The Short Title of this Act is The North Island Main Trunk Railway Loan Application Act 1886.

The North Island Main Trunk Railway shall be deemed to be a railway from a point at or near Marton to Te Awamutu, via Murimotu, Taumarunui, and the Ongaruhe River Valley.

All moneys borrowed under the authority of the said Act shall be carried to a separate account in the Public Works Fund, and shall from time to time be applied to the construction of the said railway, in such amounts and within such periods only as shall be provided by any Act or Acts to be passed by the General Assembly appropriating the said moneys; and it is hereby expressly declared that it shall not be lawful for the Governor to recommend to Parliament the appropriation of any part of the moneys so authorized to be borrowed to any other purpose than the construction of the said railway as defined by this Act.

(1) The costs of determining and surveying the line of the railway.

(2) All other costs incidental to the construction of the railway and approaches thereto.

(3) The cost of rolling-stock and other necessary equipment of the railway.

(4) The cost of acquiring Maori or other land for the use and occupation of the same.

(5) The cost, to an amount not exceeding $440,570, of acquiring Maori or other lands lying within the boundaries described in the Schedule to The Maori Land Alienation Restriction Act 1884.

(6) The cost of raising the loan.

(1) Out of the land acquired or that may be acquired under the provisions of subsection five of the fourth section of the said Act at least five per centum of such lands shall be from time to time reserved and set apart, at such times and in such blocks as the Governor directs, as an endowment for the maintenance of primary education within the education district in which such land is situated, and such land shall be subject to and may be dealt with by School Commissioners appointed under The Education Reserves Act 1877, and its amendments.

(2) The remainder of such land so acquired or that may be acquired as aforesaid shall constitute an endowment for the purpose of the North Island Main Trunk Railway, and may from time to time be sold, leased, or otherwise alienated or disposed of under and in accordance with the provisions of The Land Act 1885, and its amendments, and all the proceeds thereof (after payment of all expenses necessary for carrying out such sale, lease, alienation, or disposition) shall be paid into the separate account mentioned in the third section of the said Act, and shall be applied thereout as the General Assembly shall direct from time to time in the construction of the said Main Trunk Railway and of branch railways, tramways, and roads thereto or in connection therewith.

(3) This enactment shall be deemed to have been in operation as from the passing of the said Act; and any sale, lease, or other alienation of the land mentioned in the said fifth section heretofore made under The Land Act 1885, or its amendments, and all acts, instruments, and proceedings heretofore done, signed, or executed in respect thereof or in relation thereto, shall be deemed to have been made, done, signed, or executed under the powers herein contained, and to be valid and effectual for all purposes accordingly.

(4) No person or body shall have any right or claim to the proceeds of the sale, lease, or other alienation or disposition of the lands acquired or to be acquired as aforesaid, otherwise than as herein specially provided.