Revised Laws of Saint Lucia (2021)

4.   Effect of fixed charge

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   (1)   A fixed charge shall confer on the holder the following rights—

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      (a)     a right, upon the happening of any event secured in the charge as being an event authorising the seizure of property subject to the charge, to take possession of any property so subject;

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      (b)     where possession of any property has been taken, a right, after an interval of 30 days or such shorter period as may be specified by the charge, to sell the property in the prescribed manner.

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   (2)   Where a holder exercises the power of sale under subsection (1) (b), the holder shall apply the proceeds of sale in or towards the discharge of the moneys and liabilities secured by the fixed charge, and the costs of seizure and sale, and to pay the surplus, if any, of the proceeds to the farmer, trader or related business.

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   (3)   Where the proceeds of sale under subsection (1), discharges only part of the money and liabilities secured by the fixed charge and the cost of seizure and sale, the farmer, trader or related business remains liable for the remainder.

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   (4)   A fixed charge shall impose on the farmer, trader or related business, the following obligations—

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      (a)     an obligation whenever the farmer, trader or related business sells any of the property, or receives any money in respect of any asset comprised in the charge, immediately to pay to the holder 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 otherwise allows, and any sum so paid shall be applied, except so far as otherwise agreed by the holder, in or towards the discharge of moneys and liabilities secured by the charge;

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      (b)     an obligation, in the event of the farmer, trader or related business receiving any money under any policy of insurance on any of the property comprised in the charge, immediately to pay the amount of the sum so received to the holder, except to such extent as the charge otherwise provides or the holder otherwise allows, and any sums so paid shall be applied, except so far as is otherwise agreed by the holder, in or towards the discharge of moneys and liabilities secured by the charge.

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   (5)   Where any money is due to a farmer, trader or related business, as the case may be, under any policy of insurance on any of the property comprised in a fixed charge, the insurer may, despite anything contained in the insurance policy, pay such money to the holder of the charge to the extent of the said charge, and any such payment shall be a valid discharge of the liability of the insurer to the farmer, trader or related business, as the case may be, to the extent of the amount so paid, and subsection (4)(b) shall apply to the amount so paid as if it had been paid to the holder by the farmer, trader or related business, as the case may be.

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   (6)   Subject to compliance with the obligations imposed by subsection (4), a fixed charge shall not prevent the farmer, related business or trader from selling any of the property subject to the charge.

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   (7)   Where the proceeds of a sale made under subsection (2), are paid to any person other than a person contemplated by or under that subsection, the holder shall have a right to recover the proceeds from such person.