Document ID: chunk:federal_register_of_legislation:F2020C00878:reg:11
Version: federal_register_of_legislation:F2020C00878
Segment Type: reg
Provision Reference: reg 11
Character Range: 9524–10743

11  Purpose criteria—connection with drought
 (1) The Corporation must not make an expanded drought loan to an eligible farm business unless the loan will assist the business to:
 (a) engage in drought preparedness activities; or
 (b) manage or recover from the effects of drought by doing one or more of the following:
 (i) restructuring its existing debt;
 (ii) meeting its operating expenses;
 (iii) enhancing its productivity.
 (2) The Corporation must not make an expanded drought loan to an eligible farm business unless:
 (a) where the business intends to use the loan funds for the purpose mentioned in paragraph (1)(a)—the business is in financial need of assistance due to an event outside of its control; or
 (b) where the business intends to use the loan funds for the purpose mentioned in paragraph (1)(b)—the business is in financial need of assistance as a consequence of drought.
 (3) The Corporation must not make an expanded drought loan to an eligible farm business unless the business has a drought management plan that:
 (a) outlines the activities that the businesses proposes to spend the loan funds on; and
 (b) sets out the business's drought preparedness, management and recovery strategies.