New Zealand Legislation: Acts

67ZF Liability to the Crown of persons who have or had landholding subject to registered forest sink covenants

• (1) If a person has a landholding in land that is subject to a registered forest sink covenant,—

  • (a) the person is, unless a contrary intention appears in the covenant, personally liable to the Crown for the observance of all the obligations in the covenant:

  • (b) the Crown may, in the event of a breach of an obligation in the covenant, seek any appropriate remedy directly against the person as if the person were a party to the covenant.

  (2) If a person acquires a landholding in land that is subject to a registered forest sink covenant,—

  • (a) the person is, unless a contrary intention appears in the covenant, personally liable to the Crown for—

    • (i) the observance of all the obligations in the covenant:

    • (ii) any liabilities arising from the emission of greenhouse gases from that forest sink that are owed to the Crown by any person who was an owner of a landholding in that land before the acquisition:

    • (iii) any penalties imposed for breaches of the harvesting restrictions in relation to the forest sink on that land by any person who was an owner of a landholding in that land before the acquisition:

    • (iv) any costs incurred by the Crown in—

      • (A) remedying a breach of the covenant by any person who was an owner of a landholding in that land before the acquisition; or

      • (B) enforcing its right to payment in respect of any person who was an owner before the acquisition:

  • (b) the Crown may, in relation to any matter specified in paragraph (a), seek any appropriate remedy directly against the person.

  (3) If a person ceases to have a landholding subject to a registered forest sink covenant, the person is no longer personally liable to the Crown for a breach of, or liabilities that arise under, the covenant unless the breach occurred or the liabilities arose while the person had the landholding.

  (4) If 2 or more persons have a landholding subject to a registered forest sink covenant, the covenant is deemed to bind each person jointly and severally.

  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).