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Land Transfer Act 2017

Dealings in estates and interests in land - Flat and office owning companies

128: Mortgage of licence

You could also call this:

"Telling the company about a mortgage on your licence"

Illustration for Land Transfer Act 2017

You have a registered licence and you mortgage it. You must tell the company that issued the licence about the mortgage. You must also tell them if the mortgage is discharged. The company will record this information. When the company gets your notice, they must record the mortgage details. They do this on their copy of the share certificate and the licence. They also record it in the share register. If the share certificate is lost or damaged, the company must record the mortgage details on the replacement certificate. If the company does not do this, they can get a fine of up to $5,000. The company's directors can also get a fine, unless they can show they did everything they could to comply. You can compare this to s 121G to see how it is similar or different.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6731302.

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"How to register documents against a licence"

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129: Rights of mortgagee of registered licence, or

"What rights do mortgagees have for registered licences?"

Part 3Dealings in estates and interests in land
Flat and office owning companies

128Mortgage of licence

  1. The mortgagee of a registered licence must notify the company that issued the licence of—

  2. the particulars of the mortgage:
    1. any discharge of the mortgage.

      1. On receiving a notice under subsection (1), the company must—

      2. record the particulars of the mortgage or of the discharge of the mortgage on the company’s copy of the share certificate and the licence; and
        1. record in the share register against the entry relating to the licence that—
          1. the licence is subject to the mortgage, together with the number of the registered mortgage; or
            1. the mortgage has been discharged.

            2. The company must record particulars of a mortgage of a licence that were recorded on a share certificate that has been lost, destroyed, or defaced on any replacement share certificate.

            3. If a company fails to comply with subsection (2) or (3),—

            4. the company commits an offence and is liable on conviction to a fine not exceeding $5,000:
              1. every director of the company commits an offence and is liable on conviction to a fine not exceeding $5,000, unless the director shows that—
                1. the company took all reasonable steps to ensure that the requirements of the applicable subsection were complied with; or
                  1. he or she took all reasonable steps to ensure that the company complied with the requirements of the applicable subsection; or
                    1. in the circumstances, he or she could not reasonably have been expected to take steps to ensure that the company complied with the requirements of the applicable subsection.

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