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Natural Environment Bill

Natural resource permits - Nature of permits, commencement, duration and review

174: Permits not real or personal property

You could also call this:

"What happens to natural resource permits when someone dies or goes bankrupt"

Illustration for Natural Environment Bill

If a new law is passed, a natural resource permit will not be considered real or personal property. You will not be able to own a permit like you own a house or a car. When the holder of a permit dies, the permit will go to their personal representative, who can deal with it like the holder could. If the holder of a permit goes bankrupt, the permit will go to the Official Assignee, who can also deal with it like the holder could. A permit must be treated like property for some legal purposes, such as under the Protection of Personal and Property Rights Act 1988. You can grant a charge over a permit, which means you can use it as security for a loan, but the permit can only be transferred to the chargee under certain conditions. The Personal Property Securities Act 1999 will apply to natural resource permits as if they were goods. This means that permits will be treated like goods when it comes to security interests, but there are some exceptions. A coastal permit does not give you the right to occupy a coastal area exclusively, and it does not give you the same rights as a tenant or licensee of the land. A coastal permit also does not allow you to remove natural materials like sand or shell without permission. However, there are some exceptions to these rules, such as if the permit says otherwise or if it is necessary to achieve the purpose of the permit. The proposed law will affect how natural resource permits are treated under other laws, such as the Personal Property Securities Act 1999 and the Protection of Personal and Property Rights Act 1988.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1525673.

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175: Commencement of natural resource permit, or

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Part 4Natural resource permits
Nature of permits, commencement, duration and review

174Permits not real or personal property

  1. A natural resource permit is neither real nor personal property.

  2. Unless the conditions of a permit expressly state otherwise,—

  3. on the death of the holder of a permit, the permit vests in the personal representative of the holder as if the permit were personal property, and the personal representative may deal with the permit to the same extent as the holder would have been able to do; and
    1. on the bankruptcy of an individual who is the holder of a permit, the permit vests in the Official Assignee as if it were personal property, and the Official Assignee may deal with the permit to the same extent as the holder would have been able to do; and
      1. a permit must be treated as property for the purposes of the Protection of Personal and Property Rights Act 1988.

        1. The holder of a natural resource permit may grant a charge over that permit as if it were personal property, but the permit may only be transferred to the chargee, or by or on behalf of the chargee, to the same extent as it could be so transferred by the holder.

        2. The Personal Property Securities Act 1999 applies in relation to a natural resource permit—

        3. as if the permit were goods within the meaning of that Act; and
          1. as if the permit were situated in the provincial district in which the activity permitted by the permit may be carried out (or, where it may be carried out in more than 1 provincial district, in those provincial districts); and
            1. subject to the provisions of this Act, and in particular to subsection (3).

              1. A coastal permit—

              2. is not an authority for the holder to occupy a coastal marine area to the exclusion of all or any class of persons; and
                1. does not confer on the holder the same rights in relation to the use and occupation of the area against those persons as if they were a tenant or licensee of the land.

                  1. A coastal permit is not an authority for the holder to remove sand, shingle, shell, or other natural material as if it were a licence or profit à prendre.

                  2. However, subsections (5) and (6) do not apply—

                  3. to the extent that the coastal permit expressly provides otherwise; and
                    1. to the extent that is reasonably necessary to achieve the purpose of the coastal permit.