Victorian Numbered Acts

FARM DEBT MEDIATION ACT 2011 (NO. 42 OF 2011) - SECT 14

    (1)     On the application of a farmer, the Small Business Commissioner must issue a prohibition certificate if—

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

        (b)     the farmer has, under section 9(1) or (2), requested mediation in respect of the farm debt with the creditor; and

        (c)     an exemption certificate is not in force in respect of the farm mortgage; and

        (d)     the Small Business Commissioner is satisfied that—

              (i)     having regard to section 19(2), the creditor refuses to mediate; or

              (ii)     the creditor does not want to continue to mediate; or

              (iii)     the creditor, having received a request from a farmer under section 9(1) or (2), has failed to respond within 21 days after that request; or

              (iv)     at least 3 months have elapsed after a request was made by the farmer under section 9(1) or (2) and throughout that period the farmer has attempted to mediate in good faith but no mediation or no satisfactory mediation has taken place between the farmer and the creditor.

    (2)     A creditor must not commence enforcement action against a farmer if a prohibition certificate is in force in respect of the farm mortgage held by that creditor.

    (3)     A prohibition certificate ceases to be in force on the earlier of—

        (a)     the expiry of 6 months after the date of issue of the prohibition certificate; or

        (b)     the day on which the farmer and creditor enter into mediation in respect of the farm debt.