COMMUNITY LAND MANAGEMENT ACT 1989 - SECT 23 Restriction on powers during initial period

COMMUNITY LAND MANAGEMENT ACT 1989 - SECT 23

23 Restriction on powers during initial period

(1) During the initial period for its related scheme, an association may not, unless an order made under subsection (4) otherwise provides--

(a) incur a debt of an amount in excess of the amount then available for repayment of the debt from the administrative fund or sinking fund, or

(b) borrow money or give security for the repayment of money, or

(c) make, amend or repeal a by-law creating restricted property.

(2) During the initial period for a neighbourhood scheme, the neighbourhood association may not, unless an order made under subsection (4) otherwise provides--

(a) grant a lease of neighbourhood property, or

(b) create an easement burdening land within the neighbourhood scheme or a restriction on the use of any such land, or

(c) release an easement, or a restriction on the use of land, that benefits neighbourhood property, or

(d) dedicate association property, or

(e) transfer neighbourhood property except by way of sale to a resuming authority under section 34 of the Community Land Development Act 1989 , or

(f) erect a structure on neighbourhood property, or

(g) subdivide or create neighbourhood property.

(3) During the initial period for a scheme, a developer may not, unless an order made under subsection (4) otherwise provides--

(a) convert to association property a neighbourhood lot within the scheme, or

(b) subdivide a neighbourhood lot within the scheme.

(4) A restriction imposed by subsection (1), (2) or (3) may be waived, varied or extinguished by order of the Tribunal on application by the association or developer to which the restriction applies.

(5) An association may recover from the original proprietor under the relevant scheme--

(a) as a debt--any liability incurred by the association because of a breach of subsection (1), (2) or (3), or

(b) as damages--any loss suffered by the association as a result of such a breach.

(6) A member of an association other than the original proprietor under the relevant scheme may recover from the original proprietor as damages any loss suffered by the member because of a breach of subsection (1), (2) or (3).

(7) It is a defence to an action under this section for debt or damages if it is proved that the original proprietor--

(a) did not know of the breach on which the action is based, or

(b) was not in a position to influence the conduct of the association in relation to the breach, or

(c) being in such a position, used due diligence to try to prevent the breach.

(8) A remedy available under this section does not affect any other remedy.