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Contract and Commercial Law Act 2017

Other commercial matters - Lien for work done

344: How money arising from sale is to be applied

You could also call this:

“Money from selling goods must be used to pay costs and debts first”

When someone sells goods under this part of the law, they need to use the money they get in a specific order. First, they must pay for the costs of advertising and selling the goods. Then, they need to pay off the amount owed under the lien. A lien is when someone has the right to keep something until a debt is paid. If there’s any money left over after these payments, it’s called the surplus.

If there is a surplus, the person who sold the goods needs to give it to the Registrar of the nearest District Court as soon as they can after finishing the sale. The Registrar will keep this extra money safe for the person who should rightfully have it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7067813.

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Business > Industry rules Business > Fair trading Money and consumer rights > Consumer protection
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Part 5 Other commercial matters
Lien for work done

344How money arising from sale is to be applied

  1. The proceeds of a sale of goods under this subpart must be applied in the following order:

  2. in payment of the expenses of the advertising and sale:
    1. in payment of the amount due under the lien:
      1. in payment of the surplus (if any) under subsection (2).

        1. The surplus (if any) must, as soon as practicable after the completion of the sale, be paid to the Registrar of the office of the District Court nearest to the place of sale (to be held by the Registrar for the benefit of the person entitled to it).

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