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Public Audit Act 2001

Transitional provisions - Audit Department

58: Rights and liabilities of the Crown and third parties following transfer or grant

You could also call this:

"What happens to the government's and others' rights and responsibilities when assets are transferred to the Auditor-General"

Illustration for Public Audit Act 2001

When assets, liabilities, or rights are transferred to the Auditor-General, you need to know what happens to the Crown's and third parties' rights and liabilities. The transfer does not let other people change the Crown's or Auditor-General's rights and liabilities under any Act, deed, or agreement. If the transfer needs to be registered, the person in charge of the register must do it as soon as they get written notice.

If a contract or document about the transfer is presented to the House of Representatives, it is like giving notice of the transfer, and third parties must then deal with the Auditor-General instead of the Crown. The Crown is still responsible to third parties, but the Auditor-General must cover any costs the Crown has to pay. If the Auditor-General pays or fulfils any obligations, it is like the Crown has done it too.

Any payments or actions by third parties that help the Auditor-General are also helping the Crown. Some rules in deeds or agreements that limit what the Crown can do with its assets do not apply when the Crown is transferring assets under this Act. The Crown can transfer its assets, liabilities, or rights to the Auditor-General, even if other laws or agreements do not allow it or require permission.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM88966.

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57: Transfer of Crown assets and liabilities to Auditor-General, or

"When the government gives the Auditor-General control of its assets and debts"

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Part 9Transitional provisions
Audit Department

58Rights and liabilities of the Crown and third parties following transfer or grant

  1. If there is a transfer or grant of any asset, liability, authority, or rights to the Auditor-General under any of paragraphs (a) to (c) of section 57(1),—

  2. the transfer or grant does not entitle any other person to terminate, alter, or in any way affect the rights or liabilities of the Crown or the Auditor-General under any Act or any deed or agreement:
    1. if the transfer or grant is registrable, the person responsible for keeping the register must register the transfer or grant immediately after written notice of the transfer or grant is received by that person from any person authorised for this purpose by the Minister of Finance:
      1. the presentation to the House of Representatives of any contract or other document relating to the transfer or grant is to be treated as notice of the transfer or grant and, after the date of the contract or document, any affected third party is to deal with the Auditor-General in place of the Crown:
        1. the Crown remains liable to any third party as if the transfer or grant had not been made, but the Auditor-General must indemnify the Crown in respect of any liability to the third party:
          1. any satisfaction or performance by the Auditor-General in respect of the asset, liability, authority, or rights is to be treated as also satisfaction or performance by the Crown:
            1. any satisfaction or performance in respect of the asset or liability, authority, or rights by any third party to the benefit of the Auditor-General is to be treated as also to the benefit of the Crown.

              1. No provision in any deed or agreement limiting the Crown’s right to sell any assets to third parties, or for determining the consideration for the sale of any assets to third parties, or obliging the Crown to account to any person for the whole or part of the proceeds of sale by the Crown of any assets to third parties, or obliging the Crown to pay a greater price than otherwise by reason of or as a consequence of the sale of any assets to third parties, has any application or effect in respect of any contract or other document or transfer entered into or effected under this Act or under such a contract or other document or transfer.

              2. Any asset, liability, authority, or rights of the Crown may be transferred or granted to the Auditor-General under this Act whether or not any Act or deed or agreement relating to the asset, liability, authority, or rights permits such transfer or grant or requires any consent to such a transfer or grant.