First. All costs, charges and out-of-pocket expenses incidental to the preparation and registration of security and expenses (if any) incurred during the period of control.

Second. Five per centum of the balance of gross proceeds of the farm to the settler for his personal use. The gross proceeds shall include any bonus on wheat granted by the State or Federal Governments.

Third. Debts for approved current supplies, services and advances necessarily incurred in connection with the ensuing crop, wool clip or stock.

Fourth. One year's mortgage interest, one year's land rents, rates and taxes accrued due, and one fourth balance outstanding on approved machinery under hire-purchase agreement, with a maximum of £75, minimum £15 or balance if lesser sum outstanding on any one machine. (If insufficient funds, all payments under this priority to be pro rata.)

Fifth. Previous year's deficiency under "third" priority, if any, arising under this plan.

Sixth. Previous year's deficiency under "fourth" priority, if any, arising under this plan.

Seventh. Other liabilities not suspended in accordance with paragraphs 6 or 10. Secured creditors shall not be entitled to receive more than 40 per cent. of surplus available under this heading.

Eighth. Liabilities voluntarily suspended in accordance with paragraphs 6 or 10.

Note.—Where interest is chargeable on unsecured past debts, the rates shall not exceed 5 per cent. per annum.

3. The priority lien above referred to shall be valid and the consideration be deemed a contemporaneous advance through part of such consideration may be debts already incurred for current supplies, services, and advances, and such priority lien shall be registered without the lodgment of a Notice of Intention to register as is required by the provisions of the Bills of Sale Act, 1899.

In respect of advances made to the settler for the aforesaid farming operations prior to the execution of the priority lien, a statement specifying such advances, signed by the settler, shall be accepted as conclusive evidence of such advances having been made.

It shall be optional on the part of the controlling creditor to delegate to another person authority to take a second Bill of Sale over the crop and/or clip and stock to secure the past debts of the settler, such debts being listed in a schedule thereto. Such Bill of Sale shall be valid, and the past debts be deemed a contemporaneous advance within the meaning of the Bills of Sale Act, 1899, and further, it shall be registered without the necessity of lodging a "Notice of Intention" as required by provisions of the Bills of Sale Act, aforesaid.

Within twenty-eight (28) days of publication of the particulars of the Bill of Sale, any creditor whose name does not appear in the schedule to such Bill of Sale may have his claim admitted to participate thereunder on proof of his claim to the satisfaction of the controlling creditor.

Upon realisation of the crop proceeds by the controlling creditor he shall without undue delay distribute the same in accordance with the foregoing priorities, and in the event of his having delegated authority to another person to take a second Bill of Sale, he shall pay to the second grantee any surplus moneys remaining in his hands after discharging the liabilities of the first to sixth priorities above mentioned.

Upon discharging the liabilities of the first to sixth priorities and payment of such surplus moneys, accompanied by a statement setting out all receipts and payments, to the second grantee, the first grantee shall be discharged from all liability under the lien and the second grantee shall apply such moneys in and towards payment of the remaining priorities in the order mentioned, and render final accounts of the distributions to the settler.

In the case of a Bank being the controlling creditor, a statement of the account of the settler with the Bank in respect of the said farming operations of the settler, shall be accepted as the statement required under this clause, and on delivery of such statement to the second grantee, the Bank shall be under no further liability to account.

4. The controlling creditor shall have discretionary power to create preferences for essential supplies and services which, if exercised, shall modify the distribution priorities under paragraph 2, but not as to affect the first and second priorities, provided that no controlling creditor shall give himself a preference to the prejudice of other creditors.

5. In all cases under this plan, the Agricultural Bank statutory lien shall be waived, provided it shall be a condition of such waiver that the controlling creditor shall allow the Bank a preference for all money advanced for superphosphate and sustenance necessary for the then sown or about to be sown crop.

6. Where a settler applies to the Director, Farmers' Debts Adjustment Act, to call a meeting of his creditors under this part of this plan, and the creditors at such meeting voluntarily to decide to provide the required assistance, no adjustment or conditioning of debts, as provided hereinafter, shall be effected except as may be consented to by the creditor or creditors whose claims would be affected thereby.

Upon completion of the securities provided under paragraphs 2 and 3, the Stay Order, if issued, shall be cancelled by the Director upon application by the controlling creditor, and the settler shall thereupon be deemed to be a settler under part 1 of this plan.

7. The controlling creditor may at any time thereafter and from time to time during the currency of control under this part of the plan, apply to the Director, Farmers' Debts Adjustment Act, for a Stay Order for such purposes as that Act allows.

8. A register shall be kept at the office of the Director, Farmers' Debts Adjustment Act, in Perth, in which shall be registered the names of all settlers receiving assistance under Part 1 of the Plan, and short particulars of the securities held by the controlling creditor for the benent of all creditors entitled, and such register shall be open for public inspection during office hours without fee.

9. A settler whose name is registered in accordance with paragraph eight shall not be entitled to incur any further liability except that sanctioned by the controlling creditor, and any person who extends credit without such sanction shall not be entitled to recover the amount of the debt incurred thereby, and all claims in respect thereof shall be null and void, provided that this clause shall not affect any hability incurred for necessary medicial services.

10. In considering a settler's application for assistance under this part of this plan, the creditors may