The whole Act.
No. 31 of 1973.	Agricultural Credit Act, 1973 .	The whole Act.
No. 17 of 1975.	Agricultural Credit Act, 1975 .	The whole Act.

ACTS REFERRED TO

Agricultural Credit Act, 1947	1947, No. 14.
Bills of Sale (Ireland) Act, 1879	1879, c. 50.
Companies Act, 1963	1963, No. 33.
Conveyancing Act, 1881	1881, c. 41.
County Officers and Courts (Ireland) Act, 1877	1877, c. 56.
Enforcement of Court Orders Act, 1926	1926. No. 18.
Enforcement of Court Orders Act, 1940	1940, No. 23.
Industrial and Provident Societies Act, 1893	1893, c. 39.
Irish Bankrupt and Insolvent Act, 1857	1857, c. 60.
Land Act, 1927	1927, No. 19.
Land Act, 1933	1933, No. 38.
Local Loans Fund Act, 1935	1935, No. 16.
Registration of Title Act, 1964	1964, No. 16.
Settled Land Act, 1882	1882. c. 38.
Trustee Act, 1893	1893. c. 53.

Irish Legislation

Agricultural Credit Act, 1978