Loans to Producers Act 1927 (SA)
(Reprint No. 1)
SOUTH AUSTRALIA
LOANS TO PRODUCERS ACT, 1927
This Act is reprinted pursuant to the Acts Republication Act, 1967, and incorporates all amendments in force as at 1 October 1991.
It should be noted that the Act has not been revised (for obsolete references, etc.) by the
Commissioner of Statute Revision prior to the publication of this reprint.
SUMMARY OF PROVISIONS
Section
1. Short title
2. Acts consolidated and repealed
3. Interpretation
| 3a. | Power of bank to borrow |
| 4. | Financial provision |
| 5. | Loans to producers |
| 5a. | Loans for fallowing |
| 5b. | Loans for fishing |
| 6. | Application for loan |
| 7. | Loans by instalments |
| 8. | Loans to be secured |
| 9. | Treasurer may fix rate of interest on loans |
| 10. | Interest on loans, how payable |
| 11. | Mode of repayment of loans |
| 11a. | "Fixed rate" for the purposes of sections 10 and 11 |
| 12. | Remedies for recovery of instalments |
| 13. | Power of bank to guarantee overdraft of co-operative society |
| 13a. | Indemnity by Treasurer |
| 14. | Regulations |
SCHEDULE
LOANS TO PRODUCERS ACT, 1927
being
Loans to Producers Act, 1927, No. 1802 of 1927
[Assented to 30 November 1927]
as amended by
Loans to Producers Act Amendment Act, 1927, No. 1828 of 1927 [Assented to 23 December 1927]
Loans to Producers Act Amendment Act, 1946, No. 15 of 1946 [Assented to 31 October 1946]
Loans to Producers Act Amendment Act, 1951, No. 18 of 1951 [Assented to 11 October 1951]
Loans to Producers Act Amendment Act, 1962, No. 27 of 1962 [Assented to 25 October 1962]Loans to Producers Act Amendment Act, 1980, No. 76 of 1980 [Assented to 13 November 1980]1
Loans to Producers Act Amendment Act, 1988, No. 70 of 1988 [Assented to 10 November 1988]
Note: Asterisks indicate repeal or deletion of text. For further explanation see Appendix.
Came into operation 9 April 1981: Gaz. 9 April 1981, p. 1092.
An Act to consolidate certain Acts enabling loans to be made by the Government for the encouragement of rural production and of effective land settlement.
BE IT ENACTED by the Governor of the State of South Australia, with the advice and consent of the Parliament thereof, as follows:
Short title
1. This Act may be cited the Loans to Producers Act, 1927.
Acts consolidated and repealed
2. This Act is a consolidation of the Acts mentioned in the schedule hereto, and the said Acts are hereby repealed to the extent therein mentioned.
Interpretation
3. In this Act, unless inconsistent with the context or subject matter—
"bank" means the State Bank of South Australia established by the State Bank Act, 1925:
"cool store" means—
(a)
cool store for the storage or the packing of fruit, or the storage and packing of fruit, and all offices and conveniences in connection therewith; and
(b) the machinery used in connection with such store; and (c) a packing shed or a grading shed:
"co-operative society" or "society" means a co-operative society to which a loan has been made
under this Act:
"factory" includes buildings, machinery, and appliances:
"landholder" means the owner of any freehold estate in land, the holder of land under agreement with the Crown for the sale of such land upon credit, or the lessee of land held under lease from the Crown, not being a miscellaneous lease.
Power of bank to borrow
3a. The bank may borrow moneys for the purposes of this Act under guarantee of the Treasurer
in such amounts under such terms and conditions as the Treasurer may from time to time approve.
Financial provision
4. The money required for the purposes of this Act shall be paid out of money voted by Parliament for those purposes or out of moneys borrowed pursuant to section 3a of this Act.
Loans to producers
5. (1) Subject to the provisions of this Act, the bank may, in its discretion, with the object of encouraging rural production and effective land settlement, make loans (on such security as the bank thinks fit) to any co-operative society registered under the Industrial and Provident Societies Act, 1864, or the Industrial and Provident Societies Act, 1923, which is engaged, or is about to engage, in rural production, for—
| (a) | the erection of cool stores; or |
| (b) | the erection of factories for jam-making and for canning, drying, or otherwise preserving fruit or vegetables; or |
| (c) | the erection of fruit-packing sheds; or |
| (d) | the erection or purchase of butter, cheese, or bacon factories; or |
| (e) | the purchase of fruit-grading machinery; or |
| (f) | the erection of silos; or |
| (g) | the erection or purchase of any shop or market for the sale of any rural products; or |
| (h) | the sale, whether by wholesale or retail, or the preparation for sale, of any rural products; or |
any other prescribed purpose.
(2) A co-operative society shall be deemed to be engaged, or to be about to engage, in rural production if at least three-fourths of its members are engaged, or are about to engage, in rural production.
(3) Loans may also be made as mentioned in subsection (1) hereof to any landholder, but only for one or more of the purposes mentioned in paragraphs (e), (f), and (i) of that subsection.
(4) Loans may also be made as mentioned in subsection (1) hereof to any person who holds any land on lease or agreement from the Crown for the purpose of clearing scrub or timber from such land.
Loans for fallowing
5a. (1) The bank may make loans to any landholder for the purpose of enabling him to fallow his land or any portion thereof.
(2) Notwithstanding any Act or law to the contrary, a bill of sale given for the purposes of securing any loan made under this section shall, although given before the existence of any growing crop, be as valid and effectual and have the like force and effect as if it had been given on a growing crop.
Loans for fishing
5b. The bank may make loans to any person (including any association of persons corporate or unincorporate) for the purpose of enabling that person to do all or any of the following things, namely:—
| (a) | To purchase, construct or erect any ship, boat or other vessel, land, buildings, machinery, plant, equipment, or other things to be used for or in connection with the catching, storing, processing, canning, or marketing of fish: |
| (b) | To pay any other expenses to be incurred in connection with the establishment or carrying on of a business of catching, storing, processing, canning, or marketing of fish. |
Application for loan
6. An application for a loan must—
| (a) | be made to the bank in writing in a form approved by the bank and contain such information as the bank requires; |
| and | |
| (b) | be supported by such evidence (if any) as the bank requires. |
Loans by instalments
7. (1) A loan under this Act may be made by instalments.
(2) If at any time, in the opinion of the bank, any money lent under this Act has not been applied for the purpose for which it was lent, or has not been carefully and economically expended, the bank may refuse to pay any further instalment of the proposed loan, and may at once call in the whole amount already lent, whereupon the person to which or to whom such money was lent shall forthwith repay the same, and in default the bank shall have the same remedies for the recovery of the same as are provided by section 12 of this Act or otherwise by law.
Loans to be secured
8. A loan must not be made under this Act except on the security of a mortgage, lien, bill of sale or such other security as the bank thinks fit and with such additional security (if any) as the bank may require.
* * * * * * * * * *
Treasurer may fix rate of interest on loans
9. (1) The Treasurer may, from time to time, by notice published in the Government Gazette, fix the annual rate of interest to be paid on loans, and also a higher rate to be paid by way of penalty instead of interest at the fixed rate on any occasion when interest at the fixed rate is not paid within such period after the due date for payment thereof as is fixed in the notice. The Treasurer may, in the same manner, annul any rate or penalty rate so fixed.
(2) Any rate or penalty rate so fixed shall come into force on the fourteenth day after the date of the Government Gazette in which the same is published, and shall continue in force until the fourteenth day after the date of the Government Gazette in which the notice annulling the same is published.
(3) The rates shall be fixed having regard to the rate payable by the Treasurer in respect of the loan moneys out of which loans are for the time being made and the rate payable by the bank in respect of moneys borrowed in pursuance of section 3a of this Act and from which loans are being made for the time being.
(4) The Treasurer shall review the rates for the time being fixed under this section not less frequently than quarterly in each year and, where appropriate upon such review, fix new rates in accordance with this section.
Interest on loans, how payable
10. (1) For the period for which the loan is made the borrower shall pay to the bank interest on the loan, or on the balance thereof for the time being unpaid, at the fixed rate.
(2) Such interest shall be payable half-yearly, the first payment to be made on the first day of the seventh month commencing next after the loan is made.
(3) If any loan is made by instalments, interest shall be calculated on the actual amounts of the several instalments of such loan from the date when such instalments are respectively lent.
Mode of repayment of loans
11. When a loan has been made under this Act, the borrower shall repay to the bank such loan, together with simple interest on the balance thereof for the time being unpaid at the fixed rate, within such time and by such instalments and subject to such conditions as the bank determines.
"Fixed rate" for the purposes of sections 10 and 11
11a. For the purposes of sections 10 and 11, "fixed rate" in relation to interest payable on a loan (whether before or after the commencement of the Loans to Producers Act Amendment Act, 1980,) means—
| (a) | in relation to— | |
|
or
(ii) any loan made after that commencement, the rate of interest fixed by the Treasurer as from time to time in force under section 9;
| and | |
| (b) | in relation to any loan made before that commencement pursuant to an agreement that did not make such provision, the rate of interest fixed by the Treasurer as in force under that section at the time the loan was made. |
Remedies for recovery of instalments
12. (1) In the case of a loan under this Act, in addition and without prejudice to any other remedy, if at any time any payment under this Act, or any part thereof, is unpaid for thirty days next after the time appointed for the payment thereof, then, although no legal demand may have been made for the payment thereof, the bank may enter upon the land charged, or any part thereof, and recover the amount due by distress and sale of any goods and chattels of the person or society making default in payment which are on such land, or such amount may be recovered from such person or society in any court of competent jurisdiction by action in the name of the bank.
(2) In the case of a loan under this Act, if at any time any payment required by this Act, or any part thereof, is unpaid for three months next after the time appointed for the payment thereof, then, although no legal demand has been made for the payment thereof, the bank may enter upon and take possession of the land upon the security of which the loan has been made, and may sell the estate and interest of the landholder or society therein, either by private sale or public tender or auction, and subject to any conditions of sale the bank thinks expedient and after such notice of the time, place, terms, and conditions of sale as the bank may think just and expedient, and may transfer such land to the purchaser and give a good and valid title thereto.
(3) The bank shall apply the proceeds derived from such sale in payment, in the first instance, of all moneys due in respect of such land, and in redemption of any amount charged thereon in favour of the bank, or of so much thereof as remains unpaid, and of all expenses incurred by the bank in relation to such sale or otherwise with respect to such land, and shall pay the balance (if any) to the persons or society appearing to the bank to be entitled to receive the same.
Power of bank to guarantee overdraft of co-operative society
13. (1) In any case where any co-operative society registered under the Industrial and Provident Societies Act, 1864, or the Industrial and Provident Societies Act, 1923, which is engaged or about to engage in rural production, is desirous of carrying out some one of the purposes prescribed by or under section 5, and is unable to do so without financial assistance, the bank may, in its discretion, instead of making a loan to such society under this Act, enter into a contract with any other bank carrying on business in South Australia to guarantee the repayment of any advance made by such other bank to such society by way of overdraft for such purpose up to such amount as the bank thinks proper.
(2) Any sum which the bank becomes liable to pay to any other bank by reason of any guarantee entered into pursuant to the power conferred by this section shall be paid out of money provided by Parliament for the purposes of this Act.
Indemnity by Treasurer
13a. (1) The Treasurer shall indemnify the bank for all interest and other financial obligations arising out of any borrowing by the bank pursuant to section 3a of this Act.
(2) Any amounts received by the bank in repayment of loans made out of moneys borrowed by the bank pursuant to section 3a of this Act and any moneys so borrowed which may from time to time be in excess of requirements for the purposes of this Act may be held on deposit with the bank on such terms as the Treasurer may approve or may be deposited with the Treasurer or be paid to the Treasurer in reimbursement for moneys provided pursuant to this Act.
Regulations
14. The Governor may make such regulations as are contemplated by, or as are necessary or expedient for the purposes of, this Act.
THE SCHEDULE
ACTS REPEALED
Reference to Act Title Extent of Repeal
| No. 1312 of 1917 | Loans to Producers Act, 1917 | The whole |
| No. 1375 of 1919 | Loans to Producers Act Amendment Act, 1919 | The whole |
| No. 1458 of 1921 | Loans to Producers Act Amendment Act, 1921 | The whole |
| No. 1505 of 1922 | Loans to Producers Act Amendment Act, 1922 | The whole |
| No. 1636 of 1924 | Loans to Producers Act Amendment Act, 1924 | The whole |
| No. 1703 of 1925 | State Bank Act, 1925 | Section 63 and the Fourth Schedule |
| No. 1708 of 1925 | Loans to Producers Act Amendment Act, 1925 | The whole |
| No. 1730 of 1926 | Loans to Producers Act Amendment Act, 1926 | The whole |
APPENDIX
Legislative History
Legislative history prior to 3 February 1976 appears in marginal notes and footnotes included in the consolidation of this Act contained in Volume 6 of The Public General Acts of South Australia 1837-1975 at page 64.
| Section 5(1): | amended by 70, 1988, s. 2 |
| Section 6: | substituted by 70, 1988, s. 3 |
| Section 7(1): | substituted by 70, 1988, s. 4 |
| Section 8: | substituted by 70, 1988, s. 5 |
| Section 8a: | repealed by 70, 1988, s. 5 |
| Section 9(3): | amended by 76, 1980, s. 3(a), (b) |
| Section 9(4): | inserted by 76, 1980, s. 3(c) |
| Section 11a: | inserted by 76, 1980, s. 4 |
| Section 14: | substituted by 70, 1988, s. 6 |
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