The Receiver shall at all times carry out the written directions of the trustees given to him from time to time relating to administration of the affairs of the settler.

The receiver shall from time to time at the direction of the trustees render to them a written statement of the affairs of the settler and of the manner in which the same are being administered.

The Trustees shall not be personally liable for any default on the part of the receiver or any agent appointed by them.

The Receiver shall keep a register of the settler's liabilities and assets, receive all profits, rents and returns of the settler's farm arrange approved credit and in all other respects conduct the affairs of the settler's in the same manner as a receiver appointed under the farmer's Debts Adjustment Act,1930 and Amendment Act, 1931, subject to such modification as is herein provided.

All moneys collected by the Receiver shall be credited to the overdraft account and upon collection of final returns an account shall be prepared showing the result of the season's operations.

Five per centum of gross farm revenue received shall be paid to the resulting balance shall be subject to the following payments:—

(a)Outstanding commitments for essential current supplies, including one fourth of the amount outstanding on provide hire purchase machinery, maximum on any one machine £75, minimum £15 or balance, and one year's rates land rents Bank and Mortgagee's interest.

Any credit balances in the account after payment of foregoing shall be distributed in the following order of preferences: —

1. Recoup to the"'Fund" any deficiency and interest thereon at a prescribed rate, resulting from the previous year's operations under this plan.

2. One year's mortgage interest, land rents. rates, and taxes to the debit of existing arrears.

3. One- third of the balances outstanding on hire purchase machinery with the limitations set out in (a) above.

4. Other liabilities not suspended by adjustment under Part 2 of this plan— Pro rate.

5. Suspended liabilities pro rate.

When interest is chargeable on unsecured past debts, the rates shall not exceed five per centum.

5. The Receiver with the written consent of the Trustees, shall have discretionary power to create preferences for essential supplies and services, which, if exercised, shall modify the distributions accordingly.

6. Any resulting debit balance on the overdraft account shall be recouped by the Trustees at the end of each season from the fund, and the amount of such recoup shall be listed as the Receiver's deficiency and shall be recouped from the future year's surplus as a first preference in the manner set out in paragraph 4.

7. The Trustees shall be vested with a statutory charge over the crops and with the consent of existing lien holders, the stock and chattels of the settler, and may hypothecate such security to the bank as primary security for repayment of the overdraft advance.

8. The overdraft advances shall be collaterally secured by the Trustees as a charge upon the fund.

9. 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 coming under Part 2 of this plan, and short particulars of the warrant issued to the receiver ; such register to be open for public inspection during office hours without fee.

10. A settler whose name is registered in accordance with paragraph 9 shall not be entitled to incur any Further liability except with the sanction of the Trustees, and any person who extend 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 effect any liability incurred for necessary medical services.

11.Any Receiver appointed under this part shall give to the Trustees such security as they may require, to ensure due performance of his duties.

12. All proceedings against the settler by any creditor other then the Trustees, shall be stayed during the currency of his assistance under the plan, provided that the period of such stay shall be excluded from time running under any Statute of Limitations.

                                 THE FUND (PART 2 )

From the foregoing it will be seen that provision must be made to curry those deserving settler whose financial positions are not sufficiently sound to warrant creditors accepting further risks on their account, and therefore your commissioners recommend the creation of a fund to ensure that settlers coming under Part 2 of the plan shall be assisted to carry on their farming operations

The director of the farmers' Debts Adjustment Act estimates that a fund of £350,000 per 1,000 settlers will be sufficient to finance cropping operations at least and that harvesting requirements could be obtained on credit with a guarantee of payment out of the fund should the crop proceeds prove insufficient to meet current liabilities. Your commissioners are of the opinion that this method of finance is reasonable and accordingly suggest provision be made to finances, say 2.000 settlers under part 2 of the plan in the manner already set out.

From the procedure already outlined, it will be seen that bank overdrafts will be secured primarily by Hypothecation of statuary liens and charge held by the Trustees and collaterally by the Trustees' guarantee of payment out of the " fund " The fund therefore. need not be readily subscribed in cash but may itself Partake of the nature of partly cash including proceeds of the proposed flour acquisition Act. and partly guarantee by merchants and the government. At the close of operation under the plan the fund should be distributed amongst its Subscribers proportionately to their respective contributions, the residue of the flour Acquisition proceeds going to consolidated Revenue.