LOAN (INCOME EQUALIZATION DEPOSITS) ACT 1976 (REPEALED)

***** Repealed 22 February 2005 *****

PART III - REPAYMENT OF DEPOSITS

SECTION 16   REPAYMENT WITHIN 12 MONTHS WHERE FINANCIAL DIFFICULTIES  

16(1)  [Request for repayment]  

A person who is the depositor in respect of a particular deposit may, before the expiration of the period of 12 months after the date on which the deposit was made, on the ground referred to in subsection (2), request the authorized person to declare the deposit, or so much of the deposit as is specified in the request, to be repayable.

16(1A)  (Omitted by No 56 of 1989)

16(2)  [Grounds]  

The ground on which a request under subsection (1) may be made in respect of a deposit is that:

(a)  in the case of a request made by a depositor being a trustee of a trust estate who made the deposit on behalf of a beneficiary - the beneficiary is experiencing serious financial difficulties; or

(b)  in any other case - the depositor is experiencing serious financial difficulties;

and those difficulties resulted from circumstances that were not in existence at the time when the deposit was made.

16(3)  [Evidence to support request]  

To be effective, a request must be accompanied by evidence, of a kind required by the authorised person, of the ground on which it is made.

16(4)  [Declaration that deposit repayable]  

Where a request is made to the authorized person in accordance with this section in respect of a deposit or a part of a deposit and the authorized person is satisfied that the ground on which the request was made is established, he shall, by writing under his hand, declare that the deposit or the part of a deposit is repayable, and, upon the making of the declaration, the deposit or the part of the deposit, as the case may be, becomes repayable.

16(5)  [Section not applicable to farm management bond]  

This section does not apply to a deposit to the extent that it consists of a farm management bond.