New Zealand Legislation: Regulations

22 Mortgage debentures

• No registered prospectus or advertisement shall refer to securities as mortgage debentures unless—

  • (a) The securities are secured by a first mortgage given to a trustee over land vested in a member of the borrowing group; and

  • (b) The mortgage has been registered, or is a registrable mortgage that has been lodged for registration, in accordance with the law in force relating to the registration of mortgages of land in the place where the land is situated; and

  • (c) The registered prospectus or advertisement states and describes the percentage arrived at by dividing the aggregate amount of the securities, and of all other liabilities (if any) secured by the mortgage and ranking pari passu in point of security with the liability to repay the securities, by the amount of the valuation referred to in paragraph (d) of this regulation; and

  • (d) There is included in the registered prospectus or disclosure statement relating to the securities either—

    • (i) A copy of a written valuation of the interest of the member of the borrowing group in the land made not more than 12 months before the date of the registered prospectus or disclosure statement by a registered valuer within the meaning of the Valuers Act 1948 (being a person who is not an officer or employee of the issuer or of any related body corporate); or

    • (ii) A copy of the latest Government valuation of the interest of the member of the borrowing group in the land, and the date thereof.

  Paragraph (d) was amended, as from 1 January 1996, by regulation 8 Securities Regulations 1983, Amendment No 2 (SR 1995/285), by inserting, after the word “prospectus”, in both places where it appears, the words “or disclosure statement”.