sec.678Notice of suspected insolvency because of notice or direction

### sec.678 Notice of suspected insolvency because of notice or direction This section applies if— a water authority is given a notice about a public sector policy (a public sector policy notice ) or direction under this part; and the authority suspects that it will or may become insolvent; and in the authority’s opinion, the cause or a substantial cause of the suspected insolvency would be compliance with the public sector policy notice or direction. The authority must immediately give the Minister notice of the suspicion and its reasons for the opinion. The notice must state that it is given under this section. The giving of the notice operates to suspend the public sector policy notice or direction until— the Minister gives the authority written advice that the Minister is not satisfied that— the authority’s suspicion mentioned in subsection (1) (b) is well-founded; or the authority’s opinion mentioned in subsection (1) (c) is justified; or the public sector policy notice or direction is revoked. If the authority was given a public sector policy notice or a direction, and the Minister is satisfied that the authority’s suspicion is well-founded, the Minister must immediately— if the Minister is also satisfied that the authority’s opinion is justified—revoke the public sector policy notice or direction; and in any case—give the authority the written directions the Minister considers necessary or desirable, including any directions necessary or desirable to ensure— the authority does not incur further debts; or the authority will be able to pay all its debts as and when they become due. Without limiting subsection (5) , a direction under this section may require the authority to stop or limit particular activities. The authority must comply with a direction under this section. The Minister must publish a copy of the direction in the gazette within 15 business days after it is given. This section is in addition to, and does not limit, another provision of this Act or another law. s 678 amd 2006 No. 59 s 85 sch (sec.678-ssec.1) This section applies if— a water authority is given a notice about a public sector policy (a public sector policy notice ) or direction under this part; and the authority suspects that it will or may become insolvent; and in the authority’s opinion, the cause or a substantial cause of the suspected insolvency would be compliance with the public sector policy notice or direction. (sec.678-ssec.2) The authority must immediately give the Minister notice of the suspicion and its reasons for the opinion. (sec.678-ssec.3) The notice must state that it is given under this section. (sec.678-ssec.4) The giving of the notice operates to suspend the public sector policy notice or direction until— the Minister gives the authority written advice that the Minister is not satisfied that— the authority’s suspicion mentioned in subsection (1) (b) is well-founded; or the authority’s opinion mentioned in subsection (1) (c) is justified; or the public sector policy notice or direction is revoked. (sec.678-ssec.5) If the authority was given a public sector policy notice or a direction, and the Minister is satisfied that the authority’s suspicion is well-founded, the Minister must immediately— if the Minister is also satisfied that the authority’s opinion is justified—revoke the public sector policy notice or direction; and in any case—give the authority the written directions the Minister considers necessary or desirable, including any directions necessary or desirable to ensure— the authority does not incur further debts; or the authority will be able to pay all its debts as and when they become due. (sec.678-ssec.6) Without limiting subsection (5) , a direction under this section may require the authority to stop or limit particular activities. (sec.678-ssec.7) The authority must comply with a direction under this section. (sec.678-ssec.8) The Minister must publish a copy of the direction in the gazette within 15 business days after it is given. (sec.678-ssec.9) This section is in addition to, and does not limit, another provision of this Act or another law. - (a) a water authority is given a notice about a public sector policy (a public sector policy notice ) or direction under this part; and - (b) the authority suspects that it will or may become insolvent; and - (c) in the authority’s opinion, the cause or a substantial cause of the suspected insolvency would be compliance with the public sector policy notice or direction. - (a) the Minister gives the authority written advice that the Minister is not satisfied that— (i) the authority’s suspicion mentioned in subsection (1) (b) is well-founded; or (ii) the authority’s opinion mentioned in subsection (1) (c) is justified; or - (i) the authority’s suspicion mentioned in subsection (1) (b) is well-founded; or - (ii) the authority’s opinion mentioned in subsection (1) (c) is justified; or - (b) the public sector policy notice or direction is revoked. - (i) the authority’s suspicion mentioned in subsection (1) (b) is well-founded; or - (ii) the authority’s opinion mentioned in subsection (1) (c) is justified; or - (a) if the Minister is also satisfied that the authority’s opinion is justified—revoke the public sector policy notice or direction; and - (b) in any case—give the authority the written directions the Minister considers necessary or desirable, including any directions necessary or desirable to ensure— (i) the authority does not incur further debts; or (ii) the authority will be able to pay all its debts as and when they become due. - (i) the authority does not incur further debts; or - (ii) the authority will be able to pay all its debts as and when they become due. - (i) the authority does not incur further debts; or - (ii) the authority will be able to pay all its debts as and when they become due.