Section Sch1-1 — Protection of Personal and Property Rights Act 1988

1 Subject to the terms of the property order (or, in a case where a trustee corporation has agreed to act as manager pursuant to an application under section 32 or section 33 of this Act, to the terms of the application) a manager may— (a) Take possession of all of the property of the person and demand, receive, and recover possession of it from any person holding it, with further power— (i) To institute or defend in the manager's own name or in the name of the person subject to a property order any action, suit, or other proceeding (either civil or criminal) concerning the property of the person and to suffer judgment to go by default; or to consent to any judgment, decree, or order in the action, suit, or proceeding on such terms as the manager thinks fit: (ii) To take proceedings to cause to be adjudicated a bankrupt or placed in liquidation any person or company indebted to the person subject to a property order, or to make any application for or in relation to a summary instalment order in respect of any such person under subpart 3 of Part 5 of the Insolvency Act 2006;

and to vote and act either personally or by proxy at all meetings of creditors and in all other matters relating to the bankruptcy or liquidation or summary instalment order: (iii) In the name and on behalf of the person subject to a property order, to lodge a caveat under the Land Transfer Act 1952 or a notice of claim under section 42 of the Property (Relationships) Act 1976 : (iv) To compromise or otherwise settle any claims or demands made by or against the person subject to a property order, or by or against the manager of the estate, on such terms as the manager thinks fit and on such evidence as the manager considers sufficient;

and to submit such claims or demands to arbitration;

and to do all acts and things necessary to render any such compromise or arbitration effectual: (v) To give directions or consents with reference to the share or interest of the person subject to a property order in or under any trust, settlement, will, or intestacy: (vi) To make any election arising out of or give directions with reference to the right, title, share, or interest of the person subject to the property order in or under any policy of assurance, or any pension, superannuation, benefit, benevolent, or other fund, or in any money arising from any such policy or fund: (vii) To make an application under section 122 of the Land Transfer Act 1952 to have a transmission registered where the manager believes that the person subject to a property order is entitled to any estate or interest in land by virtue of that transmission: (b) Apply and expend in the manager's discretion, and to such extent as the manager thinks fit, any money belonging to the person subject to the property order including any money borrowed or advanced by the manager for any one or more of the following purposes: (i) For or towards the maintenance, education, advancement, or benefit of the person, or of his or her spouse, civil union partner, child, grandchild, or other relative, or of any person wholly or partially dependent on the person: (ii) In the doing or continuation of any acts of bounty or charity previously done or promised to be done by the person, or that might reasonably be expected of the person if he or she were not subject to a property order and that the manager, having regard to the circumstances and to the nature and value of the estate, considers proper and reasonable: Provided that, in the exercise of the powers conferred by this subparagraph, the manager shall not, without the consent of the Court, expend any sum or sums that would, when added to any other sum or sums expended pursuant to this subparagraph during the preceding period of 12 months, exceed in the aggregate $5,000: (iii) In the acquisition of a home for the person or for his or her spouse, civil union partner, or children, by the purchase of freehold or leasehold land with a dwellinghouse erected on it; or by the purchase of freehold or leasehold land and the erection on it of a dwellinghouse together with such outbuildings, fences, gates, paths, and other amenities and improvements as the manager thinks fit; or by the acquisition of a flat or apartment by any means that the manager may consider appropriate (whether by acquiring shares or interest in the land on which the premises are erected or in any other way), and with further power to enter into any lease, licence, agreement, or other arrangement under which the manager or his or her nominee or the person who is to occupy the flat or apartment has the right to occupy it (including an arrangement whereby any shares in a limited liability company and the benefit of any such lease, licence, or agreement may be held by that person or by some other nominee of the manager upon trust for the manager); or by such other means as in the circumstances of the case may appear to the manager to be reasonable and proper: Provided that the manager shall not, without the consent of the Court, expend a sum or sums exceeding in the aggregate the specified sum in acquiring a home pursuant to the provisions of this subparagraph: (iv) In the provision for the use and benefit of the person, or of his or her spouse, civil union partner, or children, of such furniture, clothing, and other articles of personal or household use or ornament (including motor vehicles) as the manager, having regard to the circumstances and to the nature and value of the estate, considers proper and reasonable: (v) In or towards the payment of any debt, obligation, or liability of the person, or incurred by the manager in the exercise of the powers vested in the manager by this or any other enactment or by any order of the Court or by law: (vi) In or towards the payment of all rates, taxes, rent, insurance premiums, or other outgoings payable in respect of the property of the person or under any policy of insurance of any kind: (vii) For the repair, maintenance, upkeep, or renovation of any property of the person: (viii) For the reinstatement or rebuilding of any property of the person destroyed or damaged by fire or otherwise: (ix) For the improvement or development of any property of the person by way of building or otherwise: Provided that, in the exercise of the power conferred by this subparagraph, not more than the specified sum may be so expended for any one purpose without the consent of the Court: (c) With the prior approval of the Court, to invest any money belonging to the person subject to a property order: Provided that, where the money is to be invested in the manner authorised by the Trustee Act 1956 for the investment of trust funds, it shall not be necessary to obtain the prior approval of the Court: (d) Insure any of the property of the person subject to a property order against loss or damage to its full insurable value or for its full replacement value, or insure against any other risk or liability against which it would be prudent to insure: (e) Carry out and perform contracts entered into by the person subject to a property order before the manager was appointed: (f) Carry on any trade or business of the person subject to a property order or carry on the business of any partnership in which the person is a partner, for such period or periods, in either case, as the manager thinks fit, with further power— (i) To employ any part of the property of the person in the trade or business and from time to time to increase or diminish the part of the person's property so employed: (ii) To purchase stock, machinery, plant, implements, and chattels for the purposes of the trade or business: (iii) To employ such managers, agents, servants, clerks, workmen, and others as the manager thinks fit: (iv) Subject to the Sharemilking Agreements Act 1937, to enter into any sharemilking agreement for such period and on such terms and conditions as the manager thinks fit: (v) To agree on an alteration of the conditions of any partnership for the purpose of more advantageously carrying on or preserving the business, until the recovery of the person or disposing of it or winding it up: (vi) To dissolve any partnership of which the person is a member in the same manner in all respects as the person could have done had he not been subject to this Act, and on such dissolution the manager in the name and on behalf of the person may join with the other partner or partners in disposing of the partnership property, whether real or personal, either to such partner or partners or to any other person on such terms and in such manner as the manager thinks fit: (g) Where the person subject to a property order is a mortgagor or mortgagee of any land, agree to extend or vary the mortgage on such terms as the manager thinks fit: (h) Exercise any power of sale or other power vested in the person subject to a property order as mortgagee, or as unpaid vendor, lessor, or bailee: (i) In the name and on behalf of the person subject to a property order and in the same manner in all respects as the person could have done had he or she not been subject to a property order exercise, either in person or by proxy, all rights, powers, and privileges (including voting powers) attaching to or exercisable in respect of any shares, stocks, debentures, debenture stock, bonds, notes (whether registered or unregistered, and whether or not they convey any right of conversion), and other securities or investments in or issued by any company or other incorporated body or by any Government or governmental agency (whether central or local) or by any public, municipal, or local corporation, board, or authority: (j) Surrender, assign, or otherwise dispose of, with or without consideration, any onerous property belonging to the person subject to a property order or any policy of life insurance: (k) In the name and on behalf of the person subject to a property order and whether the person is possessed of any estate or not, make any application to the Court under the Matrimonial Property Act 1963, the Property (Relationships) Act 1976 , or any of the provisions of the Family Proceedings Act 1980 except Part 4 (which relates to the status of marriage or civil union), that the person would be entitled to make if he or she were not subject to a property order: (l) In the name and on behalf of the person subject to a property order, enter into an agreement under Part 6 of the Property (Relationships) Act 1976 : (m) In the name and on behalf of the person subject to a property order enter into any scheme of family arrangement to which the person is a necessary or proper party: (n) Sell any of the property of the person subject to a property order, either subject to prior encumbrances or not, and either together or in lots, by public auction or public tender or private contract, and subject to any such conditions respecting title or evidence of title or other matters as the manager thinks fit; with power to modify or vary any contract or agreement for sale and purchase, or to agree to do so, and to buy in at any auction, and to cancel or rescind any contract or agreement for sale and purchase, or to agree to do so, and to buy in at any auction, and to cancel or rescind any contract or agreement for sale and purchase and to resell, without being answerable for any loss, and to compromise with or make allowances to any person with whom any such contract or agreement has been made, or who is the assignee thereof, in respect of any unpaid purchase money secured on mortgage or otherwise: Provided that the manager shall not, without the consent of the Court, sell any freehold or leasehold land belonging to the person subject to a property order in any case where the value (as determined in accordance with section 28 of the Trustee Act 1956 ) of the land or of the share or interest of the person therein exceeds the specified sum; except that the manager may, without the consent of the Court, sell any such land or the share or interest of the person therein for more than the specified sum if (in accordance with section 28 of the Trustee Act 1956 ) the manager has in good faith fixed the value of that land or of that share or interest immediately before the sale at the specified sum or less: (o) Dispose of any of the property of the person subject to a property order by way of exchange for other property in New Zealand of a like nature and a like or better tenure; or, where the person has an undivided share in any property, concur in the partition of the property; and give or take any property by way of equality of exchange or partition: Provided that the manager shall not, without the consent of the Court, exchange any freehold or leasehold land in any case where the value (as determined in accordance with section 28 of the Trustee Act 1956 ) of the land or of the share or interest of the person therein exceeds the specified sum: (p) Subdivide any freehold or leasehold land belonging to the person subject to a property order or in which the person has any share or interest, and construct, dedicate, make, and maintain, or contribute money towards the construction, dedication, making and maintenance of roads, streets, access ways, service lanes, footpaths, and reserves, and sewerage, water, electricity, drainage, and other works (whether on land belonging to the person or elsewhere),

and do all such other things and make all such other payments as are required by any law or bylaw relating to subdivisions or as the manager thinks are necessary or are likely to be beneficial to the person or to his or her estate or to any part of it: (q) Grant, reserve, or acquire easements and profits à prendre , and enter into party wall agreements and agreements that relate to fencing, or to which section 4 of the Fencing Act 1978 applies, and execute all necessary documents to give effect thereto: (r) Let or sublet or lease or sublease any property of the person subject to a property order for such term, at such rent (with or without a fine, premium, or foregift) and on and subject to such covenants and conditions as the manager thinks fit, with power at any time to reduce the rent or otherwise vary or modify the terms, and with further power— (i) To grant to a lessee or sublessee a right of renewal for on or more terms at a rent to be fixed or made ascertainable in a manner specified in the original lease or sublease: (ii) To grant a lease with an optional or compulsory purchasing clause: (iii) To grant to a lessee or sublessee a right to claim compensation for improvements made or to be made by the lessee or sublessee in, upon, or about the property that is leased or subleased: Provided that the manager shall not, without the consent of the Court, grant a lease or sublease for a term of more than 10 years or a lease or sublease with a right or rights of renewal if the aggregate duration of the original and of the renewed terms could exceed 10 years; and shall not, without the consent of the Court, grant a lease with an optional or compulsory purchasing clause in any case where the value (as determined in accordance with section 28 of the Trustee Act 1956 ) of the property to be leased or of the share or interest of the person therein exceeds the specified sum at the time of the granting of the lease: (s) Accept the surrender of any lease, sublease, or tenancy: (t) Accept a lease, sublease, or tenancy of any property, or a renewal of a lease, sublease, or tenancy, at such rent, on such terms, and subject to such convenants and conditions as the manager thinks fit: (u) Surrender any lease, sublease, or tenancy: (v) In the name and on behalf of the person subject to a property order exercise any option to purchase property conferred on the person: Provided that the manager shall not, without the consent of the Court, exercise the power conferred by this paragraph if the price payable for the property exceeds or may exceed the specified sum: (w) In the name and on behalf of the person subject to a property order settle or join with his or her spouse in settling any property as a joint family home under the Joint Family Homes Act 1964 , or apply for cancellation of the registration of any property as a joint family home; and, in consideration of any such cancellation, or on any other occasion when the manager considers it reasonable or proper to so, enter into such agreement or arrangement as the manager thinks just and equitable concerning the future ownership, occupation, or possession of that property, or concerning the proceeds of the sale, letting, or other disposition of it: (x) Grant powers of attorney to any person in or out of New Zealand to do any act or thing with respect to the property of the person subject to a property order that the manager of the estate of the person can do, during any temporary period of absence or incapacity of the manager or in any other circumstances specified by the Court: (y) Concur or join with any other person or persons in doing any one or more of the foregoing things. Schedule 1 clause 1(a)(ii): amended, on 3 December 2007, by section 445 of the Insolvency Act 2006 (2006 No 55). Clause 1(a)(iii) was amended, as from 1 February 2002, by section 64(2) Property (Relationships) Amendment Act 2001 (2001 No 5) by substituting the expression “ Property (Relationships) Act 1976 ” for the expression “ Matrimonial Property Act 1976 ” . Clause 1(a)(vii) was inserted, as from 1 July 1994, by section 13 Protection of Personal and Property Rights Amendment Act 1994 (1994 No 54). Clause 1(b)(i) and (iii) was amended, as from 26 April 2005, by section 7 Relationships (Statutory References) Act 2005 (2005 No 3) by inserting the words “ civil union partner, ” after the word “ spouse, ” . Clause 1(b)(iv) was amended, as from 26 April 2005, by section 7 Relationships (Statutory References) Act 2005 (2005 No 3) by inserting the words “ , civil union partner, ” after the word “ spouse ” . Clause 1(k) was amended, as from 1 February 2002, by section 64(2) Property (Relationships) Amendment Act 2001 (2001 No 5) by substituting the expression “ Property (Relationships) Act 1976 ” for the expression “ Matrimonial Property Act 1976 ” . Clause 1(k) was amended, as from 26 April 2005, by section 7 Relationships (Statutory References) Act 2005 (2005 No 3) by inserting the words “ or civil union ” after the word “ marriage ” . Clause 1(l) was to amended, as from 1 February 2002, by section 64(2) Property (Relationships) Amendment Act 2001 (2001 No 5) by substituting the expression “ Part 6 of the Property (Relationships) Act 1976 ” for the expression “ section 21 of the Matrimonial Property Act 1976 ” . Clause 1(r) proviso was amended, as from 1 October 1988, by section 3 Protection of Personal and Property Rights Amendment Act 1989 (1989 No 133) by substituting the words “ for a term of more than ” for the words “ for a term of not more than ” .