Agricultural Bank Act 1934 (WA)

1934.] Agricultural Bank. [No. 45.

AGRICULTURAL BANK.

25° GEO. V., No. XLIV.

No. 45 of 1934.

AN ACT to consolidate and amend the law relat ing to the Agricultural Bank of Western Australia ; to re- constitute that body under the title Commissioners of the Agricultural Bank of Western Australia ; to transfer to the new body the administration of certain Acts relating to advances to persons engaged in Rural Industry, and for other relative purposes.

[Assented to 5th January, 1935.]

E it enacted by the King's Most Excellent Majesty, by

and with the advice and consent of the Legislative

Council and Legislative Assembly of Western Australia, m

this present Parliament assembled, and by the authority of

the same, as follows:—

1.    This Act may be cited as the Agricultural Bank Act, Short title.

1934, and shall come into operation on a date to be -fixed by

proclamation.

2.    This Act is divided into parts and divisions as Arrangement of ACC.

follows :—

PART I.—PRELIMINARY (Sections 3 and 4).

REPEAL OF CERTAIN ACTS (Section 3).

DEFINITIONS (Section 4).

No. 45.] Agricultural Bank. [1934.

PART II.-THE COMMISSIONERS : CONSTITUTION AND POWERS OF THE COMMISSIONERS (Sections 5

and 6).

Division 1 —Consti'ution of new Body (Section 5). Division 2.—Powers of Commissioners (Section 6).

PART III.—FINANCE—(Sections 7 to 30).

Division 1.—Financial adjustment of Liabilities taken

over (Sections 7 to 9).

Funds—Parliamentary Appropriation

(Section 10).

Borrowing Powers—Debentures ((Sections

11 to 29).

Division 2.—Assets (Section 30).

PART IV.-ADMINISTRATION (Sections 31 to 71).

Division 1.—Staff (Sections 31 to 36).

Division 2.

—Administration of certain Acts trans-

ferred to Commissioners (Section 37).

Division 3.

—Applications for Advances—Form and

extent of Security (Sections 38 to 54).

Division 4.

—Enforcement of Securities (Sections 55

to 62).

Division 5.—Indebtedness under old Securities to Bank or to transferred A cavities— Suspending payment of Indebtedness Q. Borrowers—Writing down Value of overcapitalised Properties—Consolida- tion of Securities (Sections 63 to 67).

Division 6.—Accounts and Audit (Sections 68 to 71).

PART V.-OFFENCES AND PENALTIES (Section 72).

PART VT.-REGULATIONS (Section 73).

PART VII.—MISCELLANEOUS (Section 74).

FIRST SCHEDULE.-REPEALED ACTS.

SECOND SCHEDULE.-COVENANTS AND PROVISOS TO BE

IMPLIED IN CERTAIN MORTGAGES.

1934.] Jaricultural Bank. [No. 45.

PART I.-PRELIMINARY.

3.    The Acts mentioned in the First Schedule are hereby Repealed ;Acta.

repealed.

4.    In this Act the following terms, unless inconsistent with Dowd...

the context, shall have the following meanings, namely:—

"A dvance" includes any monetary accommodation, or the amount of any accommodation furnished in money's worth or goods, and any liability under- taken on behalf of a borrower either immediately or under the terms of any guarantee or indemnity.

"Bank" means the Agricultural Bank of Western Aus- tralia as established under the Agricultural Bank

Act, 1906, and its amendments.

"Borrower" means any person under any liability (im- mediate or contingent) for the payment of any sum of money to the Commissioners of the Agricul- tural Bank of Western Australia under the provis- ions of this Act.

"Commissioners" means the body corporate styled the Commissioners of the Agricultural Bank of - West- ern Australia constituted under the provisions of this Act.

"Minister" means the Minister for the time being charged by the Governor with the carrying out of any duties or powers vested in the Minister under this Act.

"Repealed Acts" means the Acts specified in the First Schedule to this Act.

"Rural industry" includes the agricultural, horticul- tural, pastoral, grazing, and dairying industries car- ried on in the State, and such other industries carried on in the State as the Governor may from time to time by proclamation declare to come within the de- finition of rural industry.

"Security" includes a statutory lien or charge.

"Transferred activities" means the several activities the

administration of which is transferred to the Com-

missioners under Division 2 of Part IV. of this Act

No. 45.] Agricultural Bank. 111934.

PART II.-THE COMMISSIONERS : CONSTITUTION AND

POWERS OF THE COMMISSIONERS.

Division lc—Constitution of new Body.

Commissioners of

the Agricultural	5. (a) A body corporate is hereby constituted under the
Bank of Western

Australia.

name of the Commissioners of the Agricultural Bank of

Western Australia.

A body corporate. (b)

The Commissioners shall have perpetual succession and a common seal, and shall be capable of holding and acquiring real and personal property; of sueing and being sued; and of doing and suffering all things which bodies cor- porate may by law do or suffer.

Three members

appointed by (c)

The Commissioners shall consist of three members; or his deputy; :the remaining two members shall be ap- pointed by the Governor, and shall be persons who in the opinion of the Governor have a sound knowledge of the rural industries of the State and are suited to control the adminis- tration of the business of the Commissioners.

Governor. one of such members shall be the Under Treasurer ex officio

The Governor shall appoint one of the members to be

chairman.

T enure of office

7 years. (d)

Subject as hereinafter mentioned the two members appointed by the Governor shall hold office for the term of seven years from the date of their appointment, and at the expiration of his or their term of office shall be eligible for re-appointment for a like term.

Chairman's de-

liberative and (e) The chairman shall have a deliberative as well as a

casting vote. casting vote.

Quorum.	(f)	Two members shall form a quorum.
Remuneration of
members.	(g)

The members shall be paid such remuneration as

may be fixed by the Governor from time to time, and such

remuneration shall be paid out of the consolidated revenue.

Members must give (h)

The two members appointed by the Governor shall devote the whole of their time and attention to the business of the Commissioners, and the Under Treasurer or his deputy shall attend and take part in the meetings of the Commis- sioners.

whole attention to

business ;

Compare /5 of DOB,

s. 1S.

(i) No person shall be qualified to hold office as a mem-

ber while he is or if he becomes an officer of any bank, firm,

or institution which carries on the business of making

1934.] Agricultural Bank. [No. 45.

advances on the security of any lands used in connection with

rural industry in -Western Australia.

(j) The Governor may suspend any member appointed tsgnesriTyluy by him at any time on grounds of misbehaviour or incompe- rfaltvoi ufor r nteboe"-

tence, or if in the opinion of the Governor any such member petence.

becomes incapable of carrying out his office: Provided that-

(i)	a statement of the grounds of such suspension shall be laid by the Minister before both Houses of Par-	but the Minister	must put grounds
before Parliament.

liament within seven days of such suspension, if Parliament is then in session and actually sitting, or if Parliament is not then in session or actually sitting, within seven days after the commence- ment of the next session of Parliament or of the next sitting:

(ii) if within fourteen sitting days after such statement Unless both Houses confirm suspension

has been laid before each House respectively each member is restored.

House passes a resolution that the member be dis- missed from office, he shall be deemed to have been dismissed from office as from the date of such suspension, but in default of such resolutions being duly passed the suspended member shall be restored to office as from the date of his suspen- sion.

Member automatic-

(k) A member shall be deemed to have vacated his office ally vacates If :

if he-

(i)	commits a breach of the provisions of paragraphs (h) or (i) of this section; or	neglects business
of Commissioners,
etc. : becomes bank-
(ii)	becomes bankrupt, or takes any relief under the law relating to insolvent debtors; or	rupt ;
is absent without
(iii)	absents himself from the business of the Commis- sioners for more than two weeks without the	leave of 'Gov-
ernor ;

approval of the Governor in writing; or

becomes insane,

(iv) becomes insane or incapable of managing his affairs; etc. :

or

has an interest in

(v)	has any direct or indirect pecuniary interest in any agreement with the Commissioners otherwise than	contract with
Commissioners.

as a member of and in common with the other members of an incorporated company consisting of at least twenty members.

(1) A member may resign his office by notice in writing Resignation.

addressed to the Governor.

No. 45.] Agricultural Bank. [1934.

Division 2—Powers of Commissioners.

6. Subject to this Act the Commissioners shall exercise the following powers and authorities, namely:

Take over the Ban

(a) to take over and assume the conduct of the business formerly carried on by the Bank.

Deal with advances

in connection with	(b) to consider and determine applications for advances under this Act, and to make advances to persons engaged in rural industry subject to the prescribed security;
rural industry
Enforce securities,
including existing	(c) its corporate name to enforce payment of moneys
securities to Bank,

LA. Board, Dis-	or securities for money (including any statutory
charged Soldiers'
Land Settlement	lien or security) in favour of the Commissioners,
Board, etc.	and to enforce payment of any moneys or securi- ties for money (including any statutory lien or security) in favour of-

(i) the Bunk; or

(ii)    any of the transferred activities; or

(iii)    vested in the Finance and Development Board and vested in the Commissioners by virtue of this Act;

and for that purpose to exercise in relation thereto, in addition to any powers conferred by this Act, all the rights, powers and remedies conferred on any person or body corporate under the repealed Acts, the Industries Assistance Act, 1915-1931, the Discharged Soldiers' Settlement Act, 1918, and amendments, the Group Settlers' Advances Act, 1925, and the Wire and Wire Netting Act, 1926.

Takes over special	(d) in its corporate name take over and assume the ad- ministration of any special settlements, or special activities in connection with rural industry which the Governor may from time to time entrust to the Commissioners with the approval of the Commis- sioners.
settlements.
See Part III., Div. 1,
as.11-29 of this Act.	(e) to borrow moneys as hereinafter mentioned with the consent of the Governor on the security of the funds, undertaking and revenue of the Commis- sioners;
See Part IV, Div. 1,
ss. 3148 of this Act.	(f) engage and dismiss officers and servants for the pur- pose of carrying out the provisions of this Act;

1934.] Agricultural Bank. [No. 45.

to inquire into the suitability of any district or of any lands for rural industrial development and as to	suitability of landsInquire as to
for rural industry.

whether it is advisable to make advances on the

security thereof under this Act;

with the approval of the Treasurer to suspend or ?. 'eaert ilk)7.1 L.°13-67

postpone 'payment and, with the approval of the

ot this Act.

Treasurer and the consent of the Governor, to re- lease payment of the whole or any portion of the indebtedness of any borrower from the Bank or any of the transferred activities; and in relation thereto to join in and be bound by any mutual scheme, arrangement or composition between any such borrower and his creditors for the adjustment of Ins affairs, whether made voluntarily or under the provisions of any Act of Parliament;

to appoint valuers as hereinafter mentioned, with general or local knowledge, for the purpose of ad-	See Div. 5 of Part
IV., s. 66 of this
Act.

vising the Commissioners in regard to any applica- tion to suspend, postpone or release payment of any amount owing under any advance ;

to expend moneys in order to provide suitable pre- mises in which to carry on the business of the	Procure establish-
ment and provide
officers.
premises for

Commissioners or as residential quarters for

officers;

generally to exercise all such other general or specific Generally,

powers and authorities as are conferred on the

Commissioners by this Act;

(1) whenever the Commissioners in the course of carry- ing out the powers and functions vested in the Com- missioners by this Act deem it necessary to hold any inquiry or make any investigation into any matter whatsoever, the Commissioners may compel the attendance of witnesses and take evidence on oath or affirmation.	Powers to take evi
deuce on oath.

PART III.-FINANCE.

Division 1.—Financial Adjustment of Liabilities taken over.

7. The Commissioners shall take over and assume the .

liability for all obligations of the Bank as existing at the time Bank

of the commencement of this Act.

1= aim=

Governor may grant

8. (a) From and after the commencement of this Act, the aggregate indebtedness of the Bank to the Treasury

relief from liability

to Treasury.

taken over by the Commissioners may be reduced by the Gov-

No. 45.] Agricultural Bank. [1934.

ernor on the recommendation of the Treasurer, from time to time, by such sum or sums as after investigation and audit represent lost capital of the Bank.

(b) The Governor may, on the recommendation of the Treasurer, suspend the liability of the Commissioners to the Treasury in respect of any sum or sums forming part of such aggregate indebtedness, and grant the Commissioners relief from interest payment to the Treasury during such period of suspension, or grant the Commissioners relief from interest payments on any sum or sums forming part of such aggre- gate indebtedness, whether payment of such sum or sums is suspended or not: provided that nothing herein contained shall be construed as relieving the Commissioners from making any sinking fund payments which the Commissioners are bound to make under the next section.

All moneys received	9. (1) Subject to the making of any sinking fund pay-
sury account ;

or disbursed to be

from special Trea-	ments at the times and in manner prescribed by the Finance
saving special ob-
ligations in connec-	and Development Board Act, 1930, to provide fm the redemp-
tion with borrowing
by Finance and	tion of any loan made to the Finance and Development
Development
Board	Board, and to the due payment of all moneys borrowed by that Board under the said Act, all moneys received by the Commissioners for or in the administration of this Act shall be paid to a special account of the Commissioners to be kept at the Treasury, and from that account the Commissioners shall draw all sums needed for the conduct of the operations of the Commissioners from time to time.
Finance andl De-

velopment Board	(2) After the connnencement of this Act no further
not to borrow any

more moneys. moneys shall be borrowed by the said Board.

Funds—Parliamentary A ppropriation.

Funds—Parlla-

mentary appro-	10. The funds of the Commissioners for the purpose of the administration of this Act shall be such moneys as are from time to time appropriated by Parliament for that pur- pose and such other moneys as the Commissioners may bor- row under and subject to the provisions of this Act.
priation.

Borrowing Powers: Debentures.

Power to raise

money by deben-	11. (1.) Subject to and without affecting the priority of
tures subject to

protection of ail	any charge created. by the Finance and Development Board
loans raised by
Finance and De-	under the Finance and Development Board Act, 1930, the
velopment Board.
Commissioners may, with the approval of the Governor, bor- row money for the purpose of raising funds for the adminis-

1934.] Agricultural Bank. [No. 45.

tration of this Act not exceeding one million pounds, or such further sum as Parliament may authorise under the provis- ions of the next subsection.

(2.) The Commissioners may, when furnishing their an- nual report to the Minister under the provisions of section seventy of this Act, make application for leave to borrow, under the preceding subsection, a specified sum of money in excess of the sum of one million pounds therein mentioned, and authority may then be given to the Commissioners by Act of Parliament to borrow such specified sum or such other sum as Parliament may think fit.

12.

raised by the issue of debentures payable to bearer, with or rtiediarreg:ernea.'

without interest coupons attached, and charged and secured

upon the assets and revenue of the Commissioners.

All money borrowed by the Commissioners may be Bbrroweit moneye

13.    Every debenture shall be in the prescribed form, corm of debentures.

sealed with the seal of the Commissioners, and numbered con- secutively; and every debenture with interest coupons (if any) annexed thereto, and every coupon, after being de- tached therefrom, shall pass by delivery and without any assignment or indorsement; and the bearer of every deben- ture or detached interest coupon shall have the same rights as if he were expressly named as payee therein.

14.    Before the raising of any loan by the Commissioners Proposal to be put

is approved by the Governor, a proposal, showing the term and particulars of the loan and the rate of interest to be paid thereon, shall be submitted by the Commissioners to and be approved by the Treasurer.

Commissioners shall in each half-year ending respectively on prlatIons. 15. So long as any debentures remain outstanding, the interest appro.

the thirty--first day of December and the thirtieth day of June, appropriate out of the funds of the Commissioners a sum equal to the interest due on such debentures calculated up to the end of such half-year.

after the issue of debentures for any loan, pay a sum to a payments. 16. (a) The Commissioners shall in every half-year, sinking fund

special account to be kept at the Treasury in the name of the Commissioners and the Treasurer (being such percentage of the principal sum secured by such debentures as is named therein as will be sufficient to liquidate the loan at date of

No. 45.) Agricultural Bank. [1934.

maturity) to be invested in the name of the Commissioners and the Treasurer and to accumulate at compound interest for the redemption of such debentures.

(b) If at the maturity of any loan there is any balance after liquidating the loan that balance shall be transferred to the general administration account of the Commissioners and may be used accordingly.

Purchase of de-

bentures 17. Any moneys required to be invested in the forma- tion of a sinking fund to liquidate any loan may in Ben thereof be invested in the purchase of any of the debentures by the issue and sale of which the loan was raised; and the deben- tures with the coupons belonging thereto so purchased shall be forthwith cancelled.

Sinking fund pay- 18.

ments continue	During the period for which debentures purchased section would have been current if the same had not been so purchased, a sum equal to the half-yearly interest and contri- bution to the sinking fund which such debenture would have carried or entailed if not so purchased shall be provided by the Commissioners half-yearly and invested as aforesaid and paid to the credit of the sinking fund.
notwithstanding
purchase of	by the Commissioners under the authority of the preceding
debentures.
Loans charged on

sinking fund in 19.

The accumulated sinking fund formed for the re- demption of any loan shall he charged in priority with pay- ment, at their due date, of the principal owing on or secured by the debentures in respect of v.-hich such sinking fund was created. Provided that the accumulated sinking fund in respect of any debentures which are redeemed by the issue and sale of other debentures shall be held or used on account of the sinking fund for such oilier debentures:

order of priority.

Provided also, that nothing herein contained shall affect the obligation to provide the prescribed sinking fund for such other debentures.

Place of payment. 20.

All debentures when due, and interest payable in respect of debentures, shall be payable out of the funds of the Commissioners at the place mentioned for such payment on the face of the debentures.

State guarantees

borrowings. 21.

The payment of all moneys borrowed by the Commis- sioners is guaranteed by the State.

1934.] Agricultural Bank. [No. 45.

22. The Governor may authorise the sale or disposal of T rigeorgr f bmeyagur

any debentures beyond the limits of the State, and, in such State.

case, the Commissioners may appoint agents to negotiate such

sale on behalf of the Commissioners.

23. The Commissioners, with the approval of the Gover-

nor, may exercise the following powers and authorities or

any of them:

debentures.

Power to create new

(a)	Create and issue debentures in exchange for the	tures in exchange
Issuing fresh deben-

securities held for any loan or loans previously	for old debentures.
raised by the Commissioners;

(b)	Create and sell any such debentures for the purpose of raising money for redeeming any outstanding	Paying off old debentures by the
issue of fresh
debentures.

loans and paying any expenses incurred in the creation of debentures, and otherwise carrying out the provisions of this Act on such conditions as the Commissioners may determine;

(c)	Any such conversion may be effected either by arrangement with the holders of existing securi-	Power to make
arrangements with
holders.

ties or by the purchase thereof out of moneys raised by the sale of debentures, or partly in one way and partly in the other;

Any power conferred by this section may be exer- Variation of

(d) conditions.

cised from time to time, and the Commissioners, with the approval of the Governor, may as often as occasion shall require, alter any conditions, provided that no contract or engagement pre- viously entered into shall be prejudicially affected thereby.

24. The Commissioner s shall keep, or cause to be kept, Register to be kept.

ill one or more books, a register of debentures, and within

a reasonable time after the sale of any debenture, shall cause to be made an entry in the register specifying the number, date, and amount of the debenture; and the register may be inspected at all reasonable times by any person on payment of the prescribed fee for each inspection. Such register shall be evidence of any matters required or authorised by the Act to be entered therein.

25. Any person shall be entitled to obtain from the Com- Search

missioner copies or extracts, certified by the officer in whose custody any register is kept, to be true copies of or extract,

No. 45.] Agricultural Bank. [1934.

from such register, upon payment of the prescribed fee; and any copy or extract so certified shall be admissible in evidence.

No notice of trust. 26.

No notice of any trust, expressed or implied or con- structive, shall be received by the Commissioners, or by any officer of the same, in relation to any debentures issued under this Act.

Lender not bound 27.

A person advancing money and receiving in considera- tion thereof any debenture issued under this Act shall not be bound to inquire into the application of the moneys ad- vanced, or be in any way responsible for the non-application or misapplication thereof.

to see to applica-

tion of moneys

Defaced debenture.	28. (1.) In case any debenture shall by accident be de- faced, the Commissioners may from time to time, on such de- benture being delivered to the Commissioners, cause a new debenture to he issued and delivered to the holder of such de- faced debenture in lieu thereof, and thereupon the debenture so defaced shall be cancelled.
(2.) The debenture so to be issued in lieu of the defaced debenture shall have a like currency, and shall, in all respects, be subject to the same rules, regulations, mid provisions as by this Act are declared of and concerning the debenture in substitution for which such new debenture shall be issued as aforesaid; and shall bear the same number, date and amount, and bear the like interest as the said defaced debenture bore respectively.
destroyed, etc. ;

Debentures lost or	29. In case proof shall be made to the satisfaction of the
new debentures

may be issued in	Commissioners, by statutory declaration or otherwise, that
lieu.	any debenture has by casualty or mischance been lost, burnt, or otherwise destroyed, it shall be lawful for the Commis- sioners to cause the principal money and interest due upon such debenture so lost, burnt, or otherwise destroyed to be paid as the same respectively become due, to the person claim- ing to have been the last holder of such debenture, in like manner as if the original debenture had been brought in to be paid off
Provided that the person so receiving the principal money and interest in respect of such debenture alleged to have been lost, burnt, or otherwise destroyed shall give security to the satisfaction of the Commissioners against any lawful claim which may be made upon the Commissioners in respect of
such debenture.

1934.]	Ag ricultural Bank.	[No. 45.
Division 2.—Assets.

30. There shall be vested in the Commissioners by force Assets vested in Commissioners

of this Act

(a)	all assets, funds, or securities which by virtue of section twelve of the Finance and. Development Board Act, 1930, are at the commencement of this Act vested in the Finance and Development Board, and all assets, funds, or securities vested in or held by the Bank, the Discharged Soldiers' Land Settlement Board, or the Industries Assistance Board in trust for the said Finance and Develop- ment Board subject, however, to any existing lia- bility of the last-mentioned Board for any Moneys borrowed and to the performance by the Commis- sioners of all obligations imposed on the said Bor rd under that Act;
(b)	the amounts due to the Minister for Lands in respect of group settlement advances made by the said Minister under the provisions of section five of the Group Settlers' Advances Act, 1925;
(c)	the amounts due by settlers to the Crown or any agency of the Crown for advances and interest in connection with any special settlements, the ad- ministration of which is undertaken by the Com- missioners with the consent of the Governor ;
(d)	all sums of money and all securities for money vested in the Minister for Lands under the Wire and Wire Netting Act, 1926.

PART W.-ADMINISTRATION.

Division 1.—Staff .

31. All officers of the Commissioners shall, as regards en- Staff not under ddleServiceAct;

gagement and dismissal, and the terms and conditions of their 1904

service, be under the immediate control of the Commissioners and the provisions of the Public Service Act, 1904, and its amendments except as hereinafter mentioned, shall not apply.

32. The Commissioners may engage those officers in the Members of staff employ of the Bank at the commencement of this Act whose PereceddisamnInseb-y

services the Commissioners desire to retain, and the remain- commissioners.

ing officers of the Bank who were formerly under the Public Service Act, 1904, and its amendments shall continue to be subject thereto and remain under the control of the Public Servile Commissioner.

No. 45.j Agricultural Bank. [1934.

Preservation of

Any officer of the Bank so engaged by the Com- missioners shall be entitled to receive any leave and any pay- ment, pension, or gratuity as if he had remained an officer within the Public Service Act, 1904, or the Superannuation Act, 1871, as the case may be, and any amendments thereof from time to time, and for such purposes his service under the Commissioners shall be deemed to be service for the pur- pose of such Acts.

existing rights. 33.

Protection in case

office abolished. 34.

Any officer of the Public Service in the employ of the Bank at the commencement of this Act, and engaged by the Commissioners shall, subject to the provisions of the Public Service Act, 1904, and its amendments, in the event of his office as an officer of the Commissioners being discontinued or abolished, be eligible for and shall be appointed to any vacancy in the division of the Public Service from which he was transferred, and which is not lower in classification and salary than that which he held at the date of his appointment as an officer of the Commissioners.

No member of staff

to obtain an 35. No officer or servant of the Commissioners, or wife

advance.

of any officer or servant of the Commissioners, shall be eligible

to obtain any advance under this Act.

appointed in con-

Officer to be 36.

The Commissioners shall appoint, and at all times have upon the staff of the Bank, an officer who is a dis- charged soldier within the meaning of the Discharged Sol- diers' Settlement Act, 1918, to assist the Commissioners and other persons who are discharged soldiers within the mean- ing of the said Act in transactions between the Bank and such persons.

nection with dis-

charged soldiers.

Division 2.—Admin istration of Certain Acts Transferred

to Commissioners.

Administration of	37.	(a) After the passing of this Act the administration
certain Acts trans-
ferred to Com-

missioners.

of the following Acts shall, to the extent hereinafter men-

tioned, be transferred to the Commissioners, that is to say:

The Industries Assistance Act, 1915-1931;

The Discharged Soldiers' Settlement Act, 1918, and

its amendments;

The Group Settlement Act, 1925;

The Group Settlers' Advances Act, 1925;

The Wire and Wire Netting Act, 1926.

1934.] Agricultural Bank. [No. 45.

(b) Subject to this Act, and without affecting any powers conferred on the Commissioners by this Act, the Commis-

Commissionersexercise powers of the several bodies

corporate or

Ministers formerly

sioners shall exercise, hi the corporate name of the Commis-

controlling trans.

sioners, all powers, functions, and rights vested in or

(erred activities.

exercisable by-

(i)    the Industries Assistance Board under the Industries Assistance Act, 1915-1931;

(ii)    the Discharged Soldiers' Land Settlement Board under the Discharged Soldiers' Settlement Act, 1918, and amendments;

(iii) the Bank under the Group Settlement Act, 1925, and by the Minister for Lands under the Group Settlers' Advances Act, 1925;

(iv)    the Minister for Lands under the Wire and Wire

Netting Act, 1926.

(c) The control of any register of debentures or inscribed stock, and all duties imposed on the Finance and Develop- ment Board under the Finance and Development Board Act, 1930, in respect of any moneys borrowed by that Board and owing at the commencement of this Act shall devolve on the Commissioners by virtue of this Act.

Division 3.—Applications for Advances—Form and Extent

of Security.

38. Subject to this Act the Commissioners may make advances—

advances to any person engaged in rural industry on the

and see Ssctionr

10 and 42.

security of any lands owned and used or intended to be used

by him in such industry

(a)	in order to enable such person to effect permanent improvements on such lands so as to render the	for improvement
or to increase
production ;

same productive or more productive in such in-

dustry; or

machinery, stock

(b)	to enable him to buy machinery, stock and/or plant to work the said lands; or	and plant ;
to enable him to use or put the said lands to better use or advantage in any other branch of rural in-	to enable appli-
(c)	cant to use
rural purposes ;
lands for other

dustry than that in which he has been previously

engaged; or

dwelling-house.

(d) to enable him to erect a dwelling-house thereon; or

to protect

(e) for any other purpose where, in the opinion of the Commissioners, it is necessary or desirable to make an advance in order to conserve or protect any security of the Commissioners. scanty.

No. 45.] Ag ricultural Bank. [1934.

Form of application.	39. Every application for an advance shall be in the pre- scribed form.
Persons over Id may
obtain advances—	40. Any person over the age of sixteen years who is the owner of an estate or interest in any lands, may make application for an advance under this Act, and, if such ad- vance is granted to him, shall be capable of mortgaging his- lands and contracting with the Commissioners to the same extent as if he were of full age.
Commissioners

41. Before making any advance the Commissioners shall

certain conditions

before making	be satisfied
advances, i.e.,

purpose (a) that the advance is required for all or any of the pur- poses set out in section thirty-seven;

prospect of suc-	(b)	that the applicant has reasonable prospects of de-
cess of appli.
cant and

whether de-	veloping his lands successfully; and that he is de-
serving of
advance	serving of such advance.

Security 42. No advance shall be made

must be first

mortgage of	(a) except on the security of a mortgage or mortgages to the Commissioners of the land and improve- ments with respect to which such advance is made, with or without such additional security, as the Commissioners may think fit;
land ;
generally must not	(b) on any property which is encumbered by any previ- ous mortgage or charge other than a mortgage or charge under this Act, or a mortgage or charge to the Bank, or to any of the transferred activities, or a mortgage or charge in favour of the Crown, but a second mortgage may be taken as collateral security ;
be on lands
already encum-
bered
for improvements
must not exceed	(e) where an advance is required to enable the applicant
70 per cent of

cost ;	to purchase machinery, stock, and/or plant, or to
for stock and plant	excavate a dam to an amount in excess of the value
not to exceed
value	or reasonable cost of such machinery, stock, and/or plant or dam, and where an advance is required for improvements other than for the excavation of a dam as aforesaid, to an amount in excess of 70 per cent. of the reasonable cost of the improve- ments proposed to be carried out ;
£2,000.

limit of advances (d) in excess of the sum of two thousand pounds, but where the applicant is already indebted to the Bank or to any of the transferred activities, he shall be eligible only to receive advances equal to

1934.] Agricultural Bank. [No. 45.

the amount (if any) by which the sum of two thous- and pounds exceeds his said indebtedness: pro- vided that, where the Commissioners are of opinion that it is necessary to exceed such limit to enable a borrower already indebted to the Bank or to any of the transferred activities-

(i)    to put Ids lands to better advantage in some branch of rural industry other than that in which such lands have been previously used, and the Commissioners are satisfied that the security of the Commissioners would be likely to be enhanced thereby; or

(ii)    to re-establish himself on other lands of the

Commissioners ; or

(iii)

to purchase machinery, stock, and/or plant, the Commissioners may, with the approval of the Governor, make advances to any such borrower exceeding the limits prescribed by this 'para- graph.

43. may be made in one sum, or in progress payments, from time	An advance which has been granted to any borrower	Advances may be made In propos,
paymenle,

to time, at the discretion of the Commissioners.

If at any time in the opinion of the Commissioners for which they were advanced, or have not been carefully and. economically expended, the Commissioners may refuse to pay any further instalment of the advance, and may at once call in the whole amount already advanced, whereupon the borrower shall. forthwith repay the same, and in default the Commissioners shall have the same remedies for the re- covery of the same as are provided by this Act for the re- covery of advances on default being made by a borrower hi payment of principal and/or interest under the terms of any security.	If progress pay
meets wasted I , rn
may be called

44. any moneys advanced have not been applied for the purpose

All sums borrowed from the Commissioners shall be repayable by equal half-yearly instalments, or, in the case of loans for improvements, by such graduated instalments as may be prescribed, to commence at such time and to be pay- able in such manner as the Commissioners may determine: provided that the instalments shall not commence later than ten years after the date of the advance, and the period over

Terms of repay-

ment.

45.

No. 45.] Agricultural Bank. [1934.

which an advance shall be repayable shall not exceed twenty years: provided further, that subject to regulations, nothing herein contained shall prevent the borrower, if he so desires, from paying off the advance sooner than provided by the term of the advance.

Interest payable

halbyearly.

46. So long as any money remains owing in connection with any advance, the borrower shall, on the first day of Janu- ary and the first day of July in each year, pay to the Com- missioners, interest on the amount of the said advance, or on so much thereof as shall from time to time remain un paid, at such rate or at such differential rates per annum as may from time to time be prescribed: provided that the Commissioners may in their discretion reduce the rate of interest payable in connection with any advance.

Interest on interest

arrear. 47. If any instalment of interest payable under any mort- gage is in arrear for such period that the power of sale of the mortgaged lands is exercisable, such interest so in arrear shall, as from the due date thereof, bear interest at the pre- scribed rate for the time being.

POEM of security. 48.

Before making any advance under this Act, the Com- missioners shall take security by way of mortgage, as here- inbefore mentioned, in the prescribed form, with such addi- tions or variations as the Commissioners may consider neces- sary in the circumstances, and with or without such additional or collateral security as the Commissioners may require.

Implied covenants 49.

In every mortgage made under this Act the covenants and provisos set out in the Second Schedule to this Act shall be implied as fully as if set out at length in the mortgage, subject to any modifications and exceptions and to any addi- tions which may be set out in such mortgage.

In mortgages.

As to special forme 50. In all cases where a special form of mortgage is pre- scribed by any act affecting lands used in rural industry, the fact that a mortgage of such lands under this Act is not in such -form shall not in any way hinder its registration or limit its effect as a valid mortgage.

of mortgagee.

Statutory charge.	51.	(1.) Where
(a)	any interest is due by any borrower on any account to the Commissioners; or
(b)	any instalment of principal or interest has been re- funded to a borrower under section fifty-three; or

1934.] Agricultural Bank. [No. 45.

(c) any advance has been made by the Commissioners to any borrower other than to effect permanent im- provements or other than to purchase machinery, plant or stock

a first charge is hereby created in favour of the Commis- sioners in respect of all or any such sums in priority to all other encumbrances upon all crops, wool, or wool clips, but- ter-fat produce, livestock and the increase in progeny of all livestock from time to time derived from or in connection with or being or &pasturing on any lands of any tenure (in- cluding a homestead farm) held, occupied or used by such borrower in connection with rural industry.

Provided that-

(i)    Where the interest due exceeds the interest payable for one year, the maximum charge for interest against the crops, wool or wool clips, butter-fat produce, livestock, or increase in progeny thereof of any one season shall be in respect of one year's interest.

(ii)    Insofar as any livestock are subject to a bona fide

mortgage or encumbrance for value duly regis- tered under and complying with the Bills of Sale Act, 1899, and its amendments, any such charge as aforesaid on the livestock and increase in progeny shall be subject to such mortgage and cmcmn- brance and the rights, powers and remedies of the mortgag2e or encumbrancee.

(2.)

Any charge in favour of the Commissioners under this section shall rank after any statutory charge in favour of the Industries Assistance Board under the Industries Assistance Act. 1915-1931.

Any charge in favour of the Commissioners under this section shall be without prejudice to any other powers conferred on the Commissioners by this Act or by the terms of any security.

(3.)

Provided, however, that the Commissioners may at any time agree in writing with any borrower, or with any creditor of a borrower, to waive such charge wholly or in part, in any ease where the Commissioners are of opinion that it is desirable to do so.

(4.)

No. 45.] Agricultural Bank. [1934.

52. In addition to the charge created by the Group Set- tlers' Advances Act, 1925, for advances made under and with- in the meaning of that Act all such advances shall until repaid with interest be and remain and are hereby charged

(a)

on all the estate and interest of the borrower in any

lands in respect to which or in connection with the

working of which such advances were made; and

(b)

on all the goods, chattels, and effects of the borrower which may at any time be on or about or be brought on the said lands.

This section shall apply to advances within the meaning of the said Act whether made before-or after the commencement of this Act, but the same shall not be construed so as to affect the title of any person who may acquire any estate or interest in the said lands or any interest in any such chattels in good faith before the commencement of this Act.

Commissioners ma)

Sued any instal.53. The Commissioners may In any year in which a bor-

or Interest paid. men" principal rower has experienced a failure of crops, or of seasonal

operations, or has sustained any fortuitous loss in connec- tion with such operations, refund to the borrower the whole or any part of any instalment of principal or interest, or of principal and interest, which may become due to the Com- missioners under the provisions of any security, but subject to the liability of the borrower to repay to the Commissioners such refunded instalment or any part thereof, together with interest thereon at the rate provided for the principal sum, at such future date as may be required by the Commissioners, and the same shall continue a charge under the security held by the Commissioners as if the refunded instalment or part thereof had not been paid to or received by the Commis- sioners :

Provided that no such refund shall be valid as against the security of any subsequent mortgagee unless such mort- gagee shall consent in writing to every such refund.

Commissioners may

acquire Crown

54. (1) When an advance has been made under the re- pealed Acts, or under any of the Acts relating to the trans- ferred activities or under this Act, upon the security of a mortgage or transfer of a holding the freehold whereof may under any Act be acquired from the Crown, the Commis- sioners may, at any time and notwithstanding the provisions of any Act, acquire the freehold of the holding on behalf of

grant.

1934.] Agricultural Bank. [No. 45.

the borrower or his successor in interest, and for that pur- pose may make all such payments to the Crown and otherwise as are necessary.

All payments so made by the Commissioners shall be added to and become part of the mortgage debt.

(2)

(3) The deed of grant of the holding shall be delivered

to the Commissioners.

Division 4.—Enforcement of Securities.

55. (1) If at any time any half-yearly payment of prim Poser of distress.

cipal or interest or any part thereof is unpaid for twenty-one days next after the time appointed for the payment thereof, then, although no legal demand has been made for the pay- ment thereof, the Commissioners may enter and distrait" on the land charged, or any part thereof, and dispose, according to law, of any distress found to the intent that the half- yearly payments and all other arrears thereof due at the time of such entry, and all costs and expenses occasioned by non-payment thereof, may be fully paid.

(2) If at any time any half-yearly payment of principal P,nver of sale.

or interest, or any part thereof, is unpaid for two calendar months next after the time appointed for the payment thereof, then, although no legal demand has been made for the payment thereof, the Commissioners may enter upon and take possession and/or sell the whole or any part of the land with respect to which the advance has been made, either by private sale or public tender, or auction, and, subject to any conditions of sale, the Commissioners may think expedient, and after such notice of the time, place, terms, and condi- tions of sale as the Commissioners may think just and expe- dient, and may transfer or convey such land to the purchaser and give a good and valid title thereto.

(3) When the Commissioners have taken, and so long to maintain property after

as the Commissioners retain possession of any property seizure—and

Pendingsale,

under this section, the Commissioners shall have power to do

whatever is necessary to provide for the maintenance and

upkeep of the property, and to crop and/or otherwise work

to work the landry

the same for such time and in such manner as the Commis- sioners shall deem expedient, with a view to an advantageous sale, and may expend such moneys as the Commissioners may consider necessary -for any of the purposes aforesaid.

And any moneys so expended shall, with interest thereon

at the rate stipulated for payment of interest on the princi-

No. 45.] Agricultural Bank. [1934.

pal moneys in the Commissioners' security, be repayable by the borrower to the Commissioners on demand, and all such moneys and interest shall be a charge on the property com- prised in the security.

Application of

proceeds of sale.	(4) The Commissioners shall apply the proceeds derived from such sale in payment, in the first instance, of all moneys due in respect of such land, and of all expenses incurred by the Commissioners in relation to such sale or otherwise with respect to such land, and then in redemption of any amount charged thereon in favour of the Commissioners, or of so. much thereof as remains unpaid, and shall pay the balance (if any) to the persons appearing to the Commissioners to be, entitled to receive the same.
Borrower to keep
buildings, etc., in	56. (1.) Every borrower shall, so long as any principal, interest, or other moneys remain owing in respect of any advance keep in good and tenantable repair all buildings,. fences, fixtures, and improvements upon the laud comprised in such mortgage or other security, to the satisfaction of the Commissioners, or the authorised agent of the Commissioners.
repair.
missioners may
In default Com-	(2.) If, after the expiration of two months' notice in writing by the Commissioners, any borrower has not com- plied with the requirements of this section

(a) sell, etc.	(a)	the like consequences shall follow as are provided in case of default made in the payment of any sum of money payable under the provisions of this Act; and
(b) do the repairs
and charge the cost	(b)	the Commissioners, and any person acting with the

against the security.

authority of the Commissioners may, without prejudice to the powers of distraint and sale exer- cisable by the Commissioners on default, enter upon the mortgaged premises and effect all repairs the Commissioners or such person deem necessary, and the expense thereby incurred, with interest at the rate payable in respect of the principal moneys secured by the mortgage shall be repaid to the Commissioners by the borrower on demand, and, until repayment, shall be a charge under the mortgage or other security upon the mortgaged property.

The provisions of

the Transfer of	57. (1.) Save as expressly modified by this Act the provi-
Land Act, 1893,

also apply to	sions of the Transfer of Land Act, 1893, and its amendments
mortgages.	shall apply to any mortgage executed under this Act.

1934.] Agricultural Bank. [No. 45.

(2) On the Commissioners becoming the proprietor of land by virtue of an order of foreclosure, such land may he sold, leased, or otherwise disposed of on such terms and con- ditions as the Commissioners may think fit.

58. (1.) On or for the purpose of any sale made by the	Certain specific
powers given In

Commissioners under this Act, or under the provisions of any

selling on default

connection with

mortgage or security given under any of the repealed Acts, or

to any of the transferred activities, the Commissioners may

(a)	sell the mortgaged property or premises, the subject of the security, in one or in several lots;	to sell in one or
more lots ;
(b)	subdivide any lands, the subject of any such mort- gage or security;
(c)	effect any improvements thereon which the Commis- sioners consider may be necessary in order to attract buyers and obtain a better realisation;	to effect improve-
mebts ;
to sell security
(d)	sell such property or any lot into which it is divided	with other secur-

for the purpose of sale with any other property

ities ;

mortgaged or charged collaterally or in conjunc-

tion with such property;

to allow time to

(e) allow time for the payment of the whole or any part of the purchase money, with or without interest in the meantime. buyers.

(2.) Any moneys expended in effecting improvements under paragraph (c) of this section shall be a charge on the mortgaged lands and be repayable by the borrower, together with interest at the rate stipulated in the mortgage or security, and shall be recoverable in like manner as the prin- cipal moneys. eCxhargde pe eft moneys

Commissioners

The Commissioners shall not be liable to account, where they have effected a sale and allowed time to a buyer, account

(3.)

only received in

cash.

except for such sums as the Commissioners actually receive

in cash.

59. (1.) The Commissioners as mortgagee of land, while Further powers:_

in possession, as against the borrower and all persons claim-

ing under him, including every encumbrancer, may

(a) from time to time lease the mortgaged land, or any w to lease;

part thereof, with or without any plant, stock, or machinery over which the Commissioners may have security for the principal, interest, and other moneys or any part thereof owing on the security of the mortgage, for any term not exceeding seven

No. 45.] A gricult ral Bank. [1934.

years, at such rent and subject to such conditions

as to the Commissioners may seem fit ;

(b) to appoint

managers en	(b) from time to time agree with any person to crop, work, or maintain the said land, with or without plant, stock, and machinery thereon over which the Commissioners may have any security for the principal, interest, and other moneys, or any part thereof owing on the security of the mortgage, on such terms and conditions as the Commissioners think fit..
share crop.

Provided that, if the mortgaged land is subject to a mort- gage registered in priority to the Commissioners' security, such lease shall not be binding on the prior mortgagee without his consent.

The Commissioners	may advance money(2.) The Connnissioners may make advances to the
to lessees. lessee or any such person, and the repayment of such advances

with interest shall, by force of this Act, be charged upon the fee simple or other lesser interest of the borrower, and all persons claiming under him, as well as upon a leasehold in- terest of the lessee.

Lease binding on

mortgagor ; (3.) A lease granted under this section shall have the same effect as if both the borrower and the Commissioners as mortgagee were , parties to it.

Provided that the Commissioners may

but the Commis-

sioners are free	(a)	accept a surrender of any such lease, or agree to
to vary any

terms the cancellation or determination of any such agreement, on such terms as the Commissioners think fit; or

(b) agree to a modification or variation of the terms

thereof

Certain restrictions

placed on borrower	60. (1.) As between the Commissioners and the owner or occupier for the time being of any land with respect to which an advance under this Act has been made, the follow- ing conditions shall be imposed so long as such land is subject to any charge in favour of the Commissioners, namely :—
not to sell or lease

without consent	(a ) such land shall not be let by such owner or occupier, or cropped on shares with any other person, nor shall the equity of redemption be transferred with- out the consent of the Commissioners ;
of Commis-
sioners ;
sale or lease in
contravention	(b) every lease, agreement, and transfer contrary to the

void :	provisions of this section shall be void and of no
effect ;

L934.] Agricultural Bank. [No. 45.

(c)	If such owner or occupier lets such land, or any part thereof, or enters into any such cropping arrange- ment, or transfers the equity of redemption in con- travention of the provisions of this section, the Commissioners may cause the land to be sold;	contravention ;
power of sale on
(d)	when the title to the land is divested from the owner or occupier under any law relating to bankruptcy the Commissioners may cause the land to be sold;	power of sale on bankruptcy
(e)	when on the decease of the owner or occupier the land would, by reason of any devise, bequest, intestacy, or otherwise, become subdivided, the Commis- sioners may require the land to be sold or other- wise disposed of within twelve months after the death of the owner or occupier to some one person, and in default the Commissioners may cause the same to be sold.

(2.) In exercising the power of sale conferred by this Brent of power or

section the Commissioners may exercise the same powers and to the same extent as they are entitled, in the case of default in payment of any instalment of principal or interest under the preceding provisions of this Act.

61. If the borrower refuses to deliver up quiet possession Power to forcibly eject borrower.

of any lands, or to give vacant possession of any lands of which the Commissioners desire to take possession in exercise of the powers conferred on the Commissioners by this Act, or under the terms of tiny mortgage or security, the Commis- sioners may eject the borrower from such lands by force, if necessary, and all officers of police are hereby authorised to assist the Commissioners in ejecting the borrower.

The term "owner" in the Road Districts Act, 1919- tc:Tiv!so lonera not

62.

1933, shall not extend to the Commissioners as mortgageein within Itor	tricts Act, 1010-
possession or otherwise.	1038.
Division 5.—Indebtedness under old Securities to Bank or to transferred Activities—Suspending payment of Instal- 9nents—Writing down the Value of over-capitalised Pro- perties—Consolidation of Securities.

63. Where the Commissioners are satisfied that any hor- Power to postpone us

rower who is the owner of any lands or chattels the subject w en

of any security to the Bank, or to any of the transferred

activities, is unable to meet his indebtedness thereunder and

No. 45.] Agricultural Bank. [1934.

any interest payable in respect thereof, according to the terms of the borrowing, the Commissioners may, subject to the con- sent of the Treasurer, if the Commissioners are satisfied that the borrower is deserving of assistance, paying due regard to his relationship to the Bank or any of the transferred activities, suspend or postpone payment of the whole or any portion of the indebtedness of the borrower, as the Commis- sioners think fit, and during the period of such suspension the Commissioners may relieve the borrower from payment of interest on such suspended amount, and make any necessary adjustment in regard to the payment of instalments, in order to give effect to any such suspension or postponement: pro- vided that such suspension or postponement shall be subject to review by the Commissioners from time to time as the Commissioners may determine but at least once in every two years: provided that no period of time during which any in- debtedness is suspended under the authority of this Act shall be taken into account for the purpose of any statute of limit- ation.

The Commissioners	64.	The Commissioners may make it a condition of agree-
may require other
creditors to post-

pone claims before	ing to any such suspension or postponement, that the
postponing Com-
missioners' claim.	other creditors of the borrower, secured and unsecured, enter into any mutually binding scheme or arrangement be- tween themselves, the Commissioners and the borrower for the suspension or postponement of their claims, on such terms and conditions as the Commissioners consider reasonable.

65.    Where the Commissioners are satisfied

Power to write-

down over-capit-	(a)	that the value of any security or securities formerly vested in the Bank or any of the transferred activ- ities, and vested in the Commissioners by this Act is insufficient to cover the aggregate amount due by any borrower on all accounts secured by such security or securities; and
alised securities.
(b)	that there is no reasonable likelihood of the securi- ties appreciating in value so as to cover such amount and of the borrower being able to meet his indebtedness; and
(c)	that the borrower is deserving of assistance, paying due regard to his past relationship with the Bank or any of the transferred activities

1934.] Agricultural. Bank. [No. 45.

the Commissioners may, subject to the consent of the Treas-

urer, and with the approval of the Governor

(a)	write off and reduce the aggregate indebtedness of the borrower on such accounts to such sum as the Commissioners consider the security or securities may reasonably be expected to carry;
(b)	adjust the payment thereof over such period or periods as the Commissioners think fit and, where there are several securities carrying varying rates of interest, fix a uniform rate of interest to be paid by the borrower;

but the Commissioners may make it a condition of agreeing to any such writing off and reduction that the other creditors of the borrower, secured and unsecured, enter into any mutually binding scheme or arrangement between themselves, the Commissioners and the borrower for the reduction and adjustment of their claims on such terms awl conditions as the Commissioners consider reasonable.

66. The Commissioners may employ valuators with gen- Commissioners my employ valuators.

eral or special local knowledge, in order to assist the Com- missioners in making a determination under the preceding sections. Such valuators shall have power to examine wit- nesses, and administer oaths and affirmations in order to obtain any evidence they deem necessary for the purpose of any such valuation.

67. rower is indebted to the Commissioners on a number of dif- MsnsNorrete The Commissioners may, in any case whore a hot- Commissioners may

cosne5uri.

ferent securities or accounts, and where it is convenient and venients

.practicable to do so, combine the whole of the accounts and securities in one account or security, and fix a uniform rate of interest and terms of repayment with the borrower.

Division 6.—Accounts and Audit.

68. The Commissioners may appoint internal auditors, Appointment of internal auditors.

whose duty it shall be to conduct a continual audit of the

accounts of the Commissioners.

69.    The Commissioners shall, as soon as possible and Accounts:_

no t later than three months after the thirtieth day of June

in each year, cause to be prepared

(a) a balance sheet as at the said thirtieth day of June la) balance sheet ;

of the affairs of the Commissioners, showing all

No. 45.] Agricultural Bank. [1934.

the assets and all the liabilities of the Commis- sioners, either immediate or contingent, and mak- ing due allowance for bad debts or depreciated. securities ;

flu revenue ac- (b) a revenue account, giving particulars of the revenue derived by the Commissioners and the charges made thereon for the preceding twelve months ending on the thirtieth day of June and showing the net profit or net loss made or incurred for such period;

count ;

ei analysed cash

account. (c) an analysed cash account, in such_ form as may be prescribed, showing particulars of receipts and disbursements made by the Commissioners for the period covered by the said revenue account.

Appointment of

special auditor by 70. (1.) The Auditor General shall from time to time ap-

Auditor General.

point an officer of his staff to audit the affairs and accounts of

the Commissioners.

Reports.

(2.)

Auditor General in writing on the affairs and accounts of the

Commissioners.

Such officer shall from time to time report to the

Comments by

Auditor General. (3.)

(a) The Auditor General shall make whatever writ-

ten comments he thinks necessary on the position as disclosed

by the said accounts and the report or reports of his officer.

(b) Such comments, together with the report or reports of his officer, shall be forwarded to the Commissioners and by the Commissioners to the Minister before the first day of November in every year. The Minister shall cause the same to be laid on the table of each House of Parliament at the next sitting of each respective House.

Powers of Auditor (4.)

The Auditor General, and any officer appointed by him shall, for the purpose of carrying out his duties under this Act, have all the powers conferred on the Auditor General by any law in force relating to the audit of public accounts.

General, etc.

Report to be made

annually to 71. Not later than the first day of November in every year

Parliament the Commissioners shall furnish a report to the Minister of the operations of the Commissioners for the twelve months ending on the preceding thirtieth day of June, together with a copy of the balance sheet and accounts referred to in the pre- ceding sections and the reports of the auditor or auditors thereon, and the Minister shall cause the same to be laid on the table of each House of Parliament at the next sitting of each respective House.

1934.] Agricultural Bank. [No. 45.

PART V.-OFFENCES AND PENALTIES.

72. (1.) Any person who does or makes any of the follow- ing acts or omissions, or who is concerned in doing or making any of the following acts or omissions, commits an offence against this Act, and is liable on summary conviction to a penalty of not more than six months' imprisonment with hard labour, or to a fine not exceeding one hundred pounds, or both. The acts or omissions referred to are as follows

(a)	destroying, damaging, or disposing of any security. or any part thereof, to the Commissioners; or
(b)	without the consent of the Commissioners in writing removing any materials from ally buildings, erec- tions, or fixtures on. lands secured to the Commis- sioners to any other lands, unless the defendant prove that he had no intent to defraud; or
(c)	hindering or obstructing any officer of the Commis- sioners, or any authorised agent of the Commis- sioners, in or in connection with any distress levied under this Act c/r the repealed Acts, or any sale pursuant to this Act or the repealed Acts, or the terms of any security ; or
(d)	concealing ally assets under any security to the Com- missioners; or
(e)	knowingly receiving ally security or any property comprised in any security which has been unlaw- fully disposed of, removed, or concealed contrary to the preceding provisions of this subsection.

(2.) All offences under this section shall be tried and determined by a stipendiary magistrate.

PART VI.-REGULATIONS.

73. The Governor may make regulations for all or any

of the following purposes

Meetings.

(a)	the conduct of meetings of the Commissioners;
(b)	the custody and method of affixing the common seal Seal.

of the Commissioners;

Patin of seat.

(c)	the form of the common seal;
(d)	the forms to be used under this Act, including the Porms•

forms of security to be taken on the granting of an advance in any case or in any particular class of case;

No. 45.J Agricultural Bank. [1934.

Procedure at

inquiry, etc.	(e)	the procedure in any case where the Commissioners hold any inquiry, including the procedure for com- pelling the attendance of witnesses and the pro- duction of documents;
Control of stall.	(f)	the control and discipline of the staff of the Com- misSioners;
Securities.	(g)	the protection of the securities of the Commis-

sioners;

Penalties.	(h)	prescribing a penalty not exceeding twenty pounds for the breach or omission of any duty prescribed by any such regulation:
Generally.	(i)	generally for carrying out the objects and provisions of this Act.

PART Vii.-MISCELLANEOUS.

Protection to

Commissioners. 74. (1.) No matter or thing done by the Commissioners

or by any servant or agent of the Commissioners, or any officer of police, in good faith in or about the purported exer- cise of any of the powers conferred on the Commissioners by this Act, shall subject the Commissioners or any member thereof, or any such servant or agent or officer of police, to any liability in respect thereof.

(2.) Subject to the foregoing provisions of tins section, no action or proceeding shall be brought against the Commis- sioners

(a)	until after the expiration of three months' notice in writing 'specifying the name of the person in- tending to bring such action or proceeding, and particulars of the cause or grounds of such action or proceeding;
(b)	after the expiration of six months from the time when such cause of action or ground of proceed- ing arose.

1934.]	Agricultural Bank.	[No. 45.
FIRST SCHEDULE.

Sec. 3

REPEALED ACTS.

Extent of

Date. Title.

Repeal.

No. 15 of 1900 The Agricultural Bank Act, 1900 .... The whole.

No. 50 of 1909 The Agricultural Bank Amendment Act, The whole.

1909

No. 18 of 1912 The Agricultural Bank Amendment. Act, The whole.

1911

No. 54 of 1912 The Agricultural Bank Amendment Act, The whole.

1912

No. 15 of 1917 The Agricultural Bank Amendment Act, The whole.

1917

No. 3 of 1922 The Agricultural Bank Amendment Act, The whole.

1921

No. 30 of 1922 The Agricultural Bank Amendment Act, The whole.

1922

No. 3 of 1926 The Agricultural Bank Amendment Act, The whole.

1926

No. 32 of 1928 The Agricultural Bank Amendment Act, The whole.

1928

No. 24 of 1929 The Agricultural Bank Amendment Act, The whole.

1929

No. 15 of 1930 The Agricultural Bank Amendment Act, The whole.

1930

SECOND SCHEDULE.

Sec. 49

COVENANTS AND PROVISOS TO BE IMPLIED IN MORTGAGES.

Covenants by the borrower

(a) To pay from time to time all rent, purchase-money, rates, taxes, and outgoings which may he payable in respect of the mortgaged land.

(14 To observe and perform all the conditions under which the mort- gaged land is held by the borrower.

(e) At all times to cultivate and manage the said lands or any business or industry carried on on the said lands in accordance with most approved methods ; to keep all such parts thereof as are usually ploughed or intended for the plough in a fit state for the plough ; to keep down noxious weeds, suckers and undergrowth ; to keep the said lands from all vermin and pests ; to comply with all regulations, by-laws and requisitions of any competent statutory body board or person in regard to the said lands and which are enforceable against the owner or occupier in respect thereof.

No. 45.] Agricultural Bank. [1934.

Provisos (1) That if the borrower shall make default

(a) in paying any rent, purchase-money, rates, taxes, and out-

goings payable in respect of the mortgaged land ; or

(b) in the observance or performance of any conditions under

which the mortgaged land is held, •

the Commissioners may pay such moneys payable or perform such con- ditions, and all moneys paid by the Commissioners under this proviso shall be a debt due by the borrower to the Commissioners payable on demand, and until repaid shall carry interest at the rate payable under the mortgage in respect of the principal moneys, and shall with such interest be secured by the mortgage ; and

(2) That if the borrower shall make default in the observance or per- formance of any condition under which the mortgaged land is held, the like consequences shall follow as are provided by the Agricultural Bank Act, 1934, in case of default made in the payment of any instalment of principal and/or interest payable under the provisions of the said Act.

(3) That if any half-yearly payment of principal and/or interest is unpaid by the borrower for two calendar months next after the time appointed by the mortgage for the payment thereof, or if by the default of the borrower the mortgaged land becomes forfeited, the Commissioners may, without prejudice to any other powers conferred by the Act, require the repayment by the borrower forthwith of all moneys advanced to him by the Commissioners, and such moneys with interest thereon may be sued for and shall be recoverable by the Commissioners by action against the borrower in any court of competent jurisdiction.