ADVOKS GLOBAL · KENYA
Agricultural Finance Corporation Act
19. Loans to farmers
Edition: 2022-12-31 · Repealed
19. Loans to farmers
(1)The Corporation may, in accordance with rules made under this Act and subject to subsection (3) of section 14 of this Act but otherwise upon such terms and conditions as to interest, repayment, security or otherwise and in such manner as the Board may think fit, make a loan to a farmer to enable him to engage more effectively in agriculture—(a)upon his applying for a loan in writing in such form as the Board from time to time approves; and(b)upon the authority of a resolution of a meeting of the Board at which the application is properly considered and approved.(2)A loan, under this section may be made for the purpose of reducing or discharging an existing first mortgage if in the opinion of the Board the terms of the mortgage are onerous:Provided that a loan shall not be made for the purpose of reducing an existing mortgage unless the mortgagee executes a waiver of priority in favour of the Corporation under section 28 of this Act.(3)A loan under this section shall be made for such period, not exceeding thirty years, and on such terms, as the Board may determine.