39Forfeited Crown lands securities

39 Forfeited Crown lands securities

39 Forfeited Crown lands securities

(1) In this section, appropriate person, in relation to any land, means—

(a) except as provided by paragraph (b), the Minister administering the Act under which the land is held, or

(b) the person prescribed in relation to that land by the regulations for the purposes of this subsection.

(2) If land which is subject to a mortgage, lien or charge in favour of the Authority is forfeited under the Crown Lands Acts—

(a) the land vests in the Authority for a period of 2 years commencing with the date on which the forfeiture takes effect, or for such longer period after that date as the appropriate person determines, and

(b) within one month after the date the forfeiture takes effect, or such longer period as may be agreed to by the Authority, the appropriate person shall notify the Authority in writing whether or not the appropriate person intends to discharge the Authority’s claim, and

(c) if the appropriate person notifies the Authority of an intention to discharge the Authority’s claim, the land, on receipt by the Authority of that notification—

(i) is divested from the Authority, and

(ii) becomes subject to the provisions of the Crown Lands Acts, as if a loan had not been made by the Authority,

and the amount of the claim shall be paid to the Authority in pursuance of that notification by the appropriate person before the end of the then current financial year, and

(d) if the appropriate person notifies the Authority that it does not intend to discharge the Authority’s claim or requests the Authority to sell the land, the Authority may sell the land to any person.

(3) The purchaser of land sold under this section shall hold it subject to any conditions prescribed by the Crown Lands Acts which, at the date of the forfeiture, were binding on the former holder but freed from any liability for any breach before the sale of any such conditions.

(4) The purchaser has 6 months from the time of the sale to comply with any unfulfilled improvement conditions in relation to the land.

(5) The proceeds of any sale under this section shall be applied—