Farmers' Relief Amendment (Debts Adjustment) Act 1935 (NSW)

FABMEKS' RELIEF AMENDMENT

(DEBTS ADJUSTMENT) ACT.

Act No. 18, 1935.

An Act to provide for the granting of assistance to farmers to effect an adjustment of their debts; to extend the operation of the Farmers'Relief Act, 1932-1934; to amend the said Act and certain other Acts; and for purposes connected therewith. [Assented to, 28th March, 1935.]

BE it enacted by the King's Most Excellent Majesty, lative Council and Legislative Assembly of New South by and with the advice and consent of the Legis-	Wales in Parliament assembled, and by the authority of
the same, as follows :—
1 . (1) This Act may be cited as the " Farmers' Belief Amendment (Debts Adjustment) Act, 1935." (2).

(2) The F a r m e r s ' Relief Act, 1932-1934, is in th is

Ac t re fe r red to as the Pr inc ipa l Act.

(3) The Pr inc ipa l Act as amended by this Act may

be cited as the F a r m e r s ' Relief Act, 1932-1935.

2. (1) The Pr inc ipa l Act is amended—

(a)	by omitting from subsection one of section eight the words ' ' wi thin twenty-four months af ter the da te of commencement of this Ac t " and by inse r t ing in lieu thereof the words " before the first day of Apr i l , one thousand nine hundred
and thir ty-s ix " ;
(b)	by inserting in subsection three of the same section af ter the words " this Act " where firstly occurr ing the words " which notice has not been wi thdrawn in accordance wi th subsection (3c) of th is section " ;
(c)	by inserting next after subsection (3B) of the same section the following new subsect ion:—

(3c) (a) A fa rmer who has filed in the office of the Board a notice disclaiming the benefits of this Act may, in wri t ing, w i thd raw such notice but only with the consent of the Board .

(b) The notice of wi thdrawal shall be accompanied by a s ta tement , verified by the s t a tu to ry declara t ion of the fa rmer , specifying the names and addresses of all persons or firms to whom the fa rmer is indebted, and by the con­ sent in wr i t ing to such wi thdrawal of all such persons or firms.

Such consent may be given on behalf of any person or firm by his or i ts agent. (c) The Boa rd may a t i ts discret ion

g r a n t or refuse such consent.

"Where the Board proposes to g r a n t such con­ sent it shall give a t least twenty-one d a y s ' notice of i ts intent ion so to do by notification published in the Gazette, in the Weekly T r ade Repor t , and in one daily newspaper circulat ing in the distr ict in which the f a rmer resides or in which the f a rm is si tuated, and within tha t per iod any

person

person to whom the farmer is indebted may

lodge a t the office of the B o a r d an objection to

the g ran t ing of such consent.

Any such objection m a y be withdrawn a t any time by notice in writing filed in the office of the Board .

D u r i n g the said per iod of twenty-one days the provis ions of subsection two of section nine of this Act shall, muta t i s mutandis , apply to and in respect of the fa rmer as if he were a f a rmer subject to this Act.

(d) W h e r e any such objection is re­ ceived by the B o a r d within the period limited by p a r a g r a p h (c) of this subsection, the B o a r d shall, unless the objection is wi thdrawn, refuse such consent.

(e) The Board may g r a n t such consent subject to such t e rms and conditions as it th inks fit.

(d)	by omitting subsection ten of section nine and
by inser t ing in lieu thereof the following sub­ sections :—

(10) Subject to subsection eleven of this section, a s tay order shall continue in operat ion for a per iod of three yea r s from the date of the g r a n t thereof, unless sooner removed in accor­ dance wi th section ten of this Act.

(11) The B o a r d may extend the opera t ion of

a n y s tay order from yea r to year , bu t so tha t the to ta l per iod for which any s tay o rder m a y

be extended shall not exceed three years .
(12) A s tay order shall continue in opera t ion no twi ths tanding the death, lunacy or unsound­ ness of mind of the f a rmer in respect of whom i t was gran ted .
(o)	by inserting in subsection two of section ten
immediately before the words " Any credi tor " the words " Any fa rmer o r . "

(2) P a r a g r a p h (a) of subsection one of this section

shall be deemed to have commenced on the seventeenth day of Feb rua ry , one thousand nine hundred and th i r ty-

five. 3 .

3 . The Pr inc ipa l Act is fur ther amended—

(a) by inserting next after subsection two of section thir ty-one the following new subsection:—

(2A) (a) The B oa r d m a y direct the R u r a l

Bank of New South Wales to pay any amount for which the Board may become liable in pur­ suance of any guaran tee given under subsection one of this section.

(b) The R u r a l Bank of New South Wales shall make any payment which the Boa r d m a y direct under p a r a g r a p h (a) of this subsec­ tion, th rough its F a r m e r s Relief Agency, out of the moneys available to the bank for the pur­ poses of t ha t Agency.

(b) by inserting next after section thirty-two the following new section:—

32A. (1) Any fa rmer who while subject to this Act receives any moneys, whether as the p ro ­ ceeds of the marke t ing of any produce of the f a rm or otherwise, which moneys a r e receivable by the supervisor in accordance wi th this Act shall account to the supervisor for thwith for the same.

(2) Any fa rmer who neglects or refuses so to account shall be liable on summary con­ viction to a penal ty not exceeding one hundred pounds or to impr isonment for six months .

(c) by inserting next after section 33A the follow­ ing new sect ions:—

33B. The p r o p e r t y and in teres t of any f a rmer

in any moneys received by him out of moneys gran ted to the S ta te of New South Wales under the W h e a t Growers Relief Act (No. 2) , 1934, of the Pa r l i amen t of the Commonwealth of Aus­ t ra l ia , and pa id by that S ta te in accordance with tha t Act to him as a wheatgrower or received by him as a bounty on the product ion of wheat unde r the W h e a t Boun ty Act, 1934, of the said

Pa r l i amen t , shall be unaffected by th is Act .

3 3 c .

33c. The p r o p e r t y and in teres t of any fa rmer

in any moneys received by him out of moneys g ran ted to the S ta te of New South Wales unde r the F r u i t g r o w e r s Relief Act, 1933, of the P a r ­ l iament of the Commonwealth of Aus t ra l i a and appl ied by tha t S ta te in accordance wi th the said Act for his benefit and assis tance as a necessi­ tous f ru i tgrower or unde r P a r t V I I of the F inanc ia l Relief Act, 1934, of the said Pa r l i a ­ men t and applied by tha t S ta te in accordance wi th the last-mentioned Act for his benefit and assis tance as a f ru i tgrower shall be unaffected by th is Act.

33D. The p r o p e r t y and in teres t of any fa rmer

in any moneys received by him out of moneys g ran ted to the S ta te of New South Wales under the Manda r in Growers Relief Act, 1934, of the P a r l i a m e n t of the Commonwealth of Aus t ra l i a and applied by tha t S ta te in accordance wi th the said Act for his benefit and assis tance as a grower of manda r in s shall be unaffected by this Act.

4 .     The Pr inc ipa l Act is fur ther amended by omit t ing

sections for ty- three and forty-four.

5 . (1) This section shall commence on a day to be

appoin ted by the Governor and notified by proc lamat ion

published in the Gazette.

(2) The Pr inc ipa l Act is fur ther amended—

(a) by omit t ing P a r t I I A and by inse r t ing in l ieu

thereof the following new P a r t : —

P A R T I I A .

F A R M E R S ' DEBTS A D J U S T M E N T .

34A. (1) Any fa rmer to whom a s tay o rder has been g ran ted under this Act who proposes to effect a composition or scheme of a r r ange ­ ment wi th his credi tors or any of them in sat is­ faction in whole or in p a r t of his debts a n d / o r

liabilit ies,

liabilities, whether secured or unsecured, may a t a n y t ime and from t ime to t ime du r ing the opera t ion of the s tay order make applicat ion to the Boa rd for assistance to give effect to such composition or scheme.

(2) The application shall be accompanied b y a s ta tement giving par t i cu la r s of the pro­ posal for the composition or scheme and set t ing o u t the amounts which his respective credi tors have informed him they a re p r e p a r e d to accept in discharge wholly or in p a r t of his debts or liabilities to such credi tors .
(3) The fa rmer shall upon a request in wr i t ing by the Boa rd in tha t behalf furnish such informat ion and such accounts, documents and wr i t ings as the Boa rd may require for the pur ­ pose of considering such application.

34B. Upon receipt of an applicat ion under section 34A of this Act the Board shall consider t he proposa l for the composition o r scheme and m a y approve of the same as submit ted or may suggest such amendments to the proposa l as it thinks fit and m a y thereaf ter approve of any

amended proposal .

34c. (1) The Boa rd may if it thinks fit call a meet ing of the f a r m e r ' s credi tors or any of them a t such t ime and place as i t may determine for the purpose of considering any proposal for a composition or scheme.

The B o a r d may appoint a cha i rman to pres ide a t such meeting. If no such appoin tment is made the credi tors p resen t may appoint one of the i r number to act as chairman.

(2) The fa rmer may a t any t ime submit a n amended proposa l which shall be considered by the Board .

34D. (1) If any credi tor of the fa rmer is a t rus tee such creditor shall not be deemed guilty of any breach of t r u s t by reason only of his jo in ing in any composition or scheme of a r r ange­ ment for the satisfaction in whole or in p a r t of

the debts a n d / o r liabilities of the farmer .

( 2 )

(2) I n this section " t r u s t e e " includes

legal represen ta t ive of a deceased person and any other pe r son act ing in any fiduciary capacity.

34E. (1) If the Board is satisfied tha t a f a rmer who has made an applicat ion unde r section 34A of this Act will have a reasonable prospect of cont inuing and ca r ry ing on his farming opera­ t ions successfully if any composition or scheme which he is able to a r r a n g e wi th his c redi tors or any of them is concluded or p u t into effect, i t may, for the purpose of g ran t ing the assist­ ance appl ied for—

(a)	direct the R u r a l Bank of New South "Wales to make an advance to the fa rmer for the purpose of d ischarging either wholly or in p a r t any of the debts or liabilit ies
of the f a r m e r ;
(b)	guarantee to any mortgagee the payment of in teres t on his mor tgage a t such r a t e as m a y be agreed upon and for such per iod as it m a y determine.

(2) Such assis tance shall not be g ran ted unless and unt i l the f a rmer and such of his credi tors as the Boa rd may deem necessary shall have executed such deeds, agreements and other

documents as the B o a r d m a y requi re .

(3) The R u r a l Bank of New South Wales shall make any advance which the B o a r d m a y
direct unde r p a r a g r a p h	(a) of subsection one of
th is	section.

A n y such advance shall be made in the name of the B o a r d th rough the F a r m e r s Relief Agency of tha t Bank out of the funds to the credit of the separa te account ment ioned in sub­ section three of section 34J of th is Act, and shall be of such amount , upon such securit ies and subject to such covenants , conditions and pro­ visions (including provision for the payment of in te res t a t a r a t e not exceeding two and one-half pe r centum per annum) as the Board may, in

the direction, specify. (4)

(4) (a) The Board may direct the R u r a l Bank of New South Wales to pay any amount for which the Board may become liable in pu r ­ suance of any guaran tee given under subsection one of this section.

(b) The R u r a l Bank of New South Wales shall make any payment which the B o a r d may direct under p a r a g r a p h (a) of this subsec­ tion th rough its F a r m e r s Relief Agency out of the funds to the credit of the separa te account mentioned in subsection three of section 34J of

th is Act.

(5) The B oa r d shall not direct the R u r a l

Bank of New South Wales to make an advance for the purpose of d ischarging in whole or in p a r t any of the f a r m e r ' s debts and l iabil i t ies unless and unt i l the person to whom such debt or l iabil i ty is due has given to the fa rmer an under t ak ing in wr i t ing unde r his hand to execute a release of such debt or l iabili ty or so much thereof as is to be discharged upon receipt of the amount agreed to be pa id to him.

A n y such under tak ing and any release

executed in pursuance of the same shall be effective for all purposes no twi ths tanding tha t i t is not given under seal.

(6) The Boa rd shall not gua ran tee the

payment of in teres t to any credi tor unless the

credi tor enters into an agreement p ro tec t ing

the f a rmer from adverse action by the credi tor for such per iod as the B oa r d may determine and such agreement is consented to by the Board .

34F. The B oa r d may consent to the postpone­ ment in favour of any credi tor of the fa rmer of any securi ty given to the B o a r d by the farmer , or of the charge or lien created by subsection three of section thir ty-one of this Act, if in the opinion of the B oa r d such postponement is in

the in teres ts of the fa rmer .

34G.

34G. F o r the purposes of this P a r t of t h i s

Act—

(a)

the Board may write off either wholly or

in p a r t any debt due or owing by a	f a r m e r
to the R u r a l Bank of New South	W a l e s
in respect of the F a r m e r s Relief	Agency

in i ts Government Agency D e p a r t m e n t ;

(b)

the Rural Bank of New South Wales may wr i te off, e i ther wholly or in pa r t , any debt due or owing by a f a rmer to t he R u r a l Bank of New South Wales in respect of any other agency in i ts Govern­

ment Agency D e p a r t m e n t :

P rov ided tha t the R u r a l Bank of New

South Wales shall no t wr i te off e i ther wholly or in p a r t any debt due to such Bank in respect of the I r r i ga t ion Agency in i ts Government Agency D e p a r t m e n t , other t han a debt incur red unde r or in pursuance of section 8B of the I r r i g a t i o n Act, 1912, as amended by subsequent Acts .

34H . (1) The B oa r d may appoin t such agen t s

to act on its behalf for the purposes of th i s P a r t of this Act as it th inks fit, and m a y direct the R u r a l Bank of New South Wales to p a y th rough i ts F a r m e r s Relief Agency to such agents by way of r emunera t ion such sums as i t

considers reasonable .

(2) The B o a r d m a y delegate to any per­

son such of i ts powers and functions unde r th i s
P a r t of this Act as it th inks fit:

Provided , however, t ha t the power of t he B o a r d to approve of any composition or scheme of a r r angemen t shall not be so delegated.

34i. Upon proof to the sat isfact ion of t he B o a r d t ha t any f a rmer has knowingly made any false s ta tement or has otherwise wilfully misled the Boa rd ei ther before, a t or af ter the t ime of

the

the B o a r d ' s approva l of a composition or scheme of a r rangement , the B o a r d shall be enti t led to call u p any advance which has been made to the f a rmer under this P a r t and to exercise i ts r igh t s unde r any securi ty re la t ing there to notwith­ s tanding anyth ing to the con t ra ry contained in the Mora to r ium Act, 1932, or any Ac t amending or replacing tha t Act.

The notice calling up any such advance shall not be given unless or unt i l the s tay order g ran ted to such f a rmer has been removed.

W h e r e the B o a r d calls up any advance, the

moneys advanced shall become due and payable as f rom the da te specified in the notice calling up such advance.

34 j . (1) All moneys received by the S ta te of New South Wales from the T r e a s u r e r of the Commonwealth of Aus t ra l i a in pursuance of any enactment of the P a r l i a m e n t of the Common­ weal th of Aust ra l ia , passed af ter the commence­ ment of the F a r m e r s ' Belief Amendment (Debts Adjus tment ) Act, 1935, under which moneys a r e g ran ted to the S ta tes to be appl ied by the S ta tes for purposes contemplated by this P a r t of this Act, shall be pa id by the Colonial T r e a s u r e r to a special account in the T reasu ry .

(2) F r o m such special account the

Colonial T r e a s u r e r shall f rom t ime to t ime make available to the R u r a l Bank of New South Wales for the purposes of the F a r m e r s Relief Agency

such moneys as the B o a r d m a y requi re for

advances and other expendi ture incur red or to

be incurred p u r s u a n t to this P a r t of this Act.

(3) Notwi ths tand ing any th ing in P a r t

V I B of the Government Savings Bank Act, 1906,

as amended by subsequent Ac t s—

(a) the Rural Bank of New South Wales shall keep a separa te account in respect of all moneys made available to such Bank in pursuance of subsection two of th is sect ion;

(b).

(b)	to such separate account shall be credited all moneys received by the Rura l Bank of New South Wales as agent for the Board as capi tal r epayment s in respect of advances or expendi ture unde r th is
P a r t of this A c t ;
(c)	from such separate account shall be paid only such moneys as the Boa r d may requi re the R u r a l Bank of New South Wales to advance or pay for any of the purposes of this P a r t of this A c t :
Provided , however, tha t with the con­ sent of the T r e a s u r e r of the Common­

wealth of Aus t ra l i a , given either general ly or in a pa r t i cu la r case, there may be paid f rom such sepa ra t e account moneys for any purpose t ha t the Colonial T reasu re r may determine.

34K. (1) The Board shall in i ts annua l r epo r t furnish a s ta tement showing the number of f a rmers to whom assis tance has been g ran t ed and the to ta l expendi ture incurred p u r s u a n t to this P a r t of this Act for the per iod covered by

the s ta tement .

(2) E v e r y such s ta tement shall be accom­

panied by a certificate of i ts correctness by the Audi tor -Genera l of the S t a t e of New South Wales .

(b) by omit t ing from subsection one of section one	the m a t t e r re la t ing to P a r t I I A and by inser t ing
in lieu thereof the words and figures ' ' P A R T I I A
— F A R M E R S ' DEBTS A D J U S T M E N T — s s . 34A-34K."
6 . The F a r m e r s ' Relief	(Amendment )	Act, 1934, is

amended—

(a)	by omit t ing section t w o ;
(b)	by omit t ing s u b p a r a g r a p h (ii) of p a r a g r a p h (d)

of section four ;

(c) by omit t ing p a r a g r a p h (c) of section seven;

(d)

(d) (i) by inserting in subsection one of section eight after the words ' ' this Act ' ' wherever occurring the words and figures " or the Farmers ' Belief Amendment (Debts Ad- justment) Act, 1935 " ;

(ii)  by inserting next after subsection two of the same section the following new sub- section :—

(3) A reference in any bond executed before the commencement of the Farmers ' Belief Amendment (Debts Adjustment) Act, 1935, and delivered to the Farmers ' Eelief Board in pursuance of section thir- teen of the Frincipal Act, to the Farmers ' Belief Act, 1932, or to the Farmers ' Belief Act, 1932-1934, shall, as from such com- mencement be read and construed as a reference to the Farmers ' Belief Act, 1932-