Reserves Act 1977

Financial provisions

90: Borrowing powers of administering body

You could also call this:

"People in charge of reserves can borrow money to improve or expand them"

If you are in charge of a recreation reserve, you can borrow money to improve it or buy more land to add to it. You can also borrow money to pay for a conservation covenant, which is an agreement to protect the land. You can use the borrowed money for these purposes.

If the government lends you money, it can be from money that Parliament has set aside or from a special trust account, as described in section 78, section 82, section 83, section 95(7), section 105, or section 110. The Minister of Finance decides the terms and conditions of the loan.

You can use your own funds to repay the borrowed money and any interest on it. If you borrowed money under subsection (2) or section 89(1), you can use your funds to repay it. The Minister can also decide to postpone or cancel the payment of interest or the amount borrowed if they think there is a good reason to do so.

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This page was last updated on 18 September 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM444958.

Topics:

Environment and resources > ConservationEnvironment and resources > Land useMoney and consumer rights > Banking and loans

89: Contributions and advances by local authorities, or

"Local councils can help pay for reserve management and conservation"

91: Administering body may have debit in accounts in anticipation of revenue, or

"Borrowing money for a recreation reserve before the funds arrive"

Part 4Financial provisions

90Borrowing powers of administering body

Notwithstanding anything to the contrary in any Act, any local authority which is the administering body of a recreation reserve may borrow money for the improvement and development of the reserve or the purchase of other land for addition to the reserve or for payment of the consideration for any conservation covenant, and may in its capacity as an administering body expend for those purposes money so borrowed.
Notwithstanding anything to the contrary in any Act, advances by way of loan may from time to time be made out of money appropriated by Parliament, or out of money paid into the Public Account to the credit of the Trust Account pursuant to section 78 or section 82 or section 83 or section 95(7) or section 105 or section 110, to any administering body, whether a local authority or not, for the purpose of improving or developing any reserve under its control or the purchase of other land for addition to any such reserve. Every advance under this subsection shall be made upon such terms and conditions as the Minister of Finance thinks fit.
Where any administering body borrows money pursuant to subsection (2) or to section 89(1), it may use any of its funds for the repayment of the money so borrowed and any interest payable thereon.
Where in the opinion of the Minister there is good and sufficient reason for so doing, the Minister may postpone or remit the payment of interest or principal in respect of any money borrowed by an administering body under subsection (2).

Compare

1953 No 69 s 80(1)–(4)

Notes

Section 90(1): amended, on 1 July 1998, by section 16(1) of the Local Government Amendment Act (No 3) 1996 (1996 No 83).