(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.
(2) Despite subsection (1), the charge shall become a fixed charge on the property upon—
(a) a receiving order in bankruptcy being made against the farmer, trader or related business;
(b) the death of the farmer or trader;
(c) the dissolution of partnership in the case where the property charged is partnership property; or
(d) notice in writing to that effect being given by the holder on the happening of any event which, by virtue of the charge, confers upon the holder the right to give such notice.
(3) The farmer, trader or related business, while the agricultural charge remains a floating charge shall be subject to the like obligations as in the case of a fixed charge to pay over to the holder the amount received by him or her by way of proceeds of sale, in respect of other agricultural assets or additional assets under policies of insurance, or by way of compensation.
(4) Despite subsection (3), it is not necessary for a farmer, trader or related business to comply with such obligations if and so far as the amount so received is expended in the purchase of farming stock which, on purchase, becomes subject to the charge.