Dominica Agricultural Industrial and Development Bank (Securities) Regulations (S.R.O. No. 51 of 1993)

1993 DOMINICA AGRICULTURAL S.R.O 51 INDUSTRIAL AND DEVELOPMENT BANK (SECURITIES) COMMONWEALTH OFDOMINICA STATUTORY RULES AND ORDERS No. 51 OF 1993 REGULATIONS MADE by the Boardundersection 36(1)(c) of the Dominica Agri­ cultural Industrial and Development BankAct, (Chap 74:03). (Gazetted 25thNovember, 1993.) 1. TheseRegulations may be citedas the ­ DOMINICA AGRICULTURAL INDUSTRIAL AND DEVELOPMENT BANK (SECURmES) REGULATIONS 1993. Short title. 2. (1) The Bankshallonly grant a long-term loan where thc Securities required security offeredisamortgage orcharge onthelandoftheborrower. by tho Bonk. In addition, the Bankmayrequire further security. by oneor more of the following methods (a) anassignment ofthebenefitof aninsurance policy to the Bank; (b) aninsurancepolicyonthelifeofaborrowerandthe estateof the assured borrower namedthebenefici­ ary on the insurance policy; (c) a mortgage or charge on otherproperty; or (d) an assignment to the Bankof Government securi­ tiesor any othersecurity acceptable to the Bank. (2) TheBankshallrequire security formedium-term loans C and short-term loansby oneor moreof the following methods ~ 1993 DOMINICA AGRICULTURAL S.R.O 51 INDUSTRIAL ANDDEVELOPMENT BANK (SECURITIES) (a) a mortgage or charge; (b) a Bill of Sale; (c) aninsurancepolicyonthelifeoftheborrower and the estate of the assured borrower named the beneficiary of the insurance policy; (d) such other security (including endorsements) as may be acceptable to the Bank; and (e) other sufficient andeasilyrealisable security. (3) In the case of short-term loans to a co-operative society. anymemberto whom partoftheloanhasbeendistributed shallsign anagricultural or industrial financing contract withthe society andshallguarantee his loanwitha firstlienon thecropor industrial productfor whichit has been obtained. This contract togetherwitha promissory note signedby the member. shall be endorsed by the societyin favourof the Bank. (4) The procedure prescribed in subsection (3) shall not absolve aco-operative society from its collectiveliabilityto repay the wholeof the loan to the Bank. (5) The Bankmay grant loans on mortgages of agricul­ tural and livestock products where (a) the loan is guaranteed by a first lien on the mort­ gagedproducts and by any other security which the Bankmay require; or (b) themortgage products. dulyinsured. are storedin a bondedwarehouse. or in a warehouse underthe controlof the Bank. 1993 DOMINICA AGRICULTURAL S.R.O 51 INDUSTRIAL AND DEVELOPMENT BANK (SECURITIES) \0) Themaximum amount whichmaybe loanedagainstthc mortgage property shallbe (a) on land, buildings and other improvements of a permanent nature, the loan shallnot exceed (i) ninetypercentof thevalueof the mortgaged property for housing loans,or (ii) seventy-five percentofthevalue'ofthemort­ gageproperty for other loans, as determined by the Bank; (b) on movable assets, including boats, vehicles and livestock, the loan shall not exceedsixty-six per­ centof the valueof the mortgaged products; (c) onagricultural andlivestockproductspurchased by co-operative societies the loan shall not exceed eightypercentof thevalueof themortgaged prod­ ucts. (7) All loansmade by the Banksecured by real property. chattelsorproduce shallbe securedbyafirstcharge ormortgage on the property, chattelor produce. (8) Notwithstanding subsectirn (7) loansmadebythe Bank maybe secured by a secondmortgage where the Boardis satisfied that the marketvalueof the security offeredto secure the first and second mortgages is not less than one hundred and seventy-five percentoftheloansthatwill be outstanding onthegrantofasecond mortgage and that the grantof a second mortgage is acceptable to the holderof the first mortgage, 1993 DOMINICA AGRICULTURAL S.R.O 51 INDUSTRIAL AND DEVELOPMENT BANK (SECURITIES) (9, Eachchargeor mortgage given to secure a loan shall contain a covenant by the borrower that he will not without the consentof the Board,disposeof anyof the propertysubjectto the mortgageor charge or any interest therein. ( Made by the Board this 22nd day of January, 1992. . ALICK LAZARE .: \ Chairman Dominica Agricultural lndustrial and Development Bank APPROVEDbyCabinetthis 16thdayofNovember,1993. JULIAN N. JOHNSON Secretary to the Cabinet. DOMINICA Printedby the GovernmentPrinter at the GovernmentPrintery, Roseau (price 80 cents)