FARM DEBT MEDIATION ACT 1994 - SECT 10 Grant or refusal of prohibition certificate

FARM DEBT MEDIATION ACT 1994 - SECT 10

10 Grant or refusal of prohibition certificate

(1) The Authority may, on application, grant or refuse a prohibition certificate.

(2) The Authority must grant a prohibition certificate if:

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

(b) the farmer has given the creditor a mediation request in respect of the farm debt concerned, and

(c) no exemption certificate is in force in relation to the farm mortgage, and

(d) the Authority is satisfied that there is at least one additional ground for granting the prohibition certificate.

(3) Each of the following is an
"additional ground" for granting a prohibition certificate:

(a) the farmer has attempted to mediate in good faith throughout the period of 3 months commencing on the day on which the mediation request was given, but no satisfactory mediation has taken place,

(b) the creditor has failed to respond to a mediation request in respect of the farm debt within the period required by Part 2 (or within such longer period as the Authority considers is reasonable in the circumstances),

(c) the creditor has indicated in writing to the Authority or the farmer that the creditor does not wish to enter into or proceed with mediation,

(d) the creditor has, in any other manner, declined to mediate (whether under this Act or under a corresponding law of another State or Territory).

(4) However, the Authority may refuse to grant a prohibition certificate where the creditor has failed to respond to a mediation request if the Authority is satisfied that:

(a) the creditor's failure to respond is justified in the circumstances, and

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