Revised Laws of Saint Lucia (2021)

PART 3
VALIDITY OF CONTRACTS FOR ADVANCES ON INPUTS AND OTHER ITEMS

11.   Validity of contracts

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   (1)   A contract for the advancement to a farmer of inputs or other items required for agricultural production shall state—

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      (a)     the value of the inputs or other items at the time the inputs or items are advanced to the farmer;

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      (b)     the interest rate to be charged, expressed at an annual percentage rate; and

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      (c)     any charges, fees or penalties the farmer will be required to pay if the farmer does not pay or deliver the produce at the price agreed on, as stipulated in the contract, unless section 6(1) applies.

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   (2)   Any trader or related business advancing any inputs or other items required for agricultural production shall furnish the farmer, at the time each input or item is advanced, a written statement showing the value and cost to the farmer of the input or item, the interest rate, and any charges, fees or penalties, as provided under this section.

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   (3)   Direct or indirect compounding of interest shall not be allowed as part of the contract specified under subsection (1).

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   (4)   Despite any other law, any person who advances inputs or other items required for agricultural production to a farmer and fails to fully disclose to the farmer the cost of the input or item, the interest to be paid by the farmer, and any charges, fees or penalties, as required under this section is ineligible to register, under this Act, a charge created by the farmer on the basis of an agreement or contract, and such charge is void.