Credit (Rural Finance) Act 1996
sec.4Purpose of Act
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sec.4 Purpose of Act
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. 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. (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. (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.
- (a) a mortgagee to give at least 30 days notice before exercising a right to take possession of, or sell, farm equipment; and
- (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.