(1)  Any demerit points allocated to a licence that is transferred to another person under Division 4 of Part 6 continue to be in force in respect of that licence as provided by the regulations.

(2)  Where part of a water allocation of a licence to which demerit points are allocated is transferred to another licensee under Division 4 of Part 6 , the demerit points are allocated to the licence of the transferor and the licence of the transferee in proportion to the part of the water allocation which is transferred.