Plain language law

New Zealand law explained for everyone

Residential Tenancies Act 1986

Administration - Residential Tenancies Trust Account

127: Residential Tenancies Trust Account

You could also call this:

"A special account to hold rent and bond money, managed by rules to keep it safe."

Illustration for Residential Tenancies Act 1986

You pay money into a special account called the Residential Tenancies Trust Account. This account is for bond money and rent money. The money in this account is managed according to the Public Finance Act 1989. You can find more information about this in Part 7 of the Public Finance Act 1989. The chief executive manages the money in the account. They follow the rules in the Public Finance Act 1989. If you are unsure who gets the money in the account, the chief executive can ask the Tribunal for help. The Tribunal makes a decision about who gets the money. The chief executive then pays the money out according to the Tribunal's decision. The interest earned on the money in the account belongs to the Crown. This means the Crown gets to keep the interest. If bond money is not claimed within 6 years, it also belongs to the Crown. There are rules about when money can be paid out of the account. The chief executive can give permission for money to be paid out. The Tribunal can also make an order for money to be paid out. You can read more about the rules for the Residential Tenancies Trust Account in the Residential Tenancies Act 1986 and the Public Finance Act 1989, including Part 7 of the Public Finance Act 1989.

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 It might be out of date or be missing some parts.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=DLM95986.

This page was last updated on — View changes

Topics:
Housing and property > RentingMoney and consumer rights > Banking and loans
Previous

126R: Proceedings for alleged contravention, or

""

Next

128: Auditor-General to be auditor of Residential Tenancies Trust Account, or

"The government's top money-checker looks after the special bank account for rented homes."

Part 4Administration
Residential Tenancies Trust Account

127Residential Tenancies Trust Account

  1. The following sums shall be deemed to be trust money for the purposes of Part 7 of the Public Finance Act 1989:

  2. all sums paid to the chief executive by way of bond under section 20 or section 21, as the case may be:
    1. all rent money that is, by virtue of any of the provisions of this Act or of any order of the Tribunal, to be paid into the Residential Tenancies Trust Account:
      1. any other money that, by virtue of any such provision or any such order, is to be or may be credited to that Account,—
          1. and shall be paid into a Trust Bank Account called the Residential Tenancies Trust Account under that Part of that Act.

        1. Subject to subsection (3), the trust money in the Residential Tenancies Trust Account shall be managed and invested in accordance with Part 7 of the Public Finance Act 1989.

        2. Nothing in subsection (2) of section 68, and sections 69 and 70 of the Public Finance Act 1989 applies in respect of the Residential Tenancies Trust Account.

        3. Subject to sections 22 to 22D and to subsection (5), no money shall be paid out of the Residential Tenancies Trust Account except—

        4. pursuant to an order of the Tribunal; or
          1. with the chief executive's prior written consent.

            1. If, in respect of any sum of money that is credited to the Residential Tenancies Trust Account, the chief executive is uncertain who is entitled to it, or whether or not any such sum should be paid out of that Account to any person, the chief executive may apply to the Tribunal for an order determining who is so entitled or whether or not any such sum should be so paid out.

            2. Where any money is paid out of the Residential Tenancies Trust Account in conformity with any such order of the Tribunal, neither the Crown nor the chief executive shall incur any liability in respect of the payment.

            3. All interest, dividends, and other gains (whether in the nature of income or capital, and whether in money or otherwise, and whether realised or not) arising from any investment of money in the Residential Tenancies Trust Account shall belong to the Crown and be treated as departmental revenue.

            4. All money paid into the Residential Tenancies Trust Account as bond money belongs to the Crown and must be paid into a Crown Bank Account if the money—

            5. is not claimed within 6 years of the end of the tenancy to which the bond relates; or
              1. is to be refunded under an approval given by the chief executive, but has not been collected within 6 years of the date of that approval.

                1. Despite subsection (7A), during the first year after the commencement of this section, payment of money into a Crown Bank Account may be delayed to enable the chief executive to exercise the powers under section 22D.

                2. All money credited to Part A of the Residential Tenancies Fund immediately before the commencement of the Residential Tenancies Amendment Act 1992 shall be deemed to be credited to the Residential Tenancies Trust Account.

                3. All money credited to Part B of the Residential Tenancies Fund immediately before the commencement of the Residential Tenancies Amendment Act 1992 shall be deemed to be the property of the Crown.

                Notes
                • Section 127: replaced, on , by section 14 of the Residential Tenancies Amendment Act 1992 (1992 No 79).
                • Section 127(4): amended, on , by section 82(1) of the Residential Tenancies Amendment Act 2010 (2010 No 95).
                • Section 127(7A): inserted, on , by section 82(2) of the Residential Tenancies Amendment Act 2010 (2010 No 95).
                • Section 127(7B): inserted, on , by section 82(2) of the Residential Tenancies Amendment Act 2010 (2010 No 95).