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Local Government Act 2002

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

302: Provisions relating to Public Trust and Board of Trustees of National Provident Fund

You could also call this:

“Rules for changing who manages money saved to repay local government loans”

If the Public Trust or the Board of Trustees of the National Provident Fund is appointed as the only Commissioner of a sinking fund for a loan that a local authority owes, they can change this appointment. This is true even if other laws, rules, or the terms of the appointment say otherwise.

To make this change, the current Commissioner (called the retiring Commissioner) needs permission from the Governor-General in Council and the new Commissioner they want to appoint. The new Commissioner must be someone who is allowed to be a Commissioner.

After the change is made, the retiring Commissioner must give all the money and assets in the sinking fund to the new Commissioner right away.

Once the retiring Commissioner has given everything to the new Commissioner, they won’t be responsible for the sinking fund anymore.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM174233.

Topics:
Government and voting > Local councils
Money and consumer rights > Banking and loans
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Part 12 Consequential amendments, repeals, revocations, transitional provisions, and savings
Transitional provisions

302Provisions relating to Public Trust and Board of Trustees of National Provident Fund

  1. In the case of any appointment of the Public Trust or the Board of Trustees of the National Provident Fund (referred to in this section as the retiring Commissioner) as sole Commissioner of the sinking fund of any loan in respect of which a local authority is liable, then, despite any other enactment, any rule of law, or the terms of the appointment,—

  2. the retiring Commissioner may, with the consent of the Governor-General in Council and of the proposed replacement Commissioner, revoke that appointment and appoint any person otherwise entitled to be a Commissioner in the retiring Commissioner's place; and
    1. the retiring Commissioner must, immediately after the revocation of the retiring Commissioner's appointment, transfer the money or assets representing the sinking fund to the replacement Commissioner; and
      1. no liability will be incurred by the retiring Commissioner in respect of any sinking fund after completion of the transfer of the money or assets representing that fund.

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