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Child Support Act 1991

Enforcement provisions - Receiving orders

188: Powers and duties of receiver

You could also call this:

“A receiver can manage property and collect money to pay child support debts”

When someone is appointed as a receiver under section 187, they can take control of property and collect any money it makes. They can do this as long as the receiving order is active.

The receiver can rent out the land they’re in charge of for up to 3 years. These rental agreements will still be valid even if the receiving order ends.

The receiver can pay for things like taxes, insurance, and repairs on the property. They don’t have to make these payments, but if they do, they should use the money the property earns. They can’t spend more than $2,000 a year on repairs without getting permission from the court.

If the receiver needs more money to pay for these things, they can ask the court for permission to use other money they’re holding or to borrow money using the property as security. If the receiver borrows money, the agreement they make will be just as valid as if the property owner had made it themselves.

The receiver must keep all the money they collect, minus any expenses and their pay, to use for paying what’s owed under the Child Support Act. Any leftover money is held until the receiving order ends, and then it’s given to whoever should have it.

If the receiver is Public Trust, their pay is decided by Public Trust’s own rules.

The receiver has similar powers and responsibilities as if they were appointed by the High Court. The Family Court or District Court can give the receiver instructions and powers, just like the High Court can.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM257043.

Topics:
Family and relationships > Children and parenting
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187: Receiving orders, or

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Part 11 Enforcement provisions
Receiving orders

188Powers and duties of receiver

  1. A receiver appointed under section 187 may take and recover, by action or otherwise, the possession and receipt of the property in respect of which the receiver has been appointed, and of the rents, profits, and income from the property, so long as the receiving order remains in force.

  2. The receiver may also, in the receiver's own name, grant leases of any land in respect of which the receiver has been appointed on such conditions as the receiver thinks fit, and for any term not exceeding 3 years or from year to year, or for a weekly, monthly, or other similar tenancy.

  3. A lease granted pursuant to subsection (2) shall remain valid notwithstanding any subsequent discharge of the charge or of the receiving order.

  4. Subject to any directions that may be given by the Family Court or the District Court, the receiver may also pay in respect of any such land all rates, taxes, interest, insurance premiums, and other outgoings (including all instalments of principal and interest under any table mortgage secured over the land) that are due at the time of the receiver's appointment or may fall due while the receiving order continues in force, and the cost of repairing and keeping in good repair and condition all buildings and other improvements on any such land; but the receiver shall not be bound to make any such payment or to repair or keep in good repair and condition any such buildings and improvements.

  5. Notwithstanding subsection (4), the receiver shall not expend in any one year (being a year commencing from the date of the receiver's appointment or any subsequent year), in repairing and keeping in good repair and condition all buildings and other improvements on the land, a sum exceeding $2,000, unless the expenditure is first authorised by the court.

  6. The receiver shall make all payments pursuant to subsection (4) from the rents, profits, and income of the land received or to be received by the receiver, except in so far as any such payments are made pursuant to subsection (7).

  7. The court may, on application by the receiver, authorise the receiver—

  8. to make the whole or any part of any such payments pursuant to subsection (4) from any capital money that may be held by the receiver pursuant to the receiving order; or
    1. to borrow money, in the name and on behalf of the liable person, on the security of any such land, to enable the whole or any part of any such payments to be made.

      1. The receiver may grant a mortgage or charge over the land as security for the repayment of any money borrowed under subsection (7) and interest on that money, being a mortgage or charge with or without a power of sale, and subject to such covenants, provisions, and agreements as may be agreed upon between the receiver and the lender.

      2. The mortgage or charge shall have the same operation and effect in all respects as if it were executed or given by the liable person personally, and shall remain valid and effectual notwithstanding any subsequent discharge of the charge or of the receiving order.

      3. Where the receiver is Public Trust and the receiver is authorised pursuant to subsection (7) to borrow money, the receiver may instead advance money in accordance with section 56 of the Public Trust Act 2001 as if the land were property to the credit of an estate under that section, and all the provisions of that section, as far as they are applicable and with any necessary modifications, shall apply to any such advance.

      4. Subject to the foregoing provisions of this section, the receiver shall hold in trust all money received by the receiver in the exercise of his or her powers, after payment out of the money of all expenses incurred by the receiver, and of any remuneration allowed by the court for the services of the receiver in that behalf,—

      5. to pay and satisfy all money from time to time accruing due under this Act; and
        1. to hold the residue of the money so received until the charge or the receiving order is discharged, or the court sooner directs, and then to pay it to the person who would be entitled to the money if no such charge or receiving order was in force.

          1. Despite subsection (11), if the receiver is Public Trust, the remuneration of the receiver is to be determined in accordance with Public Trust's scale of charges.

          2. Subject to this Act, the appointment of a receiver by the Family Court or the District Court under this Part shall have the same effect, and the receiver shall have the same powers, duties, and liabilities, as if the receiver had been appointed by the High Court in the exercise of its jurisdiction in that behalf, and the Family Court or the District Court may give to the receiver any directions and confer upon the receiver any powers that the High Court may give to or confer upon any receiver so appointed by it.

          Compare
          Notes
          • Section 188(4): amended, on , by section 261 of the District Court Act 2016 (2016 No 49).
          • Section 188(10): amended, on , by section 170(1) of the Public Trust Act 2001 (2001 No 100).
          • Section 188(12): substituted, on , by section 170(1) of the Public Trust Act 2001 (2001 No 100).
          • Section 188(13): amended, on , by section 261 of the District Court Act 2016 (2016 No 49).