16ALoan to Board

16A Loan to Board

16A Loan to Board

(1) In this section—

conveying works and supply work have the meanings respectively ascribed thereto in that Act.

private water corporation means a private water corporation within the meaning of the Water Management Act 2000.

(2) A private water corporation may apply to the Rural Assistance Authority in a form approved by the Rural Assistance Authority for a loan for the purposes of—

(a) constructing, supplying or installing structures, meters or appliances forming part of a supply work or conveying works, or

(b) enlarging, modifying, repairing, operating, maintaining or renewing the supply work or conveying works.

(3) Subject to subsection (4), the Rural Assistance Authority may grant or refuse an application for a loan.

(4) A loan shall not be granted where the sum of the principal amounts owing in respect of loans made to a private water corporation under this section and the principal amount of a proposed loan under this section would exceed $10,000.

(5) Loan moneys shall not be paid to a private water corporation unless the corporation is, at the time of payment of the loan moneys, the holder of a water supply work approval under the Water Management Act 2000.

(6) A loan—

(a) shall be made by the Rural Assistance Authority,

(b) shall bear interest from the day of payment to the private water corporation of the loan moneys at the rate it would bear if it were an advance referred to in section 5 (1), and

(c) with the interest thereon, shall be payable by consecutive half-yearly instalments within such period not exceeding fifteen years as is determined by the Rural Assistance Authority.

s 16A: Ins 1973 No 62, sec 2 (a). Am 1986 No 104, Schs 1 (17), 2 (6); 1989 No 98, Sch 1; 2000 No 92, Sch 8.11 [3] [4]; 2010 No 133, Sch 3.1[1]–[4].