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AGRICULTURAL CREDIT ACT, 1927
Certificates of Charge.
1. Whenever the Corporation holds, as security for money advanced by it, first mortgages on land to the nominal amount of not less than one hundred thousand pounds, the directors may issue a series of certificates of charge against some or all of such mortgages.
2. The Minister and the Minister for Lands and Agriculture may if and whenever they so think fit by order made by them jointly authorise certificates of charge to be issued against any class or classes of securities specified in such order and may by such order impose such restrictions as they think fit as to the proportion or amount of any particular class of security (including first mortgages on land) to be included in the securities against which a series of certificates of charge may be issued, and may also by such order authorise certificates of charge to be issued although the Corporation does not hold as security for money advanced by it first mortgages on land to the nominal amount of one hundred thousand pounds.
3. Certificates of charge may be issued under that name or under any other name which the directors think suitable and a series of certificates of charge shall consist of certificates of such total nominal amount as the directors with the approval of the Minister shall think proper divided into certificates of ten pounds each or of such other amount or different amounts as the directors with the approval of the Minister shall think proper.
4. Before issuing a series of certificates of charge the directors shall place under the control of trustees, in such manner by transfer, sub-mortgage, deposit, or otherwise as shall be approved by the Minister, securities (in this Schedule referred to as authorised securities) against which certificates of charge may be issued by the Corporation under or by virtue of paragraphs 1 or 2 of this Schedule held by the Corporation as security for advances made by it to a nominal amount not less than the nominal amount of such series of certificates.
5. The number of the trustees shall be such even number as the directors think fit and one-half of the trustees shall always be nominated by the Minister and the other half of the trustees shall in the first instance be nominated by the directors and after the issue of the series of certificates shall be nominated as vacancies occur by the holders of such certificates.
6. The said authorised securities shall be so placed under the control of the trustees that the trustees shall hold the same upon trust for the Minister and the holders of the certificates issued against such authorised securities and that the trustees shall have all necessary and proper powers for raising for the Minister and such holders by means of such authorised securities the amount of the principal and interest of such certificates and also power when any such certificates are paid off in full by the Corporation to release to the Corporation so much of such authorised securities as shall be equal in nominal amount to the amount of the certificates so paid off and also power at any time at the request of the directors to release to the Corporation any of such authorised securities in exchange for an equal amount of similar authorised securities.
7. Every certificate of charge shall be expressed and shall operate—
(a) to bind the Corporation to pay to the holder of the certificate the principal amount thereof within a period of years (not exceeding forty) named therein and to pay interest on such principal amount at the rate named therein with the consent of the Minister but not exceeding by more than three per cent. per annum the average (ascertained in accordance with regulations made in that behalf by the Minister) rate of interest paid by the leading banks in Saorstát Eireann on moneys held by them on deposit account during such period of twelve months commencing not earlier than fifteen months before the issue of the certificates as shall be appointed by regulations made in that behalf by the Minister;
(b) to confer on the holder of the certificate the full benefit of the trusts on which the said authorised securities are placed under the control of the trustees;
(c) to confer on the holder of the certificate the benefit of the guarantee given by the Minister in respect thereof under this Act.
8. Before issuing a series of certificates of charge the directors shall submit the same to the Minister for the purpose of receiving from him such guarantee as he is authorised by this Act to give.
9. If and when such guarantee is given by the Minister the directors may issue such certificates of charge to the public in such manner and on such terms as they think fit subject to the restriction that no such certificate shall be issued at a less price than the amount of the principal sum secured thereby.
10. A series of certificates of charge shall as against the authorised securities held by the trustees as security therefor rank in priority to any debentures or debenture stock issued by the Corporation and to all other debts and liabilities of the Corporation but as against any other assets of the Corporation shall rank as simple contract debts.