New South Wales Consolidated Acts

FARM DEBT MEDIATION ACT 1994 - SECT 11A

11A Cooling off period for Heads of Agreement

(1) There is to be a cooling off period for any Heads of Agreement. The cooling off period may be extended by agreement between the farmer and the creditor.

(2) The cooling off period commences when the Heads of Agreement are entered into and ends at 5 pm on the 14th day after the day on which the Heads of Agreement are entered into, or at such later time on that or another day, as may be agreed by the farmer and the creditor.

(3) A statement in the form approved by the Authority, relating to the cooling off period, is required to be included in every Heads of Agreement.

(4) If Heads of Agreement do not contain a statement required under subsection (3), the cooling off period is extended until such time as a statement, in the form approved by the Authority, relating to the cooling off period, is given to the farmer by the creditor for the purposes of this subsection. The cooling off period, as so extended, ends at 5 pm on the 14th day after the statement is given.

(5) The Authority may not issue a certificate under section 11 to a creditor on the ground that satisfactory mediation in respect of a farm debt has taken place if:

(a) Heads of Agreement are in force in relation to the farm debt, and

(b) the cooling off period has not expired.