(1) Notwithstanding the provisions of any other Act or any rule of law, it shall be lawful for the Hospital Board to set apart and make available the land described in Schedule 1 or any part thereof as a site for the erection and establishment by the Trust Board of a private hospital, as defined by the Hospitals Act 1957, to be conducted by the Trust Board, subject to the provisions of the said Act, and to lease the said land to the Trust Board for the said purpose at a peppercorn rental (but subject to the payment by the Trust Board of all rates, taxes, and other outgoings (if any) levied in respect of the said land) in perpetuity, or for such term as the Hospital Board thinks fit, and upon such conditions as the Hospital Board thinks fit. If any such lease is for a term it may contain a perpetual right of renewal.
(2) Notwithstanding anything in subsection (1), any such lease may confer on the Trust Board the right, with the consent of the Hospital Board, to sublet any part of the land comprised in the lease for a peppercorn rental to any charitable organisation, approved by the Hospital Board, for purposes similar to those for which the Trust Board is leasing the land, or for the purpose of providing a home for aged, infirm, or needy persons.
(3) If at any time during the currency of any such lease—
the Hospital Board may re-enter and take possession of the land and thereby determine the lease, or accept a surrender or partial surrender of the lease, as the case may be.
(4) If at any time during the currency of any such sublease, the land comprised in the sublease ceases to be used by the charitable organisation for the purposes set out in subsection (2), the Hospital Board may re-enter and take possession of the land, and thereupon both the lease and the sublease shall be deemed to have been determined in respect of the land.
(5) The District Land Registrar for the Land Registration District of Hawke's Bay is hereby authorised and directed to accept for registration such documents by way of lease or sublease or otherwise as may be necessary to give effect to this section.
Section 3(1): amended, on 6 October 1986, by section 3 of the Hawke's Bay Hospital Board Empowering Amendment Act 1986 (1986 No 7 (L)).