ADVOKS GLOBAL · KENYA
Agricultural Finance Corporation Act
16. Reserve fund
Edition: 2022-12-31 · Repealed
16. Reserve fund
(1)The Board shall create a reserve fund which shall be credited from time to time with any net profit earned by the Corporation.(2)The reserve fund shall be applied by the Board in making good any loss or deficiency which may occur in any of the transactions of the Corporation.(3)Whenever any balance remains in the reserve fund after providing for any loss or deficiency as aforesaid, it may be devoted to any of the purposes to which any other fund of the Corporation may by this Act be devoted.(4)The reserve fund created in accordance with subsection (1) of this section shall be credited with any net profit earned by the Corporation until such time as the balance remaining after providing for any loss or deficiency as aforesaid shall exceed ten per centum of the funds of the Corporation as defined in section 15 of this Act, and shall thereafter not be reduced below that level.(5)Subject to subsection (4) of this section as soon as the reserve fund and other funds of the Corporation total such amount as in the Board’s opinion is adequate to enable the Corporation fully to carry out its objects, there shall as soon as possible after the accounts have been duly audited and certified in accordance with section 40(1) be paid to the Principal Secretary to the National Treasury such amount as the Board shall direct out of—(a)the profits of the Corporation; and(b)the reserve funds of the Corporation.(6)All amounts paid to the Principal Secretary to the National Treasury under subsection (5) of this section shall be applied towards the redemption of any loans made by the Government to the Corporation, and interest upon the amount repaid shall cease to be payable as from the date of repayment.