AGRICULTURAL CREDIT ACT, 1961

AN ACT TO AMEND AND EXTEND THE AGRICULTURAL CREDIT ACTS, 1927 TO 1947. [30th May, 1961.]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:—

1 Interpretation.

1.—In this Act—

“the Act of 1947” means the Agricultural Credit Act, 1947;

“the Acts” means the Agricultural Credit Acts, 1927 to 1947;

“the Minister” means the Minister for Finance;

“the Principal Act” means the Agricultural Credit Act, 1927.

2 Increase of capital of the Corporation.

2.—Notwithstanding anything to the contrary contained in the Acts or the memorandum or articles of association of the Corporation, it shall be lawful for the Corporation, subject to the consent of the Minister, to increase its capital to a total not exceeding two million pounds divided into stock units or shares of ten shillings each or such other denomination or denominations as shall be in accordance with the memorandum and articles of association of the Corporation and, if it so thinks fit, to divide the stock units or shares into different classes and to attach different rights to the units or shares of different classes and for those purposes to make such alterations as may be requisite in the memorandum and articles of association.

3 Borrowing power of the Corporation.

3.—(1) Subject to the provisions of this section, the Corporation shall have power for the purposes of the Corporation to raise or borrow money in any manner it thinks fit.

• (2) The amount of money raised or borrowed by the Corporation under the Acts or this Act and outstanding at any one time shall not exceed ten million pounds.

• (3)
• (a) Any power of raising or borrowing money conferred on the Corporation by the Acts or this Act shall not be exercisable at any particular time without the consent of the Minister if the Minister holds at that time more than one-fifth (in nominal value) of the issued capital of the Corporation.

• (b) Any such power shall be exercisable at any particular time without the consent of the Minister if the Minister holds at that time one-fifth (in nominal value) or less of the issued capital of the Corporation.

• (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 moneys raised or borrowed under this section.

4 Guarantee by the Minister for Agriculture of the Corporation against losses.

4.—(1) The Minister for Agriculture may, with the consent of the Minister—

• (a) guarantee the Corporation, in such form and manner and on such terms and conditions as he may specify with the consent of the Minister, the due repayment of the principal of any moneys paid by the Corporation on foot of loans, advances, guarantees to persons in relation to the payment of moneys 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 with the consent of the Minister, in respect of any losses incurred by the Corporation in relation to such loans, advances, guarantees or other credit facilities.

• (2) The Minister for Agriculture shall not so exercise the powers conferred by subsection (1) of this section 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 five million pounds.

• (3) Moneys paid by the Minister for Agriculture under a guarantee under this section shall be paid out of moneys provided by the Oireachtas.

• (4) Where the whole or any part of the moneys paid by the Minister for Agriculture 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 for Agriculture and disposed of for the benefit of the Exchequer in such manner as the Minister may direct.

5 Guarantees by the Minister of borrowings by the Corporation.

5.—(1) The Minister may guarantee, in such form and manner and on such terms and conditions as he thinks fit, the due repayment by the Corporation of the principal of any moneys raised or borrowed by the Corporation or the payment of interest on such moneys or both the repayment of the principal and the payment of the interest.

• (2) The Minister shall not so exercise the powers conferred by subsection (1) of this section 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 repaid by the Corporation, exceeds ten million pounds.

• (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 may be specified in the requisition for the purpose of securing to the Minister the repayment of any moneys 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) Moneys 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 appoints) by the Corporation within two years from the date of the advance.

• (6) Where the whole or any part of moneys required by subsection (5) of this section 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 moneys provided by the Oireaehtas.

• (7) Notwithstanding the provision of moneys under subsection (6) of this section 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 appoints) shall be repaid to the Minister by the Corporation at such times and in such instalments as the Minister appoints 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) Moneys repaid by the Corporation to the Minister, or recovered from the Corporation by the Minister, under this section shall be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister thinks fit.

6 Provisions in relation to the holding of capital of the Corporation.

6.—(1) (a) Stock units or shares of the Corporation may be issued, allotted, transferred and sold by the Corporation to persons other than the Minister.

• (b) The power conferred by paragraph (a) of this subsection shall not be exercisable at any particular time without the consent of the Minister if the Minister holds at that time not less than one-half in nominal value of the issued capital of the Corporation.

• (2)
• (a) The Minister may acquire by subscription to the Corporation stock units or shares of the Corporation.

• (b) Where stock units or shares of the Corporation are held by a person other than the Minister, the Minister may purchase the stock units or shares from that person.

• (3) The Minister may, if he so thinks fit, sell, at any time, on such terms and subject to such conditions (including terms and conditions in relation to the consideration for the sale) as he may think fit to impose, any stock units or shares of the Corporation held by him, and the proceeds of any such sale shall be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister thinks fit.

• (4)
• (a) Subsection (1) of section 10 of the Act of 1947 shall apply in relation to all stock units or shares of the Corporation for the time being held by the Minister and, accordingly, references in that subsection to new shares shall be construed as references to stock units or shares of the Corporation.

• (b) Paragraph (b) of subsection (2) and subsections (3), (4) and (5) of the said section 10 shall not apply in relation to stock units or shares of the Corporation, other than new shares (within the meaning of the Act of 1947) transferred to a person under paragraph (a) of subsection (2) of the said section 10.

7 Amendment of section 9 of the Principal Act.

7.—(1) Section 9 of the Principal Act is hereby amended by—

• (a) the substitution for subsection (1) of the following subsection, namely:

• “(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, as amended by any subsequent 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 moneys, and of interest on the moneys, or the repayment of moneys paid by that person on foot of loans, advances or other credit facilities granted by that person and the payment of interest on such moneys),

    • (v) engaging in the provision of hire-purchase facilities and for that purpose acquiring, disposing of and otherwise dealing with stock (within the meaning of section 21 of the Agricultural Credit Act, 1947, as amended by any subsequent enactment), 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 moneys in respect of such facilities),

    for any purpose which, in the opinion of the Corporation will, or is likely to, increase the productivity of, or be otherwise of benefit to, agriculture or horticulture, 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 from co-operative societies 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.”, and

• (b) the substitution of “Agricultural Credit Acts, 1927 to 1961” for “this Act” in subsection (2).

• (2) Any alterations in the memorandum and articles of association of the Corporation which are necessitated by virtue of subsection (1) of this section shall be effected as soon as may be after the passing of this Act and until such alterations have been effected the objects of the Corporation shall be those which were specified in the memorandum of association of the Corporation immediately before such passing.

8 Participation by the Corporation in certain schemes and projects relating to agriculture.

8.—The following section is hereby substituted for section 13 of the Principal Act, namely:

“13. (1) The Corporation may, if it so thinks fit and after such alteration of its memorandum and articles of association as it deems necessary, 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 the productivity of, or be otherwise of benefit to, agriculture or horticulture,

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

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

• (d) agree with the undertakers or promoters of any scheme or project referred to in paragraph (a) of this sectionto 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) of this section 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 1936, 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) of this section,

• (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) of this section.

• (2) In this section and in section 9 of this Act ‘agriculture’ includes—

  • (a) the breeding, rearing or keeping of animals of any kind (including birds and insects),

  • (b) fish culture,

  • (c) dairying,

  • (d) the pasturing of animals,

  • (e) afforestation,

  • (f) the processing, manufacture, preparation or completion for sale of any farm produce, and

  • (g) the marketing of any farm produce.”.

9 Charging moneys advanced or paid by the Corporation on land.

9.—(1) Where the Corporation proposes to lend or advance moneys to or guarantee the payment of moneys by—

• (a) a registered owner of land, or

• (b) a person in occupation of land which is registered in a register of freeholders (other than the registered owner of the land) for any one or more of the following purposes, namely:

• (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) 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 moneys paid on foot of the guarantee, as the case may be,

the Corporation, before lending or advancing the moneys or guaranteeing the payment of the moneys, as the case may be, 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 moneys to be lent or advanced by the Corporation or liable to be paid by the Corporation on foot of the guarantee to be given by the Corporation, as the case may be, and the interest payable pursuant to the terms and conditions of the loan, advance or guarantee on the land and the charging order shall operate to charge the moneys as and when they are lent, advanced or paid by the Corporation and the interest on the land in favour of the Corporation.

• (2) A charge created under this section for the purpose of securing (whether with or without present advances) future advances shall be expressed in the charging order by which it is created to charge the land to which the order relates with advances not exceeding an amount which shall be specified in the order.

• (3) Where a charging order has been made under this sectionin relation to land, the charging order and the land certificate (if any) issued under the Registration of Title Acts, 1891 and 1942, 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 in a register of freeholders as a burden affecting the land.

• (4) A charge created under this section 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 section shall, upon registration thereof in a register of freeholders, be deemed to be a registered charge within the meaning of the Registration of Title Acts, 1891 and 1942, and the land to which the charge relates shall be deemed, for the purposes of section 39, as amended by any subsequent enactment, of the Act of 1947, 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.

• (5)
• (a) All moneys payable on foot of a charge created under this section in respect of moneys lent or advanced by the Corporation to the registered owner of land or paid by the Corporation on foot of a guarantee given by the Corporation of the payment of moneys by the registered owner of land 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 moneys 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 moneys and, as between successive registered owners of the land subject to the charge, all moneys paid or recovered from a registered owner on foot of a charge created under this section 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.

• (6)
• (a) All moneys payable on foot of a charge created under this section in respect of moneys 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 moneys 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 moneys 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 moneys and, as between persons successively in occupation (whether as registered owners or otherwise) of the land subject to the charge, all moneys paid or recovered from a person in occupation of the land on foot of a charge created under this section 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.

• (7)
• (a) Where a charge is created under this section in relation to moneys lent or advanced to any person by the Corporation or in relation to a guarantee given by the Corporation of the payment of moneys 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 moneys lent or advanced by the Corporation or of any moneys paid by the Corporation on foot of a guarantee given by the Corporation of the payment of moneys by the person and payment of the interest, whether by instalments or otherwise, and the time for repayment of any such moneys 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 moneys, 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 moneys.

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

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

• (d) 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 subsection of a charging order, the variation or amendment shall be registered or otherwise noted by the registering authority in the register of freeholders in which the charge created by the charging order is registered.

• (8) Where all moneys payable on foot of a charge created under this section have 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 moneys payable on foot of the charge have 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 moneys payable on foot of the charge to which it relates have been repaid to the Corporation, the entry of the charge in the register of freeholders in which it is entered shall be cancelled.

• (9) Section 35 of the Land Act, 1939, is hereby amended by the insertion in subsection (1) after “Agricultural Credit Acts, 1927 to 1929,” of “or a charge created under section 9 of the Agricultural Credit Act, 1961,”.

• (10)
• (a) Stamp duty shall not be chargeable on any instrument whereby a charge under this section is created or released or a charging order or a condition subject to which moneys are lent or advanced, or a guarantee is given, by the Corporation is varied or amended under this section or the consent of the registered owner or the person in occupation of the land to which the charge relates is given to such creation, variation or amendment.

• (b) No fee or other payment shall be charged or imposed by the registering authority for the registration in a register of freeholders of a charge created under this section or for the cancellation of the entry of the charge in the register or for the registration or other notation in a register of freeholders of the variation or amendment under subsection (7) of this section of a charging order.

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

• (12)
• (a) In this section—

“register of freeholders” means a register of freeholders maintained under the Registration of Title Acts, 1891 and 1942;

“registered owner”, in relation to land, means a person registered in a register of freeholders as full owner of the land;

“registering authority” means a registering authority under and for the purposes of the Registration of Title Acts, 1891 and 1942.

• (b) References in this section 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.

10 Amendment of section 12 of the Act of 1947.

10.—Section 12 of the Act of 1947 is hereby amended by the substitution for subsection (2) of the following subsection, namely:

• “(2)

  • (a) The number of directors (including the chairman) shall be not less than three nor more than seven of whom a majority (being the smallest majority in any particular case) shall be nominated by the Minister if he holds not less than one-half in nominal value of the issued capital of the Corporation, but, notwithstanding the provisions of this paragraph, it shall not be necessary for any director of the Corporation to retire from officeas a director, for the purpose of compliance with those provisions, before the time specified for retirement in the articles of association of the Corporation.

  • (b) The qualification for being a director shall be the holding of at least one share in the Corporation.”.

11 Amendment of section 13 of the Act of 1947.

11.—Section 13 of the Act of 1947 is hereby amended by the substitution for subsection (1) of the following subsection, namely:

• “(1)

  • (a) Subject to the provisions of section 3 of the Agricultural Credit Act, 1961, the Minister may make advances to the Corporation and the Corporation may borrow from the Minister such sums as the Corporation may require from time to time for the carrying out of the Corporation's objects.

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

  • (c) Moneys paid to the Minister by the Corporation in respect of repayment of advances under this subsection or of interest on such advances shall be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister may direct.”.

12 Amendment of section 21 of the Act of 1947.

12.—Subsection (1) of section 21 of the Act of 1947 is hereby amended by—

• (a) the deletion in paragraph (a) of the definition of “the mortgagor” of “who is a farmer”,

• (b) the substitution for the definition of “recognised borrower” of the following definition, namely:

“‘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 moneys by himself or any other person;”,

and

• (c) the insertion in the definition of “stock” after paragraph (c) of the following paragraph.

• “(cc) insects and fish of every kind, the progeny and produce of such insects and fish, and trees (whether growing on or severed from the land),”.

13 Amendment of sections 39, 42 and 48 of the Act of 1947.

13.—(1) Sections 39, 42 and 48 of the Act of 1947 are hereby amended by the substitution of “one thousand pounds” for “four hundred pounds” in each place where it occurs in those sections.

• (2) The amendments effected by subsection (1) of this section shall not have effect in respect of charges on land given before the date of the passing of this Act.

14 Alterations in memorandum and articles of association of the Corporation.

14.—(1) It shall be lawful for the Corporation to make all such alterations in its memorandum and articles of association as are necessary or proper to give effect to the provisions of this Act and of the Acts as amended by this Act and as are necessary or proper by way of supplement to, or in consequence of, any such alteration.

• (2) Subsection (2) of section 10 of the Principal Act shall not apply to alterations made in the memorandum or articles of association of the Corporation under or in pursuance of this section and in lieu thereof it is hereby enacted that all such alterations shall be in such form consistent with the Acts and this Act as shall be approved by the Minister after consultation with the Minister for Agriculture.

• (3) Subsection (6) of section 18 of the Act of 1947 shall apply and have effect in relation to alterations in the memorandum of association of the Corporation authorised by this section in the same way as it applies and has effect in relation to alterations in that memorandum authorised by Part II of the Act of 1947.

15 Advances out of the Central Fund.

15.—(1) All moneys from time to time required by the Minister to meet sums which may become payable by him under the Acts or this Act shall be advanced out of the Central Fund or the growing produce thereof.

• (2) For the purpose of providing for advances out of the Central Fund under this section, the Minister may borrow from any person any sum or sums, and for the purpose of such borrowing, he may create and issue securities bearing such rate of interest and subject to such conditions as to repayment, redemption or any other matters as he thinks fit, and shall pay the moneys so borrowed into the Exchequer.

• (3) The principal of and interest on any securities issued under this section and the expenses incurred in connection with the issue of the securities shall be charged on and payable out of the Central Fund or the growing produce thereof.

16 Repeals.

16.—The enactments mentioned in column (2) of the Schedule to this Act are hereby repealed to the extent mentioned in column (3) of that Schedule.

17 Short title, construction and collective citation.

17.—(1) This Act may be cited as the Agricultural Credit Act, 1961.

• (2) The Acts and this Act shall be construed together as one Act.

• (3) The Acts and this Act may be cited together as the Agricultural Credit Acts, 1927 to 1961.

SCHEDULE. Enactments Repealed.