Chapter 5, part 4, before division 4 heading--
insert--
'(1) After receiving a notice under section 235(1) or 238(2), a lessee of a lease may make written application for permission to sell the lease.
'(2) If the Minister approves the sale of the lease by the lessee, the Minister must give written notice of the Minister's approval to any mortgagee and any relevant local government.
'(1) After receiving a notice under section 235(1) or 238(2), a relevant local government may apply to the Minister for approval to sell a lease.
'(2) However, a relevant local government may only apply to sell a lease under subsection (1) if the lessee of the lease has an overdue rate payable to the relevant local government for the lease land.
'(3) If the Minister approves the sale of the lease by the local government, the Minister must give written notice of the Minister's approval to the lessee and any mortgagee.
'(4) In this section--
overdue rate has the meaning given by the Local Government Act 1993, section 1016.
'(1) If the Minister approves the sale of the lease by the relevant local government under this subdivision, written notice of the approval must be given to the lessee, the local government and any mortgagee.
'(2) The notice must state the required period within which the local government must start the procedures for selling the lease.
'(1) This section applies if a relevant local government has been given notice under section 240H.
'(2) The Local Government Act, chapter 14, part 7, divisions 3 and 5 other than sections 1039 and 1058 apply, with necessary changes, to the sale of a lease under this subdivision.
'(3) However, the required period for starting the procedures for selling a lease under this subdivision is the required period stated in the notice under section 240H(2) and not the required period stated in the Local Government Act, section 1042(2).
'(4) Also, the following must be at least the total of all charges owing to the State under this Act in relation to the lease--
(a) the reserve price chosen under the Local Government Act, section 1044;
(b) the price for sale by agreement under the Local Government Act, section 1045.
'(5) Further, in applying the proceeds of sale of a lease under the Local Government Act, section 1047(1), the local government must apply the proceeds to payment of charges on the lease, including any rent, instalments or penalty interest, owing to the State, in priority to all encumbrances, and in priority to the payments mentioned in the Local Government Act, section 1047(1)(b), (c) and (d).
'(6) In this section--
Local Government Act means the Local Government Act 1993.
'This subdivision applies to a lease if the chief executive is allowed to sell the lease under section 236 or 239(1)(b)(iv).
'(1) The chief executive must give written notice to each person who has a registered interest in the lease land that the chief executive is allowed to sell the lease under this subdivision.
'(2) The notice must state either--
(a) that the chief executive proposes to enter into possession of the lease and sell the lease under this subdivision; or
(b) that the chief executive proposes that the lessee and the chief executive enter into an agreement (a transition to sale agreement) that will apply until the lease is sold under this subdivision.
'(3) The notice must advise the matters mentioned in--
(a) if the notice states the matter mentioned in subsection (2)(a)--section 240L; or
(b) otherwise--sections 240L, 240M and 240N.
'(4) If the notice states that the chief executive proposes that the lessee and the chief executive enter into a transition to sale agreement, the notice must require the lessee to advise the chief executive, within the time stated in the notice, of whether the lessee wishes to enter into a transition to sale agreement.
'(1) This section applies if the chief executive enters into possession of the lease to sell the lease under this subdivision.
'(2) The chief executive must advise the lessee that the chief executive is entering into possession.
'(3) The lessee must, in the lessee's capacity as lessee, immediately vacate the lease land.
'(4) The chief executive enters into possession of the lease to the exclusion of the lessee's interests under the lease.
'(5) If the lessee does not vacate the lease land under subsection (3), and is not otherwise entitled to possession, the lessee is a person who is unlawfully occupying the lease land.
Note--
Action for trespassing may be taken under chapter 7, part 2.
'(6) Until the chief executive sells the lease, the chief executive may act in the place of the lessee for all matters in relation to the administration of the lease, including for example for all matters concerning the holders of any subleases over the lease.
'(7) The Minister may, for the proper administration of the lease until it is sold, change the imposed conditions as they apply to the lease, and may take action to have the changed conditions registered.
'(8) Despite subsection (6), the chief executive does not become liable to pay any amounts payable by the lessee in relation to the lease.
'(9) Without limiting subsection (8), the chief executive is not liable to pay any amount payable by the lessee to the holder of any registered interest in the lease.
'(10) While the chief executive is in possession, any amounts otherwise payable to the lessee by any person in relation to the lease, including rent payable by a sublessee, must be paid to the chief executive.
'(11) The chief executive must execute the transfer of the lease.
'(1) This section applies if the lessee and the chief executive enter into a transition to sale agreement.
'(2) Until the chief executive sells the lease, the following apply--
(a) the Minister may carry out a review of the imposed conditions of the lease as they apply to the lessee;
(b) the Minister may, for the proper administration of the lease until it is sold, change the imposed conditions as they apply to the lessee, and may take action to have the changed conditions registered;
(c) the lessee must not, without the Minister's written approval, further deal with the lease;
(d) to the extent stated in the agreement--
(i) the lessee continues to pay rent payable under the lease; and
(ii) the lessee continues to receive rent and other amounts otherwise payable to the lessee in the lessee's capacity as lessee; and
(iii) the lessee remains in possession of the lease land; and
(iv) the chief executive and other persons authorised by the chief executive may enter the lease land, including for purposes connected with the chief executive's sale of the lease; and
(v) improvements may be dealt with, and development work may be performed, by the lessee or the chief executive; and
(vi) the lessee must perform tasks directed to the ongoing day to day administration of the lease, including the maintenance of the lease land;
(e) the remedies for or consequences of a breach of the agreement are those stated in the agreement.
'(3) The chief executive must execute the transfer of the lease.
'(4) When the transfer of the lease is registered, the chief executive must cancel the registration of the transition to sale agreement.
'(5) If the lessee is in possession of the lease when the transfer of the lease is registered, subject to the transition to sale agreement, the lessee must immediately vacate the lease land.
'(6) If the lessee does not vacate the lease land under subsection (5), and is not otherwise entitled to possession, the lessee is a person who is unlawfully occupying the lease land.
Note--
Action for trespassing may be taken under chapter 7, part 2.
'(1) This section applies if the written notice under section 240K (the 240K notice) states that the chief executive proposes that the lessee and the chief executive enter into a transition to sale agreement, and within the time stated in the 240K notice by the chief executive--
(a) the lessee does not give written notice that the lessee wishes to enter into a transition to sale agreement; or
(b) the lessee advises the chief executive that the lessee does not wish to to enter into a transition to sale agreement.
'(2) This section also applies if--
(a) the 240K notice states that the chief executive proposes that the lessee and the chief executive enter into a transition to sale agreement; and
(b) within the time stated in the 240K notice, the lessee gives written notice that the lessee wishes to enter into a transition to sale agreement; and
(c) the chief executive and the lessee--
(i) within the time stated for this subparagraph in the 240K notice or a longer time approved by the chief executive, do not execute a transition to sale agreement; or
(ii) earlier agree that the chief executive and the lessee are unable to agree on the terms of a transition to sale agreement.
'(3) The chief executive may enter into possession of the lease and sell the lease under this subdivision unless the Minister or designated person takes action under subsection (4) or (5).
'(4) If the lease was allowed to be sold by the chief executive under section 236, the Minister may withdraw the Minister's decision to allow the chief executive to sell the lease, and may take other action under section 236.
'(5) If the lease was allowed to be sold by the chief executive under section 239(1)(b)(iv), the designated person may withdraw the designated person's decision to allow the chief executive to sell the lease, and may take other action under section 239.
'(1) The chief executive may enter into a transition to sale agreement, including any amendment of a transition to sale agreement, only with the Minister's approval.
'(2) A transition to sale agreement, including any amendment of a transition to sale agreement, has effect only if it is registered.
Note--
For registration of transition to sale agreements, see section 279.
'(1) This section states requirements that apply for the sale of the lease by the chief executive under this subdivision.
'(2) The chief executive must first offer the lease for sale by public auction.
'(3) However, the chief executive may with the Minister's written approval sell the lease by private contract.
'(4) Sections 114(1), 115, 116 and 117 apply, with the necessary changes, to a sale by the chief executive under this subdivision.
Note--
Transfers for the sale of a lease by the chief executive are dealt with under chapter 6, part 4, division 1.
'(5) The lease must not be offered for sale by public auction, and the chief executive must not enter into a contract of sale under subsection (3), until at least 28 days after the chief executive has published a sale notice under applied section 114 in a newspaper circulating generally in the locality of the lease, advising that the lease is for sale.
'(6) The imposed conditions that are to apply to the lease after its sale and that are stated in the sale notice may be different from the imposed conditions applying to the lease before the sale.
'(7) The consent of the holder of any registered interest in the lease is not required for the registration of the transfer of the lease.
'(8) The imposed conditions that are to apply to the lease after the sale must be registered when the transfer is registered.
'(9) If the sale of the lease is not completed within 2 years after this subdivision starts to apply to the lease--
(a) if the lease was allowed to be sold by the chief executive under section 236--the Minister may withdraw the Minister's decision to allow the chief executive to sell the lease, and may forfeit the lease under section 236; or
(b) if the lease was allowed to be sold by the chief executive under section 239(1)(b)(iv)--the designated person may withdraw the designated person's decision to allow the chief executive to sell the lease, and may forfeit the lease under section 239.
'The chief executive must apply the proceeds of sale of the lease as follows--
(a) firstly, to payment to the State of all costs properly incurred by the chief executive for the sale or any attempted sale;
(b) secondly, to payment to the State of charges on the lease, including any rent, instalments or penalty interest, owing to the State;
(c) thirdly, to payment to the State of all costs properly incurred by the chief executive to rectify any damage caused to the land by the lessee;
(d) fourthly, to payment to the State of all costs properly incurred by the chief executive--
(i) if there was a transition to sale agreement--in the administration of the agreement; or
(ii) otherwise--in the administration of the lease;
(e) fifthly, to payment to the relevant local government of overdue rates payable to the local government under the Local Government Act 1993, chapter 14, part 7;
(f) lastly, to payment to the lessee.
'(1) The chief executive, and any person acting under the authority of the chief executive, does not incur civil liability for an act done, or omission made, honestly and without negligence under this subdivision.
'(2) If subsection (1) prevents a civil liability attaching to a person, the liability attaches instead to the State.'.