ADVOKS GLOBAL · KENYA
Agricultural Finance Corporation Act
20. Charge on the land
Edition: 2022-12-31 · Repealed
20. Charge on the land
(1)Where the Board so directs a farmer who is the registered owner of land which is not encumbered with any mortgage (other than one in respect of which the mortgagee has executed a waiver of priority in favour of the Corporation under section 28 of this Act shall execute a first mortgage of the land in favour of the Corporation.(2)Where the conditions of the loan are such that the Board is satisfied that the execution of a formal first mortgage is not necessary, or where the Board otherwise directs, the borrower shall not be required to execute such a document, and instead the General Manager shall—(a)deliver a written notification of the loan in the prescribed form to the land registrar, who shall register it against the title to the borrower’s land and, where appropriate, endorse a memorandum of the loan on the grant or certificate of title, and thereupon the land shall stand charged with the repayment of the loan and the interest thereon subject to any prior registered charge; and(b)upon repayment of the loan and all interest due on it, give written notice of the repayment to the land registrar, who shall register it against the title to the borrower’s land and cancel any memorandum of the loan which is endorsed on the grant or certificate of title, and thereupon the charge created in respect of the loan shall be extinguished,and a written notification delivered under this subsection shall for all the purposes of this Act be deemed to be a mortgage of the land comprised therein executed by the borrower to secure the loan.(3)In addition to the action prescribed by subsection (2), the General Manager—(a)may register a notice under the Movable Property Security Rights Act (Cap. 499A) to make a security right in movable property effective against third parties; and(b)shall, upon repayment of the loan and all interest due on it, register a cancellation notice in accordance with the Movable Property Security Rights Act (Cap. 499A).