Local Government (Rating) Act 2002

62 Recovery of rates if owner in default

(1)

If an owner defaults in paying the rates, the local authority may—

(a)

notify persons with an interest in the rating unit for which the rates are payable (including an interest as first mortgagee) of—

(i)

the fact of the default; and

(ii)

the provisions of this section; and

(b)

accept payment of the rates from the persons referred to in paragraph (a); or

(c)

recover, as a debt from the first mortgagee of a rating unit, the rates payable in respect of the rating unit that remain unpaid on a date that is—

(i)

not less than 3 months after notice has been given to that person under paragraph (a); and

(ii)

not earlier than 1 November in the financial year following the year in which the rates were first assessed.

(2)

A person (other than a mortgagee) who pays the unpaid rates under subsection (1) may—

(a)

recover that amount from the owner as a debt; or

(b)

retain that amount from any money that that person pays to the owner in respect of a debt other than that relating to unpaid rates.

(3)

If a mortgagee pays the unpaid rates under subsection (1), the amount paid must be treated as part of the money secured by the mortgage until it is repaid to the mortgagee, and the provisions of the mortgage apply to that amount.

(4)

This section does not affect any agreement between persons about their liability as between themselves to pay the rates for a rating unit.

Compare: 1988 No 97 s 139(1), (3), (4), (6)