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Fisheries Act 1996

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

139: Rights of mortgagee

You could also call this:

"What happens if you don't pay back a loan on your fishing quota shares"

Illustration for Fisheries Act 1996

You have a mortgage on quota shares. If you do not do what you agreed to, the person you borrowed from, called the mortgagee, can sell some or all of your quota shares. The mortgagee's power to sell your quota shares has some limits. They cannot sell provisional individual transferable quota shares until they become individual transferable quota shares, and they cannot sell if there is a Crown caveat under section 58, section 61, or section 214, or if there are restrictions under section 140A.

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138A: Assignment of mortgages, or

"Transferring mortgage rights to someone else"

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140: Restriction on exercise of power of sale, or

"Rules to protect you when someone sells your quota shares because you didn't pay them back"

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

139Rights of mortgagee

  1. Without limiting the covenants, conditions, and powers that may, by agreement between the mortgagor and the mortgagee, be contained in a mortgage of quota shares, a mortgage of quota shares shall confer on the mortgagee, in the event of default by the mortgagor in the performance or observance of any covenant contained or implied in the mortgage, the power to sell in whole or in part the number of quota shares subject to the mortgage.

  2. A power of sale under this section is subject to the following provisions:

  3. a mortgagee's power of sale over any provisional individual transferable quota shares is not exercisable until the provisional individual transferable quota shares become individual transferable quota shares:
    1. a mortgagee's power of sale over any quota shares is not exercisable if the quota is subject to a Crown caveat under section 58 or section 61 or section 214:
      1. the restrictions on a mortgagee's power of sale defined in section 140A.

        Compare
        Notes
        • Section 139(2)(c): added, on , by section 214 of the Maori Fisheries Act 2004 (2004 No 78).