Plain language law

New Zealand law explained for everyone

Land Transfer Act 2017

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

135: Priority of replacement mortgage over land of company

You could also call this:

"A replacement mortgage on company land keeps its priority if it meets certain conditions."

Illustration for Land Transfer Act 2017

You have a replacement mortgage on land owned by a company. This replacement mortgage is special because it replaces another mortgage that was already paid off. The replacement mortgage has the same priority as the old mortgage. You need to know that the replacement mortgage must meet some conditions. It must be for an amount that is not more than the old mortgage. It must also say that it is replacing the old mortgage and that the money was used to pay off the old mortgage. The replacement mortgage has the same priority as the old mortgage when it comes to any licences that affect the land. If a mortgage has a specified principal amount as referred to in section 90 of the Property Law Act 2007, that amount is considered an amount secured.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6731310.

This page was last updated on — View changes

Topics:
Housing and property > Buying and selling homesHousing and property > Land useMoney and consumer rights > Banking and loans
Previous

134: Bringing down of mortgage on new licence, or

"What happens to a mortgage when a licence is transferred to a new owner"

Next

136: Exercise of power of sale by mortgagee of licence, or

"What happens when a lender sells a licence with a mortgage"

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

135Priority of replacement mortgage over land of company

  1. This section applies to a mortgage (the replacement mortgage) that—

  2. is registered against land owned by a company; and
    1. secures an amount not exceeding the amount secured by a mortgage of the land that has been discharged (the discharged mortgage) immediately before registration of the replacement mortgage; and
      1. contains a statement to the effect that the replacement mortgage replaces the discharged mortgage and that the money secured by the replacement mortgage was used to repay the money secured by the discharged mortgage.

        1. The replacement mortgage has the same priority in relation to any registered licences affecting the land or any part of the land as the discharged mortgage had immediately before it was discharged.

        2. For the purpose of subsection (1)(b), if a mortgage secures a specified principal amount as referred to in section 90 of the Property Law Act 2007, that amount is an amount secured.

        Compare