Current Status Introducing Body:Senate Bill Number:896 Primary Sponsor:Long Committee Number:01 Type of Legislation:GB Subject:Farm Debt Mediation Act of 1991 Residing Body:Senate Current Committee:Agriculture & Natural Resources Companion Bill Number:3945 Computer Document Number:DKA/3338.AL Introduced Date:Apr 17, 1991 Last History Body:Senate Last History Date:Apr 17, 1991 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Long Type of Legislation:General Bill
Bill Body Date Action Description CMN
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896 Senate Apr 17, 1991 Introduced, read first time, 01
referred to Committee
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TO AMEND TITLE 29, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 14 SO AS TO REQUIRE MEDIATION BETWEEN FARM DEBTORS AND CREDITORS, TO IMPLEMENT RESTRUCTURING OF DEBT PAYMENTS TO AVOID FORECLOSURES, AND TO ENABLE FARMERS TO CONTINUE OPERATING OR TO REACH OTHER MUTUALLY BENEFICIAL AGREEMENTS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. This act may be cited as the "Farm Debt Mediation Act of 1991".
SECTION 2. Title 29 of the 1976 Code is amended by adding:
Section 29-14-10. For purposes of this chapter:
(1) `Agricultural property' means land that is used primarily for farming and personal property that is used as security to finance a farm operation or used as part of a farm operation including equipment, crops, livestock, and proceeds of the security.
(2) `Coordinator' means the farm crisis program coordinator provided in Section 29-14-20.
(3) `Creditor' means the holder of a mortgage or deed of trust on agricultural property, a person with a lien or security interest in agricultural property, or a judgment creditor with a judgment against a debtor with agricultural property.
(4) `Mediation release' means an agreement or statement signed by all parties or by less than all the parties and the mediator pursuant to Section 29-14-110.
Section 29-14-20. The Attorney General or the Attorney General's designee shall serve as the farm crisis program coordinator. The coordinator has the powers and duties specified in this chapter.
Section 29-14-30. The farm crisis coordinator shall contract with a nonprofit organization chartered in this State to provide farmer-creditor mediation services. The contract may be terminated by the coordinator upon written notice and for good cause. The organization awarded the contract is designated as the farm mediation service for the duration of the contract. The farm mediation service is not a state agency for any other purposes than mediating farm debts.
Section 29-14-40. This chapter applies to all actions and proceedings subject to Sections 29-14-50 and 29-14-60 in which the creditor has a secured debt of twenty thousand dollars or more against agricultural property of the debtor.
Section 29-14-50. A borrower who owns agricultural property or a creditor of that borrower may request mediation of the indebtedness by applying to the farm mediation service. The farm mediation service shall make voluntary mediation application forms available. The farm mediation service shall evaluate each request and may direct a mediator to meet with the borrower and creditor to assist in mediation.
Section 29-14-60. (A) A creditor subject to this chapter desiring to initiate a proceeding to enforce a debt against agricultural property which is real estate under Article 7, Chapter 3 of Title 29, to enforce a secured interest in agricultural property, or to otherwise garnish, levy on, execute on, seize, or attach agricultural property, shall file a request for mediation with the farm mediation service. The creditor may not begin the proceeding subject to this chapter until the creditor receives a mediation release, or until the court determines after notice and hearing that the time delay required for the mediation would cause the creditor to suffer irreparable harm.
(B) Upon the receipt of a request for mediation, the farm mediation service shall conduct an initial consultation with the borrower without charge. The borrower may waive mediation after the initial consultation.
Section 29-14-70. (A) After receiving a mediation request, the farm mediation service shall refer the borrower to a financial analyst associated with the Clemson Extension Service QMAP program. The financial analyst shall assist the borrower in the preparation of information relative to the finances of the borrower for the initial mediation meeting.
(B) After receiving the mediation request, the farm mediation service shall notify the borrower that legal assistance may be available.
(C) The coordinator shall contract with a nonprofit organization or the Department of Mental Health to provide rural stress counselling to farm families who are involved in the mediation process. After receiving a mediation request, the farm mediation service shall notify the borrower that a rural stress counselling service is available through the mediation board.
Section 29-14-80. (A) Unless the borrower waives mediation, within twenty-one days after receiving a mediation request the farm mediation service shall send a mediation meeting notice to the borrower and to all known creditors of the borrower setting a time and place for an initial mediation meeting between the borrower, the creditors, and a mediator directed by the farm mediation service to assist in mediation. An initial mediation meeting must be held within twenty-one days of the issuance of the mediation meeting notice.
(B) If a creditor subject to this chapter receives a mediation meeting notice under subsection (A), the creditor and the creditor's successors in interest may not begin or continue any proceeding subject to this chapter against agricultural property of the borrower. Time periods under and affecting those procedures stop running until the farm mediation service issues a mediation release to the creditor.
Section 29-14-90. At the initial mediation meeting and subsequent meetings, the mediator shall:
(1) listen to the borrower and the creditors desiring to be heard;
(2) attempt to mediate between the borrower and the creditors;
(3) advise the borrower and the creditors as to the existence of available assistance programs;
(4) encourage the parties to adjust, refinance, or provide for payment of the debts;
(5) advise, counsel, and assist the borrower and creditors in attempting to arrive at an agreement for the future conduct of financial relations among them.
Section 29-14-100. The mediator may call mediation meetings during the mediation period, which is up to forty-two days after the farm mediation service received the mediation request. If all parties consent, mediation may continue after the end of the mediation period.
Section 29-14-110. (A) If an agreement is reached between the borrower and the creditors, the mediator shall draft a written mediation agreement, have it signed by the creditors and submit the agreement to the farm mediation service.
(B) The borrower and the creditors who are parties to the mediation agreement may enforce the mediation agreement as a legal contract. The agreement constitutes a mediation release.
(C) If the borrower waives mediation, or if a mediation agreement is not reached, the borrower and the creditors may sign a statement prepared by the mediator that mediation was waived or that the parties did not reach an agreement. If any party does not sign the statement, the mediator shall sign the statement. The statement constitutes a mediation release. Unless the borrower waives mediation, a creditor must not receive a mediation release until the creditor has participated in at least one mediation meeting.
Section 29-14-120. Upon petition by the borrower and all known creditors, the farm mediation service may, for good cause, extend a deadline imposed by Section 29-14-80 or 29-14-100 for up to thirty days.
Section 29-14-130. (A) All data regarding the finances of individual borrowers and creditors which is created, collected, and maintained by the farm mediation service are not public records under the Freedom of Information Act.
(B) Meetings of the farm mediation service are closed meetings and are not subject to the Freedom of Information Act.
Section 29-14-140. The farm mediation service shall recommend regulations to the coordinator. The coordinator shall adopt regulations pursuant to the Administrative Procedures Act, to set the compensation of mediators and to implement this chapter. The compensation of the mediators is no more than twenty-five dollars an hour, and all parties shall contribute an equal amount of the cost. The coordinator shall adopt voluntary mediation application and mediation request forms."
SECTION 3. The contract required by Section 29-14-10 of the 1976 Code must be awarded within forty-four days after the effective date of this act.
SECTION 4. This act takes effect upon approval by the Governor.