In case you were not aware the government House of Representatives on June 4th 2015, referred the terms of reference listed below, relating to the impairment of customer loans, to the Parliamentary Joint Committee on Corporations and Financial Services for inquiry and report by 31 March 2016.
What this means is that practices of banks and other financial institutions using a constructive default (security revaluation) process to impair loans by devaluing property held as security increasing the loan to equity ratio to suit their underhanded foreclosure agenda.
Be aware of previously conducted Parliamentary Inquiries that with considerable taxpayer funding did not halt the standover merchants of finance. Take time to read terms of reference and conclusions to get the picture how thick the whitewash was applied.
Joint Parliamentary Committee on Corporate and Financial Services – 4/5/2009 – Downloador read pdf report [HERE]
Senate Inquiry (Economics Committee) into the role of Liquidators Administrators – 18/12/2009 – Download or read pdf report [HERE]
The Effectiveness of the Australian Securities and Investment Commission – 23-7-2013 – Download or read pdf report [HERE]
The committee is looking for submissions from the public and the closing date is 21st August 2015.
I would suggest that everyone read submissions already presented with all farmers reading the 3rd submission put forward by Mr Richard B. Wright and Mrs Barbara Ann Wright. It’s all about ANZ destroying a very successful cattle farming business where bank receivers – sent cattle from a registered stud for slaughter – sent registered horses from a stud to be sold at dogger prices, and much more. [Click Here].
It is important for home owners, business owners and farmers, who have had a lender manufacture a default, to make a submission. However, pay particular attention to the terms of reference listed below, keeping your submission relevant to those terms or your efforts will be deemed not relevant.
Terms of Reference:
- practices of banks and other financial institutions using a constructive default (security revaluation) process to impair loans, whereconstructive default/security revaluation means the engineering or the creation of an event of default whereby a financial institution deliberately reduces,through valuation, the value of securities held by that institution, thereby raising the loan-to-value ratio resulting in the loan being impaired;
- role of property valuers in any constructive default (security revaluation) process;
- practices of banks and other financial institutions in Australia using non-monetary conditions of default to impair the loans of their customers,and the use of punitive clauses such as suspension clauses and offset clauses by these institutions;
- role of insolvency practitioners as part of this process;
- implications of relevant recommendations of the Financial System Inquiry, particularly recommendations 34 and 36 relating to non-monetaryconditions of default and the external administration regime respectively;
- extent to which borrowers are given an opportunity to rectify any genuine default event and the time period typically provided for them to doso;
- provision of reasonable written notice to a borrower when a loan is required to be repaid;
- appropriateness of the loan to value ratio as a mechanism to default a loan during the period of the loan; and
- conditions and requirements to be met prior to the appointment of an external administrator; and
- in undertaking this inquiry, the Committee take evidence on:
- the incidence and history of:
- loan impairments; and
- the forced sale of property;
- the effect of the forced sale of property in depressed market conditions and drought;
- comparisons between valuations and sale price;
- the adequacy of the legal obligations on lenders and external administrators (including s420A of the Corporations Act 2001) to obtainfair market value for the forced sale of property; and
- any related matters.
- the incidence and history of:
On 4 June 2015 the committee resolved that:
- in conducting the inquiry the committee will not investigate or seek to resolve disputes between customers and banks; and
- where the experiences of customers may inform the committee about the practices of banks, the committee welcomes submissions that explicitlyaddress the terms of reference.
Link to terms of reference – [HERE]
How to Making a Submission [Download pdf]
Committee Secretariat contact:
Parliamentary Joint Committee on Corporations and Financial Services
PO Box 6100
Canberra ACT 2600
Phone: +61 2 6277 3583
Fax: +61 2 6277 5719
Bob Katter, KAP Member for Dalrymple Shane Knuth, Alan Jones and Robbie Katter tell the Liberal and National Parties they have had enough!
THE LAST STAND IN WINTON: WE WANT A RECONSTRUCTION BOARD
5 December 2014: KAP Leader and Federal Member for Kennedy Bob Katter said today that the ‘The Last Stand in Winton’ – the Rural Debt Crisis Summit was unanimous in its determination to seek a reconstruction debt approach to farm debt.
Approximately 400 people including leading economists, politicians, Government Ministers and farmers from around Australia attended the Summit called by the State Member for Mount Isa, Rob Katter.
Radio Presenter Alan Jones was the guest speaker who promised he would be delivering the message from the bush to the people in the cities and the politicians in Canberra and the capital cities. Mr Jones received a rousing standing ovation from the audience who he told to ‘put their shoulders square and fight’.
“Farm debt has exploded in 9 years from $31,000 million to over $64,000 million last year,” Mr Katter said.
“To reconstruct the bad end of that debt is achievable by Government and they need to move in immediately in a situation where the banks are foreclosing at a rate of 10 properties per week.
“Banks do not just foreclose, they’re using duress and even mis-representation to get people to agree to terms without putting them into receivership.”
Mr Katter said the meeting unanimously rejected the Government’s offer of more debt by way of concessional loans.
The meeting also called for a moratorium on all bank foreclosures until the drought ends.
Farmers spoke from the floor to give heart-breaking accounts of their farms being sold up after generations on the land.
A Winton Rural Crisis Committee will now be established to take forward the outcomes of the meeting.
The resolutions agreed to at the meeting are:
Drought and other natural disasters
1) That the current Drought Assistance approach is a failure and this approach is rejected outright as manifestly inadequate
2) That the meeting calls on the Council of Australian Governments to convene an inclusive working group (within a month) to develop a new approach to drought and other periods of natural disaster consistent with the WTO Agreement on Agriculture framework
3) That the new approach support stressed agricultural businesses by providing:
· Prompt direct funding assistanceSimple conditions of access
· Low interest loans
· Greater certainty as to the availability of assistance
· A form similar to the previous QRAA model, and
· Other features arising from subsequent industry deliberations
4) That governments increase the number of Rural Financial Counselling and other support services in the state of Qld and place them appropriately around the state.
5) That Australian farmer incomes and profitability be made central to government policies, including in a reworking of the inadequate Agriculture Green Paper
6) That the Senate Economics Legislation Committee proceed in its enquiry into the Reserve Bank of Australia Amendment (ARDB) Bill as a matter of urgency
7) That the Federal Government commit to the provision of finance to fund the reconstruction and development of Australian Industry with urgent attention to rural industries and infrastructure
8) That the State government provide affordable Risk Mitigation Insurance to give effective cover against natural disasters
9) That interest rates are excessive and incompatible with sustainable production, industry profitability and international competitiveness. The Federal Government to work towards reducing interest rates.
10) That the Australian dollar is un-competitively high and calls on the federal government and the Reserve Bank to put in place methods to compensate Australian industries and reduce the dollar.
11) That governments and banks immediately enact a moratorium on forced farm sales until effective action is taken on the resolutions above
12) That the meeting supports the Winton/Western Rural Crisis Committee in its efforts to advance these issues and relevant other issues subsequently raised with appropriate industry and government representatives and agencies