12Repayment of advance secured by deed of charge

12 Repayment of advance secured by deed of charge

12 Repayment of advance secured by deed of charge

(1) The repayment of every advance made under this Act together with interest as hereinbefore provided shall be secured by a deed of charge over the farming lands of the owner in such form as may be required by the Rural Assistance Authority.

Where the advance is made to two or more owners under section 11, each owner shall execute a deed of charge to secure the repayment of the owner’s respective proportion of the amount of the advance.

(2) Such deed of charge shall, where the works are to be carried out by any person, other than the appropriate Authority, be expressed to be made between the owner of the farming lands and the Rural Assistance Authority, and where the works are to be carried out by the appropriate Authority, be expressed to be made between the owner of the farming lands, the appropriate Authority and the Rural Assistance Authority, and shall provide for the repayment of the amount advanced to such owner by consecutive half-yearly instalments within a period, not exceeding fifteen years, determined by the Rural Assistance Authority, together with interest as aforesaid on the amount owing from time to time, and shall contain—

(a) a condition to the effect that in the event of the owner failing to maintain the works in respect of which the advance is made to the satisfaction of the Rural Assistance Authority the whole of the principal and interest secured by the charge shall at the option of the Rural Assistance Authority become immediately due and payable, and

(b) such other powers, covenants, provisions, conditions and clauses as the Rural Assistance Authority determines.

(3) Where any works are to be carried out by the appropriate Authority such deed of charge shall be executed by the owner before the commencement of the construction of the works by the appropriate Authority and where any works are to be carried out by any person, other than the appropriate Authority, such deed of charge shall be executed by the owner before any advance is made to the owner.

(4) Any sum payable under a deed of charge under this section shall be paid to the Rural Assistance Authority and shall, until so paid, be and remain a charge in its favour on the land mentioned in the deed, and shall be recoverable by the Rural Assistance Authority in any court of competent jurisdiction from the owner of the land for the time being.

(5) The provisions of this section have effect despite anything contained in section 42 of the .