New Zealand Acts

CAWTHRON INSTITUTE TRUST BOARD EMPOWERING ACT 1949 - SECT 5

5 Board authorised to lend money on leasehold property

The said Board shall have power, where not expressly forbidden by the trusts, to lend any part of the funds of the Board on first mortgage of any leasehold granted by it in any case where the following conditions are complied with, namely:

a) where the tenancy is for a term not exceeding 21 years with a right or successive rights of renewal for the same or any shorter term or terms either in perpetuity or for a period or periods ending not earlier than 40 years from the date of the loan at a rental to be determined by valuation in accordance with the provisions of Schedule 1 of the Public Bodies' Leases Act 1908:

b) that the moneys so lent shall be used in erecting buildings or other permanent improvements on the land so leased:

c) that the amount to be lent on the security of each such leasehold or permitted by the terms of the mortgage to remain owing at any time during the currency of the mortgage thereof shall not exceed two-thirds of the value of the lessee's interest in the said land and such buildings and improvements as aforesaid:

d) that the amount so lent shall be wholly repayable within 7 years or by the date on which the current lease expires, whichever period is the shorter; provided nevertheless that the Board may agree to accept repayment by periodical payments of principal and interest extending over the remaining period of the current lease or any part thereof.