New Zealand Legislation: Acts

67ZE The Crown may register charges with respect to land subject to forest sink covenants in certain circumstances

• (1) The Minister may register a charge under the Statutory Land Charges Registration Act 1928 against land subject to a forest sink covenant if—

  • (a) liabilities are owed to the Crown by an owner of a landholding arising from the emission of greenhouse gases in relation to the forest sink on that land:

  • (b) penalties are imposed for breaches by an owner of a landholding of the harvesting restrictions in relation to the forest sink on that land:

  • (c) costs are incurred by the Crown in—

    • (i) remedying a breach of the covenant; or

    • (ii) enforcing its right to payment in relation to the covenant:

  • (d) the covenant is breached.

  (2) If the owner of a landholding fails or refuses, within the time provided for payment in the forest sink covenant or otherwise, to make any payment for which a charge may be registered under subsection (1), the failed or refused payment is an unpaid statutory debt owed to the Crown, and the amount by which it, or any unpaid part of it, is deemed to have been increased is the sum of—

  • (a) 10% of the debt (or that part of the debt that remained unpaid after the expiry of the time provided for the debt's payment); and

  • (b) for every complete period of 12 months after that expiry during which the debt or any part of it (including any deemed increase calculated under this subsection) has remained unpaid, 10% of the debt or that part of the debt.

  (3) If the owner of a landholding pays the statutory debt (including any deemed increase) or the Crown releases the owner of the landholding from the obligation to pay the debt, the Minister must release the relevant charge on the land (if any).

  (4) For the purposes of this section, a charge that is registered by the Minister under the Statutory Land Charges Registration Act 1928 against land subject to a forest sink covenant—

  • (a) has priority over any subsequently registered mortgages, charges, and encumbrances with respect to that land; but

  • (b) does not have priority over any prior registered mortgages, charges, and encumbrances with respect to that land.

  Part 3B (comprising sections 67W to 67ZU) was inserted, as from 14 November 2006, by section 31(4) Climate Change Response Amendment Act 2006 (2006 No 59).