Agricultural Finance Act [Chapter 18:02]

CHAPTER 18:02
AGRICULTURAL FINANCE ACT
Acts 6/1971, 15/1974 (s. 27), 20/1974, 1/1975 (s. 31), 22/1976 (s. 87), 10/1979, 24/1982 (s. 20), 35/1982,
29/1990; 14/1999; 22/2001 (s. 4), 13/2002 (s. 142); R.G.N. 380/1972; S.I. 468/1979.
ARRANGEMENT OF SECTIONS
PART I
PRELIMINARY
Section
l. Short title.
2. Interpretation.
PART II
[Repealed]
PART III
FUNCTIONS AND POWERS OFCORPORATION
20. Business of Corporation.
21. Restrictions on advances.
22. Application of provisions of Cap. 24:20 to Corporation.
23. Corporation empowered to administer special funds.
24. Corporation exempt from certain duties, fees and charges.
25. Corporation may authorize employee of Corporation to make advances or render assistance.
26. Corporation to submit reports and furnish information.
PART IV
FINANCIAL PROVISIONS RELATINGTOCORPORATION
27. Object of financial operations.
28. Funds of Corporation.
29. Creation of reserve fund of Corporation.
30. Accounts of Corporation.
31. Audit of Corporation’s accounts by Comptroller and Auditor-General.
32. [Repealed]
33. Investigation into affairs of Corporation.
34. Sums borrowed and interest thereon payable out of income and assets.
PART V
PROVISIONS RELATINGTOADVANCESAND SECURITIES AND REMEDIESTHEREFOR
35. Notes of hand.
36. Security for advance where borrower holds land in terms of agreement with State.
37. Cession of securities.
38. Remedies of Corporation against defaulting debtor.
39. Cession of rights by co-operative agricultural company or co-operative society.
40. Special remedies in respect of co-operative agricultural companies and co-operative societies.
PART VI
SPECIALPROVISIONS RELATINGTO DESIGNATED LIVESTOCK AND IMPLEMENTS ASSECURITY FORCERTAIN LOANS
41. Designated property purchased by borrower may become Corporation property.
42. Borrower may not dispose of designated article.
43. Borrower deemed to be owner of designated articles for certain purposes.
44. Loss of designated article not to affect liability of borrowers.
45. Marking, care and inspection of designated articles and returns by borrowers.
46. [Repealed]
47. Designated articles not liable to attachment.
48. Seizure and sale of designated articles.
49. Insolvency of borrower.
PART VII
SCHEMES
50. Establishment of Schemes.
51. Amendment, suspension or revocation of Scheme.
52. Moneys required for implementation of Scheme.
53. Guarantees in connection with Scheme.
PART VIII
GENERAL
54. Corporation to pay certain debts to State.
55. Corporation to pay for and administer loans made by African Loan and Development Trust.
56. Indemnity to Corporation.
57. Minister may guarantee repayment of advances.
58. Officials as agents of Corporation.
59. Valuation roll of local authority.
60. Accounts of co-operative agricultural companies or co-operative societies.
61. Holding of land by Corporation.
62. Exemption of Corporation from liability.
63. [Repealed]
64. Regulations.
65. Offences and penalties.
SCHEDULES
First Schedule: [Repealed]
Second Schedule: Sale of Property of Defaulting Debtor.
Third Schedule: Agricultural Assistance Scheme.
AN ACT to provide for a company to make advances to persons engaged in agriculture and to make
provision for its functions; to regulate the financial affairs of the Agricultural Finance Corporation;
to provide for the establishment of schemes for the assistance of persons engaged in agriculture and
for the implementation of such schemes; to set out the terms and conditions of an Agricultural Assistance
Scheme providing for assistance as previously afforded by the Agricultural Assistance Board;
and to provide for matters incidental to the foregoing.
[Date of commencement: 1st April, 1971.]
PART I
PRELIMINARY
1 Short title
This Act may be cited as the Agricultural Finance Act [Chapter 18:02].
[Section amended by Act 14 of 1999]
2 Interpretation
In this Act—
“advance” means a loan in any form made by the Corporation and includes any arrangement whereby the
Corporation becomes or has become guarantor or surety for the performance by a borrower of an obligation;
“Board” means the Corporation’s Board of Directors;
[Definition inserted by Act 14 of 1999]
“borrower” means any person to whom an advance has been made by the Corporation and includes—
(a) his legal representative;
(b) any surety for an advance;
(c) any mortgagor under a duly registered hypothecation;
“co-operative agricultural company” means a co-operative company registered under the Companies Act
[Chapter 24:03];
“co-operative society” means a society registered under the Co-operative Societies Act [Chapter 24:05];
“Corporation” means the company, formed in terms of the Companies Act [Chapter 24:03], which the Minister
declares, by notice in the Gazette, shall exercise the functions of the Corporation;
[Definition substituted by Act 14 of 1999]
“debt” means an amount owing to the Corporation under an advance and the interest thereon and includes the
expenses incurred by the Corporation in making the advance and in recovering the same, together with
interest thereon;
“designated articles” means any livestock or implements which are, in terms of Part VI, the property of the
Corporation;
“employee of the corporation”…
[Definition repealed by Act 14 of 1999]
“financial year” ….
[Definition repealed by Act 14 of 1999]
“general manager” ….
[Definition repealed by Act 14 of 1999]
“implements” includes any fencing, piping, machinery, equipment, installation, engine or vehicle, whether or
not it is affixed to or incorporated in any immovable property;
“member” ….
[Definition repealed by Act 14 of 1999]
“Minister” means the Minister of Agriculture or any other Minister to whom the President may, from time to
time, assign the administration of this Act;
“note” means an entry made in the Deeds Registry in terms of section thirty-five which constitutes a special
hypothecation of immovable property;
“Scheme” means a scheme established in terms of Part VII and includes the Scheme set out in the Third
Schedule;
“Sheriff” means the Sheriff referred to in section 55 of the High Court of Zimbabwe Act [Chapter 7:06];
“urban residential property” means—
(a) any piece of land registered as a lot or stand in the Deeds Registry which is included in a township
as defined in the Land SurveyAct [Chapter 20:12]; or
(b) any small-holding or other piece of land, not exceeding twenty hectares in extent, situated in the
vicinity of a township as defined in the Land Survey Act [Chapter 20:12] which is used or is intended
primarily for residential purposes; or
(c) an undivided share in any land referred to in paragraph (a) or (b) coupled with an exclusive right
of occupation, in respect of which a notarial deed has been registered against the title to the land
concerned in terms of section 27 of the Deeds Registries Act [Chapter 20:05]; or
(d) any other land or real right in land which the Minister may, by notice in writing to the Corporation,
classify as urban residential property for the purposes of this Act.
PART II
[Part II repealed by At 14 of 1999]
PART III
FUNCTIONS AND POWERS OFCORPORATION
20 Business of Corporation
(1) Subject to subsection (2), the functions of the Corporation shall be—
(a) subject to such terms and conditions as the Board may impose, to make advances—
(i) to any person for any purpose which, in the opinion of the Board, is incidental to or connected,
directly or indirectly, with the production, processing, storage, packing or marketing of any produce
obtained from agriculture or any operations carried on or to be carried on by that person relating
to agriculture, including—
A. the acquisition of land;
B. measures for the supply of electricity or the conservation or control of soil or water;
C. advances for the discharge of any liabilities, including death, estate and similar duties;
(ii) to any co-operative agricultural company or co-operative society for a purpose referred to in
subparagraph (i);
(iii) to any association, union, society or other such body of persons for a purpose which, in the
opinion of the Board, is likely to be of assistance or benefit to members of the farming community
or any industry connected with agriculture;
(iv) subject to subsection (2), to any person for the purchase of urban residential property, the construction
of a single dwelling-house and additionally, or alternatively, outbuildings on urban
residential property, the improvement of urban residential property or the discharge of liabilities
on urban residential property;
(b) in accordance with any Scheme, to render assistance to persons engaged in or about to engage in agriculture;
(b1) subject to the Banking Act [Chapter 24:20], to carry on the business of a commercial bank;
[Subsection inserted by Act 14 of 1999]
(c) generally, to perform any other function which the Corporation is authorised to perform by its memorandum
of association or by any other enactment.
[Subsection substituted by Act 14 of 1999]
(2) The Corporation shall not make an advance for a purpose specified in subparagraph (iv) of paragraph (a)
of subsection (1) unless—
(a) the person to whom the advance is to be made is already a borrower in respect of urban residential
property; or
(b) the advance relates to urban residential property in respect of which a debt is owed to the Corporation.
(3) An advance in terms of subsection (1) shall not be regarded as an investment for the purposes of paragraph
(b) of section 40 of the Audit and Exchequer Act [Chapter 22:03].
(4) The Corporation shall exercise the functions referred to in paragraph (a) or (b) of subsection (1) under the
name “Agribank” or such other name as the Minister may approve.
[Subsection inserted by Act 14 of 1999]
21 Restrictions on advances
(1) The Minister, after consultation with the Minister responsible for finance, may, by notice in writing to the
Board, fix the maximum amount which may be advanced in terms of paragraph (a) of subsection (1) of section
twenty to any person or class of persons specified in that paragraph.
(2) No—
(a) advance shall be made in terms of section twenty to any person of an amount in excess of the maximum
amount fixed in terms of subsection (1) unless the Minister, after consultation with the Minister responsible
for finance, has authorized such advance; or
(b) advance shall be made or assistance rendered—
(i) to any member of the Board or of a committee of the Board who is not an employee of the
Corporation without the consent in writing of the Minister; or
(ii) to any employee of the Corporation otherwise than in terms of the powers conferred by the First
Schedule in relation to employees of the Corporation.
22 Application of provisions of Cap. 24:20 to Corporation
For the avoidance of doubt it is declared that, except as otherwise provided in this Act, the Corporation shall
comply with the Banking Act [Chapter 24:20] to the extent that it conducts banking business as defined in subsection
(1) of section 2 of that Act.
[Section substituted by Act 14 of 1999]
23 Corporation empowered to administer special funds
(1) Notwithstanding anything to the contrary in this Act or in any other law, the Corporation may, if authorized
thereto by the Minister, act as agent for the State or any statutory body or authority established by or in terms
of any enactment for the administration of any fund and, in particular, as agent may administer any moneys and
make advances therefrom to any person on such terms and conditions and upon such security, if any, as the Minister
or statutory body or authority may direct.
(2) The administration fees which may be raised by the Corporation in administering loans as agent for the
State shall be met from moneys appropriated for the purpose by Parliament.
(3) Notwithstanding anything, in any law, the securities directed to be taken in terms of subsection (1) or
which are provided for in this Act may be taken by the Corporation in its own name for advances made under this
section and the Corporation shall be entitled in its own name to sue and exercise the powers of recovery granted
under this Act for the recovery of an advance made under this section.
(4) The Corporation may cede to the State or to any statutory body or authority for which the Corporation has
acted as agent in terms of this section any securities, including notes and designated articles taken for an advance
made in terms of this section, but such cessionary shall not acquire the powers conferred upon the Corporation by
subsections (2), (3) and (4) of section thirty-eight, as read with the Second Schedule.
24 Corporation exempt from certain duties, fees and charges
(1) No duty or fee in relation to any instrument, service or other matter shall be payable to the State in respect
of
(a) any transfer to the Corporation of property other than property acquired by the Corporation for its own
use or for the use of its employees; or
(b) any mortgage, hypothecation or pledge of property or cession thereof in favour of the Corporation,
whether in accordance with a Scheme or otherwise; or
(c) any document of security, pledge, act of suretyship, indemnity or guarantee by or in favour of the
Corporation.
(2) The Corporation shall not be liable for the payment of any search or inspection fee in the Master’s office
or in any Deeds Registry or companies registration office or other registration office of the State.
[Section substituted by Act 14 of 1999]
25 Corporation may authorize employee of Corporation to make advances or render assistance
The Board may authorize any employee of the Corporation, subject to such terms and conditions as it may determine,
to make advances or render assistance in terms of this Act on behalf of the Corporation and the employee
so authorized shall report to the Board the advances made or assi stance rendered in terms of such authorization
within three months of the date of such advance or assistance, as the case may be.
[Section amended by Act 14 of 1999]
26 Corporation to submit reports and furnish information
(1) In addition to the annual report which the Corporation may be required in terms of section 43 of the Audit
and Exchequer Act [Chapter 22:03] to submit to the Minister, the Corporation—
(a) shall submit to the Minister such other reports as the Minister may require; and
(b) may submit to the Minister such other reports as the Board may deem advisable;
in regard to the operations, undertakings and property of the Corporation.
(2) The Corporation shall give to the Minister all such information relating to the undertakings of the
Corporation as the Minister may at any time require.
(3) The Minister may lay before Parliament a report submitted to him by the Corporation in terms of paragraph
(a) or (b) of subsection (1).
PART IV
FINANCIAL PROVISIONS RELATINGTOCORPORATION
27 Object of financial operations
It shall be the object of the Corporation—
(a) so to exercise its functions and conduct its business, other than functions and business relating to the
administration and implementation of a Scheme, as to ensure that its income from such functions and
business, taking one year with another, is not less than sufficient to enable the Corporation to meet the
outgoings and any other provisions properly chargeable to the income and expenditure account; and
(b) to administer and implement any Scheme.
28 Funds of Corporation
(1) The funds of the Corporation shall consist of—
(a) such sums as may be payable to the Corporation in terms of this Act;
(b) such moneys as may be payable to the Corporation from moneys appropriated for the purpose by Parliament;
(c) any fund which—
(i) is established in terms of the Audit and Exchequer Act [Chapter 22:03]; or
(ii) is administered by the Corporation in terms of section twenty-three on behalf of the State;
and which the Minister responsible for finance specifies by statutory instrument for the purposes of this
paragraph;
(d) such other moneys or assets as may vest in or accrue to the Corporation, whether in the course of its
functions, the exercise of its powers or the performance of its duties or otherwise, including moneys borrowed
by the Corporation.
(2) Where the Minister responsible for finance specifies any fund in terms of paragraph (c) of subsection (1)
the moneys standing to the credit of the fund specified in the notice and the other assets and liabilities of that fund
shall be transferred to the Corporation with effect from the date specified in the notice and with effect from that
date—(
a) any moneys loaned from that fund shall be repayable to the Corporation as if they had been loaned by
the Corporation; and
(b) that fund shall cease to be a fund for the purposes of the Audit and Exchequer Act [Chapter 22:03].
29 Creation of reserve fund of Corporation
(1) The Corporation shall maintain a general reserve fund to which, subject to this Part, may be appropriated
from a surplus of income over expenditure at the end of any financial year such sums as the Board considers
necessary or desirable.
[Subsection