Plain language law

New Zealand law explained for everyone

Local Government Act 2002

Consequential amendments, repeals, revocations, transitional provisions, and savings - Transitional provisions

299: Borrowing from sinking fund

You could also call this:

“Using money from a special council fund for borrowing”

You can borrow money from a special fund called a sinking fund that your local council set up under an old law. This is still allowed even though the old law has been replaced.

If you borrow from this fund, you can use money from rates to pay back what you borrowed, including any interest.

There’s an old rule that might have stopped you from borrowing from the sinking fund, but it doesn’t apply in this case.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM174230.

Topics:
Government and voting > Local councils
Money and consumer rights > Banking and loans
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300: Cancellation of part of loan in respect of which sinking fund is held, or

“Paying back part of a loan early using a special savings fund”

Part 12 Consequential amendments, repeals, revocations, transitional provisions, and savings
Transitional provisions

299Borrowing from sinking fund

  1. Despite the repeal of section 122ZAA of the Local Government Act 1974 by this Act, a local authority may—

  2. borrow from the Commissioners of any sinking fund established by the local authority under the Local Authorities Loans Act 1956 or any former enactment; and
    1. meet the costs of the borrowing (including interest and principal) from the proceeds of any rate.

      1. Section 86(6) of the Local Authorities Loans Act 1956 does not limit subsection (1)(a).