Agriculture (Loans
and Guarantees) (Jersey) Law 1974[1]
A LAW to make provision for affording
financial assistance to the agricultural industry through the lending of money,
the giving of guarantees in respect of bank loans made by persons carrying on
banking business, and the making of payments to reduce the cost to borrowers of
bank loans in respect of which guarantees have been given and to provide for
matters in connection therewith
Commencement
[see
endnotes]
1 Interpretation
(1) In this Law, unless the
context otherwise requires –
“agricultural land” means land, including land under
glass, used by way of trade or business, for any purpose of agriculture or
horticulture and includes land capable of being so used, and “agricultural”
shall be construed accordingly;
“applicant” means a person by or in respect of whom an
application for a loan or for the giving of a guarantee is made;
“approved” means approved by the Minister;
“bank” means any body corporate, firm or society
carrying on banking business which has been approved;
“bank loan” means a loan made by a bank by way of
fluctuating overdraft or otherwise;
“Board” has the meaning assigned to it by Article 2(2);
“borrower” means a person to whom a loan or a bank loan
is made;
“Fund” has the meaning assigned to it by Article 2(2);
“guarantee” means a guarantee in an approved form given
under this Law in respect of a bank loan;
“loan” means a loan, other than a bank loan, made under
this Law;
“Minister” means the Minister
for Sustainable Economic Development.[2]
(2) References in this Law
to the giving of a guarantee shall be construed as references to guaranteeing,
either unconditionally or on such terms and conditions as the Minister may
think fit to impose, the repayment of the whole or any part of a bank loan and
the payment of interest thereon.
(3) References in this Law
to any other enactment shall, unless the context otherwise requires, be
construed as references to that enactment as amended by or under any other
enactment, and as including references to any enactment repealing and
re-enacting the enactment with or without further amendment.
2 Regulations
(1) The States may by Regulations
provide generally for –
(a) the
lending of money for prescribed agricultural purposes;
(b) the
giving of guarantees in respect of bank loans made for such purposes;
(c) the
making of payments to a borrower under a bank loan in respect of which a
guarantee has been given, or to the bank making the loan, so as to reduce the
cost of the loan to the borrower.
(2) Without prejudice to
the generality of the provisions of paragraph (1), Regulations made under
that paragraph –
(a) shall
provide for the establishment, under the guarantee of the annual income of the
States, and for the management of a fund to be called the Agricultural Loans
and Guarantees Fund (in this Law referred to as the “Fund”);
(b) shall
provide for the constitution, for the purpose of making recommendations with
regard to the making of loans and payments and the giving of guarantees, of a Board
to be called the Agricultural Loans and Guarantees Advisory Board (in this Law
referred to as the “Board”);
(c) may
restrict the persons, or classes of persons to whom loans or payments may be
made or guarantees given;
(d) may
make provision for determining the amount of the principal of a loan to be
granted in any case and the rate of interest which the loan will bear, and
different provisions, including provisions relating to the repayment of the
principal of a loan and any interest thereon, may be made in relation to
different cases and circumstances;
(e) may
provide for the securing of a loan in such manner and subject to such
conditions as may be prescribed and may prescribe the form of any contract
necessary to effect the loan;
(f) may
prescribe matters on which the Minister shall be required to be satisfied
before a loan is made, the conditions to be observed in relation to any loan
and the powers of the Minister in the event of a breach of such conditions;
(g) may
prescribe the maximum amount of a bank loan in respect of which a guarantee may
be given;
(h) may
prescribe the conditions to be fulfilled or undertakings given by an applicant
for a guarantee and may prescribe the form of such undertakings;
(i) may
make provision regarding the duration and termination of guarantees and the
duties of banks to whom guarantees are given, and may empower the Minister to
withdraw guarantees on the happening of prescribed events and to recover any
sums paid to a bank in fulfilment of a guarantee;
(j) may
prescribe the circumstances in and the conditions subject to which payments may
be made, the manner in which the amount of the payments will be calculated and
the means whereby they will be made, and different provisions may be prescribed
in relation to different cases and circumstances;
(k) may
prescribe the circumstances in which an officer in an administration of the
States for which the Minister is assigned responsibility, or a person
authorized in writing by the Minister, shall be permitted to enter on or
inspect any agricultural land;
(l) may
prescribe the acts or omissions which constitute offences against the Regulations
and may prescribe in respect of such offences penalties of imprisonment for a
term up to 6 months and a fine up to level 3 on the standard scale;
(m) may provide
generally for the administration of this Law.[3]
3 Limitation
of application of Building Loans (Jersey) Law 1950
Article 3 of the Building Loans (Jersey)
Law 1950 shall not apply in any case where a loan may be made under this Law.
4 Citation
This Law may be cited as the Agriculture (Loans and Guarantees)
(Jersey) Law 1974.