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Local Government Act 2002

Specific obligations and restrictions on local authorities and other persons - Restrictions on disposal of parks, reserves, and endowment properties - Endowment property

140: Restrictions on disposal of endowment property

You could also call this:

“Rules for keeping and using special gifts of land given to local councils”

This section talks about rules for property that has been given to a local authority as a trust or endowment. Property means any type of real estate and all the different ways you can own it.

When a local authority gets property as a trust or endowment, they have to keep it and use it for the reason it was given to them. But there are two exceptions to this rule.

First, the Minister can give written permission for the property to be used for other purposes. The Minister can also allow the local authority to use money made from the property for different reasons.

Second, the local authority can sell or swap the property and use the money for something else. But they can only do this if the original agreement that gave them the property doesn’t say they can’t. If they want to do this, they need to follow the rules in section 141.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM172969.

Topics:
Government and voting > Local councils
Housing and property > Land use
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Part 7 Specific obligations and restrictions on local authorities and other persons
Restrictions on disposal of parks, reserves, and endowment properties: Endowment property

140Restrictions on disposal of endowment property

  1. In this section and section 141, property—

  2. means real property of every type; and
    1. includes every type of estate and interest in property.

      1. This section and section 141 apply to property or part of a property vested in a local authority in trust or as an endowment.

      2. The property must be retained by the local authority for the purpose for which the property was vested in the local authority.

      3. However,—

      4. the Minister may approve in writing additional or different purposes—
        1. for which the property may be used; or
          1. for which income derived from the property may be used; or
          2. unless expressly prohibited by the instrument that vested the property in the local authority, the local authority may sell or exchange the property and use the proceeds of the sale or exchange for a purpose identified by the local authority in accordance with section 141.