Plain language law

New Zealand law explained for everyone

Receiverships Act 1993

18: General duties of receivers

You could also call this:

"Receivers must act honestly and fairly to help the people they work for."

Illustration for Receiverships Act 1993

When you are a receiver, you must use your powers in a honest and fair way. You must also use your powers for the right reasons. You have to think about what is best for the person you are working for and make decisions that will help them.

You need to consider the interests of several groups, including the person who gave you your powers, people who have a claim to the property, creditors who are owed money, and people who have guaranteed the debts of the person who gave you your powers. You must balance these interests with your main goal of helping the person you are working for.

If you follow directions from the person you are working for, you are not breaking your duty to them, but you can still be held responsible if you do not act honestly or fairly, or if you do not consider the interests of the other groups. This section of the law does not change or affect what is said in section 19.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM327725.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
Previous

17: Consent of mortgagee to sale of property, or

"Asking the court to sell a property when the lender doesn't agree"

Next

19: Duty of receiver selling property, or

"A receiver must sell property fairly and try to get the best price for it."

18General duties of receivers

  1. A receiver must exercise his or her powers in good faith and for a proper purpose.

  2. A receiver must exercise his or her powers in a manner he or she believes on reasonable grounds to be in the best interests of the person in whose interests he or she was appointed.

  3. To the extent consistent with subsections (1) and (2), a receiver must exercise his or her powers with reasonable regard to the interests of—

  4. the grantor; and
    1. persons claiming, through the grantor, interests in the property in receivership; and
      1. unsecured creditors of the grantor; and
        1. sureties who may be called upon to fulfil obligations of the grantor.

          1. Where a receiver appointed under a deed or agreement acts or refrains from acting in accordance with any directions given by the person in whose interests he or she was appointed, the receiver—

          2. is not in breach of the duty referred to in subsection (2); but
            1. is still liable for any breach of the duty referred to in subsection (1) and the duty referred to in subsection (3).

              1. Nothing in this section limits or affects section 19.