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Reserves Act 1977

Financial provisions

82: Application of proceeds of land where reservation revoked

You could also call this:

"What happens to the money when a reserve's protected land is sold"

Illustration for Reserves Act 1977

When a reserve's protection is removed, the land becomes Crown land. If the Crown then sells this land, the money from the sale goes into the Public Account and is credited to the Trust Account. You can think of the Trust Account like a special savings account for reserves. The Minister can decide to use this money to buy or lease new land for reserves, or to help look after existing reserves. This money can also be used for conservation covenants, which are like agreements to protect special areas of land.

If the land is sold on a deferred-payment licence or leased, the Minister can decide to use the money from the sale or lease to help reserves. The Minister of Finance might also give directions on how to use this money. The money can be used for things like managing, maintaining, and improving reserves.

Some money that was already in another account before this law started will be moved to the Trust Account. This money will be used in the same way as the money from land sales. If a reserve's protection was removed before this law started, and the land is sold later, the money from the sale will still be used to help reserves.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM444936.

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Part 4Financial provisions

82Application of proceeds of land where reservation revoked

  1. Where upon the revocation of the reservation of any reserve the land comprised therein becomes Crown land and the land is subsequently alienated by the Crown, the proceeds of the alienation shall be paid into the Public Account and credited to the Trust Account, and the following provisions shall thereupon apply:

  2. where the land is sold for cash, an amount equal to the proceeds of the sale may, if the Minister so directs, be paid from the Public Account and debited to the Trust Account and applied in the purchasing or taking on lease, managing, administering, maintaining, protecting, improving, and developing of reserves of any classification or as consideration for a conservation covenant:
    1. where the land is sold on deferred-payment licence or is granted on Crown lease, there may, if the Minister so directs, be paid from the Public Account and debited to the Trust Account, and applied in the purchasing or taking on lease, managing, administering, maintaining, protecting, improving, and developing of reserves of any classification or as consideration for a conservation covenant—
      1. subject to any direction given by the Minister of Finance under subparagraph (ii), an amount equal to the purchase price payable under the deferred-payment licence, or, as the case may be, the rental value of the lease; or
        1. if the Minister of Finance so directs, an amount equal to the instalments (including interest) paid under the deferred-payment licence, or as the case may be, the rent paid under the lease.

        2. Notwithstanding anything in any other Act, all money held in the Works and Trading Account immediately before the commencement of this Act representing the proceeds of the alienation of land the reservation of which had been revoked shall at the commencement of this Act be deemed to have been transferred to the Trust Account, and subsection (1) shall apply with respect to the money so transferred as if it were the proceeds of the alienation after the commencement of this Act of land the reservation of which had been revoked under the provisions of this Act.

        3. Where before the commencement of this Act the land comprised in a reserve became Crown land on the revocation of the reservation thereof under the provisions of any former enactment, then, notwithstanding anything in any other Act, subsection (1) shall apply with respect to the proceeds of any alienation of the land received after the commencement of this Act as if the reservation had been revoked under the provisions of this Act.

        Compare
        • 1953 No 69 s 78
        • 1956 No 35 s 17
        • 1960 No 87 s 3
        • 1966 No 26 s 6
        Notes
        • Section 82(1): amended (with effect on 1 April 1978), on , by section 3(1) of the Reserves Amendment Act 1978 (1978 No 121).
        • Section 82(2): replaced (with effect on 1 April 1978), on , by section 3(2) of the Reserves Amendment Act 1978 (1978 No 121).
        • Section 82(3): inserted (with effect on 1 April 1978), on , by section 3(2) of the Reserves Amendment Act 1978 (1978 No 121).