The Gazette 1978

GAZETTE

JULY-AUGUST 1978 The Agricultural Corporation Act 1978 Vincent Crowley, Solicitor

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 An important provision is that under Section 26 Subsection 6 the contents of any Register of Chattel Mortgages shall not be published or disclosed but there are five recognised exceptions to this rule under the act.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 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 and without a court order. Floating Chattel Mortgage

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 (c) Both a floating chattel mortgage and a specific chattel 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: 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 (a) Animals and birds of every kind. (b) Insects and fish of every kind. (c) Agricultural crops of every kind. (d) Trees of every kind. (e) Machinery of every kind.