Farmers' Debts Adjustment Act Amendment Act 1933 (WA)

1933.1 Farmers' Debts Adjustment. [No. 45.

FARMERS' DEBTS ADJUSTMENT.

24° tai o. V., No. XLV.

No. 45 of 1933.

AN ACT to amend the Farmers' Debts Adjustment

Act, 1930.

[Assented to 4:th January, 1934.1

E it enacted by the King's \lost Excellent Majesty, by and with the advice and consent of the Legislative Council and Legislative Assembly of Western Australia, hi this present Parliament assembled, and by the authority of the same, as follows:—

This Act may be cited as the Farmers' Debts Adjust ment Act Amendment Ad., 7933, and shall be read as one with the Farmers' Debts Adjustment Act, 1930, as reprinted in the Appendix to the Sessional Volume of Statutes for 1931, which Act is hereinafter referred to as the principal Act. Short title

1.

2. Section two of the principal Act is hereby amended by apaclie l in l i(lek)d ",

adding after the word "State," in the definition of "Farmer'' principal ' Ket-

in that section, "and includes— "Farmer."

(i) any executor carrying on the farming . business of a deceased fanner under the authority of the will of the deceased or by virtue of an order of the Supreme Court;

No. 45.] Farmers' Debts Adjustment. [1933.

(ii) or any trustee within the meaning of the Trustees Act, 1900, who is carrying on a farming business under the terms of any will, deed of trust, or set- tlement, or under the authority of any order of the Supreme Court."

Amendment of	3. Section four of the principal Act is hereby amended
Act.

G. 4 of principal

Remuneration of (a) by striking out the whole of the proviso to subsec-

directors and	tion (4) of that section, and inserting the follow-
receivers.
ing proviso in lieu thereof:
Provided that the receiver shall in each year during which the receivership continues, be en- titled to retain by way of emolument out of the proceeds of the farmer's business

(a) an amount of ten pounds ten shillings (and in

proportion for any part of a year) ; or

(b) when the receiver has carried on the business of the farmer, three percentum of such proceeds derived in any such year (and in proportion for any part of a year);

whichever shall be the greater, but in no case shall the emoluments retained under tins section exceed the sum of thirty pounds for any one year.

And provided further, that if the deputy direc- tor or receiver is a public servant in receipt of a salary, such fees and emolument shall be paid into consolidated revenue.

This section shall apply as from the first clay of April, 1934, to the proceeds of all produce of a farmer's business produced since that date, and it is hereby declared that, notwithstanding any resolution of creditors or agreement or consent of the farmer, it shall be unlawful for any deputy director or receiver to ask, demand, or receive, or to retain from the proceeds of the produce of any farmer's business produced after the first day of April, 1934, any fees or emoluments in respect of any services rendered in connection with a re- ceivership, other than such as are expressly sanc- tioned by this Act, and if any fees or emoluments are received or retained in contravention of this provision the same may be recovered from the re- cipient or person retaining by action at law.

1933. ] Farmers' Debts Adjustment. [No. 45.

(b) Subsection (5) of section four of the principal Act Tector rey is hereby repealed, and the following new sub- %ImildPtrii're. section inserted in lieu thereof :—

(5) The director may allow the deputy direc- tor or receiver to charge against the estate of a farmer any legitimate out-of-pocket expenses bona

fide incurred by the deputy director or receiver in

connection with some special service rendered -for the protection of the assets of the farmer or in connection with the farmer's business and which expense does not in his opinion come within the category of an ordinary office expense.

(c) by deleting subsection (6) and substituting the fol- Director's Arad receiver's re-

lowing:— numeration and expenses a first

(6.) All moneys receivable by or payable to rharge.

directors or receivers, and expenses and liabilities '

properly chargeable under subsections (4) and

(5) of this section, shall by virtue of this Act be

a first charge on all the proceeds of the farmer's

business.

4. Subsection (3) of section five of the principal Act is Amendment or Mt. principal

hereby deleted and the following substituted therefor:— Act'

(3.) The receiver shall forthwith, after his appoint- Authority of

ment, take possession of all the assets of the farmer and receiver.

retain possession thereof, and receive all the proceeds

of the farmer's business as long as the farmer is subject

to this Act.

5. Section seven of the principal Act is hereby amended-- Amendment of s. 7, principal

(a) by deleting: subsection (1) of that section and insert- Act.

ing the following in lieu thereof :—

Effect of stay

(1.) A stay order shall direct that no action, execution, distress for rent, proceedings on de- fault for breach of covenant under any mortgage or other security for money, or under an agree- ment for sale and purchase of land, or other pro- cess or proceeding, shall be commenced or pro- ceeded with or put in force against the farmer or any of the farmer's assets, whether utilised in con- nection with or forming portion of the assets com- prised in his farming business or not during the operation of such stay order: Provided that, by order.

No. 45.] Farmers' Debts Adjustment. [1933.

leave of a judge, any action may, notwithstanding the stay order, be instituted and/or carried on against the farmer, but not beyond judgment;

(b) by adding the following at the end of subsection

(2) :—

In this subsection the term "adjournment," used in relation to a meeting, includes a re- view or subsequent meeting held on a specified date pursuant to any resolution of the creditors passed at the time of any resolution for the ad- justment or arrangement of the farmer's affairs under section eleven. This amendment of subsec- tion (2) shall be deemed to have effect as front the commencement of the principal Act;

(c) by inserting in subsection (3), after the word "agreement," in line five, the words "the levying of any distress";

(d) by adding a new subsection, as follows:

(4.) In the event of any creditor having taken any such proceedings as are mentioned in this section, and having seized or attached any pro- perty of the farmer, the receiver shall, on the making of the stay order, be entitled to possession of or to receive such property, and, subject to this Act and to any resolution of the creditors under this Act, to utilise and dispose of the same in con- nection with the farmer's business.

amendment of	6. Section eight of the principal Act is hereby amended
N. 8, principal

Act.	(a)	by striking out the words "all property coming to
Powers of re-

ceiver in regard	his hands and derived from the business of the
to moneys de-
rived from carry-	farmer,'' in lines two and three of subsection 2 (a)
Mg on farmer's
business.	and inserting in lieu thereof the following:—"all property or produce derived from the farmer's business";

(b)	by inserting after the word "hands," in line seven thereof, "or moneys derived from the realisation of such property or produce";
(c)	by striking out the words "any crop proceeds," in line thirteen, and substituting the words "the pro- ceeds of any such property or produce";

1933.] Farmers' Debts Adjustment. [No. 45.

(d) by adding a proviso as follows at the end of subsec-

tion (3) :-

Provided that the director may at any time Audit.

employ a Government officer as an auditor to make an audit of and, make a report to him on all the accounts and transactions of the receiver, and the receiver shall at all times render every assistance and furnish all information required by an auditor in making such audit.

(e)	by adding a new subsection after subsection (4) :— (4a.) Where a stay order lapses through efflux-	Where stay order
lapses, receiver's
authority con-
tinues for pur- pose ot winding-

ion of time or from any other cause, the receiver's	up.
authority shall continue for the purpose of en- abling him to carry into effect any resolution of the creditors and to wind up Ins receivership.

7. A new section is added after section nine of the prin-	a. 9, principal
Amendlnent of

cipal Act:- Act.

9A. (1.) Where a farmer dies during the currency of continuingProvision for

a stay order, the receiver's authority shall continue for	receivership.
the purpose of enabling him to carry into effect any reso- lution of the creditors and to wind-up his receivership; provided that the director shall

(a)	as soon as possible after receiving notice of the death, call the creditors together and inform them whether or not in his opinion satisfac- tory arrangements can be made to carry on the business of the farmer;
(b)	if the creditors pass a resolution authorising the business to be carried on, the same may be carried on accordingly until the expiration of the stay order;
(c)	if the creditors resolve that it is inadvisable that the business should be carried on any further, the stay order shall lapse as from the date of such resolution or such other date either prior or subsequent to the expiration in the ordin- ary course of the stay order under subsection (2) of section seven, as the creditors may decide.

(2.) The provisions of this section shall apply in

any ease where a receiver is receiver in respect of a busi-

ness carried on by two or more farmers in co-partnership

No. 45.] Farmers' Debts Adjustment. [1933.

and one of the farmers dies during the currency of the

stay order.

Amendment of

s, 10, principal 8. Subsection (1) of section ten of the principal Act is

Act.	hereby amended by adding the following after the word " pre-
Quorum at
meetings.	side":—" and a quorum shall consist of three creditors or all the creditors of the farmer, where the creditors are less than three in number. Such creditors may be present and vote at the meeting either personally or by his representative.

Amendment of	9. Section twelve of the principal Act is hereby
s. 12, principal

Act.	amended
Encumbrances

over farmer's	(a)	by adding the following at the end of subsection
property after

stay order. (3) :—or which, in the opinion of the director, is warranted in order to render the security more productive for the purpose of the farmer's busi- ness, and is calculated to be of benefit to the farmer and his creditors in general;

(b) by adding a further subsection as follows:

(4) Where any creditor has supplied a farmer who at the time of supply has been granted a stay order under the Act with any wire netting for the purpose of rendering the farmer's farm or hold- ing more productive, then the director may, with the consent of a majority of creditors given in writing, or of a resolution of a meeting of creditors held in accordance with section ten of this Act, declare that such credi- tor shall have a charge against the proceeds of the farmer's business in each season during which the stay order is in operation to secure repayment of the price of such wire netting by such instalments, and at such rate of interest as may be agreed upon between the farmer and the creditor supplying such wire netting and ap- proved by the director.

creditors. Rights a secured 10. Section thirteen A of the principal Act is hereby re-

pealed and the following inserted in lieu thereof :—

A secured creditor	13A. (1) Subject to the powers of the receiver under section eight, every creditor who holds any security at the date of the stay order over the produce of any farmer's
security.
retains fruits of

over produce

1933.] Farmers' Debts Adjustment. [No. 45.

farm shall, notwithstanding any resolution of the credi- tors, be entitled to the full benefit thereof, subject, how- ever, to the payment thereout of the following:—

e eivieeresC le: re-

(i) the fees, emoluments, or percentage payable to Snb Ge;

deputy directors and receivers under subsec-

tion (6) of section four ;

(ii) ally moneys necessary for disbursements for the necessary dis- bursements tinder

purposes set out in subsection 2 (a) of sec-	S (2a).
tion eight.

Provisos and

Provided, however, in regard to any such. security exceptions :

(a) that if any transaction or document which re- unregistered bills of sale void;

quires registration as a bill of sale under the provisions of the Bills of Sale Act, 1899, and its amendments does not comply with the for- malities prescribed by or is not duly regis- tered within the time limited therefor by the. said Acts, the same shall be void as against the receiver and the other creditors of the farmer;

bill of sale for

(b) any bill of sale by way of security within the Past debts void

meaning of the Bills of Sale Act, 1899, and its	if given within
six months ;
amendments made within six months prior to the granting of a stay order to a farmer under this Act, shall be void as against the receiver and the creditors as to any sum secured which is other than a contemporaneous advance within the meaning of the said Acts, or a future advance or liability (together with in- terest thereon, according to the terms of the said bill of sale) made or undertaken by the grantee after the making thereof on the security of the said bill of sale and within the maximum amounts covered thereby;

(c)	any security given or granted by a farmer within six months prior to the granting to the farmer	or if not given
in ordinary
Course of busi-
ness and in good

of a stay order under this Act, shall be void,	fa ith
as against the receiver and the creditors, unless the same was given in the ordinary course of business in good faith and for valu- able consideration;

(d) any order, authority, or writing given at any wheat orders,

time by a farmer which assigns or purports to

No. 45.] Farmers' Debts Adjustment. [1933.

assign the produce of his business, or the pro-

ceeds of the produce of his business shall

(i)    If the same requires registration under the Bills of Sale Act, 1899, and its amendments, and does not comply with the formalities prescribed, or is not duly registered under the said Acts; or

(ii)    in any case where the same does not require such registration, if the produce or the actual proceeds of the produce the subject thereof have not been received by the creditor in whose favour such order, authority, or writing is given before the date of the stay order

be absolutely void as against the receiver and the other

creditors of the farmer.

Statutory liens

unaffected: cf.	(2) Nothing in this section shall affect any statutory
Act.

13A of principal	lien or security.
s. 13B, principal

Amendment of 11. Section thirteen B of the principal Act is hereby

Act.	amended by adding the following at the end thereof :—
Time for regis-
tration of bill of	"Where the director grants any order under this section, the
sale extended
where director	time for registration of the bill of sale as prescribed by the
grants order.	Bills of Sale Act, 1899, and its amendments shall, in respect of such bill of sale, be extended for a further period of seven days from the granting of such order, or seven days from the expiration of the time prescribed by the said Act and its amendments, whichever is the longer."

Amendment of	12.	Section nineteen of the principal Act is hereby
s. 19. principal

Act.	amended by striking out the words "thirty-four" and insert-
Duration of Act.	ing the words "thirty-five."
Citation of

Principal Act 13. The principal Act as amended by this Act may be cited

as amended. as the Farmers' Debts Adjustment Act, 1930-1933.