239KBorrowing by private water trusts

#### 239K Borrowing by private water trusts 239K Borrowing by private water trusts > > (1) A private water trust has and may exercise the following functions— > > > > > (a) to pay to the Treasury, at such times as may be fixed by the Minister, the interest and charges payable by the trust, > > > > > (b) to borrow money, but only as provided by this section. > > > (2) A loan by way of limited overdraft may be obtained for the purpose of meeting necessary legitimate expenditure prior to the collection of rates or for the purpose of carrying out urgent works of renewal, or replacement, or other emergency, for which sufficient funds are not immediately available. > > > (3) On application by a trust the Minister may issue a certificate of limit of overdraft, in which must be named the purpose in respect of which the loan may be obtained and the limit of the amount to be borrowed. > > > (4) The sum to be stated in the certificate as the limit of the overdraft is in the discretion of the Minister, but must not exceed the estimated amount required for the purpose mentioned therein plus 10% of such amount. > > > (5) The loan is subject to any conditions inserted by the Minister in the certificate, and the money borrowed is taken to be secured on the income of the trust and must be repaid within the time fixed in the certificate. > > > (6) All sums received on account of a trust’s sinking fund must be carried by the Treasurer to a special account, to be called “The Water Supply Loan Redemption Fund”, and all other sums to the Consolidated Fund. > > > (7) The regulations may make provision for or with respect to regulating the payment to the Crown of interest. > > **s 239K:** Ins 2010 No 133, Sch 2\[59\].