When a mortgagee sells management rights or a spectrum licence, you get ownership of it. You own it without any debt from the mortgage. The only exceptions are interests that were created before the mortgage or that the mortgagee agreed to.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM197144.

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Topics:

Money and consumer rights > Banking and loansHousing and property > Buying and selling homesHousing and property > Land use

84: Application of purchase money, or

"How sale money is used to pay debts and costs"

86: Discharge of mortgage, or

"Paying off a mortgage to free a licence or property"

Part 9Mortgages

85Transfer by mortgagee

Upon the registration of any transfer executed by a mortgagee for the purpose of the sale, by the mortgagee, of any management rights or spectrum licence, ownership of those management rights or that spectrum licence shall pass to and vest in the purchaser, freed and discharged from all liability on account of the mortgage, and of any interest other than an instrument created by an instrument that has priority over the mortgage or which by reason of the consent of the mortgagee is binding on the mortgagee.

Notes

Section 85: amended, on 12 October 2001, by section 54 of the Radiocommunications Amendment Act 2000 (2000 No 8).