Section 39

When any loan has been made for the cultivation of crops and the expenses of reaping and making merchantable such crops, all the crops and produce reaped or gathered from the land shall, until such advance has been repaid, be dealt with and disposed of as the

Corporation may direct, and, until so disposed of, shall be held by the person obtaining the

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loan in trust for the Corporation. Any person to whom a loan has been made, who disposes of any such crops or produce except in the manner directed by the Corporation or by this

Enactment or permitted by the express provisions of any document executed by or with the authority of the Corporation affecting such loan, shall be guilty of an offence and shall, on conviction thereof, be liable to a fine of one thousand ringgit, and imprisonment for six months.

It shall be lawful for the Corporation to enter into agreement, with or without security and on such condition as it thinks fit to impose, with any person dealing in or processing agricultural produce of any kind, for the disposal of produce belonging to any person to whom loans shall have been made under the provisions of this Enactment in respect of such produce. The Agreement shall provide for the sale without undue delays of such produce and the immediate payment to the Corporation of the proceeds of such sale or such part thereof as the Corporation shall think fit to the credit of the person to whom the loan was made.

Any person entrusted with the disposal of the produce of any person obtaining a loan under the provisions of this Enactment who shall fail to pay the proceed of sale to the

Corporation as provided in subsection (2) shall be guilty of an offence and shall, on conviction thereof, be liable to a fine of five hundred ringgit and imprisonment for six months.

Mortgages and charges to be approved by Corporation.