287CApplication of proceeds

287C Application of proceeds (1) An Authority that sells a water share, or causes it to be transferred, under section 287B must apply the proceeds of the sale, or the amount for which the share was transferred, as follows— (a) first, in payment of all expenses incurred in connection with the sale or transfer; (b) secondly, in payment of the outstanding fees, including interest; S. 287C(1)(c) substituted by No. 32/2010 s. 65. (c) thirdly, in discharging any recorded mortgages of which the Authority has notice, according to the priority of those mortgages. (2) The Authority must, if the owner of the water share can be traced, refund to the owner any surplus after all payments have been made that subsections (1)(a), (b) and (c) apply to. (3) If the owner cannot be traced, the Authority may, subject to subsection (5), retain and use any surplus after all payments have been made that subsections (1)(a), (b) and (c) apply to. S. 287C(4) substituted by No. 85/2006 s. 119. (4) A person who claims to be the mortgagee of a recorded mortgage over a water share may apply to the Authority for payment of the value of that mortgage from any surplus retained by the Authority. (5) If the Authority is satisfied that an applicant is entitled to any payment it must make that payment. S. 287D inserted by No. 99/2005 s. 65, amended by No. 32/2010 s. 66(2) (ILA s. 39B(1)).