Agricultural Credit Board Act

Link to law: http://www.moj.gov.jm/laws/agricultural-credit-board-act
Published: 1961-01-19

THE AGRICULTURAL CREDIT BOARD ACT

ARRANGEMENT OF SECTIONS

Preliminap

1. Short title.
2. Interpretation.

Establish~nent and Fzrnctions of the Board

3. Establishment of Agricultural Credit Board.

4. Functions of Board.

5. (Hepenledby.4cr 3 of2001.]

6. Regulations.

Financial

7. Funds and resources of the Board.

8. Reserve fund.

9. Borrowing powers.

10. Accounts and audit.

I I. Annual report.

Agricultural Loan Societies

12. Agricultural loan societies.

13. Cancellation of registration.

14. Scheme for withdrawable deposits.

15. Audit of accounts of agricultural loan societies.

16. Board may appoint member of committee of management.

17. When Board may take over management and control of agricultural
loan society.

18. Consequences of taking over of management and control.

19. Revesting of management and control in committee.

20. Gazetted notice to be evidence of the tahng over or revesting of
management and control.

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AGRICULTURAL CREDIT BOARD

2 1. Security given to the Bank by an agricultural loan society.
22. Specific assignment to the Bank of debt unnecessary.
23. Restrictions on agricultural loan societies indebted to the Bank.
24. Power of agricultural loan societies to make loans.
25. Restrictions on loans by agricultural loan societies.

Security for Loans
26. Security for loans.
27. Charge on crops and movable property.
28. Memoranda of charges and of certain mortgages.
29. Effect of a charge.
30. Lender's rights and obligations under a charge.
3 1. Borrower's obligations under a charge.
32. Lender's power to inswe.
33. Release of charges and certain mortgages.

33A. Power of Bank and agricultural loan societies to make other
arrangements regarding loans.

Miscellaneous
33. Policy directions.

35. Minister may specify rehabilitation periods and certify organi-
zations.

36. Loans may be made notwithstanding contracts to the contrary.

IRepealed by Act 1 1 of 1983, Sections 19 and 201
38.
39. Recovery of debts.
10. Appointment as agents.
11. Exemption from income tax stamp duty and other fees.
12. Bank's or Board's officers and servants not to borrow or receive

gfts from societies.

13. Offences.
13. Punishment of offences.
15. Transfer of assets and liabilities.
46. Construction of references to certain organizations.
47. Savings.

SCHEDULE

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THE AGRICULTURE CREDIT BOARD ACT Law
70 of 1960.

Prehminary

1. This Act may be cited as the Agricultural Credit Board shor(li11e.
Act.

2. In this Act, unless the context otherwise requires-

"agricultural loan society" means a body registered
under section 12;

"agriculture" includes any activities relating to
horticulture, afforestation, apiculture, fish-culture,
fishing, the development and maintenance of
pastures, the cultivation of crops and the keeping or
breeding of livestock or poultry, and "agricultural"
shall be construed accordingly;

"approved organization" means any organization, other
than an agricultural loan society, carrying on,
encouraging or promoting agricultural activities and
certified by the Minister to be an approved
organization for the purposes of this Act;

"the Bank means the Agricultural Credit Bank of
Jamaica Limited, a company registered under the
Companies Act;

"the Board means the Agricultural Credit Board
established by this Act;

"borrower" means any person to whom any loan is made
by an agricultural loan society;

"lender" means, in relation to any loan made under this
Act by any agricultural loan society, the society by
which such loan is made;

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Inlerpreta-
lion.

1 11'1983
s. 2 (a).

11,'1983
S. 2 (h).
1 1 1983
S. 2 (c).

AGRICULTURAL CREDIT BOARD

Estahlish-
mcnt of'
.\gricultural
Crcdit Hoard.

"rehabilitation loan" means a loan made under this Act
during a rehabilitation period for the rehabilitation
of agriculture;

"rehabilitation period means a period beginning on such
day as may be specified by order under section 35,
being any day on or after which the agricultural
activities of this Island have suffered damage from
flood, hurricane or any other natural disaster, and
ending on such other day as may be specified in like
manner.

3.-(1) There shall be established for the purposes of this
Act a body to be called the Agricultural Credit Board.

Schedule

(2) The provisions of the Schedule shall have effect
as to the constitution of the Board and otherwise in relation
thereto.

4.-(1) It shall be the duty of the Board to assist in the
development and maintenance of the agricultural activities
of this Island and in promoting the welfare of persons engaged
in those activities by fostering, supervising and, subject to the
provisions of this Act, regulating agricultural loan societies.

(2) For the purpose of the discharge of its duty under
subsection (1), the Board may-

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(u) enquire into the administration, accounts and
proceedings of any agricultural loan society; and

( h ) subject to the provisions of this Act, take over the
management and control of such society.

(3) In addition to any powers possessed by the Board by
virtue of this or any other enactment, the Board shall have
power, subject to the provisions of this Act, to do anything and
to enter into any transaction which in the opinion of the Board,
is necessary to ensure the proper discharge of its fimctions.

5. [Keyeuleu' by Act 3 of200-/.]

6. The Board may, with the approval of the Minister,
make regulations----

(a) providing for the control, governance and adminis-
tration of agricultural loan societies;

( h ) prescribing forms for the purposes of this Act;

(c ) relating to the development of adequate information,
control, evaluation and reporting systems within
agricultural loan societies to facilitate the process of
accountability and effective management;

(6) relating to the development of specific and
measurable objectives and performance targets in
respect of agricultural loan societies, including
establishing criteria as regards the minimum
standards of solvency to be maintained by those
societies;

Ragulations. I

312004 I
S. 4 (b).

3!2004
S. 4 (b).

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3 ZOO4
S. 4 (h).

3 2004
S. 4 (b).

312004
s. 4 (b).

(e) providing for the qualification requirements of
auditors of agricultural loan societies, the frequency
and scope of audits and the furnishing of information
to the Board by auditors;

V) prescribing interest rates and general terms and
conditions in respect of the grant of loans by
agricultural loan societies under this Act, and policy
procedures as to unpaid loans;

(g ) prescribing the qualifications and requirements for
registration by agricultural loan societies and their
members under this Act:

(h) prescribing provisions for encouraging the growth
and profitability of agricultural loan societies,
including provisions as to asset classification, asset
diversification, capital adequacy and asset liquidity;
and

( i ) providing for such other matters as may be required
for the efficient discharge by the Board of its duty
under this Act.

Fundq and
resources of

7. The hnds and resources of the Board shall consist
the Hoard. of-
1111983
S. 5 (a) (b). (a) such sums as may be provided annually for the

purpose in the Estimates of Revenue and
Expenditure of the Island;

(b) [Deleted by Act 11 of 1983, S. 5.1

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shall give to him on request all such intbrmation as may
be within their knowledge in I-elation to the operatilon of
the Board.

11.-(I) The Board shall in each year preparc and pre- ICl""1
sent, on or belbre the first day of October, to the Miinister
a report on its proceedings during the twelve months ending
on the thirty-tirst day of March in such ycar, including a
complete report of its financial position.

(2) A copy of such report shall be laid on the 'I'able
oftlie Senate and the Housc of Representatives.

A p - i c - ~ ~ / / ~ ~ r . t r l l,otrn Soc.ic/ic.v

12.-(1) Any body of persons established lbr thq pur- , ' P ~ ~ ~ ~ ~ " ~ ~ ~ ~
IOilll

pose, illtcv. trlitr, of encouraging and promoting the agri- societies.
cultural interests of its members and making loans to its
members for agricultural purposes, may apply to the Board
for registration under this Act, and the Hoard may in its
discretion register such body.

(2) Every body of persons which immediately before
the 19th January, 1961, was a registered society under the
Agricultural Loan Societies Law shall be deemed, on the ~..II) 5

( 1051 10th January, 196 1, to be registered under this Act, afid the ,~e\.l,ctl
Board shall enter the name of such society in a register of IXW
agricultural loan societies as soon as practicable att$r the
19th January, 106 I

(3) Every body of persons registered under thils Act
shall, upon such registration, become an agricultural loan
society

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13 (1) The I3oar-d may in its discrction remove the
name of any agricultural loan socicty fi-om the register and
thereupon such socicty shall cease to be an agricultvral loan
socict y

(2) The 13oard shall f'orthwith, upon the rcmoval
of' thc name of an agricultural loan socicty fi-om the register,
notify such socicty ol'such rcmoval

( 3 ) Where the Hoard decides to remove the name of
an agricultural loan society fi-om the register, theh unless
such socicty is a body of' persons established under any law
which provides lbr the paymcnt of' the debts and distribu-
tion of' the assets thereof upon thc winding up or dibsolution
thereof: the I3oard subject to subjection ( 5 ) shall, at the time
of the removal ofthe name of such socicty from the register,
appoint a receiver who shall be entitled to enter into posses-
sion and assumc control of' all property of the sodiety and
shall realize the assets thereof' and after paymcnt of the
debts due by the socicty shall distribute the surplus, if' any,
pro ru/~mmong the shareholders

(4) The remuneration of the receiver shall be fixed
by the Board or the Bank, as the case may be, and shall be a
first charge payable out of the assets of the society

( 5 ) Where an agricultural loan society has, a t the time
of removal of* the society's name from the regiyter, any
outstanding loan due to the Hank, the Bank, insteqd of the
Board, shall appoint a receiver

14.- ( 1 ) Where any agricultural loan society iqtends to
;lh~GdG,,Osits accept any money on deposit by way of savings flrom any
3 2003
S. 5 .

member thereof, it shall, before doing so, prepare a scheme in
accordance with subsectiorl(2).

(2) Every scheme prepared under this section shall
make provision for-

(a) the maximum period during which a deposit! may
be retained by the society,

(6) the maximum amount which any member may
have on deposit;

(L.) the conditions on which deposits may be acdepted
by the society;

(4 the rate of interest which may be paid by the
society on such deposits;

( e ) the proportion of any such deposits which may
be invested by the society;

V) such other matters incidental to the acceptanbe of
deposits as the society may consider necessary. '

(3) Where any agricultural loan society reqeives
deposits in accordance with any scheme prepared bnder
this section, such society shall not be deemed to be carrying
on the business of banking for the purposes of section 18
of the Industrial and Provident Societies Act, and the
provisions of that section shall not apply to such society.

(4) Every scheme shall be prepared in a form
approved by the Minister and shall in all other re$pects
be subject to the approval of the Board.

(5) No agricultural loan society shall accept any
money on deposit by way of savings except in accoi&ince
with a scheme,approved by the Board.

15.-(1) The Board shall audit or cause to be aqdited
the accounts of every agricultural loan society once a4 least
in every year, and may appoint the auditor for such putpose,

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'9

Audit of
accounts of
agricultural
loan societies.
211970
S. 3.

and, where the accounts are audited by the Boprd, the
provisions of subsections (2) and (3) shall apply to the Board
as they apply to an auditor appointed under this subsection

(2) The officers and servants of every agqicultural
loan society in respect of which an auditor is a pointed
under this section shall grant to such auditor acce s to all I
the books, documents, cash and securities of such1 society
and shall give him on request all such information as may
be within their knowledge in relation to the operbtion of
such society.

(3) Where an auditor appointed under this sect'on finds
that the accounts of the society in respect of whi h he is 4 appointed have not been kept in a proper manner, he sh I1 serve id notice of that fact on the society and shall have powerto carry
out such further inspections of the accounts of the soci$ty as he
may consider necessary to determine whether the ndglect or
failure to keep such accounts in a proper manner has been
remedied.

13oard may
appoint

16.-(1) The Board may, where it considers it necessary
mombcro[' SO to do, appoint any person to be a member, of the
committee ul'
manage-

committee of management of any agricultural loan society,
tnaot. whether such person is a member of such society or not,

(2) The Board shall, upon the appointment, of any
person under this section to be a member of the cdmmittee
of management of an agricultural loan society, causb notice
of such appointment to be served on the commlittee of
management of such society.

(3) Any person appointed under this sectiob to be
a member of the committee of management of an
agricultural loan society shall have, in relation to the
management of such society, all the rights and powers,
including the right of voting, of a member of such
committee, and in the event of a majority of such

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of such society, shall be conclusive e~idence in all courts of the
fact contained in such notice.

21.-(1) Every security glven to the Bank by any agrl- L"""
~ I \ L I I I < ) I l k

cultural loan society rn respect of a loan made to such soclety I ; ~ ~ ~ ~ A I,\
by the Bank, shall include all the share capital, assets and c1gr1LL11tL1r41

10'111 \ 0 ~ 1 C t \

property, real or personal, of such society at the time of the I I 10x3
execution of such security and any property, real or personal, " I ) ( h ~
acquired subsequent!^ by such society and not expressly and
with the permission of the Bank excluded from such security

(2) The recording of notice in the proper office of
record that any agricultural loan society has given security to
the Bank shall be sufficient notice of the effect of such security
to all persons concerned.

22. It shall not be necessary for an agricultural loan "r"cifiL
,Ihhlgnnic'nt to

society to make to the Bank a specific assignment of any ~ I ~ ~ I ~ ~ ~ , ~ ~ ~ ~ I
debt due to the society so as to enable the Bank to take

nccessar!.
proceedings for the recovery of such debt, but the execution 1 1 19x3
by such society to the Bank of the security referred to in S. l 2
section 21 shall confer on the Bank all the rights and
powers of the society in relation to debts due to such
society.

23.-(1) No agricultural loan society which is indebted to Kc"ric"on"
on agricul-

the Bank shall- tural I O ~ I I
socict~cs

(a) hypothecate any security given to such society in indcbtrdto
thc 13ank. respect of a loan made by such society to any , ,,,,,,

member; S. 1 3

(h ) except in accordance with the permission in
writing of the Bank-

(i) borrow money from any person other than
the Bank;

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Power of
agricultural
loan societies
to make
loans.
1111983
S. 14.

Restrictions
on loans by
agrigultural
loan
societies.
1111983
S. IS.

AGRICULTURAL CRAWIT BOARD

(ii) sell any of its assets; or

(iii) consent to the sale or gifi by any person of
the whole or any part of any security given
by such person to such society.

(2) Every hypothecation made in contravention of this
section shall be null and void.

24. Subject to the provisions of sections 25 and 26 every
agricultural loan society shall have power to make to its mem-
bers, out of sums loaned by the Bank to such society-

(a) loans for agricultural purposes;

(b) rehabilitation loans in cases where the lands, build-
ings or crops of members of such society have
suffered damage from flood, hurricane or any other
natural disaster;

(c) loans for the construction, improvement, main-
tenance and repairs of farm buildings.

25.-(1) [Repealed by Act 3 of 2004.1

(2) No agricultural loan society shall, except with the
prior approval in writing of the Board-

(a) make a loan or be a party to any financial
accommodation to any member of the committee
of management or any officer of such society; or

(b) permit any of its funds to be used for the personal
purposes of any such member or officer, other than

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Construct~on
of references
to certain
organiza-
tions.

Cap. 5 .
(1953
Revised
Edtn.).

AGRICULTURAL CREDIT BOARD

46.-(1) References in any enactment, regulations,
mortgage, notification or other instrument to the Agri-
cultural Loan Societies Board 05 the Banana Industry Aid
Board shall, unless the context otherwise requires, be
construed as references to the Board established under this
Act.

(2) References in any enactment, regulations,
mortgage, notice or other instrument to a society registered
under the Agricultural Loan Societies Law shall, unless the
context otherwise requires, be construed as references to an
agricultural loan society.

Savings.
(1953

47.-(1) Subject to the provisions of subsection (1) of
Revised section 45 and section 46, the provisions of the Agricultural
Edtn.).
1111983

Loan Societies Law (hereby repealed) shall be deemed to
s. 26 (a). continue to apply to loans made thereunder and outstanding

on the 19th January, 196 1.
Cap. 343 of
1938 Revised

(2) Subject to the provisions of section 46 and
Edtn. notwithstanding the repeal of the Banana Industry Aid Law,
(repea1ed). the Banana Industry Aid Law, 1932, and the Banana
Law 15 of
1932 Industry Aid Law, 1933, the provisions of those Laws shall
(repealed). be deemed to continue to apply to loans made under those
Law 25 of
1933 Laws and outstanding on the 19th January, 196 1.
(repealed).

11/1983
S. 26 (b).

(3) The provisions of this Act as in force immediately
prior to the 10th of June, 1983 shall, subject to subsection
(2) of section 45 be deemed to continue to apply to loans made
under that provision and outstanding at the aforesaid date.

(4) [Repealed by Act 3 of2004.1

(5) [Repealed by Act 3 of 2004.1

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