sec.7CEnforcement of chief executive’s charge—notice of intention to sell land

sec.7C Enforcement of chief executive’s charge—notice of intention to sell land

This section applies if— a deed of grant is issued subject to the chief executive’s charge; and the registered owner of the land in the deed of grant does not pay the total amount of the conversion cost to the chief executive during the payment period; and the chief executive decides to sell the land. The chief executive must give written notice (a notice of intention to sell ) stating the matters mentioned in subsection (3) to— the registered owner of the land; and each mortgagee of the land. The matters are each of the following— the day the payment period ended; the amount of the unpaid conversion cost; that the chief executive may sell the land if the registered owner does not pay to the chief executive within a stated period— the amount of the unpaid conversion cost; and if the chief executive requires interest on the unpaid conversion cost to be paid by the registered owner—interest on the unpaid conversion cost. The total amount payable by the registered owner under subsection (3) (c) is the demand amount . The period stated in the notice under subsection (3) (c) must be at least 14 days after the notice is given to the registered owner. If the notice requires the registered owner to pay interest under subsection (3) (c) (ii) , the interest is payable— at the standard variable interest rate that applies from time to time under the Housing Act 2003 , section 92 , for owner-occupied home loans or, if more than 1 standard variable interest rate applies, at the lowest applicable rate; and for the period starting on the day after the payment period ends and ending on the day the amount of the unpaid conversion cost is paid in full. If the registered owner does not pay the demand amount within the period stated in the notice, the chief executive may— sell the land; or if a mortgagee agrees to sell the land—allow the mortgagee to sell the land. If the chief executive allows a mortgagee to sell the land under subsection (7) (b) , the lessee is taken to be in default under the mortgage. s 7C ins 2005 No. 46 s 14 (sec.7C-ssec.1) This section applies if— a deed of grant is issued subject to the chief executive’s charge; and the registered owner of the land in the deed of grant does not pay the total amount of the conversion cost to the chief executive during the payment period; and the chief executive decides to sell the land. (sec.7C-ssec.2) The chief executive must give written notice (a notice of intention to sell ) stating the matters mentioned in subsection (3) to— the registered owner of the land; and each mortgagee of the land. (sec.7C-ssec.3) The matters are each of the following— the day the payment period ended; the amount of the unpaid conversion cost; that the chief executive may sell the land if the registered owner does not pay to the chief executive within a stated period— the amount of the unpaid conversion cost; and if the chief executive requires interest on the unpaid conversion cost to be paid by the registered owner—interest on the unpaid conversion cost. (sec.7C-ssec.4) The total amount payable by the registered owner under subsection (3) (c) is the demand amount . (sec.7C-ssec.5) The period stated in the notice under subsection (3) (c) must be at least 14 days after the notice is given to the registered owner. (sec.7C-ssec.6) If the notice requires the registered owner to pay interest under subsection (3) (c) (ii) , the interest is payable— at the standard variable interest rate that applies from time to time under the Housing Act 2003 , section 92 , for owner-occupied home loans or, if more than 1 standard variable interest rate applies, at the lowest applicable rate; and for the period starting on the day after the payment period ends and ending on the day the amount of the unpaid conversion cost is paid in full. (sec.7C-ssec.7) If the registered owner does not pay the demand amount within the period stated in the notice, the chief executive may— sell the land; or if a mortgagee agrees to sell the land—allow the mortgagee to sell the land. (sec.7C-ssec.8) If the chief executive allows a mortgagee to sell the land under subsection (7) (b) , the lessee is taken to be in default under the mortgage.