(1)  Subject to this section, the Commissioner is to determine an application for an exemption certificate made under section 15  –

(a) by granting the application and issuing an exemption certificate, in an approved form, to the applicant; or

(b) by refusing the application.

(2)  For the purposes of subsection (1) , the Commissioner must grant the application and issue an exemption certificate if –

(a) the farmer is in default under the farm mortgage; and

(b) no prohibition certificate is in force in relation to the farm mortgage; and

(c) the Commissioner is satisfied that there is at least one additional ground for granting the application that is referred to in subsection (3) .

(3)  For the purposes of subsection (2)(c) , each of the following is an additional ground for granting the application for an exemption certificate:

(a) the farmer has, when in default, given a mediation request to the Creditor and satisfactory mediation has taken place following the request;

(b) the Creditor has given the farmer a notice inviting mediation and has attempted to mediate in good faith throughout the period of 3 months (or such longer period as has been agreed by the Creditor for the purposes of this section by notice in writing given to the farmer) commencing on the day on which the notice was given;

(c) the farmer has failed to respond to a notice inviting mediation within the period required by Part 5 (or within such longer period as the Commissioner considers is reasonable in the circumstances);

(d) the farmer has failed to take part in mediation in good faith or has unreasonably delayed entering into or proceeding with mediation in respect of the farm debt;

(e) the farmer has indicated in writing to the Commissioner or to the Creditor that the farmer does not wish to enter into or proceed with mediation in respect of the farm debt.

(4)  Despite this section, the Commissioner may refuse to grant an application for an exemption certificate made under section 15 if satisfied that –

(a) in the circumstances, the farmer is justified in declining to mediate; and

(b) the farmer intends to mediate within a period that is reasonable in the circumstances.

(5)  For the avoidance of doubt, the Commissioner may refuse to grant an application for an exemption certificate made under section 15 if a mediator cannot commence the mediation –

(a) within a period of 3 months from the date on which the application is made under section 15 ; or

(b) within any other period that the Commissioner considers appropriate in the circumstances.

(6)  For the avoidance of doubt, a failure by a Creditor to agree to reduce or forgive any debt does not, of itself, demonstrate a lack of good faith on the part of a Creditor in attempting to mediate.