further voluntarily arrange between themselves to write off, or suspend free of interest, or under such other terms and conditions as they may deem fit, any portion of the settler's indebtedness as to them appears desirable.

11. Every controlling creditor, other than a bank, shall, if required by the Director, Farmers' Debts Adjustment Act, furnish such security as may be prescribed.

12. All proceedings against the settler by any creditor, other than the controlling creditor, in respect of securities held by him, shall be stayed during the currency of the Plan, provided that the period of such stay shall be excluded from the time running under any Statute of Limitations.

Part 2.

1. The legislation as recommended by your Commissioners under Part 7 of this report should provide for the following:—

(a) The appointment by the Government of three Trustees. Provided that if the necessary finance is found for this part of the Plan by the Commonwealth and/or Associated Banks, the Government shall appoint one Trustee and the Commonwealth or Associated Banks shall nominate for appointment two of the said trustees.

(b) Conferring upon the Trustees a statutory lien over crops, wool clips and stock of settlers, including any bonus which may be granted by Federal or State Governments, and a statutory charge in the prescribed form over the land of the settler to whom they may make advances either by way of cash or guarantee.

(c) The opening and maintenance of a Register at the Office of the Director in Perth, in which the names of all settlers admitted to Parts 1 and 2 of this Plan shall be entered, and short particulars of securities held by the controlling creditor and/or the Trustees for the benefit of all creditors entitled.

2. The Trustees shall have all necessary powers to administer and carry into effect this part of the Plan, and without in any way limiting the general power hereby conferred upon them, they shall have the following particular powers:—

(a) To establish and control a fund from which deserving settlers who have been unable to arrange finance under Part 1 of this Plan, shall at the discretion of the Trustees receive advances.

(b) To assess and suspend free of interest, estimated excess of liabilities of settlers who apply to the Trustees for such relief.

(c) To appoint and remove Receivers under this part of the Plan.

(d) From time to time to borrow money at interest and give all necessary security for repayment thereof.

(e) To receive all moneys received from the Flour Acquisition Act.

(f) To deposit the money so received with their bankers and use the whole or any part of such moneys for carrying this part of the Plan into effect.

(g) To take security by way of lien and charge as provided under Clause 1 (b) and to hypothecate or otherwise deal with such securities in such manner as they deem fit in order to obtain finance for effectively carying into effect this part of the Plan.

(h) To take all necessary action for recovering any moneys from a defaulting Receiver, including any action necessary under a bond taken for the due performance of such Receiver's duties.

3. (a) Before receiving any assistance under this part of the Plan, a settler must apply for a Stay Order as set out in paragraph one of Part 1 of this Plan, and submit his proposals for finance in writing to his creditors at the resultant meeting.

(b) Where the creditors at the meeting, or as the result thereof, voluntarily arrange between themselves to provide the necessary credit, no reference to the Trustees by the Director is necessary, and upon completion of securities in favour of the controlling creditor, the settler shall be deemed to be a settler under Part 1 of the Plan.

(c) If the creditors do not voluntarily arrange between themselves at such meeting or as the result thereof, to provide the necessary credit, the Director shall submit the proposals, together with a copy of the minutes of the meeting of creditors to the Trustees who may, on the merit of the case, accept or reject the settler's proposal or a modification thereof; provided, however, that in the event of acceptance the settler shall be deemed to be a settler under Part 2 of the Plan, and his excess of liabilities over asset value shall be ascertained by the Trustees, and placed in suspense free of interest for such period as they may determine.

4. Upon acceptance of a settler by the Trustees a warrant shall be issued to a Receiver nominated by the Trustees entitling him to operate on overdraft at the settler's or such other bank as may be arranged, for the purposes set out therein.

The Trustees may, in their sole discretion at any time and from time to time cancel the appointment of a Receiver. On such cancellation the warrant issued to such Receiver in respect of a settler shall become void, and any bank receiving notice of cancellation shall hold any credit balance standing to the credit of the account of the Receiver of such settler to the order of the Trustees, and the right of the Receiver to operate on the account shall be deemed to be cancelled.

The Trustees, on the death of any Receiver or cancellation of the appointment of any Receiver, may at their discretion appoint another Receiver to administer the affairs of the settler and issue a fresh warrant to such Receiver.

The books of the Receiver kept by him in reference to the affairs of the settler shall be open at all times to the inspection of the Trustees or any agent appointed from time to time by them.