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Local Government Borrowing Act 2011

Application of Local Government Act 2002

12: Certain arrangements and transactions to be treated as incidental arrangements and protected transactions under Local Government Act 2002

You could also call this:

"Some council deals are protected by law, like guarantees or loans between councils and the Funding Agency."

Illustration for Local Government Borrowing Act 2011

When you look at certain arrangements and transactions, you need to consider how they relate to the Local Government Act 2002. These arrangements include a local authority guaranteeing debt owed by another local authority to the Funding Agency, guaranteeing debt of the Funding Agency, committing to contribute equity to the Funding Agency, or committing to lend money to the Funding Agency.

You should know that these arrangements are treated in a specific way under the Local Government Act 2002. They are considered incidental arrangements for the purposes of sections 114 and 115 of the Local Government Act 2002.

These arrangements are also protected transactions for the purposes of sections 117 to 120 of the Local Government Act 2002, which means they have certain protections under the law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3620727.

Topics:
Government and voting > Local councilsMoney and consumer rights > Banking and loans
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12Certain arrangements and transactions to be treated as incidental arrangements and protected transactions under Local Government Act 2002

  1. This section applies to the following arrangements:

  2. a guarantee by a local authority of any indebtedness owed by another local authority to the Funding Agency:
    1. a guarantee by a local authority of any indebtedness of the Funding Agency:
      1. a commitment by a local authority to contribute equity to the Funding Agency:
        1. a commitment by a local authority to lend money to the Funding Agency.

          1. The arrangements are—

          2. incidental arrangements for the purposes of sections 114 and 115 of the Local Government Act 2002; and
            1. protected transactions for the purposes of sections 117 to 120 of the Local Government Act 2002.