The Gazette 1978

GAZETTE

JULY-AUGUST 1978

The Agricultural Corporation

Act 1978

Vincent Crowley, Solicitor

The purpose of the Act is to increase the powers of the

Agricultural Credit Corporation in relation to loans and

to facilitate lending generally. The act is primarily to

benefit farmers only and a farmer is defined as an

individual who carries on or intends to carry on some

form of agriculture and agriculture includes breeding and

rearing of animals and dairying and the the pasturing of

animals.

The first part of the Act deals with the powers of the

Agricultural

Credit

Corporation

including the

following:—

1. Its participation in agricultural projects.

2. Its memorandum of Association.

3. Its Directors.

4. Its share capital.

5. Borrowing.

6. Advances by the Minister.

Part 3 of the act deals with chattel mortgages.

Chattel Mortgages

Section 23 creates what is called a Chattel Mortgage

which is defined as an instrument under seal made

between a recognised borrower of the one part and a

recognised lender of the other part which can be:

(a) A floating chattel mortgage, or

(b) A specific chattel mortgage, or

mortgage.

A 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

to the borrower.

A specific chattel mortgage means an Instrument under

seal made between a borrower of the one part and a

lender of the other part whereby the borrower charges

specific stock with the payment to the lender of any

money advanced or to be advanced to the borrower. For

the purposes of the above stock includes the following:

(a) Animals and birds of every kind.

(b) Insects and fish of every kind.

(d) Trees of every kind.

(e) Machinery of every kind.

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 act in so far as it creates a

charge on specific stock be a specific chattel mortgage

and in so far as it creates a floating charge on the stock be

a floating chattel mortgage.

In other words a hopeful borrower from the

Agricultural Credit Corporation can give in consideration

of a loan a Chattel Mortgage in favour of the A.C.C. over

the stock on his land. This chattel mortgage will be an

instrument under seal.

Under Section 24 the Chattel Mortgage can only be

used for the purchase of specific stock by a farmer and

under Section 26 this Chattel Mortgage will have to be

registered in the Circuit Court office. The Chattel

mortgage

must

be registered within one month of its

creation. The mortgagee may at any time cause the

chattel mortgage to be removed from the register.

However, once the principal money secured under the

Chattel Mortgage is repaid the Chattel Mortgage must be

removed.

An important provision is that under Section 26

Subsection 6 the contents of any Register of Chattel

Mortgages shall not be published or disclosed but there

are five recognised exceptions to this rule under the act.

The Minister though may make regulations in relation to

Chattel Mortgages.

The effects of specific Chattel Mortgages are as

follows:—

1. It prohibits the Mortgagor from selling or disposing of

any stock comprised in the Mortgage without 7 days

notice in writing to the Mortgagee of intention to effect

the sale and to furnish the Mortgagee with particulars

thereof.

2. It imposes on the Mortgagor an obligation to pay to

the Mortgagee all sums secured by the Chattel Mortgage

within 7 days of sale.

3. The Chattel Mortgage imposes implied conditions to

pay the principal money on demand and interest thereon

to the Mortgagee and an obligation to preserve and keep

safe the stock on the lands.

If the Mortgagor under a Specific Chattel Mortgage

commits a breach the whole of the principal monies

secured becomes payable to the Mortgagee.

If the Mortgagor does not give the required 7 days

notice to the Mortgagee when in the process of selling

stock or dealing with his stock in any way he shall be

liable to a fine not exceeding £500 and/or imprisonment

not exceeding two years. Section 28 provides for the

seizure of stock under a specific chattel mortgage which is

carried out by the Sheriff in the County on notice to him

and without a court order.

Floating Chattel Mortgage

Section 30 deals with the effect of a Floating Chattel

mortgage which creates an ambulatory and shifting

charge on the principal money and interest secured

thereby on all stock the property of the Mortgagor from

time to time on the lands to which the Chattel Mortgage

relates. A floating Chattel Mortgage shall also be duly

registered under the act and have effect to imply a

covenant on the part of the Mortgagor his heirs, executors

and administrators and alike with the Mortgagee to pay

to the Mortgagee the principal money and interest secured

by the Chattel Mortgage at the times and in the manner

stated in the Chattel Mortgage.

129