Section 109 — Resource Management Act 1991: Special provisions in respect of bonds or covenants

109 Special provisions in respect of bonds or covenants (1) Every bond given under section 108A in respect of a land use consent or subdivision consent, and any other bond to which this subsection is applied as a condition of the consent, and every covenant given under section 108(2)(d) ,— (a) Shall be deemed to be an instrument creating an interest in the land within the meaning of section 62 of the Land Transfer Act 1952 , and may be registered accordingly; and (b) When registered under the Land Transfer Act 1952 , shall be a covenant running with the land and shall, notwithstanding anything to the contrary in section 105 of the Land Transfer Act 1952 , bind all subsequent owners of the land. (2) Where any such bond or covenant has been registered under the Land Transfer Act 1952 and that bond or covenant is varied, cancelled, or expires, the District Land Registrar shall make an appropriate entry in the register and on any relevant instrument of title noting that the bond or covenant has been varied or cancelled or has expired, and the bond or covenant shall take effect as so varied or cease to have any effect, as the case may be. (3) Where any bond has been given in respect of the completion of any work, or for the purposes of ascertaining whether the work has been completed to the satisfaction of the consent authority, the consent authority may from time to time, under section 171 of the Local Government Act 2002 , enter on the land where the work is required to be, or is being, or has been, carried out. (4) Where the holder fails, within the period prescribed by the resource consent (or within such further period as the consent authority may allow), to complete, to the satisfaction of the consent authority, any work in respect of which any bond is given (including completion of any interim monitoring required)— (a) The consent authority may enter on the land and complete the work and recover the cost thereof from the holder out of any money or securities deposited with the consent authority or money paid by a guarantor, so far as the money or securities will extend; and (b) On completion of the work to the satisfaction of the consent authority, any money or securities remaining in the hands of the consent authority after payment of the cost of the works shall be returned to the holder or the guarantor, as the case may be. (5) Where the cost of any work done by the consent authority under subsection (4) exceeds the amount recovered by the consent authority under that subsection, the amount of that excess shall be a debt due to the consent authority by the holder, and shall thereupon be a charge on the land. (6) The provisions of Part 12 shall continue to apply notwithstanding the entry into or subsequent variation or cancellation of any such bond or covenant. Subsection (1) was amended, as from 17 December 1997, by section 25 Resource Management Amendment Act 1997 (1997 No 104) by substituting the expressions “ 108(2)(b) ” and “ 108(2)(d) ” for the expressions “ 108(1)(b) ” and “ 108(1)(c) ” respectively. See section 78 of that Act as to the transitional provisions. Subsection (1) was amended, as from 1 August 2003, by section 95 Resource Management Amendment Act 2003 (2003 No 23) by substituting the expression “ 108A ” for the expression “ 108(2)(b) ” . See sections 109 to 113 of that Act as to the transitional and savings provisions. Subsection (3) was amended, as from 1 July 2003, by section 262 Local Government Act 2002 (2002 No 84) by substituting the words “ section 171 of the Local Government Act 2002 ” for the words “ section 708A(a) of the Local Government Act 1974 ” . See sections 273 to 314 of that Act as to the savings and transitional provisions. Subsection (4) was amended, as from 1 August 2003, by section 47 Resource Management Amendment Act 2003 (2003 No 23) by inserting the words “ (including completion of any interim monitoring required) ” after the word “ given ” . See sections 109 to 113 of that Act as to the transitional and savings provisions.