Plain language law

New Zealand law explained for everyone

Local Government (Water Services Preliminary Arrangements) Act 2024

Watercare Services Limited - Related amendments to Local Government (Auckland Council) Act 2009

112: New section 60A inserted (Charges as security)

You could also call this:

"Auckland water organisations can use a special charge as security to help pay back loans from people who own properties."

If you have a loan from an Auckland water organisation, they might use a charge as security. This means they use the money from the charge to help pay back the loan. You can find more information about this in the Receiverships Act 1993.

When a receiver is appointed to help with the loan, they can collect a charge to get enough money to pay back the loan and cover their costs. The receiver collects this charge from people who own properties in Auckland, or sometimes just from people in a specific area. They do this by adding a uniform charge to the water services charges for each property.

The receiver is not allowed to own or have a special interest in the water services infrastructure. There are also rules about how the charge is collected, which are explained in the Receiverships Act 1993 and the Local Government (Water Services Preliminary Arrangements) Act 2024. In this law, a Crown monitor is someone who is appointed under section 72 of the Local Government (Water Services Preliminary Arrangements) Act 2024 to help oversee things.

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 It might be out of date or be missing some parts.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

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS964618.

Previous

111: Section 58 amended (Auckland water organisation must give effect to LTP and act consistently with other specified plans and strategies of Council), or

"Auckland water organisation must follow its plans and the Council's strategies."

Next

113: Section 92 amended (Substantive council-controlled organisations must give effect to LTP and act consistently with other specified plans and strategies of Council), or

"Council organisations must follow the council's plans and rules, like the Long-Term Plan."

Part 4Watercare Services Limited
Related amendments to Local Government (Auckland Council) Act 2009

112New section 60A inserted (Charges as security)

  1. After section 60, insert:

    60ACharges as security

    1. This section applies if—

    2. an Auckland water organisation has granted a security interest over a charge or charging regime revenue as security for a loan or the performance of any obligations under an incidental arrangement; and
      1. a receiver has been appointed under section 40A or 40B of the Receiverships Act 1993 in respect of that loan or arrangement; and
        1. the Crown monitor has been informed of the appointment.

          1. The receiver may, without further authority than this section, assess and collect in each financial year a charge under this section to recover sufficient funds to meet—

          2. the payment of the Auckland water organisation’s commitments in respect of the loan or incidental arrangement during that year; and
            1. the reasonable costs of administering, assessing, and collecting the charge.

              1. However, a receiver may not create, or receive, any interest or security in water services infrastructure.

              2. A charge under this section must be assessed as a uniform charge in the dollar on the water services charges of a property—

              3. in Auckland; or
                1. if the Auckland water organisation resolved that, at the time when the loan was being raised or the incidental arrangement was being entered into, it was for the benefit of only a specified area, that area.

                  1. A charge under this section over any 1 or more of the assets of an Auckland water organisation is subject to section 40D(5) and (6) of the Receiverships Act 1993.

                  2. In this section, Crown monitor means a Crown monitor appointed under section 72 of the Local Government (Water Services Preliminary Arrangements) Act 2024.