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Resource Management Act 1991

Resource consents - Decisions on applications relating to non-aquaculture activities

109: Special provisions in respect of bonds or covenants

You could also call this:

“Rules about special promises and agreements linked to land use permissions”

When you give a bond or covenant for a land use or subdivision consent, it’s treated as something that affects the land. You can register it, and once it’s registered, it stays with the land even if the land gets new owners.

If you change, cancel, or end a registered bond or covenant, the person in charge of land records will update the records to show this.

If you’ve given a bond to make sure you finish some work, the consent authority can come onto your land to check if you’ve done it properly.

If you don’t finish the work on time, the consent authority can come in and do it themselves. They’ll use the money or securities you gave them to pay for it. If there’s any money left after they’re done, they’ll give it back to you.

If the work costs more than the money they have from you, you’ll have to pay the extra amount. This becomes a charge on your land.

Even if you change or cancel a bond or covenant, the rules in Part 12 of the Act still apply.

The consent authority can enter your land to check on work related to a bond, as allowed by section 171 of the Local Government Act 2002.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM234840.

Topics:
Housing and property > Land use
Environment and resources > Town planning
Government and voting > Local councils
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108A: Bonds, or

“Money or promises given to make sure people follow the rules when they do things that might affect nature”

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Part 6 Resource consents
Decisions on applications relating to non-aquaculture activities

109Special provisions in respect of bonds or covenants

  1. Every bond given under section 108A in respect of a land use consent or subdivision consent, and any other bond to which this subsection is applied as a condition of the consent, and every covenant given under section 108(2)(d),—

  2. shall be deemed to be an instrument creating an interest in the land within the meaning of section 51 of the Land Transfer Act 2017, and may be registered accordingly; and
    1. when registered under the Land Transfer Act 2017, shall be a covenant running with the land and shall, notwithstanding anything to the contrary in section 103 of the Land Transfer Act 2017, bind all subsequent owners of the land.

      1. Where any such bond or covenant has been registered under the Land Transfer Act 2017 and that bond or covenant is varied, cancelled, or expires, the Registrar-General of Land shall make an appropriate entry in the register and on any relevant instrument of title noting that the bond or covenant has been varied or cancelled or has expired, and the bond or covenant shall take effect as so varied or cease to have any effect, as the case may be.

      2. Where any bond has been given in respect of the completion of any work, or for the purposes of ascertaining whether the work has been completed to the satisfaction of the consent authority, the consent authority may from time to time, under section 171 of the Local Government Act 2002, enter on the land where the work is required to be, or is being, or has been, carried out.

      3. Where the holder fails, within the period prescribed by the resource consent (or within such further period as the consent authority may allow), to complete, to the satisfaction of the consent authority, any work in respect of which any bond is given (including completion of any interim monitoring required)—

      4. the consent authority may enter on the land and complete the work and recover the cost thereof from the holder out of any money or securities deposited with the consent authority or money paid by a guarantor, so far as the money or securities will extend; and
        1. on completion of the work to the satisfaction of the consent authority, any money or securities remaining in the hands of the consent authority after payment of the cost of the works shall be returned to the holder or the guarantor, as the case may be.

          1. Where the cost of any work done by the consent authority under subsection (4) exceeds the amount recovered by the consent authority under that subsection, the amount of that excess shall be a debt due to the consent authority by the holder, and shall thereupon be a charge on the land.

          2. The provisions of Part 12 shall continue to apply notwithstanding the entry into or subsequent variation or cancellation of any such bond or covenant.

          Notes
          • Section 109(1): amended, on , by section 95 of the Resource Management Amendment Act 2003 (2003 No 23).
          • Section 109(1): amended, on , by section 25(b) of the Resource Management Amendment Act 1997 (1997 No 104).
          • Section 109(1)(a): amended, on , by section 250 of the Land Transfer Act 2017 (2017 No 30).
          • Section 109(1)(b): amended, on , by section 250 of the Land Transfer Act 2017 (2017 No 30).
          • Section 109(2): amended, on , by section 250 of the Land Transfer Act 2017 (2017 No 30).
          • Section 109(2): amended, on , by section 150 of the Resource Management (Simplifying and Streamlining) Amendment Act 2009 (2009 No 31).
          • Section 109(3): amended, on , by section 262 of the Local Government Act 2002 (2002 No 84).
          • Section 109(4): amended, on , by section 47 of the Resource Management Amendment Act 2003 (2003 No 23).