Sch 6Charges over land

Schedule 6—Charges over land 1—Preliminary (1) This Schedule applies to a charge on land created by this Act. (2) However, this Schedule does not apply to rates, charges, interests or fines recoverable under Chapter 10 or a building upgrade charge under Schedule 1B. 2—Notice of charge to Registrar-General (1) For the purposes of imposing a charge over land, a council must deliver to the Registrar-General a notice, in a form determined by the Registrar-General— (a) identifying the land over which the charge is to exist; and (b) declaring the unpaid amount, and the rate of interest; and (c) requesting the Registrar-General to make a note under this section in the Register Book. (2) On receipt of a notice under subclause (1), the Registrar-General must enter an appropriate note in the Register Book and, when that entry is made, a charge is created over the land. 3—Effect of charge (1) The effect of the charge is as follows: (a) the Registrar-General must not, after entry of the note under clause 2, register an instrument affecting the land over which the charge exists unless— (i) the instrument— (A) was executed before the entry was made; or (B) has been executed under or pursuant to an agreement entered into before the entry was made; or (C) relates to an instrument registered before the entry was made; or (ii) the instrument is an instrument of a prescribed class; or (iii) the instrument is expressed to be subject to the operation of the charge; or (iv) the instrument is a duly stamped conveyance that results from the exercise of a power of sale under a mortgage, charge or encumbrance registered before the entry was made; and (b) the council has the same powers in respect of the land over which the charge exists as are given by the Real Property Act 1886 to a mortgagee under a mortgage in respect of which default has been made in payment of money secured by the mortgage. (2) An instrument registered under subclause (1)(a)(i) or (ii) has effect, in relation to the charge, as if it had been registered before the entry was made. (3) If an instrument is registered under subclause (1)(a)(iv), the charge will be taken to be cancelled by the registration of the instrument and the Registrar-General must take whatever action the Registrar-General considers appropriate to give effect to the cancellation. 4—Discharge of charge (1) The council in whose favour a charge exists must, if the amount to which the charge relates is paid, by notice in a form determined by the Registrar-General, apply for the discharge of the charge. (2) The Registrar-General must then cancel the relevant entry.