Fisheries Act 1996

Registration of transfers, mortgages, caveats, etc - Mortgages of quota

136: Mortgages of quota

You could also call this:

"Rules for using quota shares as security"

You can mortgage your quota shares, except if this Act says otherwise. If you mortgage your quota shares, you cannot transfer them if it would reduce the number of shares you own to less than the number mortgaged. The mortgage must state how many quota shares are being mortgaged when it is registered. You must own enough quota shares in a stock to mortgage them, and those shares must not already have a caveat or mortgage on them. The chief executive will register the mortgage under section 159 if these conditions are met. A mortgage is a security, but it does not transfer ownership of the quota shares. If section 167(1) and (2) of the Maori Fisheries Act 2004 applies, it takes priority over the rules about mortgaging quota shares. The chief executive will only register a mortgage if the conditions are met, and the mortgage will prevent certain transfers of quota shares. The mortgage will be a security, but you will still own the quota shares.

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This page was last updated on 12 November 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM397655.

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135: Other dealings in quota or annual catch entitlement, or

"Dealing with fishing quotas and catch limits must follow the law"

137: Mortgages of annual catch entitlement prohibited, or

"You can't use your fishing limit as security for a loan."

Part 8Registration of transfers, mortgages, caveats, etc
Mortgages of quota

136Mortgages of quota

Except as otherwise expressly provided by this Act, any quota shares may be subject to a mortgage.
Section 167(1) and (2) of the Maori Fisheries Act 2004 prevails over subsection (1).
A mortgage of quota shares prevents the registration of any transfer of quota shares owned by the mortgagor if the transfer would reduce the number of quota shares in any stock owned by the mortgagor to a number less than the number of quota shares for that stock subject to the mortgage.
Every mortgage of quota shares shall state the number of quota shares to be charged at the time of registration of the mortgage.
Except as otherwise provided by this Act, the chief executive shall register under section 159 a mortgage of quota shares in any stock only if—
the mortgagor owns a number of quota shares in that stock equal to or greater than the number of quota shares in that stock over which the mortgage is to be registered; and
the number of quota shares to be mortgaged is not subject to any caveat or other mortgage registered under this Act.

A mortgage under this Act shall have effect as a security, but shall not operate as a transfer of the quota shares charged.

Notes

Section 136(1A): inserted, on 29 November 2004, by section 214 of the Maori Fisheries Act 2004 (2004 No 78).
Section 136(4): amended, on 9 September 1999, pursuant to section 90(2) of the Fisheries Act 1996 Amendment Act 1999 (1999 No 101).