ADVOKS GLOBAL · KENYA
Agricultural Finance Corporation Act
32. Application of money repaid prematurely
Edition: 2022-12-31 · Repealed
32. Application of money repaid prematurely
(1)If a person to whom a loan has been made under this Act (in this section referred to as a borrower) at any time pays to the Corporation an amount in excess of the instalment then due under the mortgage, the Corporation may, if it thinks fit, on the date when the next instalment falls due, apply such amount in payment of the capital portion of one or more of the instalments which would otherwise thereafter fall due, and the instalments may then be recalculated on the basis of balance of capital owing by the borrower over the remainder of the period for which the loan was originally made.(2)Such an excess payment, and its application by the Corporation as provided in subsection (1) of this section, shall not exempt the borrower from paying his next instalment when it is due, reduced or recalculated where appropriate.(3)The Corporation may allow a borrower a rebate of interest, in respect of money paid prematurely, and the rebate shall be in the form of a reduction of the rate of interest charged on that money by one per cent per annum from the date of the payment up to the date when the next instalment falls due.(4)If the total amount owing to the Corporation is paid off before the due date for payment, the Corporation may claim interest only up to the date of payment:Provided that, in the case of repayment on a date before the due date for repayment, three months’ notice of intention to repay shall be given to the Corporation, and if no such notice is given the Corporation may claim interest in respect of such amount for the period by which the notice actually given falls short of three months.