Section 11: Safeguard in respect of certain loans.

Where a loan or any portion thereof, in respect of which a guarantee is to be given under this Act, is to be applied to the purchase of livestock, machinery or farming equipment, the loan or portion thereof, as the case may be, shall not be paid to the borrower but shall instead be paid by the bank directly to the supplier who shall furnish the bank with a copy of the delivery note or other document in evidence of the delivery of the livestock, machinery or farming equipment to the borrower.