Document ID: chunk:federal_register_of_legislation:C2025C00029:section:14:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 14 (pt 1/19)
Character Range: 5502950–5505526

14                                                       The *FMD provider must not deduct from the deposit (whether at the time it is made, while it is with the FMD provider or at the time of its repayment) any administration fee or other amount required by the FMD provider to be paid in respect of the deposit or otherwise.

393‑37  Agreements for a farm management deposit may allow for some offsets of a depositor's liabilities
  An agreement mentioned in paragraph 393‑20(1)(b) does not contravene the requirements of item 8 of the table in section 393‑35 to the extent that:
 (a) it provides for amounts of interest to be payable to the *FMD provider in respect of a loan or other debt of the *owner of the *farm management deposit, or of a partnership of which the owner is a partner, to be reduced; and
 (b) that loan or other debt relates to a *primary production business that the owner or partnership carries on.

393‑40  Repayment of deposit within first 12 months

Partial repayment within first 12 months
 (1) Any part of a deposit repaid before the last day of the 12 months after the day the deposit is made is not, and is taken never to have been, part of a farm management deposit.
Note 1: A repayment covered by subsection (3), (3A) or (5) is disregarded in applying this subsection. The normal rules in sections 393‑5 (about deductions for making a farm management deposit) and 393‑10 (about assessability of the repayment of a farm management deposit) apply instead.
Note 2: This subsection does not apply if a deposit is reinvested, the term of a deposit is extended, or a deposit is transferred at the depositor's request: see section 393‑15.

Deposit not to be reduced to less than $1,000 within first 12 months
 (2) A deposit is not, and is taken never to have been, a farm management deposit if the amount of the deposit is reduced to less than $1,000 because of one or more repayments before the last day of the 12 months after the day the deposit is made.
Note 1: A repayment covered by subsection (3), (3A) or (5) is disregarded in applying this subsection.
Note 2: This subsection does not apply if a deposit is reinvested, the term of a deposit is extended, or a deposit is transferred at the depositor's request: see section 393‑15.

Repayment in the event of severe drought
 (3) Subsections (1) and (2) do not apply to a repayment of the whole or a part of a *farm management deposit if:
 (a) the *owner of the deposit carries on a *primary production business that satisfies one or more of paragraphs (a), (b), (c) and (f) of the definition