Plain language law

New Zealand law explained for everyone

Local Government Act 2002

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

117: Protected transactions

You could also call this:

“Rules that protect deals made with local councils, even if the council makes mistakes”

When you or someone else enters into a protected transaction with a local authority, it will be valid and enforceable even if certain things go wrong. This is true even if:

The local authority doesn’t follow all the rules in this Act.

The local authority isn’t supposed to be making this kind of deal.

Someone who the local authority says is a member, employee, agent, or attorney wasn’t actually appointed properly or doesn’t have the right to do what they’re doing.

A document that’s meant to be from the local authority isn’t valid or real, even though it was made by someone who usually has the power to make such documents or who the local authority says has this power.

These rules are there to protect you when you make deals with local authorities, even if something isn’t quite right on their end.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM172900.

Topics:
Government and voting > Local councils
Business > Fair trading
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Part 6 Planning, decision-making, and accountability
Borrowing and security: Protected transactions

117Protected transactions

  1. Every protected transaction entered into, or purportedly entered into, by or on behalf of a local authority is valid and enforceable despite—

  2. the local authority failing to comply with any provision of this Act in any respect; or
    1. the entry into, or performance of, the protected transaction being outside the capacity, rights, or powers of the local authority; or
      1. a person held out by the local authority as being a member, employee, agent, or attorney of the local authority—
        1. not having been validly appointed as such; or
          1. not having the authority to exercise any power or to do anything either which the person is held out as having or which a person appointed to such a position would customarily have; or
          2. a document issued, or purporting to be issued, on behalf of the local authority by a person with actual or customary authority, or held out as having such authority, to issue the document not being valid or not being genuine.

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