First Schedule
Second Schedule (Sections 23, 38 and 40)
Sale of property of defaulting debtor
1.(1)Where any security or part thereof has been seized by the Corporation in terms of subsection (2) of section thirty-eight or delivered to the Corporation in terms of subsection (3) of that section and such security or part thereof is not subsequently released, the Board shall, within twelve months of such seizure, cause to be published in the Gazette and in a newspaper circulating in the area a notice describing the security and stating the date, hour, place and terms and conditions of the proposed sale of such security.(2)On the date stated in the notice published in terms of subparagraph (1) the Corporation shall put up for sale the security described in that notice.(3)A sale in terms of subparagraph (2) shall be by public auction and on the terms and conditions stated in the notice in terms of subparagraph (1):Provided that, where the security seized is of an incorporeal or documentary nature, the sale thereof shall be in such manner as the Corporation considers just and reasonable in the circumstances.(4)Where the Corporation sells any security referred to in subparagraph (1), it may—(a)bid for and purchase the whole or any part of the security offered for sale; or(b)make an advance in terms of section twenty on such conditions as the Board considers fit to the purchaser of such security for the purpose of defraying the whole or part of the purchase price notwithstanding that such advance may exceed any limit fixed in relation thereto in terms of subsection (1) of section twenty-one.2.Where a security has been seized by the Corporation in terms of subsection (2) of section thirty-eight, such seizure shall, subject to the provisions of this Schedule, have the same effect as an attachment made by the Sheriff or his deputy under a writ of execution issued by the High Court.3.(1)When a security which consists of immovable property has been sold in terms of paragraph 1, the proceeds of the sale shall be applied in the following manner—(a)firstly to the holders of any mortgage bonds, notes, statutory hypothecations and charges duly registered against such property in the Deeds Registry in accordance with the preference conferred upon such holders by such registrations upon production by such holders of evidence as to the amounts owing thereunder:Provided that no payment in terms of this subparagraph shall be made until at least seven days’ notice thereof has been given to the borrower and to any other person having a prima facie claim to such proceeds by registered letter posted to the last known place of address of the borrower and such other persons;(b)if, after satisfying the claims of all persons referred to in subparagraph (a), there remains a surplus and the property so sold has prior to the sale been declared executable or attached under the process of a competent court, such surplus shall be paid to the Sheriff or messenger of the court, as the case may be, who shall distribute such surplus in accordance with the appropriate rules of court;(c)if, after satisfying the claims of all persons referred to in subparagraphs (a) and (b), if any, there remains a surplus, such surplus shall be paid to the debtor or his legal representative.(2)If the borrower or any other person who has a claim against the borrower objects to the proposed distribution of moneys from a sale in terms of this Schedule, the Corporation shall transmit to the Master of the High Court an account showing how the Corporation intends to dispose of the proceeds and such account shall lie open for inspection by any person claiming an interest in the proceeds at the office of the Master of the High Court for a period of not less than three weeks.(3)The Corporation shall give due notice that an account referred to in subparagraph (2) is open for inspection by advertisement in the Gazette and in a newspaper circulating in the area where the borrower carries on his principal business and shall state in that notice the period during which and the place at which the account shall lie open for inspection.(4)Any person interested in the proceeds of a sale held in terms of this Schedule may, at any time during the period that the account relating thereto is open for inspection, lodge with the Master of the High Court two copies, in writing, of any objections to the proposed distribution giving his reasons, and the Master shall forward one of those copies to the Corporation.(5)After the expiration of the period during which the account has lain open for inspection—(a)the Master of the High Court shall consider the proposed distribution together with any objections duly lodged and any comments thereon by the Corporation and shall give such directions relating to the distribution as he considers equitable in the circumstances; and(b)the Corporation shall, after the expiration of the period referred to in subparagraph (6), dispose of the moneys in accordance with such directions:Provided that if during that period an application to the High Court has been made in terms of subparagraph (6), the Corporation shall not dispose of the moneys until the application has been determined by the High Court or has been abandoned.(6)Any person who is aggrieved by a direction of the Master of the High Court may, within thirty days after the Master has given the direction and after giving notice to the Corporation and to any person affected by the direction, apply by motion to the High Court for an order to set aside the direction and the High Court may make such order as it thinks fit.(7)Where the Master of the High Court directs in terms of subparagraph (5) that any moneys should be distributed in a manner different from that specified in the account and the interests of a person who has not lodged an objection to the account are affected, the account as amended on the direction of the Master of the High Court shall lie open for inspection for a period of not less than three weeks and the Corporation shall give due notice thereof in accordance with the provisions of subparagraph (2) unless the person concerned consents, in writing, to the moneys being distributed without the necessity for the account lying open for inspection.4.When a security which consists of movable property is sold in terms of paragraph 1, the proceeds of the sale shall be applied in the following manner—(a)firstly in satisfying the debt due to the Corporation by the borrower;(b)if, after satisfying the debt due to the Corporation by the borrower, there remains a surplus and the property has been declared executable or attached under the process of a competent court, the surplus shall be paid to the Sheriff or the messenger of the court, as the case may be, who shall distribute such surplus in accordance with the appropriate rules of court;(c)if, after satisfying the debt due to the Corporation by the borrower, there remains a surplus and the property has not been declared executable or attached, the surplus shall be paid to the debtor or his legal representative:Provided that, if the property had been declared executable or attached, any costs incurred by a bona fide creditor in respect of the application for the execution or attachment of the property shall be paid before any moneys are appropriated towards satisfying the debt due to the Corporation by the borrower.Third Schedule (Sections 2 and 65)
Agricultural Assistance Scheme
1. Title of Scheme
This scheme shall be known as the Agricultural Assistance Scheme.2. Interpretation
In this Scheme—“applicant” means a person who has applied to the Corporation for an advance or other assistance and is eligible in terms of paragraph 3 for assistance in terms of this Scheme;“deed of assistance” means a deed of assistance executed in terms of paragraph 11;“farmer” means a person who, in the opinion of the Board, normally derives his sole or principal means of livelihood or income from farming carried on by him in Zimbabwe;“farmer’s stop-order” means a stop-order registered under the Stop-order Act or a stop-order which is a special stop-order in terms of that Act;“Insolvency Act” means the Insolvency Act ;“local newspaper” means a newspaper circulating in the district in which the applicant carries on his farming operations;“notice of assistance” means a notice published in the Gazette in terms of paragraph 5;“secured creditor”, in relation to an applicant, means a creditor who in respect of the debt owed to him by the applicant holds a special mortgage, pledge, right of retention or other such security, excluding a farmer’s stop order;“Stop-order Act” means the Farmers Stop-order Act .Part I – Purposes of Scheme
3. Persons eligible for assistance
(1)A person shall be eligible for assistance in terms of this Scheme if he satisfies the Corporation that he is a farmer and—(a)his liabilities exceed the reasonable value of his assets; or(b)one or more of his creditors have taken or threatened to take action against him which, in the opinion of the Corporation, has made or will make it impracticable for him to continue farming with a reasonable prospect of success; or(c)by reason of the extent or nature of his obligations or owing to lack of livestock or of the means of properly working his land he is unable to continue farming operations with a reasonable prospect of success.(2)Where, in the opinion of the Corporation—(a)a particular farming enterprise is in effect being conducted by two or more persons in association; and(b)assistance cannot adequately be granted under this Scheme to one of those persons unless assistance is also granted to one or more of the other persons associated with him in that enterprise;the Corporation may treat each person associated in that enterprise as being eligible for assistance in terms of this Scheme.(3)A person referred to in subparagraph (1) shall not be eligible for assistance in terms of this Scheme if—(a)his estate has, in terms of the Insolvency Act, been placed under provisional sequestration which has not been set aside or under final sequestration; or(b)he has assigned his estate in terms of the Insolvency Act; or(c)it is a company which is being wound up in terms of the Companies Act .4. Manner of assistance under Scheme
(1)Subject to subparagraph (3), if the Corporation is satisfied that a person who is eligible in terms of paragraph 3 for assistance in terms of this Scheme is a person who should be assisted in order to enable him to carry on farming operations and that the granting of assistance in terms of this Scheme would be likely to enable him to carry on farming operations with a reasonable prospect of success, the Corporation may render assistance to such person by any one or more of the following methods—(a)by lending money to him on such terms and conditions as the Corporation thinks fit;(b)in accordance with Part II of this Scheme, by effecting a compromise with his creditors;(c)subject to subparagraph (2), by guaranteeing loans made to him and by providing security in respect of such loans by the deposit of securities or otherwise;(d)by acquiring the whole or any part of the movable or immovable property belonging to him, subject to the rights of any secured creditor;(e)subject to the rights of any secured creditor, by letting or selling to him on such terms and conditions as the Corporation thinks fit any property acquired by the Corporation;(f)by letting or selling to him on such terms and conditions as the Corporation thinks fit any livestock or other farming requisites or rendering financial assistance to him for the purchase of livestock or other farming requisites or for the making of improvements for farming purposes if, in the opinion of the Corporation—(i)such livestock or other farming requisites or improvements are necessary to enable the person to carry on farming operations; and(ii)the person will be able to carry on farming operations successfully if he is furnished with or purchases such livestock or other farming requisites or such improvements are made, as the case may be;(g)by acquiring all or any of his debts or other obligations on such terms and conditions as the Corporation thinks fit.(2)The Corporation may only guarantee loans in terms of subparagraph (c) of subparagraph (1) with the approval of the Minister and on such terms and conditions as may be fixed either generally or specially, by the Minister responsible for finance.(3)The Corporation shall not render assistance to an applicant in terms of this Scheme unless it is satisfied that his need for assistance is or has been primarily caused by climatic or other natural causes, including disease or pests which were beyond his control.(4)For the purposes of implementing this Scheme, the Corporation may—(a)acquire any movable or immovable property, including livestock or other farming requisites, whether belonging to an applicant or otherwise, for the purpose of letting or selling such property to an applicant or using it for an estate which has vested in the Corporation in terms of this Scheme;(b)let, sell or otherwise dispose of on such terms and conditions as may be approved by the Corporation any movable or immovable property acquired by the Corporation in terms of this Scheme.Part II – Compromise with creditors
5. Publication of notice of assistance
If it appears to the Corporation that—(a)in order to enable an applicant to carry on farming with a reasonable prospect of success it is desirable that a compromise with his creditors be effected providing for one or more of the following—(i)that any of his assets be disposed of in a particular manner;(ii)that he be released wholly or in part from any obligations towards his creditors;(iii)that he be granted an extension of time for the fulfilment of his obligations towards his creditors;(iv)that his creditors cede their rights to the Corporation; and(b)the requirements of subparagraph (3) of paragraph 4 are satisfied; and(c)if the applicant is assisted in terms of this Part it is likely that he will be able to carry on farming operations with a reasonable prospect of success; and(d)prima facie there is a reasonable prospect that the Corporation will grant assistance to the applicant in terms of this Scheme;the Corporation, with the consent in writing of the applicant, shall cause a notice to be published in the Gazette and in a local newspaper stating that the applicant has applied for assistance in terms of this Scheme.6. Effect of publication of notice of assistance
(1)The effect of the publication of a notice of assistance shall be, from the date of such notice in the Gazette—(a)to divest the applicant of his estate and to vest that estate in the Corporation, subject to the rights of secured creditors;(b)subject to subparagraph (3), to stay all legal proceedings against the applicant in respect of any debt provable in insolvency the cause of which arose before the publication of the notice of assistance, including proceedings for the sequestration of his estate or the winding up of the company, as the case may be;(c)subject to subparagraph (3), to restrain the taking of any legal proceedings against the applicant or, save with the consent of the Corporation, by the applicant in respect of any debt provable in insolvency the cause of which arose before the publication of the notice of assistance, including proceedings for the sequestration of his estate or the winding up of the company, as the case may be.(2)Subject to this Part, after the publication of a notice of assistance anyone charged with the execution of a judgment of any court against the applicant for the payment of any debt owing by him shall pay the proceeds of any sale in the execution of such judgment which were in his possession on the date of the publication of the notice of assistance or which came into his possession at any time thereafter to the Corporation and, subject to this Part, such proceeds shall vest in the Corporation subject to the rights of those creditors who were secured creditors in respect of the property sold in the execution of such judgment.(3)Notwithstanding subparagraph (1), the applicant—(a)shall be entitled in his own name to sue for and to receive for his own benefit any damages claimable by him by reason of any delict;(b)may continue in his own name and for his own benefit any action which may have been commenced by him in respect of a claim referred to in subparagraph (a) prior to the publication of the notice of assistance;(c)may be sued in his own name for any delict alleged to have been committed by him whether before or after the publication of the notice of assistance:Provided that the applicant shall not incur any costs in relation to a matter referred to in subparagraph (a), (b) or (c) unless the Corporation has agreed thereto.(4)For the purposes of this paragraph—(a)the estate of the applicant shall comprise all that property of the applicant which—(i)in the event of his insolvency, would form part of his insolvent estate under the Insolvency Act; or(ii)in the case of a company, would, in the event of its winding up, form part of its estate under the Companies Act ;as if the applicant were the insolvent or company being wound up, as the case may be, and the date of the publication of the notice of assistance in the Gazette were the date of sequestration or winding up, as the case may be:Provided that section 35 of the Insolvency Act shall not apply;(b)notwithstanding subparagraph (a), the estate of the applicant shall not include any property which is—(i)held by him under an agreement as defined in section 2 of the Hire-Purchase Act ; or(ii)purchased with moneys received by him as a result of any claim or action referred to in subparagraph (3) and retained by him with the agreement of the Corporation.(5)At any time after the publication of a notice of assistance any creditor of the applicant shall be entitled to inspect, at any reasonable time, at the offices of the Corporation or such other place as the Corporation may specify, the application for assistance in terms of this Scheme.7. Cancellation of notice of assistance
(1)If, after a notice of assistance has been published, the Corporation refuses to assist the applicant by effecting a compromise with his creditors or agrees to assist the applicant otherwise than by effecting such a compromise, the Corporation shall cause to be published in the Gazette and in a local newspaper a notice cancelling the notice of assistance, and with effect from the date of publication in the Gazette of such notice of cancellation—(a)the Corporation shall be divested of the estate of the applicant which shall revest in the applicant; and(b)this Part, other than this paragraph, shall cease to apply in relation to the applicant and any proceedings stayed or restrained in terms of this Part may continue as though the notice of assistance had not been published; and(c)any proceeds paid to the Corporation in terms of subparagraph (2) of paragraph 6 shall be repaid to the person who paid them to the Corporation; and(d)the vesting of the estate in the Corporation shall be deemed not to have interrupted any period of prescription but the period during which the estate vested in the Corporation shall not be regarded as part of the period of prescription.(2)Where a notice of cancellation is to be published in terms of subparagraph (1), the Corporation may, before it is divested of the estate concerned, effect such security, by note of hand or otherwise, as it considers necessary for the repayment by the applicant of any moneys owing by him to the Corporation, whether in respect of loans, operational costs or otherwise, and such security shall take effect from the date that the Corporation is divested of the estate.(3)For the purpose of effecting any security in terms of subparagraph (2), the Corporation may—(a)execute in terms of the Stop-order Act any stop-order in respect of any crop growing on the property of the estate;(b)if the security is a note of hand, send a notice referred to in subsection (2) of section thirty-five to the Registrar of Deeds, in which case subsections (3) and (4) of that section shall apply, mutatis mutandis;(c)stipulate that all or any particular livestock or implements belonging to the estate shall, notwithstanding that the Corporation is to be divested of the estate, be the property of the Corporation, in which case Part V shall apply, mutatis mutandis, as if such livestock or implements were designated articles as defined in section two.8. Proposal for compromise
(1)Where a notice of assistance has been published, the applicant shall, within twenty-one days of such publication or such further period as the Corporation may fix, lodge with the Corporation a proposal, in writing, for a compromise, subject to such terms and conditions as may be set out therein, for one or more of the following matters—(a)that any assets of the applicant shall be disposed of in a particular manner;(b)that the applicant shall be released wholly or in part from any obligations towards his creditors;(c)that the applicant shall be granted an extension of time for the fulfilment of his obligations towards his creditors;(d)that the Corporation shall take cession from his creditors of his obligations.(2)If an applicant fails to lodge with the Corporation a proposal in accordance with subparagraph (1), the Corporation shall cause a notice to this effect to be published in the Gazette and in a local newspaper and with effect from the date of such notice in the Gazette subparagraphs (a), (b) and (c) of subparagraph (1) and subparagraphs (2) and (3) of paragraph 7 shall apply, mutatis mutandis.9. Convening of meeting of creditors to consider proposal
(1)After receiving a proposal made in terms of paragraph 8 the Corporation shall, if it considers that the proposal is one which it would be likely to agree to in terms of paragraph 11, cause to be published in the Gazette and in a local newspaper a notice stating—(a)that a proposal for a compromise has been received and the name and address of the applicant who has made it; and(b)that a meeting of creditors will be held for the proof of claims and to consider the proposal; and(c)the place, time and date of such meeting, which date shall not be earlier than fifteen days after the last publication of such notice; and(d)that all creditors of the applicant are entitled to attend and, subject to paragraph 10, to vote at such meeting in person or by proxy.(2)As soon as may be after the publication of the notice in terms of subparagraph (1) the Corporation shall cause to be delivered or sent by registered post to the address in question mentioned in the application—(b)to every creditor disclosed in the application;a copy of the said notice, together with particulars of the proposal for the compromise, but a failure so to deliver or send any such copy or particulars shall not invalidate the proceedings under this Part.10. Procedure at meeting of creditors
(1)At a meeting of the applicant and his creditors convened under paragraph 9 a person appointed by the Board shall preside and he may from time to time adjourn such meeting.(2)Any creditor of the applicant may at a meeting referred to in subparagraph (1) prove his claim against the applicant in the same manner as a creditor in an insolvent estate may prove his claim against the estate under the Insolvency Act and the provisions of the Insolvency Act relating to a person who has proved or intends to prove a claim against an insolvent estate under the Insolvency Act and to matters incidental to such claim shall apply, mutatis mutandis, and in so far as they can be applied, to a person who has proved or who intends to prove a claim against the applicant and to matters incidental to such claim:Provided that, if the proposal for a compromise which is to be proposed at such meeting aims at an extension of time for the fulfilment of all the obligations of the applicant towards his creditors, the claims against the applicant as specified in his application and those subsequently known to the Corporation shall be regarded as being correct and having been so proved unless the contrary is proved at such meeting.(3)At a meeting referred to in subparagraph (1) a person appointed by the Board for the purpose may submit for consideration the proposal for a compromise submitted by the applicant whereunder, on such terms and conditions as may be specified therein, one or more of the following shall apply—(a)any asset of the applicant is to be disposed of in a specified manner;(b)the applicant is to be released, wholly or in part, from any of his obligations towards his creditors;(c)the applicant is to be granted an extension of time for the fulfilment of his obligations towards his creditors;(d)the creditors are to cede their rights to the Corporation.(4)A proposal for a compromise referred to in subparagraph (3) or any variation thereof shall be regarded as having been adopted by all the creditors of the applicant and shall, subject to the provisions of this Part, be binding upon them as well as the applicant, whether or not they proved a claim against the applicant, if the proposal is accepted—(a)by the majority in number of the creditors whose claims have been proved and which claims in the aggregate amount in value to more than three-quarters of the aggregate of all proved claims; and(b)by every secured creditor who in terms of the said proposal—(i)will not be paid in respect of his secured claim in full or up to an amount equal to the amount at which he valued such security when proving his claim; or(ii)has to grant an extension of time for the fulfilment of obligations in respect of his secured claim.(5)Every creditor shall be entitled to vote at any meeting convened under paragraph 9 as soon as his claim has been proved or is regarded as being correct in terms of the proviso to subparagraph (2):Provided that the vote of a creditor shall in no case be reckoned in number unless his claim is of the value of at least sixty dollars.(6)Sections 67, 68 and 69 of the Insolvency Act or, in the case of a company, sections 267 and 268 of the Companies Act shall apply, mutatis mutandis, in relation to a meeting held in terms of this paragraph.11. Deed of assistance
(1)If any proposal for a compromise has been adopted and is binding on the creditors in terms of subparagraph (4) of paragraph 10 and the Board agrees to such proposal, the applicant shall, within such reasonable time as the Board may fix, execute a deed of assistance in which shall be embodied the terms of such proposal.(2)The Board shall not agree to any proposal referred to in subparagraph (1) unless it is satisfied that in all the circumstances the proposal deals equitably with all the creditors known to the Corporation.(3)On the execution of the deed of assistance within the time fixed by the Board, the Corporation shall as soon as may be cause notice thereof to be published in the Gazette and in a local newspaper.(4)If—(a)agreement is not reached on the proposal or any variation thereof at a meeting referred to in paragraph 10 and the Board considers it unlikely that agreement will be reached within a reasonable period; or(b)agreement has been reached at a meeting referred to in paragraph 10 and—(i)the Board does not agree to the proposal; or(ii)the applicant fails to execute a deed of assistance within the time fixed by the Board in terms of subparagraph (1);the Corporation shall cause to be published in the Gazette and in a local newspaper a notice stating that the assistance to the applicant shall not be proceeded with and with effect from the date of such notice in the Gazette subparagraphs (a), (b) and (c) of subparagraph (1) and subparagraphs (2) and (3) of paragraph 7 shall apply, mutatis mutandis:Provided that, where agreement has been reached at a meeting referred to in paragraph 10 and the Board does not agree to the proposal, the Board may call a further meeting of creditors in order to determine whether or not agreement can be reached on a proposal to which the Board will agree.(5)A notice published in the Gazette in terms of subparagraph (3) shall—(a)have the effect of making the terms of the deed of assistance binding on all creditors of the applicant in respect of every debt provable in insolvency which was due or the cause of which arose before the publication of the notice of assistance;(b)relieve the applicant of all liabilities disclosed in his application, except where the deed of assistance otherwise provides:Provided that the liability of any person who is a surety for the applicant shall not be affected by that notice;(c)be conclusive evidence that this Part has been complied with.(6)A creditor of the applicant—(a)whose claim is not disclosed in the application of the applicant; and(b)who was not informed of the meeting in terms of paragraph 10 in sufficient time to enable him to prove his claim at such meeting;shall retain his right of action in respect of such claim against the applicant but he shall not be entitled to disturb the deed of assistance.(7)If a creditor of the applicant—(a)whose claim is disclosed in the application of the applicant; or(b)who was, at the meeting held in terms of paragraph 10 or at any subsequent meeting of creditors, afforded an opportunity of proving his claim;has failed to prove his claim, it shall lapse, except in so far as it is secured or is to be paid in terms of the deed of assistance:Provided that the Corporation may accept a claim which is proved after it has lapsed in terms of this subparagraph and such claim shall be revived with effect from the date it is so accepted.12. Corporation to administer estate and give effect to any deed of assistance
(1)With effect from the publication of the notice of assistance and so long as the estate of an applicant vests in the Corporation, the Corporation shall administer the estate in accordance with sound farming practices and may levy against the estate such fee as the Board may determine towards meeting the costs of such administration.(2)Unless otherwise permitted by the Board, the applicant shall continue to farm the estate after it is vested in the Corporation in accordance with such directions and instructions as may be given by the Board or any person or authority appointed by the Board to supervise the farming and management of the estate.(3)While an estate is vested in the Corporation in terms of this Part, the Corporation—(a)may expend in respect of the estate such sums as, in the opinion of the Corporation, are necessary or expedient for the purposes of the administration of the estate or safeguarding or utilizing any assets of the estate, any sums so expended being treated as a loan to the applicant;(b)may make loans to the applicant in terms of paragraph 4 and shall lend such moneys as appear to the Corporation to be necessary for the support of the applicant, his wife and any children who are dependent on him;(c)may, on behalf of the applicant, pay any instalments due by him under an agreement referred to in subparagraph (i) of subparagraph (b) of subparagraph (4) of paragraph 6;(d)shall, as soon as a deed of assistance has been executed, under such conditions as may be specified therein, administer and, if so specified, realize all or any part of the estate and distribute the proceeds thereof in accordance with the deed of assistance.(4)As soon as may be after the estate has vested in the Corporation, the Corporation shall cause an inventory of the assets thereof to be made.(5)The Corporation shall be entitled to any moneys or other assets or property received or to be received by the applicant after his estate is vested in the Corporation in terms of this Scheme, other than any moneys received by the applicant in terms of subparagraph (3) of paragraph 6, which, in the opinion of the Corporation, are not or will not be necessary for the support of the applicant and those dependent on him.(6)The Corporation may, at any time before the meeting held in terms of paragraph 10, compromise or settle any claim of a creditor of the applicant which is not in excess of one hundred dollars.13. Variation of deed of assistance
At any time while a deed of assistance is in force the Board may call a meeting of the creditors of the applicant to consider any proposal for a variation of the deed of assistance and the provisions of this Part relating to a deed of assistance or a meeting to consider such deed shall also apply to any variation of any such deed and to a meeting called to consider such variation.14. Proposal for compromise not act of insolvency
Notwithstanding the Insolvency Act, an applicant who makes an application or proposal for or agrees to a compromise with his creditors under this Part shall not be deemed to have thereby committed an act of insolvency.15. Completion of terms of deed of assistance
(1)When the terms of the deed of assistance have been carried out to the satisfaction of the Board, the Corporation shall cause a notice to that effect to be published in the Gazette and in a local newspaper.(2)With effect from the publication in the Gazette of a notice in terms of subparagraph (1), the estate shall cease to vest in the Corporation and shall revest in the applicant, subject to such security as the Corporation may require for the repayment by the applicant of any moneys owing by him to the Corporation, whether in respect of loans, operational costs or otherwise.(3)Subject to subparagraph (4), on the publication in the Gazette of a notice in terms of subparagraph (1) the applicant shall, subject to the terms of the deed of assistance, be relieved from every debt provable in insolvency which was due at, or the cause of which arose before, the date of the publication of the notice of assistance:Provided that the liability of any person who is a surety for the applicant shall not be thereby affected.(4)Nothing in subparagraph (3) shall be deemed to relieve the applicant from any debt or liability—(a)secured by a mortgage bond, note, charge, lien or other security; or(b)in respect of any claim or action referred to in subparagraph (3) of paragraph 6; or(c)in respect of any claim referred to in subparagraph (6) of paragraph 11; or(d)under an agreement as defined in section 3 of the Hire-Purchase Act ; or(e)in respect of moneys owed by the applicant to the Corporation.16. Cancellation or termination of deed of assistance
(1)The Board may at any time cancel the deed of assistance if—(a)the Board is for any reason unable to give effect to the deed of assistance; or(b)the Board is of the opinion that the applicant has, with intent to defraud or prejudice his creditors or to prefer any creditor over any other creditor—(i)given false or incomplete information in his application or at any meeting or inquiry in terms of this Part; or(ii)made a disposition of his property or dealt with his property in a manner referred to in section 40, 42, 43 or 44 of the Insolvency Act;or(c)the applicant has, whether before or after the execution of the deed of assistance, conducted himself in a manner, or anything has happened after the execution of the deed of assistance, which, in the opinion of the Board, makes it undesirable to give effect to the deed of assistance; or(d)the applicant has failed to comply with subparagraph (2) of paragraph 12 or with any terms or conditions of the deed of assistance.(2)Where the Board is satisfied that owing to any cause, including—(a)the failure of the applicant to carry out his obligations under the deed of assistance to the satisfaction of the Board; or(b)the death or incapacity of the applicant;the continued administration of the estate of the applicant which has vested in the Corporation is unlikely to benefit the creditors of the applicant or is unduly onerous to the Corporation, the Board may terminate the deed of assistance and—(i)realize the whole or part of the estate; and(ii)distribute the proceeds of such realization in satisfaction in whole or in part of any debts of the applicant, including his obligations to the Corporation, whether in respect of loans, operational costs or otherwise; and(iii)transfer to the applicant any balance of the proceeds of such realization; and(iv)revest in the applicant the residue, if any, of his estate.(3)Sections 99 to 117 of the Insolvency Act shall apply, mutatis mutandis, to the distribution of the proceeds of realization referred to in subparagraph (2), any reference to the date of the sequestration order being read and construed as a reference to the date of the termination of the deed of assistance:Provided that, notwithstanding the Insolvency Act, it shall be lawful for the Corporation to recover from such proceeds any amount owing to the Corporation by the applicant, whether in respect of a loan, operational costs or otherwise, immediately after the debts referred to in sections 99 to 107 and 110 of the Insolvency Act have been paid and the claims of all secured creditors have been met.(4)Notwithstanding subparagraph (1), the Corporation may, subject to such security as it may require for the payment by the applicant of any moneys owing by him to the Corporation, whether in respect of a loan, operational costs or otherwise, revest in the applicant all such assets of the estate as are vested in the Corporation:Provided that if a meeting of creditors has accepted a proposal for a deed of assistance, the Corporation shall not revest the assets of an estate in terms of this subparagraph unless at a meeting of the creditors of the applicant called by the Board for the purpose the proposal to do so has been agreed by the Board and by a majority in number representing not less than three-quarters in value of the creditors attending such meeting in person or by proxy.(5)The Board shall cause a notice of cancellation or termination of a deed of assistance under subparagraph (1) or (2) or the revesting of an estate in terms of subparagraph (4) to be published in the Gazette and in a local newspaper.(6)On the publication in the Gazette of a notice in terms of subparagraph (5) of the cancellation of a deed of assistance—(a)the deed of assistance shall cease to be of force and effect; and(b)subparagraphs (a), (b) and (c) of subparagraph (1) and subparagraphs (2) and (3) of paragraph 7 shall apply, mutatis mutandis.17. Hire-purchase agreements and farmers’ stop-orders
(1)For the removal of doubt it is declared that the Hire-Purchase Act shall continue to apply in relation to any property referred to in subparagraph (i) of subparagraph (b) of subparagraph (4) of paragraph 6 which does not vest in the Corporation.(2)Any farmer’s stop-order given by an applicant whose estate has vested in the Corporation in terms of this Part shall, notwithstanding that the estate has so vested, be of full force and effect as though the estate had not so vested.(3)Notwithstanding anything to the contrary in the Stop-order Act, an applicant whose estate has vested in the Corporation in terms of this Part shall not give any stop-order without the consent in writing of the Board, and the Registrar of Farmers’ Stop-orders shall not register any such stop-order in terms of the Stop-order Act unless such written consent has been obtained.Part III – General
18. Registration of rights
(1)Where, in terms of Part II of this Scheme, any land or real right in land or a right in a notarial bond—(a)vests in the Corporation; or(b)ceases to vest in the Corporation and revests in the applicant;the Corporation shall, by notice in writing, inform the Registrar of Deeds of such vesting or revesting.(2)A notice in terms of subparagraph (1) shall set forth—(a)a description of the land or right in question and the number and date of the title deed or other document evidencing title to such right; and(b)the name of the owner of the land or right;and shall be accompanied by the title deed or other document held by the applicant or, if that is not possible, by a certificate from the Corporation stating that it is not possible to forward the title deed or other document.(3)On receipt of a notice in terms of subparagraph (1) the Registrar of Deeds shall, notwithstanding any other law, note such vesting or revesting on the title deed or other document evidencing the title to such right and in the appropriate register in the Deeds Registry.(4)Where, in terms of a condition imposed under this Scheme, immovable property is to be mortgaged in favour of the Corporation as a security or partial security for assistance rendered or any amount recoverable under this Scheme from any person, the Corporation may give notice to the Registrar of Deeds in terms of subsection (2) of section thirty-five and subsections (3), (4) and (5) of that section shall apply, mutatis mutandis.19. Saving of registered real rights
Where, in terms of Part II of this Scheme, land vests in the Corporation, the Corporation may, with effect from the date the land so vests in the Corporation, enter or take possession of such land but such land shall remain subject to all registered real rights in favour of third parties with which it was burdened immediately prior to such vesting until such rights have been extinguished in accordance with law.20. Securities not to be extinguished by merger
(1)Where, in terms of Part II of this Scheme, an estate has vested in the Corporation—(a)any real right in land forming part of that estate which was held by the Corporation immediately before the estate vested in the Corporation or which is subsequently acquired by the Corporation shall not be extinguished by merger but, unless cancelled by the Corporation, shall be suspended and shall remain provisionally registered in favour of the Corporation;(b)any other right held by the Corporation in respect of property which forms part of that estate which was held by the Corporation immediately before that estate vested in the Corporation shall not be extinguished by merger but, unless cancelled by the Corporation, shall be suspended.(2)Where any land or other property referred to in subparagraph (1) ceases to vest in the Corporation and revests in the applicant or is disposed of by the Corporation, any suspended right referred to in subparagraph (1) shall, unless previously cancelled by the Corporation, be revived and become of full force and effect as though the estate had never vested in the Corporation.(3)Notwithstanding anything to the contrary in this paragraph, subparagraph (2) shall not have the effect of conferring on any suspended right referred to in subparagraph (1) which is revived any priority over any rights of a secured creditor which that suspended right did not possess at the time the estate vested in the Corporation or the right was acquired by the Corporation, whichever is the later.21. Waiver of rights
Where any assistance has been granted to any person under this Scheme whereby the Corporation has acquired any debts or other obligations of that person, the Board may at any time, if it thinks fit, waive the right of the Corporation to recover from that person the difference between the face value of the debts or other obligations so acquired and the consideration paid in connection with the acquisition of those debts or other obligations.22. Assistance granted to persons holding land in terms of agreement with State
Where assistance is granted in terms of this Scheme to a person who is holding land in accordance with an agreement with the State or any statutory body or of an agreement in terms of a land settlement scheme under any Act, section thirty-eight shall apply, mutatis mutandis.