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Local Government Borrowing Act 2011

Crown relationship with Funding Agency

15: Crown may lend money to Funding Agency

You could also call this:

"The Government can lend money to the Funding Agency to help with temporary problems."

Illustration for Local Government Borrowing Act 2011

The Minister can lend money to the Funding Agency on behalf of the Crown. You need to know that the Minister can only do this if they think it is necessary for the public interest and to help the Funding Agency with a temporary problem. The money must be lent on commercial terms, which means the Funding Agency has to pay it back like a normal loan.

The Minister can lend this money without needing extra approval. This is allowed under subsection (1) of this law, which you can find more information about in the Local Government Borrowing Act 2011.

The law about lending money to the Funding Agency was changed by the Local Government (Water Services) (Repeals and Amendments) Act 2025, but this does not change how the Minister lends money to the Funding Agency.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3620734.

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14: Definitions, or

"What special words mean in the Local Government Borrowing Act 2011"

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16: No Crown guarantee for debts of Funding Agency, or

"The government does not promise to pay back debts owed by the Funding Agency."

15Crown may lend money to Funding Agency

  1. The Minister, on behalf of the Crown, may lend money to the Funding Agency if—

  2. the Minister considers that—
    1. it is necessary or expedient in the public interest to do so; and
      1. it is necessary to meet an exceptional and temporary liquidity shortfall affecting the Funding Agency; and
      2. the money is lent on commercial terms.

        1. The Minister may lend money under subsection (1) without further appropriation than this section.

        Notes
        • Section 15(2): amended, on , by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).