Bill
Banking Amendment (Rural Finance Reform) Bill 2019
lapsed, as at 2020-02-11. (s) SHARKIE, Rebekha, MP portfolio.
- Sponsor
- Rebekha Sharkie
- Portfolio
- (s) SHARKIE, Rebekha, MP
Recorded stages
- introduced — 2019-07-22
- second reading — 2019-07-22
- other — 2020-02-11
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 2019-07-22.
The bill adds protections for small primary production businesses when they borrow from banks and other authorised deposit-taking institutions.
It would stop lenders from unilaterally valuing loan security, from using broad 'material adverse change' clauses, and from changing loan terms without notice, among other requirements.
The rules would start on the first 1 July after the bill receives royal assent.
- Requires lenders to give borrowers a one-page summary of clauses that could trigger a non-monetary default.
- Prohibits lenders from performing their own valuations of loan security and from charging borrowers for valuations or audits.
- Mandates a 30 business day notice before exercising a power under a general restriction covenant, except for fraud or criminal activity.
- Requires lenders to notify borrowers at least 6 months before a term loan expires and to give 90 business days' notice if they decide not to renew or extend a loan.
- Requires lenders to inform borrowers about external dispute resolution in certain situations, such as after a default notice or a declined hardship request.
- Imposes civil penalties on lenders that do not follow these rules.
Small primary production businesses and the authorised deposit-taking institutions that lend to them.
Sources
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