(1) An agricultural charge may be fixed or floating, or both.
(2) An agricultural charge may be in the form and made upon such conditions as the parties to the charge may agree, and any surety may be made a party to the charge.
(3) A farmer may individually or in association, create in favour 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,
and such security may also cover interest and commission charges on it.
(4) Despite any provision of this Act, a related business or a trader may create in favour of a farmer, any agricultural charge on all or any portion of the agricultural commodities that the related business or trader purchases or intends to purchase from a farmer as security for the purchase value and the security may include interest and commission charges thereon.
(5) The property affected by a fixed charge shall be such property forming part of the farming stock, additional assets, or other agricultural assets, and belonging to the farmer, trader or related business at the date of the charge and as may be specified in the charge.
(6) The principal sum secured by an agricultural charge may be—
(a) a specific amount advanced in one sum or in instalments; or
(b) a fluctuating or revolving amount advanced on a current account not exceeding at any one time such amount, if any, as may be specified in the charge.
(7) Despite subsection (6), any 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 extension of the indebtedness and although the lender may have had notice of the subsequent interest.