Document ID: chunk:federal_register_of_legislation:F2020C00878:reg:12
Version: federal_register_of_legislation:F2020C00878
Segment Type: reg
Provision Reference: reg 12
Character Range: 10743–11528

12  Capacity to repay loan and provide security
 (1) The Corporation must not make an expanded drought loan to an eligible farm business unless:
 (a) the Corporation is satisfied that the business has the capacity to repay the loan; and
 (b) the business provides sufficient security for the loan.

       Types of security the Corporation must consider
 (2) For the purposes of paragraph (1)(b), the Corporation must consider requiring security in the form of:
 (a) a registered mortgage over land; or
 (b) a registered mortgage over livestock; or
 (c) a registered security interest in water rights.
Note: The program guidelines published under section 26 will set out other kinds of securities that the Corporation will consider and require in relation to expanded drought loans.