New Zealand Legislation: Acts
Acts are laws made by Parliament
(1) Each proprietor for the time being of a unit to which this Part of this Act applies shall be deemed to have guaranteed to the lessor the payment by the body corporate of the rent reserved under the lease on the days and in the manner prescribed therein, and the performance or observance by the body corporate of the covenants, agreements, and stipulations contained or implied in the lease and on the lessee's part to be performed or observed:
Provided that the liability of each such proprietor under the guarantee hereby deemed to have been given in respect of any rent or other money payable under the lease to the lessor (including any money which has become payable by virtue of any breach by the body corporate of any covenant, agreement, or stipulation contained or implied in the lease) shall be limited to such proportion of the rent or other money so payable as the unit entitlement of that proprietor's unit bears to the aggregate unit entitlement of all the units shown on the plan, and shall relate only to rent and other money due or accruing due while he is the proprietor of that unit.
(2) No neglect or forbearance of the lessor in endeavouring to obtain payment of the rent or other money payable under the lease or to enforce the performance or observance of the covenants, agreements, and stipulations contained or implied therein by the body corporate, and no time or other indulgence which may be given to the body corporate by the lessor shall release, exonerate, or in any way affect the liability of any proprietor under subsection (1) of this section.
(3) Where the proprietor of any unit pays to the lessor any sum which he is liable to pay under the provisions of subsection (1) of this section, he shall be entitled to recover the sum from the body corporate as a debt in any Court of competent jurisdiction:
Provided that nothing in this subsection shall prevent the body corporate from claiming any sum due to it from that proprietor under the provisions of this Act by way of set-off.