54-13-1
Definition of terms.
54-13-2
Agriculture mediation program--Purposes--Administration.
54-13-3
Repealed.
54-13-4
Staff services--Employment of director and other employees--Payment of expenses.
54-13-5
Responsibility for fees--Agricultural mediation operating fund created--Appropriation--Annual review--Disbursements.
54-13-6
Contracts with state agencies, nonprofit corporations, or individuals.
54-13-7
Assistance to borrower or creditor.
54-13-8
Repealed.
54-13-9
Notice to borrower and creditor of availability of financial preparation assistance.
54-13-10
Mandatory mediation--Requirements--Voluntary mediation.
54-13-11
Notice of initial mediation meeting--Exempt creditors--Waiver of right to mediate--Debt collection limitations.
54-13-12
Length of mediation period--Notice to borrower--Additional meetings.
54-13-13
Mediation of indebtedness requested by borrower--Procedure--Attendance at
meetings not required.
54-13-14
State or federal time periods deemed to run concurrently.
54-13-15
Continuation of mediation--Expiration of mediation period--Agreement between
borrower and creditors.
54-13-16
Statement of waiver or failure to reach agreement deemed release.
54-13-17
Time limitation on waiver by borrower.
54-13-18
Information regarding finances of borrowers and creditors not public records--Mediation meetings not open.
54-13-19
Other rights and duties, penalties, and actions not affected.
54-13-20
Mediator or ag finance counselor immunity from civil liability--Qualifications.
54-13-1. Definition of terms.
Terms used in this chapter mean:
(1) "Agricultural land," a parcel of land larger than forty acres not located in any municipality and used in farming or ranching operations carried on by the owner or operator within the preceding three- year period for the production of farm products as defined in subdivision 57A-9-102(a)(34) and includes wasteland lying within or contiguous to and in common ownership with land used in farming or ranching operations for the production of farming or ranching products;
(2) "Ag finance counselor," a person who is trained to assist in agricultural credit matters;
(3) "Agricultural property," agricultural land or personal property or a combination thereof used in the pursuit of, or arising out of, or related to, the occupation of farming or ranching;
(4) "Borrower," an individual, corporation, trust, cooperative, joint venture, or any other entity entitled to contract who is engaged in farming or ranching and who derives more than sixty percent of total gross income from farming or ranching and who has been extended agricultural credit;
(5) "Creditor," any individual, organization, cooperative, partnership, trust, or state or federally chartered corporation to whom is owed agricultural debt by a borrower;
(6) "Federal land mediation," a process by which individuals or organizations seek to resolve disputes with federal land management agencies;
(7) "Agricultural credit mediation," a process by which creditors and borrowers present, discuss, and explore practical and realistic alternatives to the resolution of a borrower's debts;
(8) "Mediator," anyone responsible for and engaged in the performance of mediation pursuant to this chapter, who is trained and certified by the Department of Agriculture and Natural Resources;
(9) "Oil and gas mediation," a process by which individuals or organizations seek to resolve disputes with oil and gas developers related to surface damages.
Source: SL 1988, ch 384, § 1; SL 2001, ch 259; § 1; SL 2013, ch 241, § 1; SL 2015, ch 203, § 26; SL 2021, ch 1 (Ex. Ord. 21-3), § 51, eff. Apr. 19, 2021.
54-13-2. Agricultural mediation program--Purposes--Administration.
The Department of Agriculture and Natural Resources shall administer an agricultural mediation program to:
(1) Provide mediation to borrowers and creditors seeking to resolve credit disputes;
(2) Provide federal land mediation to individuals or organizations seeking to mediate disputes with federal land management agencies concerning decisions made by those federal agencies; and
(3) Provide oil and gas mediation to individuals or organizations seeking to mediate disputes over surface damages related to oil or gas development.
The secretary of the Department of Agriculture and Natural Resources shall promulgate rules, pursuant to chapter 1-26, necessary for mediation, federal land mediation, and oil and gas mediation including the establishment of fees, training requirements for mediators and ag finance counselors and their certification, mediation request forms, and any other mediation procedures as may be necessary for the prompt and expeditious mediation of agriculture related disputes, including the receipt of funds pursuant to the Agricultural Credit Act of 1987, as of January 1, 2015.
The agricultural mediation program may not, as a condition to mediation, require that any party waive any respective legal or equitable remedies or rights.
Source: SL 1988, ch 384, § 2; SL 1991, ch 394, § 3; SL 2001, ch 259, § 2; SL 2012, ch 236, § 1; SL 2013, ch 241, § 2; SL 2015, ch 203, § 27; SL 2021, ch 1 (Ex. Ord. 21-3), § 51, eff. Apr. 19, 2021.
54-13-4. Staff services--Employment of director and other employees--Payment of expenses.
All staff services required by the agricultural mediation program shall be provided by the Department of Agriculture and Natural Resources. The secretary of agriculture and natural resources may employ a director of mediation services and other agents and employees as the secretary deems necessary. The director shall serve at the pleasure of the secretary of agriculture and natural resources. The mediation services shall be administered under the direction and supervision of the Department of Agriculture and Natural Resources. All expenses incurred in carrying on the work of the agricultural mediation program, including the per diem and expenses of the staff, salaries, contract payments, and any other items of expense shall be paid out of funds appropriated or otherwise made available to the agricultural mediation operating fund.
Source: SL 1988, ch 384, § 4; SL 2001, ch 259, § 4; SL 2015, ch 203, § 28; SL 2021, ch 1 (Ex. Ord. 21-3), § 51, eff. Apr. 19, 2021.
54-13-5. Responsibility for fees--Agricultural mediation operating fund created--Appropriation--Annual review--Disbursements.
Any fees provided under this chapter and by rule shall be borne equally between the parties. The fees and any funds received pursuant to the Agricultural Credit Act of 1987, as of January 1, 2015, shall be deposited in the agricultural mediation operating fund which is hereby created. All money in the agricultural mediation operating fund created by this section is continuously appropriated for the purposes of administering the agricultural mediation program. All funds received by the agricultural mediation program shall be set forth in an informational budget as described in § 4-7-7.2 and be annually reviewed by the Legislature. Any disbursements from the agricultural mediation operating fund shall be by authorization of the secretary of agriculture and natural resources.
Source: SL 1988, ch 384, § 5; SL 2001, ch 259, § 5; SL 2015, ch 203, § 29; SL 2021, ch 1 (Ex. Ord. 21-3), § 51, eff. Apr. 19, 2021.
54-13-6. Contracts with state agencies, nonprofit corporations, or individuals.
The Department of Agriculture and Natural Resources, in the administration of this chapter, may contract with one or more established agencies of state government, nonprofit corporations, or individuals to provide mediation services for borrowers and creditors and to provide financial preparation assistance for borrowers involved in mediation. Any contract executed under this section is exempt from chapters 5-18A and 5-18D. The contract may include terms and conditions as the Department of Agriculture and Natural Resources deems appropriate.
Source: SL 1988, ch 384, § 6; SL 1991, ch 394, § 4; SL 2001, ch 259, § 6; SL 2011, ch 2, § 152; SL 2017, ch 181, § 7; SL 2021, ch 1 (Ex. Ord. 21-3), § 51, eff. Apr. 19, 2021.
54-13-7. Assistance to borrower or creditor.
Any borrower or creditor involved in mediation may be provided resources to assist in the analysis of the borrower's business and personal financial situation, which analysis shall be conducted in a manner that assists the borrower, the borrower's family, and the creditor to prepare for mediation.
Source: SL 1988, ch 384, § 7; SL 1991, ch 394, § 5; SL 2015, ch 203, § 30.
54-13-9. Notice to borrower and creditor of availability of financial preparation assistance.
Upon receipt of a mediation request, the director of the agricultural mediation program shall notify the borrower and creditor as to whether financial preparation assistance resources are available and shall provide any other information available regarding assistance programs to borrowers.
Source: SL 1988, ch 384, § 9; SL 1991, ch 394, § 7; SL 2001, ch 259, § 7; SL 2015, ch 203, § 31.
54-13-10. Mandatory mediation--Requirements--Voluntary mediation.
A creditor desiring to commence an action or a proceeding in this state to enforce a debt totaling fifty thousand dollars or greater against agricultural land or agricultural property of the borrower or to foreclose a contract to sell agricultural land or agricultural property or to enforce a secured interest in agricultural land or agricultural property or pursue any other action, proceeding or remedy relating to agricultural land or agricultural property of the borrower shall file a request for mandatory mediation with the director of the agricultural mediation program. No creditor may commence any such action or proceeding until the creditor receives a mediation release as described in this chapter, or the debtor waives mediation or until a court determines after notice and hearing, that the time delay required for mediation would cause the creditor to suffer irreparable harm because there are reasonable grounds to believe that the borrower may waste, dissipate, or divert agricultural property or that the agricultural property is in imminent danger of deterioration. Dismissal of a bankruptcy proceeding, abandonment by a bankruptcy trustee, release or relief from a bankruptcy stay, or release or termination of a receivership proceeding shall have the effect of a mediation release. Any debt that is less than fifty thousand dollars may be mediated through a voluntary mediation if a request is made and accepted by both borrower and creditor.
Source: SL 1988, ch 384, § 10; SL 1991, ch 394, § 8; SL 2001, ch 259, § 8; SL 2015, ch 203, § 32.
54-13-11. Notice of initial mediation meeting--Exempt creditors--Waiver of right to mediate--Debt collection limitations.
Unless the borrower waives mediation, the director of the agricultural mediation program shall promptly send a mediation meeting notice to the borrower and to all creditors as defined in subdivision 54-13-1(5), setting a time and place for an initial mediation meeting between the borrower, the creditor or creditors, and a mediator. An initial mediation meeting shall be held within twenty-one days of the issuance of the mediation meeting notice. Any creditors of the borrower who are not included in the definition of creditor under subdivision 54-13-1(5) are exempt from the requirements of this section. Any borrower's failure to furnish timely information requested by the director of the agricultural mediation program constitutes a waiver of the right to mediate under this chapter. Also, the failure of the borrower and the borrower's spouse, unless excused by the initiating creditor, to attend all mediation meetings constitutes a waiver of the right to mediate under this chapter.
Any creditor subject to mandatory mediation under this chapter who receives notice pursuant to this section and who participates in all mediation sessions shall be treated as an initiating creditor and be subject to the same debt collection limitations as provided in § 54-13-10.
Source: SL 1988, ch 384, § 11; SL 1991, ch 394, § 9; SL 2001, ch 259, § 9; SL 2015, ch 203, § 33.
54-13-12. Length of mediation period--Notice to borrower--Additional meetings.
The total mediation period for borrower and creditor mediations shall be for a term of forty-two days after the date the director of the agricultural mediation program issues the notice to the borrower. The director of the agricultural mediation program must issue a notice to the borrower within three business days following receipt of the request for mediation from the creditor. The mediator may, after the initial meeting, schedule additional mediation meetings during the mediation period.
Source: SL 1988, ch 384, § 12; SL 2001, ch 259, § 10; SL 2015, ch 203, § 34.
54-13-13. Mediation of indebtedness requested by borrower--Procedure--Attendance at meetings not required.
A borrower may request mediation of any type or amount of indebtedness by applying to the director of the agricultural mediation program. The director of the agricultural mediation program may make the appropriate mediation request forms available for such purpose. The director of the agricultural mediation program may follow the same procedure as for mandatory mediation. Neither the borrower nor the creditor may be required to attend any mediation meetings under this section. Failure to attend mediation meetings or to participate in mediation under this section does not affect the rights of a borrower or a creditor in any manner. Participation in mediation under this section is not a prerequisite to or a bar to the commencement of an action of legal proceedings by the borrower or the creditor. No mediation release may be issued unless the borrower and creditor agree in writing.
Source: SL 1988, ch 384, § 13; SL 1991, ch 394, § 10; SL 2001, ch 259, § 11; SL 2015, ch 203, § 35.
54-13-14. State or federal time periods deemed to run concurrently.
The time period provided in any state or federal statutes, rules, or regulations are not to be affected by this chapter but shall be deemed to have run concurrently with the time period for mediation.
Source: SL 1988, ch 384, § 14.
54-13-15. Continuation of mediation--Expiration of mediation period--Agreement between borrower and creditors.
If the borrower and the initiating creditor consent, mediation may continue beyond the forty-two day mediation period with the same force and effect as though held within the forty-two day period. If no meeting is held within the forty-two day mediation period, absent a waiver thereof, extension, or further agreement between borrower and creditor, the expiration of the mediation period shall conclusively constitute a mediation release. The director of the agriculture mediation program shall so inform the borrower and creditors and certify accordingly.
Any agreement reached between borrower and creditors as a result of mediation shall be drafted into a written agreement. If signed by borrower and creditors, the agreement shall constitute a mediation release, and the mediator shall so certify on the agreement.
Source: SL 1988, ch 384, § 15; SL 1991, ch 394, § 11; SL 2001, ch 259, § 12.
54-13-16. Statement of waiver or failure to reach agreement deemed release.
If the borrower waives mediation or if a mediation agreement is not reached, a statement to that effect shall be prepared by the mediator and such statement shall constitute a mediation release. Unless the borrower waives mediation, a creditor may not receive a mediation release pursuant to § 54-13-10 until that creditor has attended at least one scheduled mediation meeting.
Source: SL 1988, ch 384, § 16.
54-13-17. Time limitation on waiver by borrower.
Any waiver by the borrower pursuant to this chapter may not be made more than sixty days prior to the commencement of any action or proceeding as described in § 54-13-10.
Source: SL 1988, ch 384, § 16A.
54-13-18. Information regarding finances of borrowers and creditors not public records--Mediation meetings not open.
All data and information regarding the finances of borrowers and creditors which is created, collected, or maintained by the director of the agriculture mediation program pursuant to the terms of this chapter or disclosed to the mediator are not public records and are confidential and discussions with the mediators are privileged communications.
All mediation meetings, and all mediation activities provided by this chapter are exempt from the provisions of chapter 1-27.
Source: SL 1988, ch 384, § 17; SL 1991, ch 394, § 12; SL 2001, ch 259, § 13.
54-13-19. Other rights and duties, penalties, and actions not affected.
This chapter does not affect rights and duties that matured, penalties that were incurred, and actions or proceedings that were begun before the effective date of this chapter, and any actions or proceedings which have been filed shall be exempt from any requirements of this chapter.
Source: SL 1988, ch 384, § 18.
54-13-20. Mediator or ag finance counselor immunity from civil liability--Qualifications.
Any person serving as a mediator or ag finance counselor pursuant to this chapter is immune from civil liability in any action brought in any court in this state on the basis of any act or omission resulting in damage or injury if the individual was acting in good faith, in a reasonable and prudent manner, and within the scope of such individual's official functions and duties as a mediator or ag finance counselor pursuant to this chapter.
Source: SL 1989, ch 418, § 1; SL 2001, ch 259, § 14.
