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GAZETTE
JULY-AUGUST 1978.
Under Section 31 a Floating Chattel Mortgage is
converted into a Specific Chattel Mortgage where the
principal money secured remains unpaid for 28 days after
the appointed date or interest is in arrears for 56 days
after becoming due. The Mortgagee must:—
1. Serve on the Mortgagor notice in writing that the
Floating Charge has become fixed.
2. The Mortgagor must take an inventory of the stock
then on the lands to which the floating Chattel relates.
3. Within 7 days after the day on which the notice is
served the Mortgagee must send to the Circuit Court
office by registered post a true copy of the Notice and a
true copy of the inventory.
Once these conditions have been complied with from
then on the Floating Chattel Mortgage shall have the
same effect as the Specific Chattel Mortgage.
Section 33 of the Act deals with the effect of the
Chattel Mortgage on Execution Orders.
Section 34 states that the Chattel Mortgage shall have
priority in accordance with the times in which it is
registered under the Act.
Charges on Land In Favour of the Corporation
Part 4 of the Act deals with Charges on land in favour
of the Agricultural Credit Corporation. A Charge
includes a mortgage or any other means by which land is
charged for the payment of money.
Registered Land
This Charge created by Part 4 of the Act will rank in
priority over equitable claims against registered land or
equities which arise where the owner is not an absolute
owner. The Priority is created by Section 39 of the Act
which states that where a Charge in favour of the
Corporation for the repayment of a loan is registered as
burden effecting registered land then the Charge and the
costs and expenses of all legal proceedings relating to the
charge shall as against the land be in priority to and shall
override any equitable claim against die lands. However,
under Section 39(2) does not apply where a person
claiming to be entitled to an equitable claim against the
lands registered a caution under Section 97 of the
Registration of Title Act, 1964 at the time of the priority
charge. Neither shall it operate where the total amount of
the charge exceeds £25,000.
Under Section 40 a priority charge on registered land
which is not a permanent improvement charge on the
land shall as between the Mortgagor Equitable'claimant
bedeems to be charged on all the land to which the
Mortgagor is beneficially entitled.
Under Section 40 Subsection (2) money paid to the
Corporation by or out of the share in the estate or interest
of an Equitable claimant on foot of a priority charge on
registered lands which is not a permanent improvement
charge on the land shall be repaid to the equitable
claimant by the Mortgagor and shall be considered a debt
due by the Mortgagor to the equitable claimant and shall
be treated as such.
Section 41 gives special protection to minors and
persons of unsound mind.
Under Sections 42, 43 and 44 exactly similar
principals are enacted in relation to charges in favour of
the corporation on unregistered lands.
Sections 47 to 53 deal with miscellaneous provisions in
relation to Charges on land.
Section '53 provides for the exemption from stamp duty
and fee of such charges.
Chargeable Order
This part of the act is the most far reaching and
progressive and controversial section of the act.
Where the Agricultural Credit Corporation opposes to
lend money for improving land to a registered owner or
a
person in occupation of registered land
the provisions of
Section 54 apply.
The ACC may make an order charging the land with
payment of the money and the Chargeable Order under the
Section shall operate to charge the money and interest
thereon on the lands to which the Order relates from the
date of the Order or the date from which the money is lent
whichever is the later. Where the order is made it shall be
registered as a burden effecting the lands.
Section 55 provides that a Charge created under this
part of the Act 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 should have all
the powers conferred by those Acts on Mortgages under
mortgages made by Deed and a Charge created under
this part of the Act shall when registered be deemed to be
a registered charge within the meaning of the Registration
of Title Act 1964 and the lands to which the charge
relates shall be deemed, for the purpose 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 interest.
Section 56 provides that all money payable on foot of
the Charge created by Section 54 shall be recoverable
from the person who is the registered owner of the lands
as a personal liability.
However, under Section 56 (B) a subsequent registered
owner could recover the money as a personal debt from
the previous registered owner who had benefited from
the loan.
Section 56 Subsection 2 provides that the money can
also be recovered from a person in occupation of the
lands. (Other than the registered owner of the lands).
However, under Section 56 Subsection 2 paragraph B a
subsequent person in occupation of the lands can claim
the money as a personal debt from the previous occupier
of the land who had benefited from the loan.
Section 57 of the act deals with the conditions and
variations of the Charging Order.
Section 58 of the act deals with the cancellation of
Charges.
This concludes my report on the above Act which I
hope will be of benefit to the reader.
A BLOW FOR THE RESTRICTIVE
PRACTICES COMMISSION
June Issue, 1978.
The following omission and mistake were
respectively made in the publication of this
article:
1. An appeal is being taken from the
judgment of Mr. Justice McWilliam in the
High Court; and
2. The report, attributed to the Restrictive
Practices Commission was, in fact, a report
produced by the Examiner of Restrictive
Practices.
The Editor.
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