The Agricultural Credits and Warehouse Receipts Act, 2026

THE AGRICULTURAL CREDITS AND WAREHOUSE
RECEIPTS ACT, 2026
ARRANGEMENT OF SECTIONS
Sections
PART I
PRELIMINARY PROVISIONS
1. Short title and commencement
2. Interpretation
PART II
THE WAREHOUSE LICENSING AUTHORITY
3. Continuation of Warehouse Licensing Authority
4. Functions of Authority
5. Board of Authority
6. Functions of Board
7. Director, Registrar, Secretary and other staff
PART III
LICENSING OF WAREHOUSES
8. Prohibition of operating warehouse that issues warehouse
receipts without licence
9. Application for licence to operate warehouse
10. Financial security for licence
11. Insurance relating to warehouse licence
12. Validity of licence
13. Display of licence
14. Variation of terms and conditions of licence
15. Renewal of licence
16. Transfer of licence
17. Surrender of licence
18. Suspension or cancellation of licence
19. Re-registration
20. Duplicate licence
[No. 7 of 2026 211Agricultural Credits and Warehouse
Receipts
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K112.00 each.

redits and Warehouse
Receipts
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K112.00 each.

Agricultural Credits and Warehouse
Receipts
212 No. 7 of 2026]
PART IV
ELECTRONIC WAREHOUSE RECEIPT SYSTEM AND WAREHOUSE RECEIPTS
21. Electronic Warehouse Receipt System
22. Deposit of agricultural commodities for storage
23. Deposit of agricultural commodities for purposes other than storage
24. Issuance and lodgement of warehouse receipts
25. Negotiable and non-negotiable warehouse receipts
26. Negotiating negotiable warehouse receipt
27. Rights acquired after negotiation of negotiable warehouse receipt
28. Transfer of negotiable warehouse receipt without negotiation
29. Rights of transferee of negotiable warehouse receipt
30. Alteration of warehouse receipt
31. Rights of purchaser of altered warehouse receipt against warehouse
operator
32. Lost, stolen or destroyed warehouse receipt
33. Duplicate warehouse receipt
PART V
RIGHTS AND OBLIGATIONS OF WAREHOUSE OPERATORS
34. Right of warehouse operator to sell or pledge warehouse receipt
35. Warehouse operator’s right to lien
36. Enforcement of lien
37. Lien on perishable and hazardous agricultural commodities
38. Warehouse operator’s lien not to preclude other remedies
39. Loss of lien
40.

f lien
37. Lien on perishable and hazardous agricultural commodities
38. Warehouse operator’s lien not to preclude other remedies
39. Loss of lien
40.

Obligation of warehouse operator to deliver agricultural commodities
41. Liability for damages caused by warehouse operator’s failure to deliver
42. Liability for delivery to person not entitled to delivery
43. Ascertaining valid titles to agricultural commodities
44. Liability for failure to cancel or mark warehouse receipt after delivery
45. Warehouse operator’s duty of care
46. Duty to keep agricultural commodities separately
47. Commingling of fungible agricultural commodities
48. Termination of storage at warehouse operator’s option

eep agricultural commodities separately
47. Commingling of fungible agricultural commodities
48. Termination of storage at warehouse operator’s option

PART VI
CONTRACTS FOR ADVANCE
49. Entry into contract for advance
50. Lodgement of contract for advance
51. Effects of contract of advance
52. Rights and obligations of lender
53. Duties of warehouse operator in relation to contract of advance
54. Discharge of security
55. Lodgement of disclosure schedule
56. Application to correct material error in disclosure schedule
PART VII
AGRICULTURAL CHARGES
57. Types of agricultural charges
58. Agricultural charges on farming stock and assets
59. Registration of agricultural charge
60. Effect of fixed agricultural charge
61. Sale of property subject to agricultural charge
62. Effect of floating agricultural charge
63. Notice of agricultural charge
64. Restriction on publication of agricultural charges
65. Fraud
66. Supplementary provisions in respect of agricultural charges
PART VIII
ENFORCEMENT
67. Inspectors
68. Honorary inspector
69. Powers of inspector
70. Compliance order
71. Closure of warehouse
PART IX
GENERAL PROVISIONS
72. Dispute resolution
73. Registers
74. Publication of copies of register
[No. 7 of 2026 213Agricultural Credits and Warehouse
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AL PROVISIONS
72. Dispute resolution
73. Registers
74. Publication of copies of register
[No. 7 of 2026 213Agricultural Credits and Warehouse
Receipts

75. Disclosure protection
76. Appeals
77. Immunity from execution of judgment against Authority’s assets
78. General offences
79. General penalty
80. Administrative penalty
81. Offence by principal officers of body corporate or unincorporated body
82. Prohibition of publication or disclosure of information to unauthorised person
83. Guidelines
84. Regulations
85. Repeal of Cap.224, and savings and transitional provisions
SCHEDULES
Agricultural Credits and Warehouse
Receipts
214 No. 7 of 2026]

4. Regulations
85. Repeal of Cap.224, and savings and transitional provisions
SCHEDULES
Agricultural Credits and Warehouse
Receipts
214 No. 7 of 2026]

[No. 7 of 2026 215Agricultural Credits and Warehouse
Receipts
An act to continue the existence of the Warehouse
Licensing Authority and re-define its functions;
reconstitute the Board of the Warehouse Licensing
Authority and re-define its functions; establish the
Electronic Warehouse Receipt System and provide for
its management; regulate warehouses that issue
warehouse receipts in the Republic; provide for the rights
and obligations of warehouse operators, depositors of
agricultural commodities, holders of warehouse receipts,
holders of agricultural charges and lenders under
contracts of advance; regulate contracts of advance and
agricultural charges as security for agricultural
commodities; repeal and replace the Agricultural Credits
Act, Cap. 224; and provide for matters connected with,
or incidental, to the foregoing. [8th April, 2026
ENACTED by the Parliament of Zambia. PART I
PRELIMINARY PROVISIONS
1. This Act may be cited as the Agricultural Credits and
Warehouse Receipts Act, 2026, and shall come into operation on
the date appointed by the Minister, by statutory instrument. Enactment
Short title
and
commence-
ment
GOVERNMENT OF ZAMBIA
ACT
No.

e into operation on
the date appointed by the Minister, by statutory instrument. Enactment
Short title
and
commence-
ment
GOVERNMENT OF ZAMBIA
ACT
No.

7 of 2026
Date of Assent: 31st March, 2026

7 of 2026
Date of Assent: 31st March, 2026

Agricultural Credits and Warehouse
Receipts
216 No. 7 of 2026]
2.

Agricultural Credits and Warehouse
Receipts
216 No. 7 of 2026]
2.

In this Act, unless the context otherwise requires—
“additional assets” means any tangible assets, excluding land
and warehouse receipts that belong to a farmer, trader or
related business, relating directly or indirectly to agricultural
production, processing or trade, all accounts receivable,
chattel paper and promissory notes and includes savings
accounts on deposit with a bank, credit union, savings
institution or other similar organisation;
“advance” means a loan, credit facility, financial accommodation
or input for agricultural production granted against the
security of a warehouse receipt;
“agricultural charge” means a security that allows a farmer,
trader or related business to borrow money using their
farming stock and other agricultural assets as collateral;
“agricultural commodity” has the meaning assigned to the
words in the Food Reserve Act, 2026;
“agricultural credit” means financing for farmers and
agricultural businesses in agricultural transactions consisting
of various credit mechanisms that include loans, notes, bills
of exchange and lines of credit;
“Authority” means the Warehouse Licensing Authority
continued under section 3;
“associate” has the meaning assigned to the word in the Anti-
Corruption Act;
“bank” has the meaning assigned to the word in the Banking
and Financial Services Act, 2026;
“Board” means the Board of the Warehouse Licensing
Authority constituted under section 5;
“certificate of compliance” means a certificate issued by the
Authority under this Act;
“Chairperson” means a person elected as Chairperson of the
Board under section 5;
“citizen” has the meaning assigned to the word in the
Constitution;
“collateral” has the meaning assigned to the word in the
Movable Property (Security Interest) Act;
“Collateral Registry” has the meaning assigned to the words
in the Movable Property (Security Interest) Act;
Interpretation
Act No.

ity Interest) Act;
“Collateral Registry” has the meaning assigned to the words
in the Movable Property (Security Interest) Act;
Interpretation
Act No.

6 of
2026
Cap.91
Act No. 9
2026
Cap.1
Cap.429
Cap.429

6 of
2026
Cap.91
Act No. 9
2026
Cap.1
Cap.429
Cap.429

[No.

[No.

7 of 2026 217Agricultural Credits and Warehouse
Receipts
“company” has the meaning assigned to the word in the
Companies Act;
“conditioning” means the drying or cleaning of an agricultural
commodity in a warehouse;
“contract” means a legally binding agreement, including spot
contracts, advance contracts, futures contracts, or any other
derivative contracts, relating to an agricultural commodity
stored in a warehouse;
“delivery” means the transfer of an agricultural commodity
stored in a warehouse to a holder of a warehouse receipt
or to any other person specified in this Act;
“depositor” means a person who deposits an agricultural
commodity in a warehouse;
“Director” means a person appointed as Director under section 7;
“electronic warehouse receipt” means a warehouse receipt
generated in electronic form;
“Emoluments Commission” means the Emoluments
Commission established under the Constitution;
“farming stock” means an agricultural commodity, but does
not include an agricultural commodity that is subject to a
warehouse receipt;
“financial institution” has the meaning assigned to the words
in the Banking and Financial Services Act, 2026;
“fungible agricultural commodities” means agricultural
commodities of which any unit is, from its nature or by
mercantile custom, treated as equivalent of any other unit;
“honorary inspector” means a person appointed as an honorary
inspector under section 68;
“inspector” means a person appointed as an inspector under
section 67;
“insolvent” has the meaning assigned to the word in the
Corporate Insolvency Act;
“legally disqualified” means the absence of legal capacity as
provided under section 4 of the Mental Health Act;
“lender” includes a bank, financial institution, or a person
authorised to advance credit under any other written law;
Cap.388
Cap.1
Act No.

alth Act;
“lender” includes a bank, financial institution, or a person
authorised to advance credit under any other written law;
Cap.388
Cap.1
Act No.

9 of
2026
Cap.431
Cap.305

9 of
2026
Cap.431
Cap.305

Agricultural Credits and Warehouse
Receipts
218 No.

Agricultural Credits and Warehouse
Receipts
218 No.

7 of 2026]
“licence” means a warehouse licence issued by the Authority
under this Act;
“lien” means the right of a warehouse operator to recover
the expenses incurred for services rendered or supplied
by the warehouse operator in accordance with this Act;
“market player” has the meaning assigned to the words in
the Agricultural Marketing Act, 2026;
“negotiable warehouse receipt” means a warehouse receipt
which is endorsed in blank, to the bearer or to a specific
named person, and which can be transferred to another
person;
“non-negotiable warehouse receipt” means a warehouse
receipt which is endorsed to a specific named person and
is marked “non-negotiable” on the front, and which cannot
be transferred;
“other agricultural assets” means assets related to agricultural
business but does not include farming stock or additional
assets;
“perfected security interest” has the meaning assigned to the
words in the Movable Property (Security Interest) Act;
“register” means a register referred to under section 73;
“relative” has the meaning assigned to the word in the Anti-
Corruption Act;
“Registrar” means a person appointed as Registrar under
section 7;
“related business” means an individual, a company, a
cooperative, a partnership, an association and any group
of persons acting together, who or which, as the case may
be, gives loans to farmers for the purchase of inputs or
other items required for agricultural production;
“repealed Act” means the Agricultural Credits Act;
“Secretary” means a person appointed as Secretary under
section 7;
“security interest” has the meaning assigned to the words in
the Movable Property (Security Interest) Act;
“settlement” means the process of fulfilling the terms of a
contract by the delivery or receipt of the agricultural
commodity or cash equivalent;
Act No.

ttlement” means the process of fulfilling the terms of a
contract by the delivery or receipt of the agricultural
commodity or cash equivalent;
Act No.

8 of
2026
Cap.429
Cap.91
Cap.224
Cap.429

8 of
2026
Cap.429
Cap.91
Cap.224
Cap.429

[No. 7 of 2026 219Agricultural Credits and Warehouse
Receipts
Act No. 8 of
2026
“trader” means a broker or dealer who acquires an agricultural
commodity from a farmer or other person, through purchase
for the purpose of re-sale or processing;
“Vice-Chairperson” means a person elected as Vice-
Chairperson of the Board under section 5;
“warehouse” means any building structure or enclosure in
which agricultural commodities are or may be stored and
where warehouse receipts are issued;
“warehouse operator” means a person licensed to operate a
warehouse that issues warehouse receipts under this Act;
“warehouse receipt” means a receipt relating to agricultural
commodities, whether negotiable or non-negotiable, issued
under this Act;
“Zambia Agricultural Commodities Exchange” means the
authorised agency that was appointed in accordance with
section 6 of the repealed Act to perform the functions of
the Authority; and
“Zambian Agricultural Marketing Council” means the Zambia
Agricultural Marketing Council established under the
Agricultural Marketing Act, 2026. PART II
THE WAREHOUSE LICENSING AUTHORITY
3.

” means the Zambia
Agricultural Marketing Council established under the
Agricultural Marketing Act, 2026. PART II
THE WAREHOUSE LICENSING AUTHORITY
3.

(1) The Warehouse Licensing Authority established under
the repealed Act is continued as if established under this Act as a
body corporate with perpetual succession and a common seal,
capable of suing and being sued in its corporate name and with
power, subject to the provisions of this Act, to do all acts and things
that a body corporate may, by law, do or perform. (2) The First Schedule applies to the Authority. 4. The functions of the Authority are to—
(a) regulate warehouses that issue warehouse receipts in the
Republic;
(b) issue licences to warehouse operators;
(c) certify warehouses owned by a warehouse operator
licensed under this Act;
(d) manage the Electronic Warehouse Receipt System;
Continuation
of
Warehouse
Licensing
Authority
Functions of
Authority

ator
licensed under this Act;
(d) manage the Electronic Warehouse Receipt System;
Continuation
of
Warehouse
Licensing
Authority
Functions of
Authority

Agricultural Credits and Warehouse
Receipts
(e) in collaboration with relevant authorities, provide storage
requirements for agricultural commodities;
(f) promote efficient, sustainable and inclusive agricultural
credit services in the Republic;
(g) classify certified warehouses as prescribed;
(h) issue guidelines and standards for the proper storage of
agricultural commodities in warehouses;
(i) investigate and mediate complaints and disputes relating
to warehouse operations or warehouse receipts, as
prescribed;
(j) assess the financial soundness of the warehouse operators;
and
(k) advise the Minister on matters relating to this Act. 5. (1) There is constituted the Board of the Authority which
consists of the following part-time members appointed by the
Minister:
(a) a representative from the ministries responsible for—
(i) agriculture;
(ii) finance; and
(iii) commerce. (b) a representative of the Attorney-General;
(c) a representative of the Bankers Association of Zambia;
(d) a representative of the farmers organisations;
(e) a representative of grain traders;
(f) a representative of the insurance industry; and
(g) a representative of the agro-processing industry.

ions;
(e) a representative of grain traders;
(f) a representative of the insurance industry; and
(g) a representative of the agro-processing industry.

(2) The members referred to under subsection (1) shall be
nominated by their respective ministries, institutions or organisations
for appointment by the Minister. (3) The members shall elect the Chairperson and the Vice-
Chairperson of the Board from amongst the members referred to
under subsection(1)(c), (d), (e), (f) and (g). (4) A person shall not be nominated or appointed as a member
of the Board if that person—
(a) is not a citizen;
Board of
Authority
220 No. 7 of 2026]

(4) A person shall not be nominated or appointed as a member
of the Board if that person—
(a) is not a citizen;
Board of
Authority
220 No. 7 of 2026]

[No. 7 of 2026 221Agricultural Credits and Warehouse
Receipts
(b) is an undischarged bankrupt;
(c) is legally disqualified from performing the functions of a
member;
(d) has been convicted of an offence under this Act or any
written law and sentenced to imprisonment for a term
exceeding six months without the option of a fine; or
(e) is a member of the Board of the Food Reserve Agency or
a member of the Board of the Zambian Agricultural
Marketing Council. (5) The First Schedule applies to the Board. 6. (1) Subject to the other provisions this Act, the Board shall
perform the functions of the Authority and provide strategic policy
direction to the Authority. (2) Despite the generality of subsection (1), the functions of
the Board are to—
(a) formulate the policies, programmes and strategies of the
Authority;
(b) approve the annual budget estimates and financial
statements of the Authority;
(c) approve the annual work plans, action plans and activity
reports of the Authority;
(d) monitor and evaluate the performance of the Authority
against the budget and plans; and
(e) promote effective corporate governance of the Authority.

) monitor and evaluate the performance of the Authority
against the budget and plans; and
(e) promote effective corporate governance of the Authority.

(3) The Board may, by direction in writing and on conditions
that the Board considers necessary, delegate to the Director any
of the Board’s functions under this Act. (4) A delegation made under subsection (3) shall not prevent
the Board from performing the function so delegated. 7. (1) The Board shall appoint a Director who shall be—
(a) the chief executive officer of the Authority; and
(b) responsible for the day-to-day administration of the
Authority under the direction of the Board. (2) The Director shall be an ex-officio member of the Board. Functions of
Board
Director,
Registrar,
Secretary
and other
staff

direction of the Board. (2) The Director shall be an ex-officio member of the Board. Functions of
Board
Director,
Registrar,
Secretary
and other
staff

Agricultural Credits and Warehouse
Receipts
(3) The Board shall appoint—
(a) a Secretary who shall perform corporate secretarial duties
for the Board and other functions that the Board may
determine, under the direction of the Board and the
Director; and
(b) Registrar to manage the Electronic Warehouse Receipt
System. (4) The Board shall appoint other staff of the Authority that the
Board considers necessary for the performance of the Authority’s
functions. (5) The Emoluments Commission shall, on the recommendation
of the Board, determine the emoluments of the Director, Registrar,
Secretary and other staff of the Authority. (6) The Board shall determine the terms and conditions of
service, other than emoluments, of the Director, Registrar, Secretary
and other staff of the Authority. PART III
LICENSING OF WAREHOUSES
8. (1) A person shall not operate a warehouse that issues
warehouse receipts without a licence issued under this Act. (2) A person who contravenes subsection (1) commits an
offence and is liable, on conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a term not
exceeding two years, or to both. 9.

iable, on conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a term not
exceeding two years, or to both. 9.

(1) A person who intends to operate a warehouse that issues
warehouse receipts shall apply to the Authority for a warehouse
licence in a prescribed manner and form on payment of a prescribed
fee. (2) An application referred to under subsection (1) shall be
accompanied by—
(a) proof of intention to execute a financial security in form
of a bond, bank guarantee or insurance which is
sufficient to secure—
(i) an amount based on the warehouse maximum
capacity;
(ii) the nature and value of agricultural commodities
to be stored; and
Prohibition
of operating
warehouse
that issues
warehouse
receipts
without
licence
Application
for licence to
operate
warehouse
222 No. 7 of 2026]

and
Prohibition
of operating
warehouse
that issues
warehouse
receipts
without
licence
Application
for licence to
operate
warehouse
222 No. 7 of 2026]

[No. 7 of 2026 223Agricultural Credits and Warehouse
Receipts
(iii) any risk factors as may be prescribed; and
(b) any other information as may be prescribed. (3) The Authority shall, before a licence is issued for an
application referred to under subsection (1) —
(a) conduct an inspection of the warehouse of the applicant
in a prescribed manner and on payment of a prescribed
fee, to determine whether the warehouse is suitable for
the storage of agricultural commodities for which the
licence is required; and
(b) issue a certificate of compliance in a prescribed form, if
the warehouse—
(i) is suitable for the storage of agricultural
commodities;
(ii) is insured as prescribed; and
(iii) satisfies prescribed conditions. (4) The Authority shall, within thirty days of receipt of an
application referred to under subsection (1), grant or reject the
application. (5) The Authority shall, where the Authority rejects an
application referred to under subsection (1), inform the applicant in
a prescribed manner and form, stating the reasons for the rejection.

rejects an
application referred to under subsection (1), inform the applicant in
a prescribed manner and form, stating the reasons for the rejection.

(6) The Authority shall, where the Authority grants an application
referred to under subsection (1), issue the applicant with a warehouse
licence in a prescribed form on terms and conditions that the
Authority may determine, if —
(a) the applicant satisfies the requirements under this section;
(b) the applicant is in possession of a warehouse as a tenant
or owner; and
(c) the applicant has been issued with a certificate of
compliance in accordance with section 3(b). (7) The Authority shall, where an applicant referred to under
subsection (1) intends to conduct the licenced activity with two or
more warehouses, issue the applicant with a single licence in a
prescribed form on terms and conditions that the Authority may
determine, if the warehouses satisfy the requirements of this section. (8) The warehouses registered under a single licence referred
to under subsection (7) shall be treated as a single warehouse for
purposes of this Act.

(8) The warehouses registered under a single licence referred
to under subsection (7) shall be treated as a single warehouse for
purposes of this Act.

Agricultural Credits and Warehouse
Receipts
(9) Despite subsection (8), a warehouse operator shall, where
a warehouse operator has two or more warehouses, issue separate
warehouse receipts for each warehouse. 10. (1) A holder of a licence shall, within fourteen days of receipt
of the licence issued in accordance with section 9, execute a
financial security referred to under section 9(2)(a) and submit the
financial security with the Authority. (2) The Authority may call upon the financial security referred
to under subsection (1), where the —
(a) holder of a licence defaults in any obligation under this
Act;
(b) holder of a licence becomes insolvent; or
(c) licence is suspended, cancelled or surrendered, while the
liabilities of the holder of the licence remain outstanding.

cence becomes insolvent; or
(c) licence is suspended, cancelled or surrendered, while the
liabilities of the holder of the licence remain outstanding.

(3) The Authority shall, where the Authority calls upon a
financial security in accordance with subsection (2) apply the funds
of the financial security, in the following order of priority:
(i) to satisfy claims of holders of warehouse receipts
and lenders relating to stored agricultural
commodities;
(ii) to discharge any statutory fees, penalties or
charges due to the Authority; and
(iii) to meet costs of enforcement or liquidation. (4) The Authority shall, where the funds of a financial security
are applied in accordance with subsection (3), return any surplus
from the funds of the financial security to the holder of the licence. (5) The financial security referred to under subsection (1) shall
remain in force for a period of at least six months after the expiry,
suspension, cancellation or surrender of the licence, to cover any
claims arising from the period during which the warehouse was
licensed. (6) The Authority may, where the Authority determines that the
financial security executed under this section is or has become
insufficient, require a holder of a licence to execute an additional
financial security.

nancial security executed under this section is or has become
insufficient, require a holder of a licence to execute an additional
financial security.

(7) The Authority may, where a holder of a licence fails to
comply with this section, suspend or cancel the licence and impose
an administrative penalty. Financial
security for
licence
224 No. 7 of 2026]

ils to
comply with this section, suspend or cancel the licence and impose
an administrative penalty. Financial
security for
licence
224 No. 7 of 2026]

[No. 7 of 2026 225Agricultural Credits and Warehouse
Receipts
(8) The Minister may, on the recommendation of the Authority,
by statutory instrument, make Regulations providing for—
(a) additional types of financial securities;
(b) minimum terms and conditions of a financial security; and
(c) allowing for the adjustment of the warehouse maximum
capacity based on agricultural commodity price indices
or other economic indicators. 11. (1) A holder of a licence shall, within thirty days of receipt
of a licence issued in accordance with section 9, file a certificate
of insurance with the Authority as prescribed. (2) A holder of a licence shall, where a fire, explosion, lightening
or any other risk destroys or damages an agricultural commodity in
a warehouse, on demand by a holder of a warehouse receipt, and
on being presented with the warehouse receipt or other evidence
of ownership, and after deducting the charges of the holder of the
licence and advances obtained, make settlement with the insurance
company, at the market value of the agricultural commodity.

ges of the holder of the
licence and advances obtained, make settlement with the insurance
company, at the market value of the agricultural commodity.

(3) A holder of a licence shall, within ten days of the settlement
with the insurance company, make complete settlement to all holders
of warehouse receipts whose agricultural commodities are stored
in the warehouse, which is damaged or destroyed. (4) The Authority shall, where the Authority determines that
the certificate of insurance referred to under subsection (1) is
insufficient, require the holder of the licence to acquire an additional
insurance cover, based on an annual adequacy review of the
insurance cover, certified by an actuary. (5) The Authority shall, where a holder of a licence fails to
comply with this section, suspend or cancel the warehouse licence
and impose an administrative penalty. 12. A licence issued under this Act shall be valid for three years. 13. A holder of a licence shall display a licence in a conspicuous
place at the warehouse. 14. (1) A holder of a licence may, at any time during the validity
of the licence, apply to the Authority for variation of the terms and
conditions of the licence in a prescribed manner and form on
payment of a prescribed fee.

cence, apply to the Authority for variation of the terms and
conditions of the licence in a prescribed manner and form on
payment of a prescribed fee.

(2) The Authority shall, within twenty one days of receipt of an
application referred to under subsection (1), grant or reject the
application. Insurance
relating to
warehouse
licence
Validity of
licence
Variation of
terms and
conditions of
licence
Display of
licence

or reject the
application. Insurance
relating to
warehouse
licence
Validity of
licence
Variation of
terms and
conditions of
licence
Display of
licence

Agricultural Credits and Warehouse
Receipts
(3) The Authority shall, where the Authority rejects an
application referred to under subsection (1), inform the applicant in
a prescribed manner and form, stating the reasons for the rejection. (4) The Authority shall, where the Authority grants the
application referred to under subsection (1), vary the terms and
conditions of a licence and issue the applicant with a licence
containing the varied terms and conditions in a prescribed manner
and form. 15. (1) A holder of a licence may, sixty days before the
expiration of the validity of the licence, apply to the Authority for
renewal of the licence in a prescribed manner and form on payment
of a prescribed fee. (2) The Authority shall, within thirty days of receipt of an
application referred to under subsection (1), grant or reject the
application. (3) The Authority shall, where the Authority rejects an
application referred to under subsection (2), inform the applicant in
a prescribed manner and form, stating the reasons for the rejection. (4) The Authority shall, where the applicant satisfies the
prescribed requirements, issue the applicant with a renewed licence
in a prescribed form. 16.

) The Authority shall, where the applicant satisfies the
prescribed requirements, issue the applicant with a renewed licence
in a prescribed form. 16.

(1) A holder of a licence shall not transfer a licence to a
third party without the prior approval of the Authority. (2) A holder of a licence who intends to transfer a licence shall
apply to the Authority for approval to transfer the licence, in a
prescribed manner and form on payment of a prescribed fee. (3) An application referred to under subsection (2) shall be
accompanied by—
(a) a report on the financial affairs of a holder of a licence
certified by a registered auditor; and
(b) any other requirements as may be prescribed. (4) The Authority shall, within thirty days of receipt of an
application referred to under subsection (2), approve or reject the
application. (5) The Authority shall, where the Authority rejects the
application referred to under subsection (2), inform the applicant,
in a prescribed manner and form, stating the reasons for the
rejection. Renewal of
licence
Transfer of
licence
226 No. 7 of 2026]

nform the applicant,
in a prescribed manner and form, stating the reasons for the
rejection. Renewal of
licence
Transfer of
licence
226 No. 7 of 2026]

[No. 7 of 2026 227Agricultural Credits and Warehouse
Receipts
(6) The Authority shall, where the Authority approves the
transfer of the licence, issue the applicant with a letter of approval,
in writing, if—
(a) the applicant satisfies the requirements under this Part;
and
(b) the transferee satisfies the prescribed requirements. 17. (1) A holder of a licence issued under this Part shall, where
the holder of the licence decides to discontinue the licenced activity,
notify the Authority, in writing, and shall agree with the Authority
on the terms and conditions of surrender of the licence. (2) The Authority shall cancel a licence that is surrendered in
accordance with subsection (1). 18. (1) Subject to the other provisions of this Act, the Authority
may suspend or cancel a licence, if the holder of the licence—
(a) obtained the licence through fraud, misrepresentation or
concealment of a material fact;
(b) cancels the insurance cover relating to the warehouse
without the approval of the Authority; or
(c) contravenes any provision of this Act or terms and
conditions of a licence.

er relating to the warehouse
without the approval of the Authority; or
(c) contravenes any provision of this Act or terms and
conditions of a licence.

(2) The Authority shall, before suspending or cancelling a licence
in accordance with subsection (1), notify the holder of the licence
of the Authority’s intention to suspend or cancel the licence in a
prescribed manner and form and shall—
(a) give reasons for the intended suspension or cancellation;
and
(b) require the holder of the licence to show cause, within a
period of not more than thirty days, why the licence
should not be suspended or cancelled. (3) The Authority shall not suspend or cancel a licence under
this section if the holder of the licence takes remedial measures to
the satisfaction of the Authority within the period referred to in
subsection (2) (b). (4) The Authority shall suspend or cancel a licence if the holder
of the licence, having been notified in accordance with subsection
(2), does not—
(a) show cause to the satisfaction of the Authority why the
licence should not be suspended or cancelled; or
(b) take remedial measures to the satisfaction of the Authority
within the period specified in subsection (2) (b). Surrender of
licence
Suspension
or
cancellation
of licence

res to the satisfaction of the Authority
within the period specified in subsection (2) (b). Surrender of
licence
Suspension
or
cancellation
of licence

Agricultural Credits and Warehouse
Receipts
(5) A holder of a licence that is cancelled shall, within thirty
days of being notified of the cancellation, surrender the licence to
the Authority and the unused warehouse receipts. (6) A person who contravenes subsection (5) commits an
offence. (7) The Authority shall, where the Authority suspends or cancels
a licence under this section, publish the suspension or cancellation
in a daily news paper of general circulation in the Republic. 19. (1) A person whose licence is cancelled may apply for re-
registration in a prescribed manner and form on payment of a
prescribed fee, if that person takes remedial measures to the
satisfaction of the Authority. (2) An application for re-registration of a licence may be made
within thirty days from the date of the cancellation of the licence. 20. (1) A holder of a licence whose licence is destroyed or
lost may apply to the Authority for a duplicate licence in a prescribed
manner and form on payment of a prescribed fee. (2) The Authority may, within fourteen days of receipt of an
application under subsection (1), issue a duplicate licence to the
applicant.

cribed fee. (2) The Authority may, within fourteen days of receipt of an
application under subsection (1), issue a duplicate licence to the
applicant.

PART IV
ELECTRONIC WAREHOUSE RECEIPT SYSTEM AND WAREHOUSE
RECEIPTS
21. (1) The Authority shall establish and maintain an Electronic
Warehouse Receipt System in which all warehouse receipts issued
by a warehouse operator in accordance with this Act, contracts of
advance and agricultural charges shall be recorded. (2) The database of warehouse receipts, contracts of advance
and agricultural charges in the Electronic Warehouse Receipt
System shall be linked with the Collateral Registry. (3) The Authority shall ensure that the database of warehouse
receipts, contracts of advance and agricultural charges referred to
under subsection (1) are accessible, on payment of a prescribed
fee, to members of the public for purposes of searching and verifying
the status of warehouse receipts, contracts of advance and
agricultural charges. Re-
registration
Duplicate
licence
Electronic
Warehouse
Receipt
System
228 No. 7 of 2026]

use receipts, contracts of advance and
agricultural charges. Re-
registration
Duplicate
licence
Electronic
Warehouse
Receipt
System
228 No. 7 of 2026]

[No. 7 of 2026 229Agricultural Credits and Warehouse
Receipts
(4) The Minister may, by statutory instrument, make Regulations
to provide for security, access and use of the database of warehouse
receipts, contracts of advance and agricultural charges in the
Electronic Warehouse Receipt System. 22. (1) A person who intends to store a prescribed quantity of
agricultural commodities in a warehouse shall deposit the agricultural
commodity with a warehouse operator as prescribed. (2) A depositor of an agricultural commodity referred to under
subsection (1) shall when depositing an agricultural commodity
provide the following information to a warehouse operator:
(a) the full particulars of the depositor;
(b) the source of the agricultural commodity, and where the
depositor is not the owner, the details of the original
owner or chain of ownership, if known;
(c) any peculiarities in the nature of the agricultural commodity;
(d) where the agricultural commodity is subject to any
agricultural charge, the details of the agricultural charge;
and
(e) any other information that may be prescribed.

ultural commodity is subject to any
agricultural charge, the details of the agricultural charge;
and
(e) any other information that may be prescribed.

(3) A warehouse operator shall, before accepting an agricultural
commodity for storage in a warehouse, verify with the Collateral
Registry whether or not the agricultural commodity is subject to an
agricultural charge. (4) A person who contravenes this section commits an offence
and is liable, on conviction, to a fine not exceeding five hundred
thousand penalty units or to imprisonment for a term not exceeding
five years, or to both. 23. (1) An agricultural commodity that is deposited with a
warehouse operator for purposes of processing, cleaning and holding
the agricultural commodity and returning the cleaned or processed
agricultural commodity to the depositor, shall not be considered to
be an agricultural commodity for purposes of this Act. (2) A warehouse operator who is in possession or in control of
an agricultural commodity referred to under subsection (1), shall
maintain the agricultural commodity in a manner that preserves the
identity of the agricultural commodity. Deposit of
agricultural
commodities
for storage
Deposit of
agricultural
commodities
for purposes
other than
storage

ity of the agricultural commodity. Deposit of
agricultural
commodities
for storage
Deposit of
agricultural
commodities
for purposes
other than
storage

Agricultural Credits and Warehouse
Receipts
24. (1) A warehouse operator shall, issue a warehouse receipt
to a depositor of an agricultural commodity within twenty-four hours
of the deposit of the agricultural commodity in a prescribed manner
and form. (2) A warehouse operator shall, within twenty-four hours of
issuance of a warehouse receipt, lodge the warehouse receipt in
the Electronic Warehouse Receipt System. (3) A warehouse receipt referred to under subsection (1), shall
be prima facie evidence of the proprietary rights of the holder of
the warehouse receipt in an agricultural commodity in respect of
which the warehouse receipt is issued. (4) Despite subsection (3), a holder of a warehouse receipt
acquires proprietary rights in an agricultural commodity under a
warehouse receipt, if the holder of the warehouse receipt is entitled
to the ownership of the agricultural commodity. (5) The propriety rights of a holder of a warehouse receipt in
an agricultural commodity referred to under subsection (3), shall
not be affected by the failure of a warehouse operator to comply
with subsections (1) or (2).

ltural commodity referred to under subsection (3), shall
not be affected by the failure of a warehouse operator to comply
with subsections (1) or (2).

(6) The Authority may, where a warehouse operator fails to
comply with subsections (1) or (2), impose on the warehouse
operator an administrative penalty that the Minister may, on the
recommendation of the Authority, prescribe. (7) A warehouse operator who issues a warehouse receipt
knowing that the agricultural commodity for which the warehouse
receipt is issued has not been deposited with the warehouse operator
commits an offence and is liable, on conviction, to a fine not
exceeding five hundred thousand penalty units or to imprisonment
for a term not exceeding five years, or to both. 25. (1) A warehouse operator shall, issue a —
(a) negotiable warehouse receipt where an agricultural
commodity is not subject to an agricultural charge; or
(b) non-negotiable warehouse receipt where the warehouse
operator discovers that an agricultural commodity that
has been deposited in a warehouse is subject to an
agricultural charge. Issuance and
lodgment of
warehouse
receipts
Negotiable
and non-
negotiable
warehouse
receipts
230 No. 7 of 2026]

is subject to an
agricultural charge. Issuance and
lodgment of
warehouse
receipts
Negotiable
and non-
negotiable
warehouse
receipts
230 No. 7 of 2026]

[No. 7 of 2026 231Agricultural Credits and Warehouse
Receipts
(2) A person shall not insert, or cause to be inserted, in a
negotiable warehouse receipt, words that render the negotiable
warehouse receipt as non-negotiable. 26. (1) A negotiable warehouse receipt to the order of a name
of a person may be negotiated by endorsement and delivery —
(a) after endorsement in blank or to the bearer; or
(b) after endorsement to a specific person. (2) A negotiable warehouse receipt referred to under subsection
(1), may be negotiated by the person named in the negotiable
warehouse receipt. (3) Subject to subsection (1), negotiation of a negotiable
warehouse receipt after the negotiable warehouse receipt is
endorsed to a specific named person shall require the endorsement
of the endorsee. (4) An endorsement made in accordance with subsection (3)
shall be made to a specified person and may be negotiated to another
specified person and subsequent negotiations shall be made in a
like manner.

(3)
shall be made to a specified person and may be negotiated to another
specified person and subsequent negotiations shall be made in a
like manner.

(5) For the purposes of this section, a negotiable warehouse
receipt shall be regarded as duly negotiated if the negotiable
warehouse receipt is negotiated in the manner stated under this
section to a person who purchases the negotiable warehouse receipt
in good faith and for value, without notice of any defect or claim to
the negotiable warehouse receipt on the part of any person. 27. Subject to this section, a person to whom a negotiable
warehouse receipt is negotiated shall acquire —
(a) the title to the agricultural commodity;
(b) the right to demand delivery of the agricultural commodity
from the warehouse operator;
(c) the right to use the negotiable warehouse receipt as
collateral for financing; and
(d) all rights accruing under the law of agency and estoppel. 28. A negotiable warehouse receipt may be transferred without
negotiation, if it is transferred by —
(a) the holder of the negotiable warehouse receipt to another
person under a separate arrangement or agreement; or
(b) order of the court. Negotiating
negotiable
warehouse
receipt
Rights
acquired
after
negotiation
of negotiable
warehouse
receipt
Transfer of
negotiable
warehouse
receipt
without
negotiation

iable
warehouse
receipt
Rights
acquired
after
negotiation
of negotiable
warehouse
receipt
Transfer of
negotiable
warehouse
receipt
without
negotiation

Agricultural Credits and Warehouse
Receipts
29. (1) A transferee of a negotiable warehouse receipt which
is transferred in accordance with section 28 shall acquire —
(a) against the transferor, title to an agricultural commodity;
(b) the right to compel a transferor to—
(i) lodge the negotiable warehouse receipt in the
Electronic Warehouse Receipt System; and
(ii) where endorsement is essential for negotiation,
deliver the endorsed negotiable warehouse
receipt to the transferee within three days of
the endorsement. (2) The title acquired by the transferee under subsection (1)
shall be subject to the terms of the agreement with the transferor. (3) Where the endorsement of a negotiable warehouse receipt
is essential before the negotiable warehouse receipt is transferred,
the negotiable warehouse receipt shall not be regarded as negotiated
until the transferor endorses it. (4) The transferee shall not be liable for any default or fraudulent
acts on the negotiable warehouse receipt, occasioned by the
warehouse operator or previous endorsers, where the endorsement
of a negotiable warehouse receipt is in good faith.

rehouse receipt, occasioned by the
warehouse operator or previous endorsers, where the endorsement
of a negotiable warehouse receipt is in good faith.

(5) A court may, in case of a dispute or enforcement of lawful
claims, order a negotiable warehouse receipt to be transferred —
(a) where it is proved that there was an agreement for the
transfer of the negotiable warehouse receipt between
the transferor and the transferee; or
(b) in the interest of justice including cases of insolvency. (6) A transferee shall, where a transferred negotiable warehouse
receipt becomes non-negotiable, in order to acquire title to an
agricultural commodity, notify the warehouse operator of the transfer
of such negotiable warehouse receipt to the transferee. 30. (1) A warehouse receipt referred to under this Part may
be altered by a warehouse operator as prescribed. (2) An alteration of a warehouse receipt referred to under
subsection (1) shall be treated as —
(a) immaterial, if the alteration does not affect any proprietary
rights of the holder of the warehouse receipt;
Rights of
transferee of
negotiable
warehouse
receipt
Alteration of
warehouse
receipt
232 No. 7 of 2026]

rights of the holder of the warehouse receipt;
Rights of
transferee of
negotiable
warehouse
receipt
Alteration of
warehouse
receipt
232 No. 7 of 2026]

[No. 7 of 2026 233Agricultural Credits and Warehouse
Receipts
(b) authorised, if the alteration is made with the consent of
the holder of the warehouse receipt; or
(c) unauthorised, if the alteration is made without the consent
of the holder of the warehouse receipt. 31. (1) A bonafide purchaser of a warehouse receipt for value,
without notice of an alteration to the warehouse receipt, shall acquire
the same proprietary rights against the warehouse operator which
the purchaser would have acquired if the warehouse receipt had
not been altered at the time of purchase. (2) Despite subsection (1), a purchaser of a warehouse receipt
shall be deemed to have had notice of an alteration of a warehouse
receipt, if prior to the purchase of the warehouse receipt, the
purchaser or the purchaser’s agent took part in, or influenced, the
alteration of the warehouse receipt. 32. (1) A holder of a warehouse receipt shall, within forty-
eight hours of the loss, theft or destruction of a warehouse receipt,
report the occurrence to the Authority.

a warehouse receipt shall, within forty-
eight hours of the loss, theft or destruction of a warehouse receipt,
report the occurrence to the Authority.

(2) The Authority shall, immediately on receipt of the report
referred to under subsection (1), suspend the original warehouse
receipt in the Electronic Warehouse Receipt System. 33. (1) A holder of a warehouse receipt whose warehouse
receipt is lost, stolen or destroyed in accordance with section 32,
may apply to a warehouse operator for a duplicate warehouse
receipt. (2) An application for a duplicate warehouse receipt referred
to under subsection (1) shall be accompanied by —
(a) a police report of the lost, stolen or destroyed warehouse
receipt; and
(b) in the case of a prescribed value of the lost, stolen or
destroyed warehouse receipt, a copy of a notice relating
to the lost, stolen, or destroyed warehouse receipt
published in a daily newspaper of general circulation in
the Republic. (3) A warehouse operator shall, within fourteen days of receipt
of an application referred to under subsection (1), grant or reject
the application. (4) A warehouse operator shall, where the warehouse operator
rejects an application referred to under subsection (1), inform the
applicant, in writing, stating the reasons for the rejection.

e warehouse operator
rejects an application referred to under subsection (1), inform the
applicant, in writing, stating the reasons for the rejection.

Rights of
purchaser of
altered
warehouse
receipt
against
warehouse
operator
Lost, stolen
or destroyed
warehouse
receipt
Duplicate
warehouse
receipt

Rights of
purchaser of
altered
warehouse
receipt
against
warehouse
operator
Lost, stolen
or destroyed
warehouse
receipt
Duplicate
warehouse
receipt

Agricultural Credits and Warehouse
Receipts
(5) A warehouse operator shall, where the warehouse operator
grants an application referred to under subsection (1), issue the
applicant with a duplicate warehouse receipt. (6) A warehouse operator shall, where the warehouse operator
issues a duplicate warehouse receipt in accordance with subsection
(5), immediately—
(a) lodge the duplicate warehouse receipt in the Electronic
Warehouse Receipt System; and
(b) notify the Authority of the lodgment in writing. (7) A duplicate warehouse receipt that is not lodged in the
Electronic Warehouse Receipt System in accordance with
subsection (6), shall be void. (8) A warehouse operator shall mark the duplicate warehouse
receipt issued in accordance with subsection (5), with the word
“duplicate” in front, as a warranty by the warehouse operator that
the warehouse receipt —
(a) is an accurate copy of the original warehouse receipt;
and
(b) has the same rights as the original warehouse receipt
properly issued and outstanding at the date of issue of
the duplicate.

arehouse receipt;
and
(b) has the same rights as the original warehouse receipt
properly issued and outstanding at the date of issue of
the duplicate.

(9) A warehouse operator who contravenes subsection (8)
commits an offence and is liable, on conviction, to a fine not
exceeding two hundred thousand penalty units or to imprisonment
for a term not exceeding two years, or to both. (10) A person who uses an original warehouse receipt after a
duplicate warehouse receipt has been issued in accordance with
this section commits an offence and is liable, on conviction, to a
fine not exceeding five hundred thousand penalty units or to
imprisonment for a term not exceeding five years, or to both. (11) Despite subsection (9), a warehouse operator shall be liable
for damages caused to any person by the failure of the warehouse
operator to mark a duplicate warehouse receipt as specified in
subsection (8). 234 No. 7 of 2026]

caused to any person by the failure of the warehouse
operator to mark a duplicate warehouse receipt as specified in
subsection (8). 234 No. 7 of 2026]

[No. 7 of 2026 235Agricultural Credits and Warehouse
Receipts
PART V
RIGHTS AND OBLIGATIONS OF WAREHOUSE OPERATORS
34. A warehouse operator may sell or pledge a warehouse
receipt issued in respect of an agricultural commodity which the
warehouse operator owns solely, jointly or in common with others
and the recital of ownership in the warehouse receipt shall constitute
notice of the right to sell or pledge the warehouse receipt and of
the title or specific lien of the transferee or pledgee. 35. (1) A warehouse operator shall have a lien over an
agricultural commodity which is stored in the warehouse of the
warehouse operator to cover the storage charges of an agricultural
commodity.

n over an
agricultural commodity which is stored in the warehouse of the
warehouse operator to cover the storage charges of an agricultural
commodity.

(2) A warehouse operator’s lien on a deposited agricultural
commodity or the proceeds of the deposited agricultural commodity
shall derive from —
(a) all lawful charges for the storage and preservation of the
agricultural commodity;
(b) lawful claims for money advanced, interest, insurance,
transportation, labor, weighing and other charges and
expenses in relation to the agricultural commodity;
(c) all reasonable charges and expenses incurred for notice
and advertisements of sale; and
(d) the sale of the agricultural commodity where default is
made in satisfying the warehouse operators lien. (3) A warehouse operator may, where the warehouse operator
has a valid lien against a person demanding an agricultural
commodity, refuse to deliver the agricultural commodity to that
person until the lien is satisfied. 36.

ien against a person demanding an agricultural
commodity, refuse to deliver the agricultural commodity to that
person until the lien is satisfied. 36.

(1) Subject to the other provisions of this Act, a warehouse
operator may enforce a lien against all agricultural commodities —
(a) belonging to a holder of a warehouse receipt who is
liable, as debtor, for the claims with regard to which the
lien is asserted; and
(b) belonging to others, which have been deposited by a person
who is liable, as a debtor, for the claims to which the
lien is asserted, if the depositor was entrusted with the
agricultural commodities at the time of deposit. Right of
warehouse
operator to
sell or pledge
warehouse
receipt
Warehouse
operator’s
right to lien
Enforcement
of lien

odities at the time of deposit. Right of
warehouse
operator to
sell or pledge
warehouse
receipt
Warehouse
operator’s
right to lien
Enforcement
of lien

Agricultural Credits and Warehouse
Receipts
(2) A warehouse operator may enforce a lien by —
(a) the sale of an agricultural commodity;
(b) any other remedies allowed by law for the enforcement
of a lien against moveable property; or
(c) any other action for the recovery of the warehouse
operator’s claim. 37. (1) A warehouse operator may, where a lien relates to
agricultural commodities that are of a perishable nature and likely
to deteriorate greatly in value, by their odour, leakage, inflammability
or explosive nature or are likely to injure the property or endanger
the life of persons likely to come into contact with the agricultural
commodities, give notice to a holder of a warehouse receipt to
satisfy the lien on the agricultural commodities and remove the
agricultural commodities from the warehouse within a specified
period. (2) A warehouse operator may, where a holder of a warehouse
receipt fails to comply with the notice referred to under subsection
(1), sell the agricultural commodities at a public or private auction,
with or without advertising the agricultural commodities.

d to under subsection
(1), sell the agricultural commodities at a public or private auction,
with or without advertising the agricultural commodities.

(3) A warehouse operator may, where the warehouse operator
is unable to sell the agricultural commodities in accordance with
subsection (2), dispose of the agricultural commodity in accordance
with any relevant written law. (4) A warehouse operator shall not incur any liability for the
disposal of agricultural commodities under subsection (3). (5) The proceeds of any sale made in accordance with this
section shall be applied, in order of priority, to —
(a) satisfy the lien of the warehouse operator; and
(b) return any surplus to the holder of the warehouse receipt. 38. A warehouse operator’s lien under this Part shall not affect
a warehouse operator’s entitlement to a remedy which is available
under any other written law. 39. A warehouse operator shall lose the right of a lien on the
agricultural commodity under this Part, where the warehouse
operator surrenders possession of an agricultural commodity to a
holder of a warehouse receipt or fails to deliver an agricultural
commodity in accordance with section 40(2). Lien on
perishable
and
hazardous
agricultural
commodities
Warehouse
operator’s
lien not to
preclude
other
remedies
Loss of lien
236 No. 7 of 2026]

2). Lien on
perishable
and
hazardous
agricultural
commodities
Warehouse
operator’s
lien not to
preclude
other
remedies
Loss of lien
236 No. 7 of 2026]

[No. 7 of 2026 237Agricultural Credits and Warehouse
Receipts
40. (1) The obligations of a warehouse operator under this Act
shall not be affected where —
(a) a warehouse receipt does not comply with the
requirements of this Act or any other relevant written
law;
(b) the warehouse operator has contravened the provisions
of this Act; or
(c) an agricultural commodity in respect of which a warehouse
receipt was issued was owned by the warehouse
operator at the time the warehouse receipt was issued. (2) Subject to the other provisions of this Act, a warehouse
operator shall, on demand made by a holder of a warehouse receipt,
deliver an agricultural commodity stored in the warehouse to the
holder of the warehouse receipt —
(a) if the holder of the warehouse receipt pays the lien of the
warehouse operator; and
(b) the warehouse operator is satisfied that —
(i) the person receiving the agricultural commodity
is lawfully entitled to the possession of the
agricultural commodity; and
(ii) the holder of the warehouse receipt is entitled
to delivery, either by oneself or on that person’s
written authorisation, to another person.

and
(ii) the holder of the warehouse receipt is entitled
to delivery, either by oneself or on that person’s
written authorisation, to another person.

(3) A warehouse operator who contravenes subsection (2), is
liable, to an administrative penalty. (4) A warehouse operator shall, where the warehouse operator
fails to deliver an agricultural commodity in accordance with
subsection (2) because of an altered warehouse receipt, estop the
holder of the warehouse receipt who had notice of the alteration
from demanding proprietary rights other than those specified in the
altered warehouse receipt. 41. (1) A warehouse operator shall be liable to the holder of a
warehouse receipt for any damages caused by the warehouse
operator’s failure to —
(a) deliver an agricultural commodity; or
(b) deliver an agricultural commodity that corresponds with
the description in the warehouse receipt, at the time of
deposit. Obligation of
warehouse
operator to
deliver
agricultural
commodities
Liability for
damages
caused by
warehouse
operator’s
failure to
deliver

deposit. Obligation of
warehouse
operator to
deliver
agricultural
commodities
Liability for
damages
caused by
warehouse
operator’s
failure to
deliver

Agricultural Credits and Warehouse
Receipts
(2) Despite subsection (1) a warehouse operator shall not be
liable —
(a) for an agricultural commodity which is conditioned or
processed, where such conditioning or processing is
noted on the warehouse receipt; or
(b) under subsection (1) (b), where a warehouse receipt is
marked with a statement that the agricultural commodity
under the warehouse receipt does contain agricultural
commodities of a certain kind. (3) The liability of a warehouse operator referred to under
subsection (1) shall, where the damages caused by a warehouse
operator are as a result of a force majeure and notice is given to
the affected holder of a warehouse receipt of the occurrence of
the damages, be limited to the net sale. 42. (1) A warehouse operator shall not deliver an agricultural
commodity in accordance with section 40, where, prior to the
delivery, the warehouse operator receives information or becomes
aware that a person to whom the delivery is about to be made is
not legally entitled to the delivery.

rehouse operator receives information or becomes
aware that a person to whom the delivery is about to be made is
not legally entitled to the delivery.

(2) A warehouse operator who contravenes subsection (1) is
liable, for conversion, to all persons with a proprietary right in, or
possession of, the agricultural commodity. 43. (1) Where more than one person is claiming title to, or
possession of, an agricultural commodity, a warehouse operator
shall, before making delivery of the agricultural commodity, to any
one of them, require the claimants to interplead. (2) An action taken under subsection (1) may be filed as an
action against the warehouse operator for non-delivery of the
agricultural commodity, or as an original suit. (3) A warehouse operator shall not be liable for the non-delivery
of an agricultural commodity where the warehouse operator has
evidence that a person other than the holder of the warehouse
receipt or claimant has a claim to the title or possession of the
agricultural commodity and that because of that evidence, the
warehouse operator is taking reasonable steps to ascertain the
validity of the adverse claim or to initiate legal proceedings to compel
all claimants to interplead. (4) A court shall ascertain the right claimant of an agricultural
commodity by interpleading or any other manner.

compel
all claimants to interplead. (4) A court shall ascertain the right claimant of an agricultural
commodity by interpleading or any other manner.

Liability for
delivery to
person not
entitled to
delivery
Ascertaining
valid titles to
agricultural
commodities
238 No. 7 of 2026]

Liability for
delivery to
person not
entitled to
delivery
Ascertaining
valid titles to
agricultural
commodities
238 No. 7 of 2026]

[No. 7 of 2026 239Agricultural Credits and Warehouse
Receipts
(5) Subject to subsection (3), the fact that a third person has a
right or title to an agricultural commodity shall not be a defence to
an action brought by the holder of the warehouse receipt, or a
person claiming from the holder of the warehouse receipt, against
the warehouse operator for failure to deliver the agricultural
commodity according to the terms indicated on the warehouse
receipt. 44. (1) Subject to the other provisions of this Act, a warehouse
operator shall, where a warehouse operator —
(a) delivers an agricultural commodity under a negotiable
warehouse receipt, cancel the negotiable warehouse
receipt; or
(b) delivers part of an agricultural commodity under a
negotiable warehouse receipt, cancel the negotiable
warehouse receipt and —
(i) issue a new negotiable warehouse receipt for
the remaining agricultural commodity; or
(ii) conspicuously mark the new negotiable
warehouse receipt with a statement of the
agricultural commodity and packages that have
been delivered.

or
(ii) conspicuously mark the new negotiable
warehouse receipt with a statement of the
agricultural commodity and packages that have
been delivered.

(2) A warehouse operator who fails to cancel a warehouse
receipt in accordance with subsection (1) shall be liable to the holder
of the warehouse receipt or to a person who purchases the
negotiable warehouse receipt for value and in good faith. (3) The liability of the warehouse operator under subsection
(2) shall not be affected by the fact that a purchaser acquired title
to the negotiable warehouse receipt before or after, the delivery of
the agricultural commodity or a portion of the agricultural commodity
by the warehouse operator. 45. (1) A warehouse operator shall, where the warehouse
operator stores an agricultural commodity, exercise such reasonable
care that an owner of the agricultural commodity would exercise
towards that agricultural commodity. (2) A warehouse operator who contravenes subsection (1) shall
be liable for breach of a duty of care, but unless otherwise agreed,
the warehouse operator shall not be liable for damages that could
not have been avoided by the exercise of such duty of care. Liability for
failure to
cancel or
mark
warehouse
receipt after
delivery
Warehouse
operators’
duty of care

oided by the exercise of such duty of care. Liability for
failure to
cancel or
mark
warehouse
receipt after
delivery
Warehouse
operators’
duty of care

Agricultural Credits and Warehouse
Receipts
46. Subject to the other provisions of this Act, for purposes of
identification of agricultural commodities, a warehouse operator
shall, where a warehouse operator receives —
(a) agricultural commodities from different depositors, keep
the agricultural commodities of each depositor separate;
and
(b) different agricultural commodities for which separate
warehouse receipts are issued from the same depositor,
keep the agricultural commodities separate. 47. (1) A warehouse operator may, with the approval of a holder
of a warehouse receipt commingle fungible agricultural commodities
of the same kind and grade. (2) Holders of warehouse receipts shall, where fungible
agricultural commodities are commingled in accordance with
subsection (1) —
(a) own the entire mass of commingled agricultural commodities
in common; and
(b) each, be entitled to such portion of the amount deposited.

ion (1) —
(a) own the entire mass of commingled agricultural commodities
in common; and
(b) each, be entitled to such portion of the amount deposited.

(3) A warehouse operator shall be severally liable to each holder
of a warehouse receipt for the care and delivery of the share of
the mass of the agricultural commodities of the holder of the
warehouse receipt, to the same extent and under the same
circumstances as if the agricultural commodities had been kept
separate. 48. (1) A warehouse operator may, by notice to a holder of a
warehouse receipt and any other person known to claim an interest
in the agricultural commodity, require the holder of the warehouse
receipt to pay any charges relating to the storage of the agricultural
commodity and remove the agricultural commodity from a
warehouse —
(a) at the termination of the period of storage of the agricultural
commodity specified in a warehouse receipt; or
(b) if no period is specified in a warehouse receipt, within a
specified period of not less than thirty days from the
date of the notice. (2) A warehouse operator may, where a holder of a warehouse
receipt fails to comply with subsection (1), sell or dispose of the
agricultural commodity in accordance with this Act.

where a holder of a warehouse
receipt fails to comply with subsection (1), sell or dispose of the
agricultural commodity in accordance with this Act.

Duty to
keep
agricultural
commodities
separately
Commingling
of fungible
agricultural
commodities
Termination
of storage at
warehouse
operator’s
option
240 No. 7 of 2026]

tural
commodities
separately
Commingling
of fungible
agricultural
commodities
Termination
of storage at
warehouse
operator’s
option
240 No. 7 of 2026]

[No. 7 of 2026 241Agricultural Credits and Warehouse
Receipts
(3) A warehouse operator may, where a warehouse operator
sells or disposes of an agricultural commodity in accordance with
subsection (2), satisfy the lien from the proceeds of the sell or
disposition, but shall hold the balance for delivery on the demand of
any person to whom the warehouse operator would have been
bound to deliver the agricultural commodity. PART VI
CONTRACTS FOR ADVANCE
49. (1) A lender may, on the security of a warehouse receipt,
enter into a contract for an advance with a holder of a warehouse
receipt, and grant an advance to the holder of the warehouse receipt. (2) A contract referred to under subsection (1), shall—
(a) be in writing;
(b) include the following:
(i) identify the warehouse receipt securing the
advance;
(ii) specify the value of the advance issued to the
holder of a warehouse receipt;
(iii) indicate the terms and conditions of the advance;
and
(iv) state the rights and obligations of the holder of
the warehouse receipt, lender and warehouse
operator. 50.

ms and conditions of the advance;
and
(iv) state the rights and obligations of the holder of
the warehouse receipt, lender and warehouse
operator. 50.

(1) A lender shall, within seven days of entry into a contract
of advance, lodge the contract of advance in the Collateral Registry
in accordance with the Movable Property (Security Interest) Act. (2) A contract of advance that is not lodged in accordance with
this section, shall not be enforceable against bona fide third-party
purchasers of the applicable agricultural commodities. 51. (1) A contract of advance made in accordance with this
section shall —
(a) be valid and enforceable in law;
(b) create a perfected security interest in the agricultural
commodity described in the warehouse receipt; and
Entry into
Contract for
advance
Lodgment of
contract for
advance
Cap.429
Effects of
contract of
advance

modity described in the warehouse receipt; and
Entry into
Contract for
advance
Lodgment of
contract for
advance
Cap.429
Effects of
contract of
advance

Agricultural Credits and Warehouse
Receipts
(c) confer priority on the lender over any other claim to the
agricultural commodity, except for —
(i) charges relating to the storage of the agricultural
commodity due to the warehouse operator; and
(ii) insurance premiums. (2) A lender’s priority, as specified in subsection (1)(c), shall
remain effective until the advance and any accrued interest or
charges are fully paid. 52. (1) A lender shall, where a lender provides an advance to
a holder of a warehouse receipt, furnish the holder of the warehouse
receipt with a disclosure schedule showing the value and cost of
the advance to the holder of the warehouse receipt, the interest
rate and any charges, fees or penalties that shall apply. (2) Despite the provisions of any other written law, a lender
who fails to comply with subsection (1), shall not be eligible to
register an agricultural charge created by the holder of the
warehouse receipt, on the basis of the contract, in the Collateral
Registry. (3) The agricultural charge referred to under subsection (2)
shall not be —
(a) valid; and
(b) enforceable against any third party.

llateral
Registry. (3) The agricultural charge referred to under subsection (2)
shall not be —
(a) valid; and
(b) enforceable against any third party.

(4) A lender may, where a holder of a warehouse receipt
defaults on an advance obtained under a contract made in
accordance with this section, without the need for a court order,
require the warehouse operator to sell the agricultural commodity
by private or public auction and the proceeds of the sale shall be
applied in the following order:
(a) payment of charges relating to the storage of the agricultural
commodity and insurance premiums;
(b) repayment of the advance, accrued interest, and
enforcement costs; and
(c) payment of any surplus to the borrower or any other person
entitled to the payment. (5) A lender who contravenes subsection (1), commits an
offence and is liable, on conviction, to a fine not exceeding three
hundred thousand penalty units. Rights and
obligations
of lender
241 No. 7 of 2026]

ffence and is liable, on conviction, to a fine not exceeding three
hundred thousand penalty units. Rights and
obligations
of lender
241 No. 7 of 2026]

[No. 7 of 2026 243Agricultural Credits and Warehouse
Receipts
53. (1) A warehouse operator shall, where a warehouse receipt
is pledged to secure an advance —
(a) retain possession of the agricultural commodity until the
lender authorises the release of the agricultural
commodity; and
(b) maintain the agricultural commodity in accordance with
prescribed standards. (2) A warehouse operator who, without lawful authority, delivers
the agricultural commodity referred to under subsection (1) to a
person other than the lender or the lender’s authorised agent
commits an offence. 54. (1) A lender shall, where a holder of a warehouse receipt
fully repays an advance issued to the holder of the warehouse
receipt under a contract of advance and the applicable charges —
(a) return the warehouse receipt to the holder of the
warehouse receipt; and
(b) notify the warehouse operator, in writing, that the
commodity is free from any encumbrance. (2) A lender who, without reasonable cause, fails to comply
with subsection (1), commits an offence. 55.

t the
commodity is free from any encumbrance. (2) A lender who, without reasonable cause, fails to comply
with subsection (1), commits an offence. 55.

(1) A lender shall, within forty-eight hours of furnishing a
holder of a warehouse receipt with a disclosure schedule in
accordance with section 52(1), submit the disclosure schedule with
the Authority. (2) A lender who fails to comply with subsection (1) shall be
liable to an administrative penalty. 56. (1) A holder of a warehouse receipt or lender who intends
to correct a material error in a disclosure schedule shall apply to
the Authority in a prescribed manner and form. (2) The Authority shall, within fourteen days of receipt of the
application referred to under subsection (1), approve or reject the
application. (3) The Authority shall, where the Authority rejects the
application, inform the applicant, in writing, stating the reasons for
the rejection. (4) The Authority shall, where the Authority approves the
application, require the applicant to correct the material error in the
disclosure schedule. Duties of
warehouse
operator in
relation to
contract of
advance
Discharge of
security
Lodgment of
disclosure
schedule
Application
to correct
material error
in disclosure
schedule

in
relation to
contract of
advance
Discharge of
security
Lodgment of
disclosure
schedule
Application
to correct
material error
in disclosure
schedule

Agricultural Credits and Warehouse
Receipts
PART VII
AGRICULTURAL CHARGES
57. (1) An agricultural charge may be fixed or floating, or both. (2) An agricultural charge referred to under subsection (1), may
be in any form or in a standardised form as prescribed, and made
on conditions that the parties to the agricultural charge may agree. (3) A surety to an agricultural charge may be a party to the
agricultural charge. 58. (1) A farmer may, individually or in association, create in
favor of any person, an agricultural charge on any farming stock,
additional asset or other agricultural asset as security for —
(a) inputs or other items required for agricultural production;
(b) sums advanced or to be advanced to the farmer; or
(c) sums paid or to be paid on the farmer’s behalf under any
guarantee. (2) Despite subsection (1), a trader or related business may
create in favor of any person, an agricultural charge on all or any
portion of an agricultural commodity that the trader or related
business purchases or intends to purchase from a farmer, as security.

ge on all or any
portion of an agricultural commodity that the trader or related
business purchases or intends to purchase from a farmer, as security.

(3) The security referred to under subsections (1) and (2) may
cover any interest, commission or charge relating to the agricultural
charge. (4) The property that may be affected by a fixed charge include —
(a) farming stock;
(b) additional assets;
(c) any other agricultural assets belonging to the farmer, trader
or related business at the date on which the agricultural
charge is created; and
(d) any other property as may be specified in the agricultural
charge. (5) The principal sum secured by an agricultural charge may
be —
(a) a specific amount advanced in one sum or in instalments;
or
Types of
agricultural
charges
Agricultural
charges on
farming
stock and
assets
244 No. 7 of 2026]

fic amount advanced in one sum or in instalments;
or
Types of
agricultural
charges
Agricultural
charges on
farming
stock and
assets
244 No. 7 of 2026]

[No. 7 of 2026 245Agricultural Credits and Warehouse
Receipts
(b) a fluctuating amount advanced on a current account not
exceeding at any one time such amount, if any, as may
be specified in the agricultural charge, except that any
agricultural charge for securing a current account or
any further advances shall continue to be effective
against the farmer, trader or related business and against
the holder of any subsequent interest in the agricultural
commodities charged, despite the fluctuation or
temporary extinction of the indebtedness that the lender
may have had notice of the subsequent interest. 59. (1) A farmer, trader or related business shall within fourteen
days after creation of an agriculture charge in accordance with
section 58 (1) and (2), register the agricultural charge in the Collateral
Registry in accordance with the Movable Property (Security
Interest) Act. (2) An agricultural charge that is not registered in accordance
with subsection (1), shall be void. (3) A printed certified copy of the registration of the agricultural
charge shall be prima facie evidence in legal proceedings of the
registration of the agricultural charge. 60.

of the registration of the agricultural
charge shall be prima facie evidence in legal proceedings of the
registration of the agricultural charge. 60.

(1) A fixed agricultural charge shall confer the following
on the holder of the fixed agricultural charge:
(a) on the happening of an event specified in the agricultural
charge as an event authorising the seizure of property
subject to the agricultural charge, a right to take
possession of the property; and
(b) where possession of any property has been taken, a right
to sale the property, after twenty-one days of possession
of the property or a shorter period as may be specified
by the agricultural charge.

a right
to sale the property, after twenty-one days of possession
of the property or a shorter period as may be specified
by the agricultural charge.

(2) A fixed agricultural charge shall impose the following
obligations on a farmer, trader or related business:
(a) where the farmer, trader or related business sells any
property, or receives any money in respect of any asset
comprised in the agricultural charge, pay to the holder
of the agricultural charge, the amount of the proceeds
of the sale or the money so received, except to such
extent as the charge otherwise provides or the holder of
the agricultural charge otherwise allows, and any sum
so paid shall be applied, except so far as otherwise
agreed by the holder of the agricultural charge, in or
towards the discharge of moneys and liabilities secured
by the charge; and
Registration
of
agricultural
charge
Cap.429
Effect of
fixed
agricultural
charge

rds the discharge of moneys and liabilities secured
by the charge; and
Registration
of
agricultural
charge
Cap.429
Effect of
fixed
agricultural
charge

Agricultural Credits and Warehouse
Receipts
(b) in the event of the farmer, trader or related business
receiving any money under any policy of insurance on
any property comprised in the agricultural charge, pay
the amount of the sum received to the holder of the
agricultural charge, except to such extent as the charge
otherwise provides or the holder of the agricultural
charge otherwise allows, and any sum so paid shall be
applied, except so far as is otherwise agreed by the
holder of the agricultural charge, in or towards the
discharge of moneys and liabilities secured by the
charge. (3) Despite subsection (2)(a), if the holder of an agricultural
charge is a related business, the farmer or trader shall not sell,
except as provided under this section, the agricultural commodity
for which the farmer received loans or advances of inputs or other
items required for agricultural production but shall deliver to the
holder of the agricultural charge the agricultural commodity in the
amount agreed in the charge.

for agricultural production but shall deliver to the
holder of the agricultural charge the agricultural commodity in the
amount agreed in the charge.

(4) An insurer may, despite anything contained in an insurance
policy, where any money is due to a farmer, trader or related business
under any policy of insurance on any of the property comprised in
a fixed agricultural charge, pay the holder of the agricultural charge
the money specified in the agricultural charge and any such payment
shall be a valid discharge of the liability of the insurer to the farmer,
trader or related business to the extent of the amount so paid, and
the provisions of subsection (2)(b) apply to the amount so paid as if
it had been paid to the holder of the agricultural charge by the
farmer, trader or related business. 61. (1) A holder of an agricultural charge shall, where the holder
of the agricultural charge intends to sale a property subject to the
agricultural charge in accordance with section 60(1) (b), notify the
Authority of the intended sale. (2) The Authority shall, on receipt of the notice referred to under
subsection (1), at least twenty-one days before the intended sale,
publish the notice by any electronic means that the Authority may
determine.

under
subsection (1), at least twenty-one days before the intended sale,
publish the notice by any electronic means that the Authority may
determine.

(3) The holder of the agricultural charge shall, where the holder
of the agricultural charge sales the property subject to the
agricultural charge in accordance with section 60(1) (b), apply the
proceeds of the sale towards —
(a) the discharge of the monies and liabilities secured by the
fixed agricultural charge and the costs of seizure and
sale; and
Sale of
property
subject to
agricultural
charge
246 No. 7 of 2026]

ies secured by the
fixed agricultural charge and the costs of seizure and
sale; and
Sale of
property
subject to
agricultural
charge
246 No. 7 of 2026]

[No. 7 of 2026 247Agricultural Credits and Warehouse
Receipts
(b) paying the surplus of the proceeds, if any, to the farmer,
trader or related business. (4) Subject to subsections (1) and (2), a fixed agricultural charge
shall not prevent a farmer, trader or related business from selling a
property subject to the agricultural charge. (5) A holder of an agricultural charge shall, where the proceeds
of a sale made under subsection (3)(b) are paid to a third party and
not the farmer, trader or related business, have a right to recover
the proceeds from that third party, if the holder of the agricultural
charge proves the third party knew that the proceeds were paid to
the third party in breach of the obligations of a farmer, trader or
related business. 62.

e proves the third party knew that the proceeds were paid to
the third party in breach of the obligations of a farmer, trader or
related business. 62.

(1) An agricultural charge creating a floating charge shall
have the like effect as if the charge had been created by a registered
debenture issued by a company, except that —
(a) the charge shall become a fixed charge on the property
on —
(i) a receiving order in bankruptcy being made
against the farmer, trader or related business;
(ii) the death of the farmer or trader;
(iii) the dissolution of the partnership in the case
where the property charged is partnership
property;
(iv) notice, in writing, to that effect being given by
the holder of the agricultural charge on the
happening of any event which, by virtue of the
charge, confers upon the holder of the
agricultural charge the right to give the notice;
or
(v) on default in repayment under the terms of the
charge; and
(b) the farmer, trader or related business, while the agricultural
charge remains a floating charge, shall be subject to the
like obligation as in the case of a fixed charge to pay
over to the holder of the agricultural charge the amount
received by the holder of the agricultural charge by way
of proceeds of sale, in respect of other agricultural assets
or additional assets under policies of insurance, or by
way of compensation.

harge by way
of proceeds of sale, in respect of other agricultural assets
or additional assets under policies of insurance, or by
way of compensation.

Effect of
floating
agricultural
charge

Effect of
floating
agricultural
charge

Agricultural Credits and Warehouse
Receipts
(2) The farmer, trader or related business shall not be required
to comply with the obligations referred to under subsection (1)(b),
if and so far as the amount received by the farmer, trader or related
business is expended in the purchase of farming stock which, on
purchase, becomes subject to the charge. (3) The Authority shall, where a floating agricultural charge
becomes a fixed agricultural charge in accordance with subsection
(1)(a), notify the farmer, trader or related business of the conversion
and publish the conversion by any electronic means that the Authority
may determine. 63. (1) A farmer, trader or related business shall, when selling
or causing to be sold, any farming stock or additional asset which is
subject to an agricultural charge, provide a purchaser, or a person
effecting the sale of, the farming stock or additional asset, before
payment of the purchase price, with an electronic notice or a physical
printed notice from the Electronic Warehouse Receipt System.

onal asset, before
payment of the purchase price, with an electronic notice or a physical
printed notice from the Electronic Warehouse Receipt System.

(2) The purchaser or the person effecting the sale of farming
stock or additional asset which is subject to an agricultural charge,
shall on receipt of the notices referred to under subsection (1),
acknowledge the notice, in writing. (3) An electronic notice or a physical printed notice referred to
under subsection (1) shall contain the following information:
(a) the name and address of all persons holding an agricultural
charge over the farming stock or additional assets to be
sold;
(b) the priority of the agricultural charges; and
(c) the amount secured by each agricultural charge. (4) Where a farmer, trader or related business gives an
electronic notice to a purchaser, or a person effecting the sale in
accordance with subsection (1), the electronic notice shall constitute
written notice, in respect of any subsequent sale of an agricultural
commodity, which is the subject of the charge, given to that
purchaser, or a person effecting the sale, within a period of twelve
months from the date of the electronic notice.

bject of the charge, given to that
purchaser, or a person effecting the sale, within a period of twelve
months from the date of the electronic notice.

(5) Despite subsection (4), the farmer, trader or related business
shall, before making, or causing to be made, any subsequent sale,
notify the purchaser of an agricultural charge which affects the
agricultural commodity, created by the farmer, trader or related
business after the date of the electronic notice. Notice of
agricultural
charge
248 No. 7 of 2026]

commodity, created by the farmer, trader or related
business after the date of the electronic notice. Notice of
agricultural
charge
248 No. 7 of 2026]

[No. 7 of 2026 249Agricultural Credits and Warehouse
Receipts
(6) The notice referred to under subsection (5) shall contain
the information referred to under subsection (3). (7) A person who receives a physical printed notice, as provided
in subsection (1), shall pay the proceeds of the sale to the holder of
an agricultural charge in accordance with the physical printed notice,
having regard to the priority and amounts stated in the physical
printed notice and shall pay the surplus, if any, remaining after making
the payments, to the farmer, trader or related business. (8) A person who contravenes subsection (7), commits an
offence and is liable, on conviction, to the full value of the agricultural
charge specified in the physical printed notice. (9) Any moneys paid out, in accordance with subsection (7),
shall reduce the liability of the farmer, trader or related business,
under the agricultural charge, created by the farmer, trader or related
business, in order of priority, appearing in the Collateral Registry. 64.

ess,
under the agricultural charge, created by the farmer, trader or related
business, in order of priority, appearing in the Collateral Registry. 64.

(1) Subject to the provisions of this Act, a person shall not
publish a list of agricultural charges or the name of any farmer,
trader or related business who have created agricultural charges. (2) A person who contravenes subsection (1) commits an
offence and is liable, on conviction, to a fine not exceeding three
hundred thousand penalty units. (3) A prosecution for an offence under this section shall not be
commenced without the consent of the Director of Public
Prosecutions. (4) Where a farmer, trader or related business mortgages
interest in land, and the farmer, trader or related business creates
an agricultural charge, the rights of the holder of the property subject
to the agricultural charge shall have priority over the rights of the
mortgagee, whether in possession or not, and irrespective of the
dates of the mortgage and the agricultural charge. 65.

riority over the rights of the
mortgagee, whether in possession or not, and irrespective of the
dates of the mortgage and the agricultural charge. 65.

(1) A farmer, trader or related business commits an offence,
if the farmer, trader or related business creates an agricultural
charge and with intent to defraud —
(a) fails to comply with the obligations imposed on the farmer,
trader or related business as to the payment to the holder
of the agricultural charge any sums received by the
farmer, trader or related business by way of proceeds
of sale, or in respect of other agricultural assets, or under
a policy of insurance or by way of compensation; or
Restriction
on
publication
of
agricultural
charges
Fraud

ct of other agricultural assets, or under
a policy of insurance or by way of compensation; or
Restriction
on
publication
of
agricultural
charges
Fraud

Agricultural Credits and Warehouse
Receipts
(b) removes or permits to be removed any property subject
to the agricultural charge. (2) A farmer, trader or related business convicted of an offence
under subsection (1) is liable, on conviction, to imprisonment for a
term not exceeding seven years. 66. (1) Despite the provisions of this Act, an agricultural charge
created solely to secure the payment of insurance premiums on
farming stock shall have priority over any other agricultural charge. (2) Where an agricultural charge is created under a floating
charge, the agricultural charge, purported to be created under a
fixed charge on the property, shall have no effect for the period the
floating charge remains in force. (3) Farming stock which is subject to an agricultural charge
shall not, for the purpose of the Bankruptcy Act, be considered as
goods in the possession, order or disposition of a farmer, trader or
related business in the farmer’s or trader’s trade or business, by
the consent and permission of the true owner, under such
circumstances that the owner is the reputed owner. (4) A property subject to an agricultural charge shall be liable
to distress for rent or rates.

uch
circumstances that the owner is the reputed owner. (4) A property subject to an agricultural charge shall be liable
to distress for rent or rates.

PART VIII
ENFORCEMENT
67. (1) The Authority shall appoint suitably qualified persons
as inspectors for the purposes of ensuring compliance with this
Act. (2) The Authority shall provide an inspector with an identification
card, in a prescribed form, which shall be prima facie evidence of
the appointment of the inspector. (3) An inspector shall in performing a function under this Act —
(a) be in possession of the identification card referred to under
subsection (2); and
(b) show the identification card to any person who requests
to see the identification card or is the subject of an
inspection under this Act. Supplementary
provisions in
respect of
agricultural
charges
Cap.82
Inspectors
250 No. 7 of 2026]

rd or is the subject of an
inspection under this Act. Supplementary
provisions in
respect of
agricultural
charges
Cap.82
Inspectors
250 No. 7 of 2026]

[No. 7 of 2026 251Agricultural Credits and Warehouse
Receipts
68. (1) The Authority may, by notice in the Gazette, on terms
and conditions that the Authority may determine, appoint a suitable
person as honorary inspector for a period not exceeding three years,
and may renew the appointment for a further period of three years. (2) The Authority may, by notice in the Gazette, revoke or
renew the appointment made under subsection (1). (3) The appointment of honorary inspector under this section
may be —
(a) general, to empower the honorary inspector to act in a
specified area in the Republic; or
(b) limited, to empower the honorary inspector to act in a
specified area in the Republic as may be specified in
the instrument of appointment. (4) Subject to the other provisions of this Act and to the terms
and conditions specified in the instrument of appointment, an
honorary inspector shall exercise the functions and perform the
duties of an inspector under this Part. 69.

ified in the instrument of appointment, an
honorary inspector shall exercise the functions and perform the
duties of an inspector under this Part. 69.

(1) An inspector may, at any reasonable time, without a
warrant, —
(a) enter on and inspect a warehouse or any land, building or
premises on which the warehouse is situated, where
the inspector has reasonable grounds to believe that an
offence has been or is likely to be committed;
(b) search any person found in a warehouse or on any land,
building or premises on which the warehouse is situated,
where the inspector has reasonable grounds to believe
that the person is in possession of a warehouse receipt,
book, record, document or article that has a bearing on
an inspection, except that a person shall only be searched
by a person of the same sex;
(c) request that information is provided about a warehouse or
any land, building or premises on which the warehouse
is situated, warehouse receipt, book, record, document
or article by —
(i) the owner of the warehouse or any land, building
or premises on which the warehouse is situated;
(ii) the person in control of the warehouse or any
land, building or premises on which the
warehouse is situated;
Honorary
inspector
Powers of
inspector

i) the person in control of the warehouse or any
land, building or premises on which the
warehouse is situated;
Honorary
inspector
Powers of
inspector

Agricultural Credits and Warehouse
Receipts
(iii) the person who has control of the warehouse
receipt, book, record, document or article; or
(iv) any other person who may have the information;
(d) examine any warehouse receipt, book, record, document
or article found in a warehouse or any land, building or
premises on which the warehouse is situated, that has a
bearing on an inspection;
(e) take extracts from, or make copies of, any warehouse
receipt, book, record, document or article found in the
warehouse or any land, building or premises on which
the warehouse is situated, that has a bearing on an
investigation;
(f) use any computer or other electronic system in a
warehouse or on any land, building or premises on which
the warehouse is situated and require the assistance of
a person in the warehouse or on any land, building or
premises on which the warehouse is situated to use that
computer or other electronic system to —
(i) search any data contained in, or available on,
the computer or other electronic system;
(ii) reproduce any record from the data; or
(iii) seize any output from the computer or other
electronic system for examination and copying;
and
(g) attach and, if necessary, remove from the warehouse or
any land, building or premises on which the warehouse
is situated for examination and safeguarding, a
warehouse receipt, book, record, document or article
that has a bearing on an inspection.

he warehouse
is situated for examination and safeguarding, a
warehouse receipt, book, record, document or article
that has a bearing on an inspection.

(2) An inspector who removes anything from a warehouse or
any land, building or premises on which the warehouse is situated
shall —
(a) issue a receipt for anything removed to the owner or the
person in control of the warehouse or any land, building
or premises on which the warehouse is situated; and
(b) return anything removed as soon as practicable after the
thing removed has served the purpose for which it was
removed. 252 No. 7 of 2026]

ed; and
(b) return anything removed as soon as practicable after the
thing removed has served the purpose for which it was
removed. 252 No. 7 of 2026]

[No. 7 of 2026 253Agricultural Credits and Warehouse
Receipts
(3) A person commits an offence if that person —
(a) delays or obstructs an inspector in the performance of
the inspector’s functions under this Act;
(b) refuses to give an inspector reasonable assistance that
the inspector may require for the purpose of exercising
the inspector’s powers;
(c) gives an inspector false or misleading information in answer
to an inquiry made by the inspector; or
(d) impersonates or falsely represents oneself as an inspector. (4) A person convicted of an offence under subsection (3) is
liable, on conviction, to a fine not exceeding two hundred thousand
penalty units or to imprisonment for a term not exceeding two years,
or to both. (5) An inspector shall furnish the Authority with a prescribed
report and any other information relating to an inspection, as the
Authority may require. 70.

inspector shall furnish the Authority with a prescribed
report and any other information relating to an inspection, as the
Authority may require. 70.

(1) The Director may, where the Director has reasonable
grounds to believe that any condition of a licence issued under this
Act has been breached, serve a compliance order, in a prescribed
manner and form, on the holder of a licence requiring the holder of
the licence to remedy the breach within the period stipulated in the
order. (2) A compliance order issued under subsection (1) may —
(a) suspend the licence with immediate effect if the Director
considers that the suspension is necessary for the
purposes of this Act; or
(b) require the holder of the licence to take specified measures
to achieve the purposes of this Act. (3) The Director may, where the holder of a licence fails to
comply with a compliance order —
(a) cancel the licence in accordance with this Act; or
(b) take such other action as the Director considers necessary. 71. (1) The Authority may order the closure of a warehouse,
if—
(a) the warehouse operator violates the requirements or
conditions of a licence;
Compliance
order
Closure of
warehouse

the closure of a warehouse,
if—
(a) the warehouse operator violates the requirements or
conditions of a licence;
Compliance
order
Closure of
warehouse

Agricultural Credits and Warehouse
Receipts
(b) the warehouse ceases to be suitable for storage of
agricultural commodities;
(c) the warehouse is not certified in accordance with this
Act;
(d) the warehouse operator is insolvent; or
(e) the warehouse operator contravenes this Act or any other
written law. (2) The Authority shall, where an inspection report referred to
under section 69(5) indicates that a warehouse operator has
breached the requirements of a licence, give the warehouse operator
written notice of the violation. (3) The warehouse operator shall, within fourteen days of
receipt of the notice referred to under subsection (2), provide the
Authority with a written plan of correction of the violation, indicating
a schedule of dates by which corrective actions shall be taken. (4) The Authority shall, within fourteen days of receipt of the
plan of correction referred to under subsection (3), approve or
reject the plan of correction. (5) The Authority shall, where the Authority approves the plan
of correction, inform the warehouse operator, in writing.

eject the plan of correction. (5) The Authority shall, where the Authority approves the plan
of correction, inform the warehouse operator, in writing.

(6) A warehouse operator shall, where the plan of correction is
approved by the Authority in accordance with subsection (5), take
action to meet the schedule contained in the plan. (7) The Authority shall, where the Authority rejects the plan of
correction, cancel the licence and order the closure of the
warehouse. (8) The Authority shall, on closure of a warehouse, dispose the
agricultural commodities stored in the warehouse at a public auction
as prescribed, and apply the proceeds of the agricultural
commodities stored in the warehouse in the following order:
(a) satisfying claims of depositors and lenders relating to the
stored agricultural commodities; and
(b) any other outstanding liabilities. 254 No. 7 of 2026]

sfying claims of depositors and lenders relating to the
stored agricultural commodities; and
(b) any other outstanding liabilities. 254 No. 7 of 2026]

[No. 7 of 2026 255Agricultural Credits and Warehouse
Receipts
PART IX
GENERAL PROVISIONS
72. (1) The Authority may mediate disputes between persons
regulated under this Act. (2) The procedures for the dispute resolution mechanism
referred to under subsection (1) shall be prescribed. 73. (1) The Authority shall keep and maintain a register of —
(a) licences issued under this Act;
(b) licences transferred under this Act;
(c) licences whose terms and conditions have been varied;
(d) warehouse operators;
(e) certified warehouses;
(f) warehouse receipts issued under this Act;
(g) agricultural charges registered under this Act;
(h) contracts of advance under this Act;
(i) honorary inspectors appointed under this Act; and
(j) any other register as may be prescribed. (3) The registers referred to under subsection (1) shall contain
information as may be prescribed. (4) The registers referred to in subsection (1), shall be kept at
the office of the Authority and shall be open for inspection by
members of the public during normal office hours on payment of a
fee that the Authority may determine.

e Authority and shall be open for inspection by
members of the public during normal office hours on payment of a
fee that the Authority may determine.

(5) The Director shall, on an application by a person, issue to
the person a certified extract from the register or a copy of a
licence issued to a holder of a licence in accordance with this Act
on payment of a prescribed fee. 74. (1) The Director shall, on the direction of the Board, cause
copies of a register including alterations of, or additions to the
register, to be printed and published in a manner and form that the
Board may direct. (2) Subject to this Act, a copy of the last published and printed
register shall be prima facie evidence in legal proceedings of what
is contained in that register and the absence of a licence from that
copy, is prima facie evidence that the licence is not issued. Dispute
resolution
Registers
Publication
of copies of
register

ce of a licence from that
copy, is prima facie evidence that the licence is not issued. Dispute
resolution
Registers
Publication
of copies of
register

Agricultural Credits and Warehouse
Receipts
75. A disclosure made to the Authority by a person who, in
good faith, reports any act or suspected act of fraud, corruption or
non-compliance with this Act, shall be a protected disclosure for
the purposes of the Public Interest Disclosure (Protection of
whistleblowers) Act. 76. (1) A person aggrieved with a decision of the Authority
may, within thirty days of receipt of the decision, appeal to the
Minister. (2) A person aggrieved with the decision of the Minister may
appeal to the High Court. 77. Where a judgment or court order is obtained against the
Authority, execution, attachments or process of any nature shall
not be issued against the Authority or against the property of the
Authority, but the Authority shall cause to be paid out of the
Authority’s funds an amount that may, by judgment or court order,
be awarded against the Authority to the person entitled to the
amount. 78.

ut of the
Authority’s funds an amount that may, by judgment or court order,
be awarded against the Authority to the person entitled to the
amount. 78.

(1) A person commits an offence if that person —
(a) fraudulently issues or aids the issuance of a warehouse
receipt;
(b) knowingly delivers an agricultural commodity in the
possession of a warehouse operator without the consent
of a holder of a warehouse receipt;
(c) knowingly deposits an agricultural commodity to which
that person has no title or which is subject to a lien or
mortgage and receives a negotiable warehouse receipt
which that person negotiates for value;
(d) alters a warehouse receipt in contravention of this Act;
(e) is found in possession of a warehouse receipt which is
altered in contravention of this Act;
(f) alters or defaces a licence, warehouse receipt, certificate
of compliance or any other document issued under this
Act;
(g) knowingly makes, or causes to be made, to the Authority
a false statement in any material particular under this
Act; or
(h) aids, abets, counsels or procures a person to commit an
offence under this Act. Disclosure
protection
Cap.102
Appeals
Immunity
from
execution of
judgment
against
Authority’s
assets
General
offences
256 No. 7 of 2026]

der this Act. Disclosure
protection
Cap.102
Appeals
Immunity
from
execution of
judgment
against
Authority’s
assets
General
offences
256 No. 7 of 2026]

[No. 7 of 2026 257Agricultural Credits and Warehouse
Receipts
(2) A person convicted of an offence under subsection (1) is
liable to a fine not exceeding five hundred thousand penalty units
or to imprisonment for a term not exceeding five years, or to both. 79. A person who commits an offence under this Act for which
no penalty has been provided is liable, on conviction, to a fine not
exceeding two hundred thousand penalty units, or to imprisonment
for a term not exceeding two years, or to both. 80. (1) The Authority may impose an administrative penalty
on a person for a failure to comply with a provision of this Act
which is not an offence. (2) An administrative penalty shall not exceed the amount
prescribed by the Minister, by statutory instrument, for each day
during which the failure continues. (3) An administrative penalty shall be paid to the Authority within
the period specified by the Authority.

ach day
during which the failure continues. (3) An administrative penalty shall be paid to the Authority within
the period specified by the Authority.

(4) If a person on whom an administrative penalty is imposed in
accordance with this section fails to pay the administrative penalty
within the time specified under subsection (3), the Authority may,
by way of civil action in a competent court, recover the amount of
the administrative penalty from that person as an amount due and
owing to the Authority. 81. Where an offence under this Act is committed by a body
corporate or unincorporate body, with the knowledge, consent or
connivance of the director, manager, shareholder or partner of the
body corporate or unincorporate body, that director, manager,
shareholder or partner commits the same offence as the body
corporate or unincorporate body and is liable, on conviction, to the
penalty specified for that offence under this Act. 82. (1) A person shall not, without the consent, in writing, given
by, or on behalf of, the Authority, publish or disclose to a person,
other than in the course of duties of that person, the contents of a
document, communication or information which relates to or which
has come to the knowledge of that person in the course of that
person’s duties under this Act.

communication or information which relates to or which
has come to the knowledge of that person in the course of that
person’s duties under this Act.

(2) A person who contravenes subsection (1) commits an
offence and is liable, on conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a term not
exceeding two years, or to both. General
penalty
Administrative
penalty
Offence by
principal
officers of
body
corporate or
unincorporate
body
Prohibition
of
publication
or disclosure
of
information
to
unauthorised
person

y
Offence by
principal
officers of
body
corporate or
unincorporate
body
Prohibition
of
publication
or disclosure
of
information
to
unauthorised
person

Agricultural Credits and Warehouse
Receipts
(3) A person who, having information which to that person’s
knowledge has been published or disclosed in contravention of
subsection (1), unlawfully publishes or communicates the
information to another person, commits an offence and is liable, on
conviction, to a fine not exceeding two hundred thousand penalty
units or to imprisonment for a term not exceeding two years, or to
both. 83. (1) The Authority may, in the exercise of the functions of
the Authority under this Act, issue guidelines that are necessary
for the better carrying out of the provisions of this Act. (2) The Authority shall publish the guidelines issued under this
Act in the Gazette. (3) The publication of the guidelines under this section shall, in
addition to the Gazette, be made in a daily newspaper of general
circulation in the Republic or any electronic media that the Authority
may determine. (4) The guidelines issued by the Authority under this Act shall
take effect on the date of publication and shall bind the persons
regulated under this Act. 84.

uidelines issued by the Authority under this Act shall
take effect on the date of publication and shall bind the persons
regulated under this Act. 84.

(1) The Minister may, by statutory instrument, make
Regulations for the better carrying out of the provisions of this Act. (2) Despite subsection (1), the Regulations made under this
section may provide for —
(a) the manner and forms of making applications under this
Act and the fees payable;
(b) minimum requirements for issuance of a licence under
this Act;
(c) the form and content of contracts for advance;
(d) the manner of sale of agricultural commodities on default;
(e) dispute resolution procedures under this Act;
(f) the manner of maintaining a register under this Act;
(g) the linking of the database of warehouse receipts, contracts
of advance and agricultural charges with the Collateral
Registry;
(h) the form of a notice to be given under this Act;
(i) procedures and limits of negotiation of a negotiable
warehouse receipt;
(j) form of a warehouse receipt;
(k) records to be kept by a warehouse operator;
Guidelines
Regulations
258 No. 7 of 2026]

gotiable
warehouse receipt;
(j) form of a warehouse receipt;
(k) records to be kept by a warehouse operator;
Guidelines
Regulations
258 No. 7 of 2026]

[No. 7 of 2026 259Agricultural Credits and Warehouse
Receipts
(l) standards or requirements for allowing a warehouse
operator to sell or dispose of agricultural commodities,
which are perishable or hazardous;
(m) the manner of keeping agricultural commodities in a
warehouse;
(n) rates of charges for storage of agricultural commodities;
(o) standards for warehouse infrastructure, equipment, tools,
pest control and storage conditions;
(p) classification of warehouses;
(q) agricultural commodities which may be commingled in a
warehouse;
(r) credit arrangements that do not require the security of a
warehouse receipt;
(s) the manner and conditions for the establishment of an
insurance pool by warehouse operators, to spread
catastrophic risks and negotiate standardised premium
rates for a warehouse; and
(t) fees payable under this Act. (3) Regulations made in accordance with this section may
prescribe offences and impose penalties being fines not exceeding
three hundred thousand penalty units or imprisonment for a period
not exceeding three year, or to both. 85. (1) The Agricultural Credits Act is repealed.

ee hundred thousand penalty units or imprisonment for a period
not exceeding three year, or to both. 85. (1) The Agricultural Credits Act is repealed.

(2) Despite subsection (1), the Second Schedule applies to the
savings and transitional provisions. (3) Despite subsection (1), a person claiming an existing right,
certificate or warehouse receipt granted or issued by the Zambia
Agricultural Commodities Exchange under the repealed Act, may,
within six months from the date of commencement of this Act,
notify the Authority of the existing right, certificate or warehouse
receipt. (4) The existing right, certificate or warehouse receipt referred
to under subsection (3), shall terminate if the person entitled to the
existing right, certificate or warehouse receipt fails to notify the
Authority in accordance with subsection (3). (5) Subject to subsections (3) and (4), an existing right, certificate
or warehouse receipt which has been brought to the attention of
the Authority under this section shall continue to be valid for a
period of one year from the date of commencement of this Act,
unless the existing right, certificate or warehouse receipt expires in
accordance with the terms of the existing right, certificate or
warehouse receipt, whichever is the earlier. Repeal of
Cap.224, and
savings and
transitional
provisions

he terms of the existing right, certificate or
warehouse receipt, whichever is the earlier. Repeal of
Cap.224, and
savings and
transitional
provisions

Agricultural Credits and Warehouse
Receipts
FIRST SCHEDULE
(Sections 3(2) and 5(5))
PART 1
ADMINISTRATION OF AUTHORITY
1. (1) The seal of the Authority shall be a device that may be
determined by the Board and shall be kept by the Director. (2) The affixing of the seal shall be authenticated by the
Chairperson or the Vice-Chairperson and the Director or any other
person authorised in that behalf by a resolution of the Board. (3) A contract or instrument which, if entered into or executed
by a person not being a body corporate, is not required to be under
seal, may be entered into or executed without seal on behalf of the
Authority by the Director or any other person authorised in that
behalf by a resolution of the Board. (4) A document purporting to be a document under the seal of
the Authority or issued on behalf of the Authority shall be received
in evidence and shall be considered to be so executed or issued,
without further proof, unless the contrary is proved. 2. (1) A member of the Board shall, subject to other provisions
of this Act, hold office for a term of three years from the date of
appointment and may be re-appointed for a further and final term
of three years.

s
of this Act, hold office for a term of three years from the date of
appointment and may be re-appointed for a further and final term
of three years.

(2) A member shall, on the expiration of the term for which the
member is appointed, continue to hold office until another member
is appointed, but in no case shall an extension of the period exceed
three months. (3) The office of member becomes vacant if the member —
(a) dies;
(b) is absent, without reasonable excuse, from three
consecutive meetings of the Board of which the member
has had notice, without the prior approval of the Board;
(c) is convicted of an offence under this Act or any other
written law and sentenced to imprisonment for a term
exceeding six months without the option of a fine;
(d) is legally disqualified from performing the functions of a
member;
Seal of
Authority
Tenure and
vacancy of
office of
member
260 No. 7 of 2026]

ne;
(d) is legally disqualified from performing the functions of a
member;
Seal of
Authority
Tenure and
vacancy of
office of
member
260 No. 7 of 2026]

[No. 7 of 2026 261Agricultural Credits and Warehouse
Receipts
(e) is adjudged bankrupt under any written law;
(f) resigns, by giving one month’s notice in writing, to the
Minister; or
(g) ceases to be an employee or a member of the ministry,
institution or organisation that nominated the member. (4) The Minister shall, where the office of a member becomes
vacant before the expiry of the term of office, appoint another
member in place of that member, but that member shall hold office
as a member only for the unexpired part of the term of the Board. 3. (1) Subject to the other provisions of this Act, the Board
may regulate its own procedure. (2) The Board shall meet for the transaction of business at least
once every three months at a place and time that the Board may
determine. (3) The Chairperson shall, on giving notice of not less than
fourteen days, call for a meeting of the Board, or where one third
or more of the members so request, in writing, except that if the
urgency of a particular matter does not permit the giving of a notice,
a special meeting may be called on giving a shorter notice. (4) Five members shall form a quorum at a meeting of the Board.

it the giving of a notice,
a special meeting may be called on giving a shorter notice. (4) Five members shall form a quorum at a meeting of the Board.

(5) There shall preside at any meeting of the Board —
(a) the Chairperson;
(b) in the absence of the Chairperson, the Vice-Chairperson;
or
(c) in the absence of the Chairperson and the Vice- Chairperson,
a member as the members present may elect for the
purpose of that meeting. (6) A decision of the Board on any question shall be by a majority
of the members present and voting at the meeting and, in the event
of an equality of votes, the person presiding at the meeting shall
have a casting vote in addition to the deliberative vote. (7) A member may, where the member is for any reason unable
to attend a meeting of the Board, nominate another person, in writing,
from the same ministry, institution or organisation to attend a meeting
of the Board in that member’s stead and that person shall be
deemed to be a member for the purpose of that meeting. (8) The Board may invite any person whose presence is, in its
opinion, desirable to attend and to participate in the deliberations of
a meeting of the Board but that person shall have no vote. Proceedings
of Board

pinion, desirable to attend and to participate in the deliberations of
a meeting of the Board but that person shall have no vote. Proceedings
of Board

Agricultural Credits and Warehouse
Receipts
(9) The validity of any proceedings, act or decision of the Board
shall not be affected by any vacancy in the membership of the
Board or by any defect in the appointment of any member or by
reason that any person not entitled so to do took part in the
proceedings. (10) The Board shall cause minutes to be kept of the proceedings
of every meeting of the Board and of every meeting of any
committee of the Board. 4. (1) The Board may, for the purpose of performing its functions
under this Act, constitute a committee and delegate any of its
functions to the committee as the Board considers necessary. (2) The Board may appoint as members of a committee, persons
who are or are not members of the Board, except that at least one
member of the Board shall be a member of a committee. (3) A member of a committee shall hold office for a period that
the Board may determine. (4) Subject to any specific or general directions of the Board, a
committee may regulate its own procedure. 5. A member of the Board or any committee of the Board shall
be paid allowances that the Emoluments Commission may, on the
recommendation of the Minister, determine. 6.

Board or any committee of the Board shall
be paid allowances that the Emoluments Commission may, on the
recommendation of the Minister, determine. 6.

(1) A person who is present at a meeting of the Board or a
committee of the Board at which any matter is the subject of
consideration and in which matter that person or that person’s relative
or associate is directly or indirectly interested in a private capacity,
shall, as soon as is practicable after the commencement of the
meeting, declare that interest and shall not, unless the Board or the
committee otherwise directs, take part in any consideration or
discussion of, or vote on, any question relating to that matter. (2) A disclosure of interest made under subparagraph (1) shall
be recorded in the minutes of the meeting at which the disclosure
is made. 7. An action or other proceedings shall not lie or be instituted
against a member of the Board or a committee of the Board or a
member of staff of the Authority for, or in respect of, an act or
thing done or omitted to be done in good faith in the exercise or
performance of any of the powers, functions or duties conferred
under this Act. Committees
of Board
Allowances
Disclosure of
interest
Immunity of
members
262 No. 7 of 2026]

the powers, functions or duties conferred
under this Act. Committees
of Board
Allowances
Disclosure of
interest
Immunity of
members
262 No. 7 of 2026]

[No. 7 of 2026 263
Agricultural Credits and Warehouse
Receipts
PART II
FINANCIAL PROVISIONS
8. (1) The funds of the Authority consist of monies that may—
(a) be appropriated to the Authority by Parliament;
(b) be paid to the Authority by way of fees, grants or donations;
and
(c) vest in, or accrue to, the Authority. (2) Subject to the Public Finance Management Act, the Authority
may, with the approval of the Minister, accept monies by way of
grants or donations from any source within or outside the Republic. (3) The loans for the Authority shall be raised in accordance
with the Public Debt Management Act, 2022.

om any source within or outside the Republic. (3) The loans for the Authority shall be raised in accordance
with the Public Debt Management Act, 2022.

(4) There shall be paid from the funds of the Authority —
(a) the salaries, allowances, loans, gratuities and pensions of
the staff of the Authority and other payments for the
recruitment and retention of staff;
(b) reasonable traveling expenses and other allowances for
members of the Board or members of a committee of
the Board when engaged in the business of the Authority
at rates that the Emoluments Commission may, on the
recommendation of the Minister, determine; and
(c) any other expenses incurred by the Authority in the
performance of the Authority’s functions under this Act. (5) Subject to the Public Finance Management Act, the Board
may, with the approval of the Minister, invest in a manner that the
Board considers necessary any of the Authority’s funds that the
Authority does not immediately require for the performance of the
Authority’s functions. 9. The financial year of the Authority shall be a period of twelve
months ending on 31st December in each year. 10. (1) The Board shall cause to be kept proper books of
accounts and other records relating to the Authority’s accounts.

31st December in each year. 10. (1) The Board shall cause to be kept proper books of
accounts and other records relating to the Authority’s accounts.

(2) The accounts of the Authority shall be audited annually by
the Audito-General or an auditor appointed by the Auditor-General. (3) The fees for the Auditor-General or an auditor appointed
by the Auditor-General shall be paid by the Authority. Funds of
Authority
Cap.347
Act No. 15
of 2022
Cap.347
Financial
year
Accounts
and audit

Agricultural Credits and Warehouse
Receipts
11. (1) The Board shall, as soon as practicable, but not later
than ninety days after the end of the financial year, submit to the
Minister a report concerning the activities of the Authority during
the financial year.
(2) The report referred to in subparagraph (1) shall include
information on the financial affairs of the Authority and there shall
be appended to the report —
(a) an audited statement of financial position;
(b) an audited statement of comprehensive income and
expenditure; and
(c) any other information that the Minister may require.
(3) The Minister shall, not later than seven days after the first
sitting of the National Assembly next after receipt of the report
referred to in subparagraph (1), lay the report before the National
Assembly.
Annual
report
264 No. 7 of 2026]

sembly next after receipt of the report
referred to in subparagraph (1), lay the report before the National
Assembly.
Annual
report
264 No. 7 of 2026]

[No. 7 of 2026 265
Agricultural Credits and Warehouse
Receipts
SECOND SCHEDULE
(Section 85(2))
SAVINGS AND TRANSITIONAL PROVISIONS
1. In this Schedule “former Authority” means the Warehouse
Licensing Authority established under the repealed Act. 2. A person who immediately before the commencement of
this Act held office as a member of the Board of the former Authority
shall continue to hold office as a member of the Board for a period
of three months after which the Minister shall appoint the members
of the Board in accordance with this Act. 3. (1) For the avoidance of doubt, a person who, before the
commencement of this Act, was an officer or employee of the
former Authority, shall continue to be an officer or employee of the
Authority, as if appointed or employed under this Act. (2) The service of the persons referred to, in subparagraph (1)
shall be treated as continuous service. (3) Nothing in this Act affects the rights and liabilities of any
person employed or appointed by the former Authority before the
commencement of this Act. 4.

ing in this Act affects the rights and liabilities of any
person employed or appointed by the former Authority before the
commencement of this Act. 4.

(1) On or after the commencement of this Act, there shall
be transferred to, vest in and subsist against the Authority by virtue
of this Act and without further assurance, all assets, rights and
obligations which immediately before the commencement of this
Act were the assets, rights, liabilities and obligations of the former
Authority. (2) Subject to subparagraph (1), every deed, bond and
agreement, other than an agreement for personnel service, to which
the former Authority was a party immediately before the
commencement of this Act whether or not of a nature that rights,
liabilities and obligations could be assigned, shall, unless its subject
matter or terms make it impossible that it should have effect as
modified, as provided under this paragraph, have effect as if —
(a) the Authority had been party to it;
(b) for reference to the former Authority there was substituted,
with respect to anything falling to be done on or after
the commencement of this Act, a reference to the
Authority; or
Interpretation
Member of
Board of
former
Authority
Staff of
Authority
Transfer of
assets and
liabilities

of this Act, a reference to the
Authority; or
Interpretation
Member of
Board of
former
Authority
Staff of
Authority
Transfer of
assets and
liabilities

Agricultural Credits and Warehouse
Receipts
(c) for any reference to any officer of the former Authority,
not being a party to it and beneficially interested, there
were substituted, as respects anything falling to be done
on or after the commencement of this Act, a reference
to that officer of the Authority, that it shall designate. (3) Where under this Act, any assets, rights, liabilities and
obligations of the former Authority are deemed to be transferred to
the Authority in respect of which transfer a written law provided
for registration, the Authority shall make an application in writing
to the appropriate registration authority for registration of the
transfer. (4) The registration authority, referred to in subparagraph (3),
shall make entries in the appropriate register that shall give effect
to the transfer and, where applicable, issue to the transferee
concerned a certificate of title in respect of the property or make
necessary amendments to the register and shall endorse the deeds
relating to the title, right or obligation concerned and no registration
fees or other duties shall be payable in respect of the transaction. 5.

deeds
relating to the title, right or obligation concerned and no registration
fees or other duties shall be payable in respect of the transaction. 5.

(1) Any legal proceedings or application of the former
Authority pending immediately before the commencement of this
Act by or against the former Authority may be continued by or
against the Authority. (2) After the commencement of this Act, proceedings in respect
of any right, liability or obligation which was vested in, held, enjoyed,
incurred or suffered by the former Authority, may be instituted by,
or against, the Authority. Legal
proceedings
266 No. 7 of 2026]