New South Wales Consolidated Acts

FARM DEBT MEDIATION ACT 1994 - SECT 9B

9B Exemption certificates

(1) A farmer who is in default and who has requested a creditor to mediate in respect of the farm debt involved (whether or not the farmer has been given a notice under section 8) may apply to the Authority for a certificate of exemption from enforcement action ( "exemption certificate") if the creditor does not mediate.

(2) The Authority must issue an exemption certificate if:

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

(b) the farmer has requested the creditor to mediate in respect of the farm debt involved, and

(c) no certificate under section 11 is in force in relation to the farm mortgage, and

(d) the Authority is satisfied that:

(i) the creditor does not wish to enter into or proceed with mediation, or

(ii) the creditor has failed to respond in writing to the request to mediate, within 21 days after the receipt of the request, or

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

(3) While an exemption certificate is in force in relation to a farm mortgage:

(a) no certificate can be issued by the Authority under section 11, and

(b) no enforcement action can be taken by the creditor.

(4) An exemption certificate ceases to be in force on the earlier of the following:

(a) 6 months after the day on which the creditor declined to mediate,

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