Priority for applying proceeds of sale of water allocations under a power of sale
166 Priority for applying proceeds of sale of water allocations under a power of sale
In addition to any other person who may exercise a power of sale in relation to a water allocation, the following persons may exercise a power of sale in relation to a water allocation—
the chief executive under section 164(6);
if a supply contract gives a resource operations licence holder a power to sell the water allocation—the holder;
if distribution arrangements give a distribution operations licence holder a power to sell the water allocation—the holder.
The holder of a resource operations licence may exercise a power of sale only in accordance with the supply contract.
The holder of a distribution operations licence may exercise a power of sale only in accordance with the distribution arrangements.
Subsection (1) applies despite any registered interest in the water allocation.
Before exercising the power of sale, a person proposing to exercise the power must give any person who has a registered interest in the water allocation not less than 30 business days notice of the proposed exercise of the power.
An amount received on the sale of the water allocation must be applied in the way mentioned in section 164(7).
A genuine purchaser for value of a water allocation under this section takes the allocation free of all interests.
Section 146(2) to (7) applies to the purchaser of a water allocation under this section as if the allocation were granted on the day the allocation was sold.
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