18BFarmer-initiated mediation

18B Farmer-initiated mediation

18B Farmer-initiated mediation

(1) A farmer who owes money to a creditor under a farm mortgage may, by notice given to the creditor, request mediation in relation to the farm debt concerned (a mediation request).

(2) The mediation request must specify that a failure of the creditor to respond to the request within the period required by this section may constitute a ground for the grant of a prohibition certificate.

(3) A mediation request may be made whether or not the farmer is in default. However, a mediation request may not be made if the creditor has given the farmer a notice inviting mediation in respect of the farm debt.

(4) The creditor must respond to the mediation request within 20 business days after receiving the request.

Note—

See section 10 for provisions relating to the grant of a prohibition certificate where a creditor declines to mediate with a farmer who is in default.

(5) A mediation request, and a creditor’s response, is to be in writing in the approved form.

pt 2, div 2 (ss 16–18B): Ins 2018 No 16, Sch 1 [10].