16ALoan to Board
(1)
In this section:
Board means a private
irrigation board within the meaning of the Water
Management Act 2000.
conveying works and
supply work have the
meanings respectively ascribed thereto in that Act.
(2)
A Board may apply to the Rural Assistance
Authority in a form approved by the Rural Assistance Authority for a loan for
the purposes of:
(a)
constructing, supplying or installing structures,
meters or appliances forming part of a supply work or conveying works,
or
(b)
enlarging, modifying, repairing, operating,
maintaining or renewing the supply work or conveying
works.
(3)
Subject to subsection (4), the Rural Assistance
Authority may grant or refuse an application for a loan.
(4)
A loan shall not be granted where the sum of the
principal amounts owing in respect of loans made to a Board under this section
and the principal amount of a proposed loan under this section would exceed
$10,000.
(5)
Loan moneys shall not be paid to a Board unless
the Board is, at the time of payment of the loan moneys, the holder of a water
supply work approval under the Water Management Act
2000.
(6)
A loan:
(a)
shall be made by the Rural Assistance
Authority,
(b)
shall bear interest from the day of payment to
the Board of the loan moneys at the rate it would bear if it were an advance
referred to in section 5 (1), and
(c)
with the interest thereon, shall be payable by
consecutive half-yearly instalments within such period not exceeding fifteen
years as is determined by the Rural Assistance
Authority.
s 16A: Ins 1973 No
62, sec 2 (a). Am 1986 No 104, Schs 1 (17), 2 (6); 1989 No 98, Sch 1; 2000 No
92, Sch 8.11 [3] [4].