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Lawyers and Conveyancers Act 2006

Fidelity Funds

314: Power of New Zealand Law Society to impose extraordinary levy

You could also call this:

"The New Zealand Law Society can charge lawyers an extra fee if the Lawyers' Fidelity Fund runs low."

Illustration for Lawyers and Conveyancers Act 2006

The New Zealand Law Society can impose an extraordinary levy on lawyers. You will have to pay this levy if the Lawyers' Fidelity Fund does not have enough money. The Minister must approve the levy and the amount you have to pay. The New Zealand Law Society can decide that different lawyers or law firms pay different amounts. You will have to pay the levy on a date decided by the New Zealand Law Society. The Society can recover the levy as a debt if you do not pay. This section is subject to section 317. Nothing in this section limits sections 311(1)(n) and 316. A resolution under this section is secondary legislation, see Part 3 of the Legislation Act 2019 for publication requirements.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM367391.

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313: Contributions to Conveyancing Practitioners' Fidelity Fund, or

"Conveyancers must pay money into a special fund to protect people's money"

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315: Power of New Zealand Society of Conveyancers to impose extraordinary levy, or

"The New Zealand Society of Conveyancers can charge extra fees to conveyancers if a special fund runs low."

Part 10Fidelity Funds

314Power of New Zealand Law Society to impose extraordinary levy

  1. The Council of the New Zealand Law Society may, by resolution, impose on lawyers to whom, or incorporated law firms to which, this Part applies an extraordinary levy, for payment into the Lawyers' Fidelity Fund, if, at any time,—

  2. the Lawyers' Fidelity Fund is not sufficient, or, in the opinion of the Council of the New Zealand Law Society, having regard to any prospective claims or liabilities likely to be received or incurred, may not be sufficient, to satisfy the liabilities of the New Zealand Law Society in relation to the fund or to meet the costs of establishing, maintaining, managing, and administering the fund; and
    1. the Minister approves both the imposition of an extraordinary levy by that resolution and the amount of that levy.

      1. A resolution under subsection (1) may provide for the amounts of the extraordinary levy to differ in all or any of the following ways:

      2. as between lawyers and incorporated law firms:
        1. as between different classes of lawyers:
          1. as between different classes of incorporated law firms.

            1. The amount of every extraordinary levy imposed by a resolution made under subsection (1)—

            2. is payable on a date or dates and in a manner to be fixed by the resolution; and
              1. is recoverable on behalf of the Lawyers' Fidelity Fund by the New Zealand Law Society as a debt due to that Society.

                1. This section is subject to section 317.

                2. Nothing in this section limits sections 311(1)(n) and 316.

                3. A resolution under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

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                Notes
                • Section 314(6): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).