Bill
Banking Amendment (Rural Finance Reform) Bill 2018
lapsed, as at 2018-09-18. (s) SHARKIE, Rebekha, MP portfolio.
- Sponsor
- Rebekha Sharkie
- Portfolio
- (s) SHARKIE, Rebekha, MP
Recorded stages
- introduced — 2018-02-26
- second reading — 2018-02-26
- other — 2018-09-18
Divisions
No divisions recorded. Most questions are decided on the voices; this does not establish that a bill was unopposed.
Plain-language summary
Written by a model from the explanatory memorandum; not the record, as at 2018-02-26.
This bill is part of a package that would give small family-run farms extra protections when borrowing from banks.
Banks would be banned from including certain default clauses, from changing loan terms without notice, and from charging borrowers for valuations or audits.
The rules would start on the first 1 July after the bill becomes law.
- Banks must give borrowers a one-page summary of clauses that could trigger a non-monetary default.
- Banks are prohibited from unilaterally valuing loan security.
- Banks cannot include catch-all material adverse change clauses except for fraud or criminal activity.
- Banks must give 30 business days' notice before using a general restriction covenant, except for fraud or criminal activity.
- Banks must give borrowers valuation instructions and final reports at no cost.
- Banks must give 90 business days' notice if they decide not to renew or extend a loan.
Small primary production businesses that borrow from authorised deposit-taking institutions.
Sources
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