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Receiverships Act 1993

6A: What receiver must do before appointment

You could also call this:

"Steps a receiver must take before being officially chosen for the job"

Illustration for Receiverships Act 1993

Before you can be appointed as a receiver, you must do a few things. You must give your written consent to the appointment and not withdraw it. You must also certify in writing that you are a licensed insolvency practitioner who is not disqualified from appointment under section 5(2).

You must give the mortgagee your written consent and certificate. If you do not do these things and are appointed as a receiver, you can commit an offence.

If you commit an offence under this section, you can be liable for a fine of up to $10,000 if you are convicted.

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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=LMS412527.

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Business > Industry rulesMoney and consumer rights > Banking and loans
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6: Appointment of receivers under deeds and agreements, or

"Appointing someone to look after property when the owner has agreed in a contract"

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7: Extent of power to appoint receiver, or

"Who can be appointed as a receiver and how they can work together"

6AWhat receiver must do before appointment

  1. A person must not be appointed as a receiver unless the person has—

  2. consented in writing to the appointment and has not withdrawn the consent at the time of the appointment; and
    1. certified in writing that the person is a licensed insolvency practitioner who is not disqualified from appointment under section 5(2); and
      1. provided to the mortgagee the written consent and certificate required under paragraphs (a) and (b).

        1. A person commits an offence if—

        2. the person, with their consent, is appointed as a receiver despite failing to certify the matters set out in subsection (1)(b); or
          1. the person fails to comply with subsection (1)(c).

            1. A person who commits an offence under this section is liable on conviction to a fine not exceeding $10,000.

            Notes
            • Section 6A: inserted, on , by section 63 of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).