The council can guarantee certain replacement mortgages. You need to know that this is part of the rules about advances to financial institutions and guarantees of housing loans. The council's power to do this is covered in the Local Government Act 1974, but this specific part was repealed on 1 July 2003 by section 266 of the Local Government Act 2002, which you can find on the legislation website.

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This page was last updated on 10 September 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM422153.

Topics:

Housing and property > Buying and selling homesGovernment and voting > Local councilsMoney and consumer rights > Banking and loans

565: Power of council to guarantee loans for erection of flats, or

"Councils used to be able to help people get loans to build flats, but they can't do this anymore."

567: Provisions affecting mortgages, or

"Rules about mortgages that used to apply to local councils"

Part 32Land development for housing, commercial, and industrial purposes
Advances to financial institutions and guarantees of housing loans

566Council may guarantee certain replacement mortgages (Repealed)

Notes

Section 566: repealed, on 1 July 2003, by section 266 of the Local Government Act 2002 (2002 No 84).