Article 16 Power of boards to make loans and grants and to enter into guaranteesF1

(1)

A scheme may provide for empowering the board to pay on account or lend to any registered producer a portion of the amount which the board estimates that he will receive from the sale of any quantity of the regulated product produced or in course of production or held in store by him.

(2)

A scheme may provide for empowering the board, subject to such limitations as may be specified in the scheme—

(a)

to lend or grant money to any other board or to a board administering an agricultural marketing service scheme under Part III;

(b)

to guarantee payment by any board mentioned in sub-paragraph (a) of any sums which that board may be liable to pay on account of principal or interest in respect of any loan made to it.

(3)

Any scheme which contains such a provision as is authorised by paragraph (2) may further provide for securing that any loan, grant or guarantee nor specifically authorised by the scheme shall not be made or given by the board except in pursuance of a resolution of the board specifying all material particulars relating to the proposed transaction, being a resolution which has been previously notified to, and approved by, the registered producers in accordance with such requirements in that behalf as may be contained in the scheme.

Annotations

Textual amendments

F1: mod. by 1984 NI 12, SR 1995/103