287DSale or transfer cancels encumbrances

287D Sale or transfer cancels encumbrances (1) When an Authority sells a water share, or causes it to be transferred, under section 287B— S. 287D(1)(a) amended by No. 32/2010 s. 66(1). (a) the sale or transfer is free from all rights of the owner of the water share or any mortgagee over the water share; and (b) the Registrar must, when registering the transfer, cancel any recorded mortgages on the water share. S. 287D(2) inserted by No. 32/2010 s. 66(2). (2) The application of this section to the sale or transfer of water share is not to be taken to affect the rights of any holder of a limited term transfer under the water share. Pt 13A (Heading and ss 287E–287U) inserted by No. 85/2006 s. 120.