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s 63

Subsidiary scheme, higher scheme and basic scheme

In force
Chapter 2Basic operation of a scheme
Part 2.4Development of a scheme
Division 1Preliminary matters

63 Subsidiary scheme, higher scheme and basic scheme

(1) A scheme (first scheme) is a subsidiary scheme of another scheme (second scheme) if the scheme land of the first scheme (first scheme land) is part of the scheme land of the second scheme because:

(a) the first scheme land is a unit of the second scheme; or

(b) the first scheme land is a unit of another scheme whose scheme land is

part of the scheme land of the second scheme.

Note for subsection (1)

Subsection

(1)

(b) applies if there are 2 or more interposed schemes forming a chain between the first scheme and second scheme. The scheme land of each interposed scheme (except the last one in the chain) is a unit of the next interposed scheme. The scheme land of the last interposed scheme is a unit of the second scheme.

(2) If the first scheme is a subsidiary scheme of another scheme, the other scheme is a higher scheme of the first scheme.

(3) A scheme that is not a higher scheme of any scheme is a basic scheme.

Notes for section 63

1 Diagram

63.1 shows how a basic scheme might be structured.

2 Except as otherwise provided by this Act, a scheme must operate independently of any of its subsidiary schemes or higher schemes. See section 68(3).

Diagram

63.1 – Basic scheme

Division 2 Progressive development of a scheme

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Section 63 — Subsidiary scheme, higher scheme and basic scheme — Unit Title Schemes Act 2009 (Northern Territory) — Barrister AI