{"id":"qld:act-1996-039","name":"Credit (Rural Finance) Act 1996","slug":"credit-rural-finance-act-1996","collection":"act","jurisdiction":"qld","status":"in_force","isInForce":true,"actNumber":"39 of 1996","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":104687,"registerId":"qld-act-1996-039-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"pt.1","sectionType":"part","heading":"Preliminary","content":"# Preliminary","sortOrder":0},{"sectionNumber":"sec.1","sectionType":"section","heading":"Short title","content":"### sec.1 Short title\n\nThis Act may be cited as the Credit (Rural Finance) Act 1996 .","sortOrder":1},{"sectionNumber":"sec.2","sectionType":"section","heading":"Commencement","content":"### sec.2 Commencement\n\nThis Act commences when the Consumer Credit (Queensland) Act 1994 , section 4 commences.","sortOrder":2},{"sectionNumber":"sec.3","sectionType":"section","heading":"Definitions and dictionary","content":"### sec.3 Definitions and dictionary\n\nThe dictionary in the schedule defines particular words used in this Act.","sortOrder":3},{"sectionNumber":"sec.4","sectionType":"section","heading":"Purpose of Act","content":"### sec.4 Purpose of Act\n\nThe purpose of this Act is to provide some protection to farmers against the enforcement of mortgages over equipment they use to carry out their farming businesses.\nThe purpose is to be achieved mainly by providing for—\na mortgagee to give at least 30 days notice before exercising a right to take possession of, or sell, farm equipment; and\nthe court to make an order allowing a farmer to keep possession of equipment, for up to 1 year, if the equipment is used to carry out the farmer’s farming business and the court considers, among other things, that the farmer has a reasonable prospect of being able to remedy any default.\n(sec.4-ssec.1) The purpose of this Act is to provide some protection to farmers against the enforcement of mortgages over equipment they use to carry out their farming businesses.\n(sec.4-ssec.2) The purpose is to be achieved mainly by providing for— a mortgagee to give at least 30 days notice before exercising a right to take possession of, or sell, farm equipment; and the court to make an order allowing a farmer to keep possession of equipment, for up to 1 year, if the equipment is used to carry out the farmer’s farming business and the court considers, among other things, that the farmer has a reasonable prospect of being able to remedy any default.\n- (a) a mortgagee to give at least 30 days notice before exercising a right to take possession of, or sell, farm equipment; and\n- (b) the court to make an order allowing a farmer to keep possession of equipment, for up to 1 year, if the equipment is used to carry out the farmer’s farming business and the court considers, among other things, that the farmer has a reasonable prospect of being able to remedy any default.","sortOrder":4},{"sectionNumber":"sec.5","sectionType":"section","heading":"Application of Act","content":"### sec.5 Application of Act\n\nThis Act applies to all persons including the State and, so far as the legislative power of the State permits, the Commonwealth and the other States.\nHowever, this Act applies in relation to a mortgage only if the mortgagor (or, if there is more than 1, each mortgagor) is an individual.\nAlso—\npart 2 does not apply in relation to a mortgage to which the National Credit Code applies; and\nthis Act does not apply in relation to a mortgage to which the the repealed Credit Act 1987 as continued applies.\nThe provisions of the Credit Act 1987 are continued by the Credit (Commonwealth Powers) Act 2010 , section 15 .\ns 5 amd 2010 No. 16 s 35 sch\n(sec.5-ssec.1) This Act applies to all persons including the State and, so far as the legislative power of the State permits, the Commonwealth and the other States.\n(sec.5-ssec.2) However, this Act applies in relation to a mortgage only if the mortgagor (or, if there is more than 1, each mortgagor) is an individual.\n(sec.5-ssec.3) Also— part 2 does not apply in relation to a mortgage to which the National Credit Code applies; and this Act does not apply in relation to a mortgage to which the the repealed Credit Act 1987 as continued applies. The provisions of the Credit Act 1987 are continued by the Credit (Commonwealth Powers) Act 2010 , section 15 .\n- (a) part 2 does not apply in relation to a mortgage to which the National Credit Code applies; and\n- (b) this Act does not apply in relation to a mortgage to which the the repealed Credit Act 1987 as continued applies. Note— The provisions of the Credit Act 1987 are continued by the Credit (Commonwealth Powers) Act 2010 , section 15 .","sortOrder":5},{"sectionNumber":"sec.6","sectionType":"section","heading":"Courts with jurisdiction under this Act","content":"### sec.6 Courts with jurisdiction under this Act\n\nThe jurisdiction expressed to be exercisable by the court under this Act in relation to a mortgage is exercisable by—\nif proceedings in relation to the mortgage have been started in, or are before, a court—that court; or\notherwise—the court whose monetary jurisdiction is not exceeded by the amount payable under the mortgage when the proceeding concerned is started in the court.\nIn this section—\ncourt includes QCAT.\ns 6 amd 2009 No. 24 s 422\n(sec.6-ssec.1) The jurisdiction expressed to be exercisable by the court under this Act in relation to a mortgage is exercisable by— if proceedings in relation to the mortgage have been started in, or are before, a court—that court; or otherwise—the court whose monetary jurisdiction is not exceeded by the amount payable under the mortgage when the proceeding concerned is started in the court.\n(sec.6-ssec.2) In this section— court includes QCAT.\n- (a) if proceedings in relation to the mortgage have been started in, or are before, a court—that court; or\n- (b) otherwise—the court whose monetary jurisdiction is not exceeded by the amount payable under the mortgage when the proceeding concerned is started in the court.","sortOrder":6},{"sectionNumber":"pt.2","sectionType":"part","heading":"Default notice","content":"# Default notice","sortOrder":7},{"sectionNumber":"sec.7","sectionType":"section","heading":"Mortgagee must give default notice","content":"### sec.7 Mortgagee must give default notice\n\nThis section applies if a mortgagee has a right under a mortgage over farm equipment to take possession of, or sell, the equipment.\nThe mortgagee must not exercise, or purport to exercise, the right unless—\nthe mortgagor has defaulted; and\nthe mortgagee has given the mortgagor, and guarantor (if any), written notice (a default notice ) under this part for the default; and\nthe default has not been remedied by the due day stated in the default notice.\nMaximum penalty—500 penalty units.\ns 7 amd 2002 No. 52 s 8\n(sec.7-ssec.1) This section applies if a mortgagee has a right under a mortgage over farm equipment to take possession of, or sell, the equipment.\n(sec.7-ssec.2) The mortgagee must not exercise, or purport to exercise, the right unless— the mortgagor has defaulted; and the mortgagee has given the mortgagor, and guarantor (if any), written notice (a default notice ) under this part for the default; and the default has not been remedied by the due day stated in the default notice. Maximum penalty—500 penalty units.\n- (a) the mortgagor has defaulted; and\n- (b) the mortgagee has given the mortgagor, and guarantor (if any), written notice (a default notice ) under this part for the default; and\n- (c) the default has not been remedied by the due day stated in the default notice.","sortOrder":8},{"sectionNumber":"sec.8","sectionType":"section","heading":"Requirements for default notice","content":"### sec.8 Requirements for default notice\n\nUnless the mortgagee reasonably believes the default is incapable of being remedied, the default notice must state—\nhow the mortgagor has defaulted; and\nwhat the mortgagor must do to remedy the default, including, for example, any amount that must be paid to the mortgagee; and\nthat the mortgagee intends to take possession of, or sell, the equipment on or after a stated day (the due day ) unless the default is remedied; and\nthat, if the mortgagor makes another default of the same type before the due day that is not remedied by the due day, the mortgagee may take possession of, or sell, the equipment without giving another default notice under this part; and\nanything else prescribed under a regulation.\nIf the mortgagee reasonably believes the default is incapable of being remedied, the default notice must state—\nhow the mortgagor has defaulted; and\nthat the mortgagee believes the default is incapable of being remedied; and\nthat the mortgagee intends to take possession of, or sell, the equipment on or after a stated day (the due day ); and\nanything else prescribed under a regulation.\nThe due day must be at least 30 days after the day the notice is given to the mortgagor.\ns 8 amd 2002 No. 52 s 9\n(sec.8-ssec.1) Unless the mortgagee reasonably believes the default is incapable of being remedied, the default notice must state— how the mortgagor has defaulted; and what the mortgagor must do to remedy the default, including, for example, any amount that must be paid to the mortgagee; and that the mortgagee intends to take possession of, or sell, the equipment on or after a stated day (the due day ) unless the default is remedied; and that, if the mortgagor makes another default of the same type before the due day that is not remedied by the due day, the mortgagee may take possession of, or sell, the equipment without giving another default notice under this part; and anything else prescribed under a regulation.\n(sec.8-ssec.2) If the mortgagee reasonably believes the default is incapable of being remedied, the default notice must state— how the mortgagor has defaulted; and that the mortgagee believes the default is incapable of being remedied; and that the mortgagee intends to take possession of, or sell, the equipment on or after a stated day (the due day ); and anything else prescribed under a regulation.\n(sec.8-ssec.3) The due day must be at least 30 days after the day the notice is given to the mortgagor.\n- (a) how the mortgagor has defaulted; and\n- (b) what the mortgagor must do to remedy the default, including, for example, any amount that must be paid to the mortgagee; and\n- (c) that the mortgagee intends to take possession of, or sell, the equipment on or after a stated day (the due day ) unless the default is remedied; and\n- (d) that, if the mortgagor makes another default of the same type before the due day that is not remedied by the due day, the mortgagee may take possession of, or sell, the equipment without giving another default notice under this part; and\n- (e) anything else prescribed under a regulation.\n- (a) how the mortgagor has defaulted; and\n- (b) that the mortgagee believes the default is incapable of being remedied; and\n- (c) that the mortgagee intends to take possession of, or sell, the equipment on or after a stated day (the due day ); and\n- (d) anything else prescribed under a regulation.","sortOrder":9},{"sectionNumber":"sec.9","sectionType":"section","heading":"Exception to s 7 —further default during notice period","content":"### sec.9 Exception to s 7 —further default during notice period\n\nThis section applies if—\na mortgagor defaults under a mortgage; and\nthe mortgagee gives the mortgagor, and guarantor (if any), a default notice under this part for the default; and\nthe mortgagor makes a further default of the same type before the due day stated in the default notice for the first default; and\nthe further default is not remedied by the due day stated in the default notice for the first default.\nSection 7 does not apply to the mortgagee in exercising, or purporting to exercise, a right under the mortgage for the further default.\n(sec.9-ssec.1) This section applies if— a mortgagor defaults under a mortgage; and the mortgagee gives the mortgagor, and guarantor (if any), a default notice under this part for the default; and the mortgagor makes a further default of the same type before the due day stated in the default notice for the first default; and the further default is not remedied by the due day stated in the default notice for the first default.\n(sec.9-ssec.2) Section 7 does not apply to the mortgagee in exercising, or purporting to exercise, a right under the mortgage for the further default.\n- (a) a mortgagor defaults under a mortgage; and\n- (b) the mortgagee gives the mortgagor, and guarantor (if any), a default notice under this part for the default; and\n- (c) the mortgagor makes a further default of the same type before the due day stated in the default notice for the first default; and\n- (d) the further default is not remedied by the due day stated in the default notice for the first default.","sortOrder":10},{"sectionNumber":"sec.10","sectionType":"section","heading":"Exception to s 7 —taking possession to protect equipment","content":"### sec.10 Exception to s 7 —taking possession to protect equipment\n\nSection 7 does not apply to a mortgagee in exercising, or purporting to exercise, a right under a mortgage to take possession of farm equipment if the mortgagee reasonably believes—\nthe mortgagor has removed or disposed of the equipment, or intends to remove or dispose of the equipment, in contravention of the mortgage; or\nit is necessary to take possession urgently to protect the equipment.\n- (a) the mortgagor has removed or disposed of the equipment, or intends to remove or dispose of the equipment, in contravention of the mortgage; or\n- (b) it is necessary to take possession urgently to protect the equipment.","sortOrder":11},{"sectionNumber":"sec.11","sectionType":"section","heading":"Other exceptions to s 7","content":"### sec.11 Other exceptions to s 7\n\nSection 7 does not apply to a mortgagee in exercising, or purporting to exercise, a right under a mortgage if—\nthe mortgagee reasonably believes it was induced by fraud by the mortgagor to enter into the mortgage; or\nthe mortgagee has unsuccessfully made all reasonable attempts to find the mortgagor; or\nthe court orders that the mortgagee may take possession of, or sell, the equipment without complying with section 7 .\n- (a) the mortgagee reasonably believes it was induced by fraud by the mortgagor to enter into the mortgage; or\n- (b) the mortgagee has unsuccessfully made all reasonable attempts to find the mortgagor; or\n- (c) the court orders that the mortgagee may take possession of, or sell, the equipment without complying with section 7 .","sortOrder":12},{"sectionNumber":"sec.12","sectionType":"section","heading":"Onus on mortgagee to show s 7 does not apply","content":"### sec.12 Onus on mortgagee to show s 7 does not apply\n\nThe onus of proving that section 7 does not apply to a mortgagee because of section 10 or 11 (a) or (b) is on the mortgagee.","sortOrder":13},{"sectionNumber":"pt.3","sectionType":"part","heading":"Relieving order","content":"# Relieving order","sortOrder":14},{"sectionNumber":"sec.13","sectionType":"section","heading":"Mortgagor may apply for a relieving order","content":"### sec.13 Mortgagor may apply for a relieving order\n\nThis section applies if—\nfor a mortgage over farm equipment—the mortgagee has given the mortgagor a default notice under part 2 ; or\nfor a mortgage over equipment (whether or not it is farm equipment)—\nthe mortgagee has exercised, or purported to exercise, a right under the mortgage to take possession of the equipment; or\nthe mortgagor has defaulted under the mortgage; or\nfor another reason, the mortgagor believes the mortgagee may exercise, or purport to exercise, a right under the mortgage to take possession of, or sell, the equipment.\nThe mortgagor may apply to the court for a relieving order if—\nthe mortgagee has not taken possession of, or sold, the equipment or, if the mortgagee has taken possession of the equipment, has not parted with possession of the equipment; and\nthe mortgagor is a farmer who is using, or intending to use, the equipment to carry out the farmer’s farming business, or would be using, or intending to use, the equipment to carry out the farmer’s farming business if the mortgagee had not taken possession of the equipment.\n(sec.13-ssec.1) This section applies if— for a mortgage over farm equipment—the mortgagee has given the mortgagor a default notice under part 2 ; or for a mortgage over equipment (whether or not it is farm equipment)— the mortgagee has exercised, or purported to exercise, a right under the mortgage to take possession of the equipment; or the mortgagor has defaulted under the mortgage; or for another reason, the mortgagor believes the mortgagee may exercise, or purport to exercise, a right under the mortgage to take possession of, or sell, the equipment.\n(sec.13-ssec.2) The mortgagor may apply to the court for a relieving order if— the mortgagee has not taken possession of, or sold, the equipment or, if the mortgagee has taken possession of the equipment, has not parted with possession of the equipment; and the mortgagor is a farmer who is using, or intending to use, the equipment to carry out the farmer’s farming business, or would be using, or intending to use, the equipment to carry out the farmer’s farming business if the mortgagee had not taken possession of the equipment.\n- (a) for a mortgage over farm equipment—the mortgagee has given the mortgagor a default notice under part 2 ; or\n- (b) for a mortgage over equipment (whether or not it is farm equipment)— (i) the mortgagee has exercised, or purported to exercise, a right under the mortgage to take possession of the equipment; or (ii) the mortgagor has defaulted under the mortgage; or (iii) for another reason, the mortgagor believes the mortgagee may exercise, or purport to exercise, a right under the mortgage to take possession of, or sell, the equipment.\n- (i) the mortgagee has exercised, or purported to exercise, a right under the mortgage to take possession of the equipment; or\n- (ii) the mortgagor has defaulted under the mortgage; or\n- (iii) for another reason, the mortgagor believes the mortgagee may exercise, or purport to exercise, a right under the mortgage to take possession of, or sell, the equipment.\n- (i) the mortgagee has exercised, or purported to exercise, a right under the mortgage to take possession of the equipment; or\n- (ii) the mortgagor has defaulted under the mortgage; or\n- (iii) for another reason, the mortgagor believes the mortgagee may exercise, or purport to exercise, a right under the mortgage to take possession of, or sell, the equipment.\n- (a) the mortgagee has not taken possession of, or sold, the equipment or, if the mortgagee has taken possession of the equipment, has not parted with possession of the equipment; and\n- (b) the mortgagor is a farmer who is using, or intending to use, the equipment to carry out the farmer’s farming business, or would be using, or intending to use, the equipment to carry out the farmer’s farming business if the mortgagee had not taken possession of the equipment.","sortOrder":15},{"sectionNumber":"sec.14","sectionType":"section","heading":"Notice of application","content":"### sec.14 Notice of application\n\nIf the mortgagor applies for a relieving order, the mortgagor must immediately give a copy of the application (a notice of application ) to the mortgagee.\nThe court may order that the mortgagor is not required to comply with subsection (1) if the court is satisfied the mortgagor has unsuccessfully made all reasonable attempts to find the mortgagee.\nThe order may be made on conditions.\n(sec.14-ssec.1) If the mortgagor applies for a relieving order, the mortgagor must immediately give a copy of the application (a notice of application ) to the mortgagee.\n(sec.14-ssec.2) The court may order that the mortgagor is not required to comply with subsection (1) if the court is satisfied the mortgagor has unsuccessfully made all reasonable attempts to find the mortgagee.\n(sec.14-ssec.3) The order may be made on conditions.","sortOrder":16},{"sectionNumber":"sec.15","sectionType":"section","heading":"Effect of serving notice of application","content":"### sec.15 Effect of serving notice of application\n\nIf the mortgagor gives a notice of application to the mortgagee, the mortgagee must not, until the court orders otherwise or the application is withdrawn or dismissed—\nsell the equipment; or\nif the mortgagee does not have possession of the equipment—take possession of the equipment; or\nif the mortgagee has possession of the equipment—part with its possession (other than to return it to the mortgagor).\nMaximum penalty—500 penalty units.\nTo remove any doubt, it is declared that if the mortgagee has possession of the equipment when given a notice of application, the mortgagee is not required by subsection (1) (c) to return the equipment.\n(sec.15-ssec.1) If the mortgagor gives a notice of application to the mortgagee, the mortgagee must not, until the court orders otherwise or the application is withdrawn or dismissed— sell the equipment; or if the mortgagee does not have possession of the equipment—take possession of the equipment; or if the mortgagee has possession of the equipment—part with its possession (other than to return it to the mortgagor). Maximum penalty—500 penalty units.\n(sec.15-ssec.2) To remove any doubt, it is declared that if the mortgagee has possession of the equipment when given a notice of application, the mortgagee is not required by subsection (1) (c) to return the equipment.\n- (a) sell the equipment; or\n- (b) if the mortgagee does not have possession of the equipment—take possession of the equipment; or\n- (c) if the mortgagee has possession of the equipment—part with its possession (other than to return it to the mortgagor).","sortOrder":17},{"sectionNumber":"sec.16","sectionType":"section","heading":"Court may make relieving order","content":"### sec.16 Court may make relieving order\n\nThe court must decide the application by dismissing it or by making a relieving order.\nIn deciding the application, the court must consider—\nwhether the mortgagor has a reasonable prospect of being able to remedy the stated default within 1 year after the notice day; and\nhow necessary the equipment is to the mortgagor in carrying out the farming business; and\nwhether the mortgagor has removed, damaged or disposed of the equipment, or intends to remove, damage or dispose of the equipment, in contravention of the mortgage; and\nanything else the court considers relevant to making a just decision.\nA relieving order is an order that—\nif the mortgagee has possession of the equipment—the mortgagee must return it to the mortgagor; and\nthe mortgagee must not take possession of, or sell, the equipment for a stated period ending not later than 1 year after the notice day.\nThe court may make a relieving order on terms it considers appropriate, including, for example, that the mortgagor pay any enforcement expenses incurred by the mortgagee.\nIn this section—\nnotice day means the day the mortgagee is given the notice of application or, if the court orders that the mortgagor is not required to give the notice, the day the court makes that order.\nstated default means—\nif the mortgagee has given the mortgagor a default notice under part 2 —the default stated in the notice; or\notherwise—the default that is claimed by either party to have been made by the mortgagor.\n(sec.16-ssec.1) The court must decide the application by dismissing it or by making a relieving order.\n(sec.16-ssec.2) In deciding the application, the court must consider— whether the mortgagor has a reasonable prospect of being able to remedy the stated default within 1 year after the notice day; and how necessary the equipment is to the mortgagor in carrying out the farming business; and whether the mortgagor has removed, damaged or disposed of the equipment, or intends to remove, damage or dispose of the equipment, in contravention of the mortgage; and anything else the court considers relevant to making a just decision.\n(sec.16-ssec.3) A relieving order is an order that— if the mortgagee has possession of the equipment—the mortgagee must return it to the mortgagor; and the mortgagee must not take possession of, or sell, the equipment for a stated period ending not later than 1 year after the notice day.\n(sec.16-ssec.4) The court may make a relieving order on terms it considers appropriate, including, for example, that the mortgagor pay any enforcement expenses incurred by the mortgagee.\n(sec.16-ssec.5) In this section— notice day means the day the mortgagee is given the notice of application or, if the court orders that the mortgagor is not required to give the notice, the day the court makes that order. stated default means— if the mortgagee has given the mortgagor a default notice under part 2 —the default stated in the notice; or otherwise—the default that is claimed by either party to have been made by the mortgagor.\n- (a) whether the mortgagor has a reasonable prospect of being able to remedy the stated default within 1 year after the notice day; and\n- (b) how necessary the equipment is to the mortgagor in carrying out the farming business; and\n- (c) whether the mortgagor has removed, damaged or disposed of the equipment, or intends to remove, damage or dispose of the equipment, in contravention of the mortgage; and\n- (d) anything else the court considers relevant to making a just decision.\n- (a) if the mortgagee has possession of the equipment—the mortgagee must return it to the mortgagor; and\n- (b) the mortgagee must not take possession of, or sell, the equipment for a stated period ending not later than 1 year after the notice day.\n- (a) if the mortgagee has given the mortgagor a default notice under part 2 —the default stated in the notice; or\n- (b) otherwise—the default that is claimed by either party to have been made by the mortgagor.","sortOrder":18},{"sectionNumber":"sec.17","sectionType":"section","heading":"Compliance with relieving order","content":"### sec.17 Compliance with relieving order\n\nA mortgagee must comply with a relieving order.\nMaximum penalty—500 penalty units.","sortOrder":19},{"sectionNumber":"pt.3A","sectionType":"part","heading":"Particular provisions for hire-purchase agreements where farm equipment is repossessed","content":"# Particular provisions for hire-purchase agreements where farm equipment is repossessed","sortOrder":20},{"sectionNumber":"sec.17A","sectionType":"section","heading":"Application of pt 3A","content":"### sec.17A Application of pt 3A\n\nThis part applies if—\nthe mortgagor under a mortgage that is a hire-purchase agreement has defaulted under the mortgage; and\nthe mortgagee has exercised, or purported to exercise, a right under the mortgage to take possession of the farm equipment.\ns 17A ins 2002 No. 52 s 10\n- (a) the mortgagor under a mortgage that is a hire-purchase agreement has defaulted under the mortgage; and\n- (b) the mortgagee has exercised, or purported to exercise, a right under the mortgage to take possession of the farm equipment.","sortOrder":21},{"sectionNumber":"sec.17B","sectionType":"section","heading":"Meaning of hire-purchase agreement","content":"### sec.17B Meaning of hire-purchase agreement\n\nA hire-purchase agreement is an agreement entered into after the commencement of this section, under which—\nfarm equipment is let or hired to a farmer and the farmer has an option to purchase the farm equipment; or\na farmer agrees to purchase farm equipment by instalments, whether the instalments are described as rent, hire or something else.\nTwo or more agreements, which individually are not hire-purchase agreements, are also a hire-purchase agreement , from the time the last agreement is entered into, if under the agreements—\nthere is a bailment of farm equipment to a farmer; and\nthe farmer may purchase the farm equipment or the property in the farm equipment may pass to the farmer.\nHowever, a hire-purchase agreement does not include an agreement mentioned in subsection (1) or (2) if—\nthe property in the farm equipment passes to the farmer—\nat the time the agreement is entered into; or\nat any time before delivery of the farm equipment; or\nthe total market value of the farm equipment at the time the agreement is entered into is more than $40000000.\nIn this section—\nfarmer , for a hire-purchase agreement, does not include a farmer engaged in the business of selling farm equipment of the same nature or description as the farm equipment being let, hired, purchased or bailed under the agreement.\ns 17B ins 2002 No. 52 s 10\n(sec.17B-ssec.1) A hire-purchase agreement is an agreement entered into after the commencement of this section, under which— farm equipment is let or hired to a farmer and the farmer has an option to purchase the farm equipment; or a farmer agrees to purchase farm equipment by instalments, whether the instalments are described as rent, hire or something else.\n(sec.17B-ssec.2) Two or more agreements, which individually are not hire-purchase agreements, are also a hire-purchase agreement , from the time the last agreement is entered into, if under the agreements— there is a bailment of farm equipment to a farmer; and the farmer may purchase the farm equipment or the property in the farm equipment may pass to the farmer.\n(sec.17B-ssec.3) However, a hire-purchase agreement does not include an agreement mentioned in subsection (1) or (2) if— the property in the farm equipment passes to the farmer— at the time the agreement is entered into; or at any time before delivery of the farm equipment; or the total market value of the farm equipment at the time the agreement is entered into is more than $40000000.\n(sec.17B-ssec.4) In this section— farmer , for a hire-purchase agreement, does not include a farmer engaged in the business of selling farm equipment of the same nature or description as the farm equipment being let, hired, purchased or bailed under the agreement.\n- (a) farm equipment is let or hired to a farmer and the farmer has an option to purchase the farm equipment; or\n- (b) a farmer agrees to purchase farm equipment by instalments, whether the instalments are described as rent, hire or something else.\n- (a) there is a bailment of farm equipment to a farmer; and\n- (b) the farmer may purchase the farm equipment or the property in the farm equipment may pass to the farmer.\n- (a) the property in the farm equipment passes to the farmer— (i) at the time the agreement is entered into; or (ii) at any time before delivery of the farm equipment; or\n- (i) at the time the agreement is entered into; or\n- (ii) at any time before delivery of the farm equipment; or\n- (b) the total market value of the farm equipment at the time the agreement is entered into is more than $40000000.\n- (i) at the time the agreement is entered into; or\n- (ii) at any time before delivery of the farm equipment; or","sortOrder":22},{"sectionNumber":"sec.17C","sectionType":"section","heading":"Mortgagee must give notice of best price estimate and expenses","content":"### sec.17C Mortgagee must give notice of best price estimate and expenses\n\nThe mortgagee must, within 30 days after the mortgagee takes possession of the farm equipment, give the mortgagor a written notice stating—\na best price estimate for the farm equipment; and\nthe mortgagee’s estimate of the mortgagee’s enforcement expenses; and\nthe mortgagee’s estimate of any expense the mortgagee must reasonably incur to return the farm equipment to the mortgagor.\nMaximum penalty—500 penalty units.\ns 17C ins 2002 No. 52 s 10\n- (a) a best price estimate for the farm equipment; and\n- (b) the mortgagee’s estimate of the mortgagee’s enforcement expenses; and\n- (c) the mortgagee’s estimate of any expense the mortgagee must reasonably incur to return the farm equipment to the mortgagor.","sortOrder":23},{"sectionNumber":"sec.17D","sectionType":"section","heading":"Action after notice given to mortgagee","content":"### sec.17D Action after notice given to mortgagee\n\nThe mortgagor may, within 21 days after the mortgagee gives the mortgagor notice under section 17C , give the mortgagee written notice requiring the mortgagee to—\nsell the farm equipment to a person nominated by the mortgagor at a price not less than the best price estimate for the farm equipment stated in the notice given under section 17C ; or\nreturn the farm equipment to the mortgagor under section 17E .\ns 17D ins 2002 No. 52 s 10\n- (a) sell the farm equipment to a person nominated by the mortgagor at a price not less than the best price estimate for the farm equipment stated in the notice given under section 17C ; or\n- (b) return the farm equipment to the mortgagor under section 17E .","sortOrder":24},{"sectionNumber":"sec.17E","sectionType":"section","heading":"Return of farm equipment when breach remedied","content":"### sec.17E Return of farm equipment when breach remedied\n\nThe mortgagee must return the farm equipment to the mortgagor if, within 14 days after the mortgagee receives a notice under section 17D (b) , the mortgagor—\npays or tenders to the mortgagee the amount owing under the mortgage for the period ending on the day the mortgagor pays or tenders the amount; and\npays or tenders to the mortgagee—\nthe mortgagee’s enforcement expenses; and\nany expense the mortgagee must reasonably incur to return the farm equipment to the mortgagor; and\nremedies any other breach of the mortgage, or if the mortgagor can not remedy the breach, pays or tenders to the mortgagee any expense the mortgagee must reasonably incur to remedy the breach.\nMaximum penalty—500 penalty units.\ns 17E ins 2002 No. 52 s 10\n- (a) pays or tenders to the mortgagee the amount owing under the mortgage for the period ending on the day the mortgagor pays or tenders the amount; and\n- (b) pays or tenders to the mortgagee— (i) the mortgagee’s enforcement expenses; and (ii) any expense the mortgagee must reasonably incur to return the farm equipment to the mortgagor; and\n- (i) the mortgagee’s enforcement expenses; and\n- (ii) any expense the mortgagee must reasonably incur to return the farm equipment to the mortgagor; and\n- (c) remedies any other breach of the mortgage, or if the mortgagor can not remedy the breach, pays or tenders to the mortgagee any expense the mortgagee must reasonably incur to remedy the breach.\n- (i) the mortgagee’s enforcement expenses; and\n- (ii) any expense the mortgagee must reasonably incur to return the farm equipment to the mortgagor; and","sortOrder":25},{"sectionNumber":"sec.17F","sectionType":"section","heading":"Return of farm equipment when breach not remedied","content":"### sec.17F Return of farm equipment when breach not remedied\n\nThis section applies if the mortgagee returns the farm equipment to the mortgagor and the mortgagor has not remedied a breach of the mortgage.\nThe mortgagee may again take possession of the farm equipment if—\nthe mortgagee gives the mortgagor, when the farm equipment is returned, written notice—\nstating the breach and how the mortgagor may remedy the breach; and\nrequiring the mortgagor to remedy the breach within 14 days, or a longer period stated in the notice, after the notice is given; and\nthe mortgagor does not remedy the breach within 14 days, or the longer period stated in the notice, after the notice is given.\ns 17F ins 2002 No. 52 s 10\n(sec.17F-ssec.1) This section applies if the mortgagee returns the farm equipment to the mortgagor and the mortgagor has not remedied a breach of the mortgage.\n(sec.17F-ssec.2) The mortgagee may again take possession of the farm equipment if— the mortgagee gives the mortgagor, when the farm equipment is returned, written notice— stating the breach and how the mortgagor may remedy the breach; and requiring the mortgagor to remedy the breach within 14 days, or a longer period stated in the notice, after the notice is given; and the mortgagor does not remedy the breach within 14 days, or the longer period stated in the notice, after the notice is given.\n- (a) the mortgagee gives the mortgagor, when the farm equipment is returned, written notice— (i) stating the breach and how the mortgagor may remedy the breach; and (ii) requiring the mortgagor to remedy the breach within 14 days, or a longer period stated in the notice, after the notice is given; and\n- (i) stating the breach and how the mortgagor may remedy the breach; and\n- (ii) requiring the mortgagor to remedy the breach within 14 days, or a longer period stated in the notice, after the notice is given; and\n- (b) the mortgagor does not remedy the breach within 14 days, or the longer period stated in the notice, after the notice is given.\n- (i) stating the breach and how the mortgagor may remedy the breach; and\n- (ii) requiring the mortgagor to remedy the breach within 14 days, or a longer period stated in the notice, after the notice is given; and","sortOrder":26},{"sectionNumber":"sec.17G","sectionType":"section","heading":"Effect of breaches being remedied","content":"### sec.17G Effect of breaches being remedied\n\nThis section applies if—\nthe farm equipment is returned under section 17E ; or\nsection 17F applies and the mortgagor remedies the breach mentioned in a notice given under section 17F (2) (a) within 14 days, or the longer period stated in the notice, after the notice is given.\nThe mortgage operates as if a breach had not occurred and the mortgagee had not taken possession of the farm equipment.\ns 17G ins 2002 No. 52 s 10\n(sec.17G-ssec.1) This section applies if— the farm equipment is returned under section 17E ; or section 17F applies and the mortgagor remedies the breach mentioned in a notice given under section 17F (2) (a) within 14 days, or the longer period stated in the notice, after the notice is given.\n(sec.17G-ssec.2) The mortgage operates as if a breach had not occurred and the mortgagee had not taken possession of the farm equipment.\n- (a) the farm equipment is returned under section 17E ; or\n- (b) section 17F applies and the mortgagor remedies the breach mentioned in a notice given under section 17F (2) (a) within 14 days, or the longer period stated in the notice, after the notice is given.","sortOrder":27},{"sectionNumber":"sec.17H","sectionType":"section","heading":"Amount mortgagor may recover if farm equipment is not returned","content":"### sec.17H Amount mortgagor may recover if farm equipment is not returned\n\nThis section applies—\nif—\nthe mortgagee does not return the farm equipment to the mortgagor; and\nthe repossession value of the farm equipment is—\nat least equal to the net amount payable under the mortgage; or\nless than the net amount payable under the mortgage, but the total of the repossession value and the actual payments is more than the net amount payable; and\nwhether or not the mortgagor gives the mortgagee notice under section 17D .\nThe mortgagor may recover from the mortgagee an amount equal to the total of the repossession value and the actual payments, less the net amount payable.\ns 17H ins 2002 No. 52 s 10\n(sec.17H-ssec.1) This section applies— if— the mortgagee does not return the farm equipment to the mortgagor; and the repossession value of the farm equipment is— at least equal to the net amount payable under the mortgage; or less than the net amount payable under the mortgage, but the total of the repossession value and the actual payments is more than the net amount payable; and whether or not the mortgagor gives the mortgagee notice under section 17D .\n(sec.17H-ssec.2) The mortgagor may recover from the mortgagee an amount equal to the total of the repossession value and the actual payments, less the net amount payable.\n- (a) if— (i) the mortgagee does not return the farm equipment to the mortgagor; and (ii) the repossession value of the farm equipment is— (A) at least equal to the net amount payable under the mortgage; or (B) less than the net amount payable under the mortgage, but the total of the repossession value and the actual payments is more than the net amount payable; and\n- (i) the mortgagee does not return the farm equipment to the mortgagor; and\n- (ii) the repossession value of the farm equipment is— (A) at least equal to the net amount payable under the mortgage; or (B) less than the net amount payable under the mortgage, but the total of the repossession value and the actual payments is more than the net amount payable; and\n- (A) at least equal to the net amount payable under the mortgage; or\n- (B) less than the net amount payable under the mortgage, but the total of the repossession value and the actual payments is more than the net amount payable; and\n- (b) whether or not the mortgagor gives the mortgagee notice under section 17D .\n- (i) the mortgagee does not return the farm equipment to the mortgagor; and\n- (ii) the repossession value of the farm equipment is— (A) at least equal to the net amount payable under the mortgage; or (B) less than the net amount payable under the mortgage, but the total of the repossession value and the actual payments is more than the net amount payable; and\n- (A) at least equal to the net amount payable under the mortgage; or\n- (B) less than the net amount payable under the mortgage, but the total of the repossession value and the actual payments is more than the net amount payable; and\n- (A) at least equal to the net amount payable under the mortgage; or\n- (B) less than the net amount payable under the mortgage, but the total of the repossession value and the actual payments is more than the net amount payable; and","sortOrder":28},{"sectionNumber":"sec.17I","sectionType":"section","heading":"Maximum amount mortgagee may recover","content":"### sec.17I Maximum amount mortgagee may recover\n\nThis section applies—\nif the mortgagee does not return the farm equipment to the mortgagor; and\nwhether or not the mortgagor gives the mortgagee notice under section 17D .\nThe mortgagee may not recover an amount under the mortgage, by judgment, order or otherwise, that is more than the net amount payable less the total of the repossession value and the actual payments.\ns 17I ins 2002 No. 52 s 10\n(sec.17I-ssec.1) This section applies— if the mortgagee does not return the farm equipment to the mortgagor; and whether or not the mortgagor gives the mortgagee notice under section 17D .\n(sec.17I-ssec.2) The mortgagee may not recover an amount under the mortgage, by judgment, order or otherwise, that is more than the net amount payable less the total of the repossession value and the actual payments.\n- (a) if the mortgagee does not return the farm equipment to the mortgagor; and\n- (b) whether or not the mortgagor gives the mortgagee notice under section 17D .","sortOrder":29},{"sectionNumber":"sec.17J","sectionType":"section","heading":"Mortgagee to obtain best price","content":"### sec.17J Mortgagee to obtain best price\n\nThis section applies if the mortgagee sells the farm equipment to a person other than a person nominated by the mortgagor in a notice under section 17D (a) .\nThe onus of proving the mortgagee obtained the best price the mortgagee could reasonably have obtained for the farm equipment when the mortgagee took possession of the farm equipment is on the mortgagee.\ns 17J ins 2002 No. 52 s 10\n(sec.17J-ssec.1) This section applies if the mortgagee sells the farm equipment to a person other than a person nominated by the mortgagor in a notice under section 17D (a) .\n(sec.17J-ssec.2) The onus of proving the mortgagee obtained the best price the mortgagee could reasonably have obtained for the farm equipment when the mortgagee took possession of the farm equipment is on the mortgagee.","sortOrder":30},{"sectionNumber":"pt.4","sectionType":"part","heading":"Miscellaneous","content":"# Miscellaneous","sortOrder":31},{"sectionNumber":"sec.18","sectionType":"section","heading":"Compensation for noncompliance by mortgagee","content":"### sec.18 Compensation for noncompliance by mortgagee\n\nThis section applies if a mortgagee contravenes section 7 , 15 , 17 , 17C or 17E .\nOn the application of the mortgagor, the court may order the mortgagee to compensate the mortgagor for any loss suffered because of the contravention.\nAn order under subsection (2) —\nmay be made whether or not the mortgagee has been prosecuted for the contravention; and\ndoes not affect the mortgagee’s liability to be prosecuted for the contravention.\ns 18 amd 2002 No. 52 s 11\n(sec.18-ssec.1) This section applies if a mortgagee contravenes section 7 , 15 , 17 , 17C or 17E .\n(sec.18-ssec.2) On the application of the mortgagor, the court may order the mortgagee to compensate the mortgagor for any loss suffered because of the contravention.\n(sec.18-ssec.3) An order under subsection (2) — may be made whether or not the mortgagee has been prosecuted for the contravention; and does not affect the mortgagee’s liability to be prosecuted for the contravention.\n- (a) may be made whether or not the mortgagee has been prosecuted for the contravention; and\n- (b) does not affect the mortgagee’s liability to be prosecuted for the contravention.","sortOrder":32},{"sectionNumber":"sec.19","sectionType":"section","heading":"This Act in addition to other laws","content":"### sec.19 This Act in addition to other laws\n\nThis Act is in addition to any other law about the enforcement of a mortgage.\nIn particular, this Act does not prevent the issue of a notice to a mortgagor under other legislation.\nThis section is subject to section 5 (3) .\n(sec.19-ssec.1) This Act is in addition to any other law about the enforcement of a mortgage.\n(sec.19-ssec.2) In particular, this Act does not prevent the issue of a notice to a mortgagor under other legislation.\n(sec.19-ssec.3) This section is subject to section 5 (3) .","sortOrder":33},{"sectionNumber":"sec.20","sectionType":"section","heading":"Contracting out","content":"### sec.20 Contracting out\n\nThe following provisions of a mortgage or other instrument are void—\na provision to avoid or modify the effect of this Act;\na provision to have a mortgagor indemnify a mortgagee for any loss or liability arising under this Act.\nA mortgagee must not be a party to a mortgage or other instrument containing a provision mentioned in subsection (1) .\nMaximum penalty—100 penalty units.\n(sec.20-ssec.1) The following provisions of a mortgage or other instrument are void— a provision to avoid or modify the effect of this Act; a provision to have a mortgagor indemnify a mortgagee for any loss or liability arising under this Act.\n(sec.20-ssec.2) A mortgagee must not be a party to a mortgage or other instrument containing a provision mentioned in subsection (1) . Maximum penalty—100 penalty units.\n- (a) a provision to avoid or modify the effect of this Act;\n- (b) a provision to have a mortgagor indemnify a mortgagee for any loss or liability arising under this Act.","sortOrder":34},{"sectionNumber":"sec.21","sectionType":"section","heading":"Service of notices on each mortgagee, mortgagor or guarantor","content":"### sec.21 Service of notices on each mortgagee, mortgagor or guarantor\n\nIf a provision of this Act requires a notice to be given to a mortgagee, mortgagor or guarantor, and there is more than 1 mortgagee, mortgagor or guarantor for the mortgage, the notice must be given to each mortgagee, mortgagor or guarantor.","sortOrder":35},{"sectionNumber":"sec.22","sectionType":"section","heading":"Approval of forms","content":"### sec.22 Approval of forms\n\ns 22 om 2002 No. 52 s 12","sortOrder":36},{"sectionNumber":"sec.23","sectionType":"section","heading":"Regulation-making power","content":"### sec.23 Regulation-making power\n\nThe Governor in Council may make regulations under this Act.","sortOrder":37}],"analysis":{"issue_detection":{"absurdities":[{"type":"other","section":"sec.2","severity":"medium","reasoning":"Tying commencement to an external Act's provision creates dependency risk. If the Consumer Credit (Queensland) Act 1994 s.4 was repealed or its commencement is disputed, the commencement of this Act becomes legally uncertain. This is a structural drafting vulnerability rather than a clear absurdity, but creates genuine interpretive difficulty.","confidence":0.6,"description":"The Act's commencement is tied to the commencement of section 4 of the Consumer Credit (Queensland) Act 1994, a provision in a separate Act. If that section never commenced, was repealed before commencing, or its commencement date is uncertain, the Credit (Rural Finance) Act 1996 itself may never have validly commenced, rendering the entire Act inoperative."},{"type":"self_contradicting","section":"sec.5","severity":"medium","reasoning":"The word 'individual' in s.5(2) in legislative usage typically means a natural person (human being), not a corporation or government body. The State can be a mortgagee but not a mortgagor under this framing. The Act's protection runs to mortgagors (farmers), so applying the Act 'to the State' as mortgagor is vacuous. The s.5(1) declaration as to the State seems directed at making the State bound as a mortgagee, but the drafting is confusingly juxtaposed with s.5(2).","confidence":0.65,"description":"Section 5(1) states the Act applies to 'all persons including the State' but section 5(2) immediately limits application to mortgages where 'each mortgagor is an individual'. The State and other governments are not individuals, so the broad declaration in s.5(1) that the Act applies to the State is rendered practically meaningless by s.5(2) — the State cannot be a mortgagor to whom this Act applies."},{"type":"self_contradicting","section":"sec.8","severity":"low","reasoning":"Section 9 carves out an exception to s.7 based on a 'further default of the same type' scenario. The trigger for s.9 is simply that a default notice was given under Part 2. Section 8(2) notices (irremediable defaults) do not include the further-default warning required by s.8(1)(d). The mortgagor receiving an irremediable-default notice is not warned that further defaults will allow immediate action, yet s.9 still applies. This creates unfairness and arguably undermines the notice purpose.","confidence":0.72,"description":"Section 8(1)(d) requires a default notice to warn the mortgagor that a further default 'of the same type' before the due day will allow the mortgagee to act without a new notice. However, if the mortgagee 'reasonably believes the default is incapable of being remedied' (s.8(2) pathway), no such warning is required. This creates an anomaly: where a default is irremediable, the mortgagee need not warn about further defaults, yet s.9 (which exempts from s.7 for further defaults) applies regardless of whether the original notice was a remediable or irremediable notice. The s.9 exception therefore applies even where the mortgagee never gave the s.8(1)(d) warning."},{"type":"other","section":"sec.13","severity":"low","reasoning":"While not strictly a logical contradiction, the expanded scope of s.13(1)(b) (any equipment) coupled with the farmer/farming-use requirement in s.13(2)(b) creates scope uncertainty. It is unclear why the legislator broadened s.13 beyond 'farm equipment' if the farmer/farming requirement effectively limits it to equipment used in farming regardless. The asymmetry between Part 2 (only 'farm equipment') and Part 3 (any equipment used for farming) is potentially confusing.","confidence":0.55,"description":"Section 13(1)(b) allows a mortgagor to apply for a relieving order in relation to a mortgage over equipment 'whether or not it is farm equipment', but section 13(2)(b) requires the mortgagor to be 'a farmer who is using, or intending to use, the equipment to carry out the farmer's farming business'. This means the court can grant protection over non-farm equipment, but only if a farmer is using it for farming — an internally consistent but potentially odd result where, e.g., a general-purpose vehicle used on a farm is protected but the same vehicle used by a non-farmer is not, with no principled basis for the distinction from the perspective of the creditor."},{"type":"other","section":"sec.17B(3)(b)","severity":"medium","reasoning":"A $40 million threshold for farm equipment is anomalously high. The equivalent provision in the (then-current) Consumer Credit Code set thresholds in the hundreds of thousands of dollars. If the intention was to exclude high-value commercial transactions, $40,000,000 fails to achieve any meaningful exclusion in the farm equipment context. This is likely a drafting error but constitutes a practical absurdity.","confidence":0.7,"description":"Section 17B(3)(b) excludes from the definition of 'hire-purchase agreement' any agreement where the total market value of the farm equipment exceeds $40,000,000. This extraordinarily high threshold means virtually all farm equipment hire-purchase agreements will be included. The figure appears disproportionate (farm equipment rarely approaches $40 million), raising the question of whether this is a drafting error (possibly meant to be $400,000 or $4,000,000), resulting in the exclusion being practically inoperative."},{"type":"impossible_compliance","section":"sec.17J(2)","severity":"high","reasoning":"The phrase 'when the mortgagee took possession' in s.17J(2) appears to be a drafting error or ambiguity. Best price is normally assessed at sale. If the section literally means the price achievable at date of repossession, then a mortgagee who sells later when market conditions have changed (for better or worse) cannot satisfy the standard. This creates an unworkable evidentiary requirement.","confidence":0.75,"description":"Section 17J(2) requires the mortgagee to prove it obtained the 'best price the mortgagee could reasonably have obtained for the farm equipment when the mortgagee took possession of the farm equipment'. The reference to 'when the mortgagee took possession' is temporally illogical: best price is assessed at time of sale, not at time of repossession, and the market value at possession and at sale may differ materially. Requiring proof of best price achievable at the moment of repossession (rather than at the time of sale) creates an impossible or meaningless standard."},{"type":"circular_definition","section":"sec.17G(2)","severity":"low","reasoning":"The fiction in s.17G(2) is logically strained: the mortgagor must pay enforcement expenses and arrears (s.17E), but then the mortgage 'operates as if a breach had not occurred'. The payments made to remedy the breach sit awkwardly alongside the fiction that no breach occurred. This is a common legal fiction technique, but the interplay between s.17E's conditions and s.17G's fiction is internally somewhat circular.","confidence":0.5,"description":"Section 17G(2) provides that upon return of equipment under s.17E, 'the mortgage operates as if a breach had not occurred and the mortgagee had not taken possession'. This legal fiction retroactively erases the default. However, s.17E(a) requires the mortgagor to pay 'the amount owing under the mortgage for the period ending on the day the mortgagor pays'. If the breach is deemed never to have occurred, the basis on which those payments were required (i.e., the breach and repossession) is also erased, creating a conceptual circularity."}],"contradictions":[{"severity":"medium","section_a":"sec.4(2)(a)","section_b":"sec.8(3)","confidence":0.7,"description":"Section 4(2)(a) states the Act's purpose is achieved by requiring a mortgagee to give 'at least 30 days notice before exercising a right to take possession of, or sell, farm equipment'. Section 8(3) confirms the due day must be 'at least 30 days after the day the notice is given'. However, sections 9, 10, and 11 create broad exceptions allowing possession without any notice. These exceptions are so wide (e.g., s.10 — mere 'reasonable belief' the mortgagor intends to remove equipment; s.11(a) — belief of fraud; s.11(b) — inability to find mortgagor) that the 30-day notice requirement stated as the Act's core mechanism is routinely avoidable, undermining the stated purpose."},{"severity":"medium","section_a":"sec.5(3)(a)","section_b":"sec.5(3)(b)","confidence":0.78,"description":"Section 5(3)(a) provides that Part 2 does not apply to mortgages under the National Credit Code, while s.5(3)(b) provides the entire Act does not apply to mortgages under the (continued) Credit Act 1987. This creates an inconsistency in the scope of exclusion: mortgages under the National Credit Code are only excluded from Part 2, meaning Parts 3, 3A and 4 still apply; but mortgages under the Credit Act 1987 are excluded from the whole Act. There is no principled explanation for why National Credit Code mortgages receive only partial exclusion while Credit Act 1987 mortgages receive full exclusion, potentially leaving farmers under National Credit Code mortgages with overlapping or contradictory obligations under Part 3/3A."},{"severity":"medium","section_a":"sec.13(2)(a)","section_b":"sec.15(1)","confidence":0.72,"description":"Section 13(2)(a) permits a mortgagor to apply for a relieving order if 'the mortgagee has not taken possession of, or sold, the equipment'. However, s.15(1) operates only after the notice of application is given to the mortgagee, and does not prevent the mortgagee from selling or taking possession in the period between the application being made and the notice being served on the mortgagee. Section 14(1) requires the notice to be given 'immediately', but there is no injunctive protection in the gap between filing and service. A fast-acting mortgagee could sell or take possession after application but before notice is served, defeating the s.13(2)(a) eligibility requirement retroactively."},{"severity":"low","section_a":"sec.17D","section_b":"sec.17E","confidence":0.58,"description":"Section 17D gives the mortgagor 21 days after receiving notice under s.17C to elect to require return of the equipment (under s.17D(b) → s.17E). Section 17E then gives the mortgagor a further 14 days after the mortgagee receives the s.17D notice to pay all amounts owing. The total period (30 days for s.17C notice + 21 days to elect + 14 days to pay = 65 days minimum) creates a substantial window during which the mortgagee holds repossessed equipment but cannot act on it. No provision addresses the mortgagee's costs of storage or care during this extended period except the estimate required under s.17C(c). The interaction creates an unaddressed burden and potential dispute about accruing costs not contemplated in the original estimate."},{"severity":"high","section_a":"sec.17H(2)","section_b":"sec.17I(2)","confidence":0.68,"description":"Sections 17H and 17I use the same formula (repossession value + actual payments vs net amount payable) but in opposite directions — s.17H allows the mortgagor to recover a surplus, and s.17I caps the mortgagee's recovery at a deficit. However, neither section defines 'repossession value' in the body of the Act (it is presumably in the dictionary/schedule). If 'repossession value' is defined as the best price estimate from s.17C (mortgagee's own estimate) rather than the actual sale price, the mortgagee could manipulate the estimate to minimise both its liability under s.17H and the mortgagor's recovery, while also setting a low benchmark under s.17J. The interplay between the mortgagee's unilateral estimate and the binding financial consequences in ss.17H–17I creates a structural conflict of interest not resolved by the Act."},{"severity":"low","section_a":"sec.16(3)(b)","section_b":"sec.16(2)(a)","confidence":0.65,"description":"Section 16(3)(b) defines a relieving order as restraining the mortgagee for 'a stated period ending not later than 1 year after the notice day'. Section 16(2)(a) requires the court to consider 'whether the mortgagor has a reasonable prospect of being able to remedy the stated default within 1 year after the notice day'. The 1-year period runs from the notice day in both cases. However, by the time the court makes the relieving order, some portion of that 1-year period will already have elapsed (due to the time taken for proceedings). The effective protection period is therefore always less than 1 year, while the court's assessment is framed as if the full year is available. This creates a gap between the statutory framework and practical reality."}]},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":true,"description":"The original 1996 Act was narrowly focused on mortgage enforcement protections (30-day notice and court relieving orders). The 2002 amendments significantly expanded scope by adding Part 3A, which created an entire parallel regime for hire-purchase agreements with detailed procedural requirements, time limits, and financial calculations. This transformed the Act from a simple mortgage protection law into a hybrid instrument covering both traditional mortgages and lease-to-own financing arrangements."},"complexity_factors":["Multiple overlapping conditions for application (individual mortgagors only, exclusions for National Credit Code and repealed Credit Act 1987)","Nested exceptions to the main 30-day notice requirement (sections 9-11) with reversed onus of proof (section 12)","Complex triggering conditions for relieving orders with multiple alternative pathways (section 13)","Part 3A (hire-purchase agreements) adds a parallel regulatory scheme with 8 additional sections (17A-17J) including specific timeframes (30 days, 21 days, 14 days) and mathematical calculations for recoverable amounts","Cross-references between Parts 2, 3, and 3A with different rules applying depending on whether equipment is 'farm equipment' or just 'equipment'","Definitions deferred to a schedule dictionary (not provided in text) including undefined terms like 'farm equipment', 'farming business', and 'best price estimate'"],"plain_english_summary":"This Queensland law protects farmers from losing their essential equipment when they fall behind on loan payments.\n\n**What it does:**\n- **Slows down repossession:** Banks and lenders (called 'mortgagees') must give farmers at least 30 days' written warning before they can seize or sell farm equipment. This gives farmers time to catch up on payments or negotiate.\n- **Court protection:** Farmers can ask a court for a 'relieving order' — a temporary order letting them keep their equipment for up to one year if they have a realistic chance of fixing their financial problems.\n- **Hire-purchase protections:** Special rules apply when farmers lease equipment with an option to buy (hire-purchase agreements). If the lender takes the equipment, the farmer has rights to get it back by paying what's owed, or to make sure the lender sells it for a fair price.\n\n**Who it affects:**\n- **Farmers** who have borrowed money using their farm equipment as security (collateral) for the loan.\n- **Banks and finance companies** that lend money to farmers secured against equipment.\n- **Guarantors** (people who guaranteed the loan) who must also receive notices.\n\n**Key limitations:**\n- Only applies when the borrower is an individual farmer, not a company.\n- Doesn't apply if the loan is covered by the National Credit Code (federal consumer protection law) or certain older credit laws.\n- The court can only help if the farmer is actually using the equipment for farming and has a reasonable prospect of recovering financially.\n\n**Why it matters:** Farming is vulnerable to drought, floods, and market crashes. This law prevents lenders from immediately stripping farmers of the tools they need to earn a living, giving them breathing room to recover from temporary setbacks."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The Act's scope was expanded after enactment: Part 3A (ss 17A–17J) was inserted to create a distinct regime for hire‑purchase agreements over farm equipment (see amendment notes in the text). The Act also expressly excludes mortgages governed by the National Credit Code and the continued Credit Act 1987 (s 5), clarifying which transactions are covered. These additions change the practical perimeter of protections and introduce new procedural and remedial provisions not in the original purpose statement."},"complexity_factors":["Multiple statutory exceptions to the 30‑day notice requirement that require factual assessment (see ss 7, 10–11).","Broad judicial discretion and open‑ended factors when granting relieving orders, including weighing prospects of remedy and necessity of equipment (s 16).","Onus of proof provisions shifting evidentiary burdens to mortgagees for certain exceptions and for proving best price when selling (ss 12, 17J).","Detailed, time‑sensitive hire‑purchase regime with notice, price estimate and return/sale options (Part 3A, ss 17A–17J).","Interactions and explicit exclusions with the National Credit Code and the continued Credit Act 1987, affecting which mortgages are covered (s 5).","Civil penalties, compensatory remedies and concurrent criminal liability create mixed enforcement routes (ss 7, 15, 17, 18).","Multiple statutory time limits for notices and responses (30 days, 21 days, 14 days, etc.) that create tight compliance timing (ss 8, 17C–17F, 17D).","Jurisdictional rules include courts or tribunals (QCAT) and monetary‑jurisdiction selection, affecting forum and procedure (s 6).","Regulation‑making power and references to matters \"prescribed\" leave substantive detail to subordinate instruments (ss 8, 23)."],"plain_english_summary":"This Act requires a mortgagee (lender) to give an individual farmer at least 30 days' written notice before taking possession of or selling farm equipment, and lets a farmer apply to a court for a relieving order that can keep equipment with the farmer for up to one year. Lenders must meet notice, disclosure and sale‑price duties, face penalties, and may be ordered to compensate losses. It applies only where the mortgagor is an individual, excludes mortgages under the National Credit Code or the continued Credit Act 1987, and includes special hire‑purchase rules."},"summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The original Act (1996) focused narrowly on default notices and court-ordered relieving orders for farm equipment mortgages. The 2002 amendments significantly expanded scope by adding Part 3A, which introduced a comprehensive regime specifically for hire-purchase agreements — including price disclosure obligations, buy-back rights, financial recovery calculations, and best-price duties on mortgagees. This added a consumer-protection-style financial settlement framework that went well beyond the original notice-and-court-order model."},"complexity_factors":["Multiple overlapping parts with different rules applying to different situations (standard mortgages vs hire-purchase agreements)","Numerous exceptions and carve-outs to the main obligations (sections 9, 10, 11), each with their own conditions","Interaction with other legislation (National Credit Code, repealed Credit Act 1987, Credit (Commonwealth Powers) Act 2010) creates eligibility confusion","The hire-purchase provisions (Part 3A) involve multi-step financial calculations (repossession value, net amount payable, actual payments) that are technically complex","Shifting onus of proof between parties depending on which section applies","Court jurisdiction rules depend on the monetary amount of the mortgage and which court proceedings are already before","Layered notice requirements with different timeframes (30 days, 21 days, 14 days) across different scenarios","Definitions (particularly 'hire-purchase agreement') involve multiple sub-categories and exclusions"],"plain_english_summary":"The Credit (Rural Finance) Act 1996 is a Queensland law that protects individual farmers who use equipment as loan security by forcing lenders to give 30 days’ written warning before repossession or sale, making those breaches criminal, and letting courts grant up to a year’s relief to keep equipment in use. It adds special hire‑purchase safeguards, voids contract terms that strip these rights, and allows compensation for unlawful lender action."}},"importantCases":[],"_links":{"self":"/api/acts/credit-rural-finance-act-1996","history":"/api/acts/credit-rural-finance-act-1996/history","analysis":"/api/acts/credit-rural-finance-act-1996/analysis","conflicts":"/api/acts/credit-rural-finance-act-1996/conflicts","importantCases":"/api/acts/credit-rural-finance-act-1996/important-cases","documents":"/api/acts/credit-rural-finance-act-1996/documents"}}