Document ID: chunk:federal_register_of_legislation:F2021C00016:body:0:p4
Version: federal_register_of_legislation:F2021C00016
Segment Type: other
Provision Reference: 
Character Range: 8366–11274

that the Commonwealth is not seeking to impede appropriate structural adjustment nor be the lender of last resort to the farming sector. To this end, the Corporation should not provide loans to applicants who have intentionally pursued high risk strategies and practices without adequately assessing risks and seeking to mitigate them where possible.
    (6) The Corporation will ensure that farm business loan applicants are informed of the outcome of their loan application as soon as practicable after a decision on their application has been made.
    11. Loan management
    (1) The Corporation must undertake all aspects of its loan management in a prudential manner to minimise the risk of default.
    (2) The Board must ensure that prudential and arrears management policies and procedures are developed and applied by the Corporation. The Board must ensure at all times the loan management, arrears management, recovery action, foreclosure arrangements, waiver of debt, write‑offs and dispute/complaints handling are undertaken in accordance with those policies and procedures.
Farm business loans
    (3) In developing its policies and procedures in relation to farm business loan management activities, the Corporation is expected to have regard to the concessional nature of the farm business loans and consider the impact on the farm business of any proposed action in relation to the farm business loan. The Corporation must offer, and undertake where required, farm debt mediation.
    (4) The Corporation may take farm business loan recovery and foreclosure action. Any decision on foreclosure of a farm business loan must be made by the Board and cannot be delegated.
    (5) The Corporation may waive an unpaid farm business loan debt, in accordance with its arrears management policies and procedures. Before waiving any unpaid farm business loan debt, the Corporation must consult with, and take into account the views of the responsible Ministers. Any decision to waive an unpaid farm business loan debt must be made by the Board and cannot be delegated.
    12. Internal review
    (1) The Board must ensure that an internal review procedure for decisions to grant or refuse farm business loans is developed and applied by the Corporation.
    (2) The internal review procedure is required to be transparent, robust and fair. Specifically the internal review procedure:
       (a) will require the internal review to be carried out by a person who was not the primary decision‑maker in the original decision;
       (b) will require the decision on the internal review to be made by an officer within the Corporation who was not the primary decision‑maker in the original decision (who may be the same person referred to in paragraph (a)); and
       (c) must be consistent with principles of procedural fairness.
    (3) The Corporation must include details of the right to request an