Agricultural Credit Act, 1947

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Conversion of floating chattel mortgage into a specific chattel mortgage.

29.—(1) Whenever—

(a) the principal moneys secured by a floating chattel mortgage or any part of such moneys remain unpaid for twenty-eight days after the date appointed by the floating chattel mortgage for payment thereof, or some interest secured by a floating chattel mortgage is in arrear and unpaid for fifty-six days after becoming due, or there has been a breach (whether by commission or omission) by the mortgagor of some provision (other than a covenant for payment of the principal moneys or interest secured thereby) contained in a floating chattel mortgage or implied therein by virtue of subsection (1) of section 28 of this Act, and

(b) the mortgagee has served on the mortgagor a notice in writing declaring that such floating chattel mortgage has become fixed, and

(c) the mortgagee has, before the service of the notice, taken an inventory of the stock then on the land to which such floating chattel mortgage relates, and

(d) the mortgagee, within seven days after the day on which such notice has been served, sends by registered post to the Circuit Court Office or Offices where such floating chattel mortgage is registered, a true copy of the notice and of the inventory,

the following provisions shall have effect, that is to say—

(i) such floating chattel mortgage with effect as on and from the date of the service of the notice shall, for the purposes of this Act, become and be fixed, and shall operate and have effect as a specific chattel mortgage of all stock which is on the said land at the time of the service of the said notice, and sections 25 and 26 of this Act shall apply accordingly,

(ii) on receipt of the copies of the said notice and inventory in any Circuit Court Office, there shall be entered in the register of chattel mortgages the fact that such notice has been served and the particulars of the stock set out in the inventory, and such entry shall, until the contrary is proved, be evidence in any proceedings that the said notice was served and that the stock, particulars of which are so entered in the said register, was on the said land on the date on which the said notice was served.

(2) (a) A notice in writing declaring that a floating chattel mortgage has become fixed shall, for the purposes of subsection (1) of this section, be sufficiently served on the mortgagor if—

(i) in case the mortgagor is an individual, a copy thereof is—

(I) delivered to the mortgagor, or

(II) left for the mortgagor, at the mortgagor's last or most usual place of abode or business in the State, with any person (being the wife or husband or a relative, agent, clerk or servant of the mortgagor) who is aged sixteen years or upwards, or

(ii) in case the mortgagor is a body corporate, a copy thereof is left for the mortgagor, at the mortgagor's place of business, with any agent, clerk or servant of the mortgagor who is aged sixteen years or upwards.

(b) For the purposes of this subsection, a company registered under the Companies Acts, 1908 to 1924, shall be deemed to carry on business at its registered office, and every other body corporate shall be deemed to carry on business at its principal office or place of business.

(3) A copy of section 25 of this Act shall be endorsed on every notice served under subsection (1) of this section but non-compliance with this provision shall not invalidate the notice.