WATER ACT 2000 - SECT 166
Priority for applying proceeds of sale of water allocations under a power of sale
WATER ACT 2000 - SECT 166
Priority for applying proceeds of sale of water allocations under a power of sale
166 Priority for applying proceeds of sale of water allocations under a power
of sale
(1) In addition to any other person who may exercise a power of sale in
relation to a water allocation, the following persons may exercise a power of
sale in relation to a water allocation—
(b) if a supply contract gives a resource operations
licence holder a power to sell the water allocation—the holder;
(c) if
distribution arrangements give a distribution operations licence holder a
power to sell the water allocation—the holder.
(2) The holder of a resource
operations licence may exercise a power of sale only in accordance with the
supply contract.
(3) The holder of a distribution operations licence may
exercise a power of sale only in accordance with the distribution
arrangements.
(4) Subsection (1) applies despite any registered interest in
the water allocation.
(5) Before exercising the power of sale, a person
proposing to exercise the power must give any person who has a registered
interest in the water allocation not less than 30 business days notice of the
proposed exercise of the power.
(6) An amount received on the sale of the
water allocation must be applied in the way mentioned in section 164(7) .
(7) A genuine purchaser for value of a water allocation under this section
takes the allocation free of all interests.
(8) Section 146(2) to (7)
applies to the purchaser of a water allocation under this section as if the
allocation were granted on the day the allocation was sold.