Receiverships Act 1993

30A: Extinguishment of subordinate security interests

You could also call this:

"What happens to lesser claims on property when a receiver sells it"

When a receiver sells property, all security interests in that property that are less important than the security interest of the person who appointed the receiver are cancelled. You need to know that security interests are like claims people have on the property. If the receiver sells personal property and there is money left over, that money must be shared out according to the rules set out in section 30B(1) and (2), unless another law says otherwise. This means the money will be distributed in a certain order.

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This page was last updated on 18 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM327747.

Topics:

Housing and property > Buying and selling homesHousing and property > Home safety and repairsMoney and consumer rights > Banking and loans

30: Preferential claims, or

"Paying some people first when a company is in trouble"

30B: Priorities on distribution by receiver of surplus representing proceeds of personal property, or

"How a receiver shares leftover money from selling personal property"

30AExtinguishment of subordinate security interests

If property has been disposed of by a receiver, all security interests in the property and its proceeds that are subordinate to the security interest of the person in whose interests the receiver was appointed are extinguished on the disposition of the property.
If there is a surplus left after the receiver has disposed of personal property, that surplus must be distributed according to the priorities set out in section 30B(1) and (2) unless otherwise required by any other law.

Compare

1999 No 126 s 115

Notes

Section 30A: inserted, on 1 May 2002, by section 6 of the Receiverships Amendment Act 2001 (2001 No 24).
Section 30A(2): added, on 15 December 2005 (applying to any surplus referred to in this provision that has not been distributed on that date), by section 3 of the Receiverships Amendment Act 2005 (2005 No 112).