Farmers' Debts Adjustment Act Amendment Act 1934 (WA)

1934. ] Farmers' Debts Adjustment. [No. 46.

FARMERS' DEBTS ADJUSTMENT.

25° GEO. V., No. XLV.

No. 46 of 1934.

AN ACT to amend the Farmers' Debts Adjustment Act,

1930-1933.

[Assented to 5th January, 1935.]

Council and Legislative Assembly of Western Australia, inBE it enacted by the King's Most Excellent Majesty, byand with the advice and consent of the Legislative

this present Parliament assembled, and by the authority of

the same, as follows:-

1.    This Act may be cited as the Farmers' Debts Adjust- Short title.

meat Amendment Act, 1934, and shall be read as one with the Farmers' Debts Adjustment Act, 1930-1933, hereinafter called "the principal Act," as reprinted with amendments in the Sessional Volume of Statutes for the year 1933-1934.

2.    Section five of the principal Act is hereby amended by Amendment of

inserting in subsection (2) the following words, after thet;

sp.riielp°afl Act.

word "shall," in the second line of the subsection:—" subject

to the provisions of subsection (9) of section eleven."

3.    Section six of the principal Act is hereby amended by A„,,„dille„, of

inserting i n line -four in subsection (1), after the word ;Ael°pfal thIct.

"days," the following:—"or such further time as the Direc-

tor may determine."

Section seven of the principal Act is hereby amended Amendment of

4.   2. 7 of the

as follows:— principal Act.

(a) by inserting at the end of subsection (1) the following

further proviso:

Provided further, that the creditors may by reso-

lution passed at a meeting of which at least seven

No. 46.] Farmers' Debts Adjustment. [1934.

days' notice in writing has been given specifying the purpose of the meeting, resolve that any par- ticular asset which does not come within the cate- gory of a farming asset, and which is not needed for the purpose of carrying on the farmer's business, may be excluded as from the date of the resolution from the operation of the stay order.

(b) by striking out all words after the word "until," in line four of subsection (2) of the section, and insert- ing in lieu thereof the words, "cancelled by the Director under subsection (3) of section six, or until rescinded by resolution passed at a meeting of the creditors of the farmer, in which latter case the stay order shall lapse twenty-one days after the passing of the resolution, or on such later date as the credi- tors may determine at the time of the passing of the resolution."

Amendment of

s. 10 of the	5. Section ten of the principal Act is amended
principal Act.

(a) by inserting, in line one of subsection (1), the words

"or his nominee" after the word "Director";

(b) by inserting a new subsection after subsection (1),

as follows:-

1 (a). Whenever at any meeting a quorum of the creditors is not present, the Director may, if he considers it advisable, adjourn the meeting to some convenient date with a view to getting the attendance of a quorum;

(c) by inserting, at the beginning of subsection (4), the words "subject to the express provisions of sub- section (7) of section eleven."

Amendment of

s. 11 of the 6. Section eleven of the principal Act is hereby repealed

principal Act.	and the following substituted therefor :—
Farmers may

apply for writ-	(1)	A farmer may, at the time of making application for a stay order under this Act, or at any time there- after, submit a scheme for the writing-clown or sus- pension, or for both the writing-down and suspen- sion, of his debts and liabilities.
ing-down or sus-
pension.
Director may
modify scheme.	(2)	If in the opinion of the Director the scheme as sub- mitted by the farmer is impracticable or inequitable in the circumstances, the ?Director may, with the consent of the farmer, modify its provisions in such

1934.] Farmers' Debts Adjustment. [No. 46.

manner as will be calculated in the opinion of the Director to meet with the approval of all parties concerned.

(3) Whenever the Commissioners of the Agricultural Bank Comm issioners

of Western Australia, in exercise of the powers iiiinikgturg;itreugitest

vested in the Commissioners under the Agricultural

f rip.% ce osrch eon] e.

Bank Act, 1934, have agreed (whether conditionally or otherwise) to a writing-down or suspension of the debts of any farmer due to the Commissioners, the Commissioners may request the Director to draw up a scheme for the writing-down or suspension, or both the writing-down and suspension, of the debts of the farmer other than the debts due by the farmer to the Commissioners. On such request being made the Director shall issue a stay order under the pro- visions of this Act.

(4) The scheme submitted by the farmer shall be consid- ered by the Director in the light of the productive	The basis of
scheme to bo
productive gaga•
city of farm.

capacity of the farmer's farm and his ability to pay his debts and liabilities as based thereon, and any scheme drawn up by the Director at the request of the Commissioners shall be based on similar consid- erations.

In examining any scheme submitted by a farmer, or in formulating any scheme at the request of the Commissioners, the Director shall have access to any files and records of the Commissioners or any Government files and records relating to the farmer's business, and may also, with the approval of the said Commissioners, or of the Minister controlling any Government Department, make use of the ser- vices of any officer of the Commissioners or in any Government Department, as the case may be. Director to have

(5) access to files,

(6)	The Director shall submit the scheme of the farmer (subject to ally modification made by the Director,	Director submit
scheme to meet
ing.

with the consent of the farmer), or the scheme for- mulated by the Director (as the case may be), to a meeting of the farmer's creditors under this Act.

(7)	The creditors may by resolution passed by a majority of at least four-fifths of the creditors in value	Majority of
four-fifths in
value for writ-
ing-down scheme.

(but not necessarily in number) sanction the said scheme, or an amendment or modification thereof, but no amendment or modification shall

No. 46.] Farmers' Debts Adjustment. [1934.

be made to the same by the creditors without the consent of the Director, and no resolution affecting the security of any first mortgagee shall be of any

Rights of first

mortgagee.

effect unless and until the consent of such first mort- gagee is obtained: Provided, however, that subject to the aforesaid majority a resolution suspending the liability of the farmer on a personal covenant or contract in relation to any security, or whereby the farmer is released wholly or partly from his liability on a personal covenant or contract in relation to any security, may be passed by the creditors, and shall be valid and effective, notwithstanding that the first mortgagee does not consent thereto.

Director may

adjourn meeting	(8)	The Director may of his own motion, if he considers
in certain cases

and endeavour	that the meeting is not representative of the major-
to get consent of
absent creditors.	ity of creditors, or that through inadvertence the majority of creditors have not had an opportunity of being present or represented at the meeting, ad- journ the meeting to such convenient date as the Director may think fit, or the Director may adjourn the meeting with a view to giving the Director an opportunity to communicate with any absent creditors or creditors not so represented, and to obtain their consents in writing to the scheme within a stipulated time, in which event consents obtained and for- warded to the Director within that time shall be as valid and effectual as if the creditors concerned had personally attended and voted at the meeting. If at such adjourned date the creditors, subject to the provisions of this and the preceding subsection, agree to the scheme, either by attending and voting in person or by their representatives, or by filing their consents as hereinbefore provided, then the scheme shall become effective.
Receiver not

necessary, except	(9)	In any case where a farmer makes application under the foregoing provisions of this section for the writ- ing-down or suspension, or both the writing-down and suspension, of his debts and liabilities, it shall not hn necessary for the Director to appoint a re- ceiver pursuant to subsection (2) of section five of this Act, unless he considers it advisable to do so : Provided, however, that a receiver shall be ap- pointed by the Director immediately upon the sanc- tioning of any scheme which provides for the fur-
where seasonal
credit provided.

1934.] Farmers' Debts Adjustment. [No. 46.

nishing of seasonal credits by the creditors, or any

of them.

(10)	Subject to the foregoing provisions of subsections (1) to (8) of this section, as soon as practicable after the	General provisions applicable to
all meetings.

opening of any meeting, the chairman shall invite the creditors to ascertain by consultation amongst themselves whether it is possible to arrange the affairs of the farmer to advantage, and the creditors may by a majority in value and number of those present or represented and voting at the meeting, or any adjournment thereof, pass any resolution for the adjustment and arrangement of the farmer's affairs which may appear to them to be expedient, and the creditors may further determine that the meeting shall stand adjourned to some date to be specified, with a view to further consideration of the farmer's affairs.

(11)	Subject to the provisions of subsections (1) to (8) of this section, any resolution so passed shall be bind-	Aggrieved crane/
may apply to a
judge to set aside
scheme or reso-

ing on the farmer and his creditors, and may be	lution.
given effect to : Provided that its provisions are such as the farmer and his creditors might lawfully have. embodied in an agreement made between themselves: Provided, however, that the Supreme Court, or a Judge thereof, may on an application being made by the Director, or any other person interested, within four weeks after the passing of the resolution, re- scind the resolution on the ground that it is mani- festly unjust to the farmer or any creditor, and order another meeting of the farmer's creditors to be convened by the Director and held at such time and place as the Director shall determine.
No notice of

(12)	Sections three to thirteen, both inclusive, of Act No. 13 of 1906, shall not apply to any security given	intention to register hill of
sale necessary

pursuant to any such resolution as aforesaid. etc.

(13)	If for any reason it shall appear to the Director that it is expedient for the creditors to meet at a date	Di rector may
call creditors
together at
any time.

earlier than that to which any meeting has been ad- journed, pursuant to any resolution of the creditors, he may, by circulars delivered or posted in manner specified in section six, summon the creditors to meet at an earlier date.

(14)	Where any moneys secured by any mortgage are also	Liability of
guarantors.
secured by guarantee, the liability of the guarantor

No. 46.] Farmers' Debts Adjustment. [1934.

on his personal covenant or contract under the guar- antee shall in any case where the mortgage debt is written down, be also written down proportion- ately. The creditors may also determine by resolu- tion that the personal liability of any guarantor under a guarantee shall be suspended during such time as the debts of the farmer are suspended pur- suant to any resolution passed under this section.

Statute of

Limitation	(15)	The period during which payment of any debt or lia- bility is suspended under this section shall not bel taken into account for the purpose of any Statute of Limitation.
(16)	In this section the term "mortgage" means any mort- gage, charge, lien, or other security over property for the payment of money, and includes all equitable charge by deposit of title deeds; and the term "mort- gagee" has a corresponding meaning.
Penally for false

statements. 7. A new section is inserted after section sixteen of the

principal Act, as follows :—

16A. (1.) Any farmer who wilfully makes any false statement or furnishes any false information for the sub- mission to his creditors for the purpose of this Act

(a) in connection with any application under this Act ;

or

(b) as to the amount or nature of any assets belonging to him or in regard to any debt due by him, or any claim against him or his estate,

commits an offence.

(2.)

Any person who is knowingly concerned in the pre-

paration of any such false statement, or in the furnishing

of such false information, commits an offence.

(3.)

Any person who commits an offence under either of the last two preceding subsections shall be liable to a penalty not exceeding fifty pounds, or to imprisonment with hard labour for six months.

Amendment of

s. 19 of the 8. Section nineteen of the principal Act is hereby amended

Principal Act.

by substituting the word "thirty-eight" for the word "thirty-

five," in line two.

Citation of

principal Act 9. The principal Act as amended by this Act may be cited

as amended as the Farmers' Debts Adjustment Act, 1930-1934.