(1)  Instead of requiring an owner to increase the area for public open space, the council, before approving a plan of subdivision may require security for the payment of an amount calculated under subsection (2) .

(1A)  A planning scheme –

(a) may specify that compliance with a requirement specified in subsection (1) is an acceptable solution in relation to subdivisions; and

(b) may enable a permitted development permit to be issued if such an acceptable solution is complied with in relation to a plan of subdivision.

(2)  The amount required to be paid is an amount not exceeding an amount which bears the same ratio to the value of the whole area comprised in the plan as one-twentieth of that area less any area provided for public open space in the final plan and any area created by the final plan of the littoral or riparian reserve bears to that whole area.

(3)  If the owner and the council do not agree on the amount to be secured, it is to be determined as a disputed claim for compensation under the Land Acquisition Act 1993 .

(4)  The security that may be required is –

(a) a bond by the owner of an amount in excess of any possible demand to secure payment of the amount within 90 days after the demand is made after the final plan has taken effect; and

(b) a guarantee by an authorised deposit-taking institution, a guarantee, money-lending, insurance or trading corporation approved by the council guaranteeing all money payable on the bond.

(5)  The council is to receive an amount payable under this section on trust for the acquisition or improvement of land for public open space for the benefit of inhabitants of the municipal area.

(6)  Any amount held, before the commencement of this section, by the council on trust for the acquisition of land for public open space is to be held on trust for the acquisition or improvement of land for public open space and applied in accordance with any prescribed requirements.

(7)  In respect of any amount paid to the council pursuant to section 473B of the Local Government Act 1962 before the commencement of this section –

(a) that amount was lawfully received by the council for the purposes of that section; and

(b) no action or legal proceedings may be continued or instituted against any person in respect of the receipt or holding by a council of that amount.