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Local Government Act 2002

Planning, decision-making, and accountability - Borrowing and security - Borrowing

114: Constraints on receiver

You could also call this:

“Rules that protect you when you use your stuff as a promise for money you borrow”

When you give someone a charge over your assets as security for a loan or other obligations, there are some rules that apply. These rules are set out in parts of section 40D of the Receiverships Act 1993. Specifically, subsections 5 and 6 of that section apply to any charge you give. These rules limit what the person who receives the charge can do. They are there to protect you and make sure the person receiving the charge doesn’t have too much power over your assets.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM172395.

Topics:
Money and consumer rights > Banking and loans
Business > Industry rules
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“Councils can't borrow money in foreign money, except for special cases”

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“Rates can be used to guarantee loans or agreements made by councils”

Part 6 Planning, decision-making, and accountability
Borrowing and security: Borrowing

114Constraints on receiver

  1. Every charge given by a local authority over any 1 or more of the assets of the local authority as security for any loan, or the performance of obligations under any incidental arrangement, is subject to subsections (5) and (6) of section 40D of the Receiverships Act 1993.

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