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Local Government Act 2002

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

306: Local Authorities Loans Act 1956

You could also call this:

“Rules about old loans and rates for city councils”

Sections 21 and 22 of the Local Government Amendment Act (No 3) 1996 are still in effect. This means that these parts of the older law continue to apply.

You should know that there’s an exception to this rule. If a local authority (like a city council) pays back a loan early, and that loan was secured by a special rate, some rules might change. The special rate is described in clause 60(1) and clause 61 of Schedule 3. If the loan is paid back early, these clauses might not apply anymore to the rate or the area where the rate was charged.

This means that if your local council pays off a loan early, you might see changes in how rates are applied in your area. The special rules that were in place because of the loan might not be needed anymore once the loan is paid off.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM174238.

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

306Local Authorities Loans Act 1956

  1. Sections 21 and 22 of the Local Government Amendment Act (No 3) 1996 continue to have effect.

  2. Despite subsection (1) and clauses 60(1) and 61 of Schedule 3, if a local authority repays, before its maturity, any loan that is secured by a rate to which clause 60(1) of Schedule 3 refers or any loan in respect of which a rate has been made and levied pursuant to clause 61 of Schedule 3, the provisions of clause 60(1) of Schedule 3 or of clause 61 of Schedule 3 or of both, as the case may require, cease to apply to the rate or the area of land upon which the rate is charged.