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Land Transfer Act 2017

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

131: Restrictions on cancellation, etc, of licence subject to registered mortgage

You could also call this:

"Rules for cancelling a licence when there's a mortgage"

Illustration for Land Transfer Act 2017

You have a licence that is subject to a registered mortgage. The company that granted you the licence must not cancel it unless they follow some steps. They must give notice to the mortgagee, telling them what they need to fix. They must also give the mortgagee a reasonable amount of time to fix the problems. If the problems are not fixed in time, the company can take action. The company does not have to follow these steps if the mortgagee agrees to the action. They also do not have to follow these steps if section 130 applies and its requirements are met.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6731305.

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130: Restriction on disposal of licence or shares if licence subject to mortgage, or

"Selling a licence with a mortgage: what you need to know"

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132: Registration of cancellation, etc, of licence, or

"What happens when a company cancels a licence to use someone's land"

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

131Restrictions on cancellation, etc, of licence subject to registered mortgage

  1. A company that granted a licence that is subject to a registered mortgage must not cancel, revoke, or rescind the licence or forfeit any of the shares to which the licence relates unless—

  2. the company gives notice to the mortgagee specifying the matters required to be remedied in order to prevent the company from taking any of the action referred to in this subsection; and
    1. the company allows the mortgagee a reasonable time, which must be specified in the notice, to remedy the matters; and
      1. the matters have not been remedied within the time specified.

        1. Nothing in subsection (1) applies if—

        2. the mortgagee consents to the action by the company; or
          1. where section 130 applies, the requirements of that section are complied with.

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