Farm Debt Mediation Act 1994 (NSW)

Farm Debt Mediation Act 1994 No 91

An Act to make provision for mediation concerning farm debts, and for other purposes.

Part 1 Preliminary

1 Name of Act This Act may be cited as the Farm Debt Mediation Act 1994.

2 Commencement This Act commences 2 months after the date of assent, except in so far as commenced sooner by proclamation.

3 Object The object of this Act is to provide for the efficient and equitable resolution of matters involving farm debts. Mediation is required before a creditor can take possession of property or other enforcement action under a farm mortgage.

4 Definitions (1) In this Act: approved form means the form approved by the Authority. Authority means the New South Wales Rural Assistance Authority constituted by the Rural Assistance Act 1989. business day means a day that is not a Saturday, a Sunday or a public holiday throughout New South Wales. creditor means a person to whom a farm debt is for the time being owed by a farmer. default, in relation to a farm mortgage, means failure to perform an obligation that, under the terms of the mortgage, is a ground for enforcement action.

Note— Examples of default on the part of a farmer include failure to pay the principal, interest or other money the payment of which is secured by a farm mortgage; failure to keep the property subject to the farm mortgage insured; and failure to submit financial statements required by the creditor. draft mediation agreement means a draft agreement prepared under section 18J. enforcement action, in relation to a farm mortgage, means taking possession of property under the mortgage or any other action to enforce the mortgage, including the giving of any statutory enforcement notice, or the continuation of any action to that end already commenced, but does not include: (a) the completion of the sale of property held under the mortgage in respect of which contracts were exchanged before the commencement of this Act, or (b) the enforcement of a judgment that was obtained before the commencement of this Act. exemption certificate—see section 13. farm means land on which a farmer engages in a farming operation. farm debt means a debt incurred by a farmer for the purposes of the conduct of a farming operation that is secured wholly or partly by a farm mortgage. farm machinery means any of the following things that are commonly used for the purposes of a farming operation: (a) a vehicle, machine or other implement, (b) any other thing of a class prescribed by the regulations. farm mortgage includes any interest in, or power over, any farm property securing obligations of the farmer whether as a debtor or guarantor, including any interest in, or power arising from, a hire purchase agreement relating to farm machinery, but does not include: (a) any stock mortgage or any crop or wool lien, or (b) the interest of the lessor of any farm machinery that is leased. farming operation—see section 4AB. farm property means: (a) a farm or part of a farm, or (b) farm machinery used by a farmer in connection with a farming operation, or (c) an access licence (within the meaning of the Water Management Act 2000) held by a farmer in connection with a farming operation. farmer means a person (whether an individual person or a corporation) who is solely or principally engaged in a farming operation and includes a person who owns land cultivated under a share-farming agreement and the personal representatives of a deceased farmer. function includes a power, authority or duty. hire purchase agreement has the same meaning as it has in the Duties Act 1997. mediation—see section 4AA. mediation agreement means an agreement entered into under section 18K. mediation request—see section 18B. mediator means a person accredited as a mediator under section 16. notice inviting mediation—see section 18A. prohibition certificate—see section 9. statutory enforcement notice means: (a) a notice under section 57 (2) (b) of the Real Property Act 1900, or (b) a notice under section 111 (2) (b) of the Conveyancing Act 1919, or (b1) a notice under section 71X (1) (b) of the Water Management Act 2000, or (c) a notice, given under any Act or statutory instrument, that is prescribed by the regulations as being within the scope of this definition. (1A) A reference in this Act to satisfactory mediation is a reference to: (a) a mediation that has achieved a resolution of a matter involving a farm debt, or (b) a mediation that has proceeded as far as it reasonably can in an attempt to achieve a resolution of a matter involving a farm debt but has nevertheless failed to resolve the matter, or (c) a mediation specified or of a class described in regulations made for the purposes of this subsection to be a satisfactory mediation. (2) (Repealed)