Farm Ownership Savings Act 1974

1: Short Title and application
This Act may be cited as the Farm Ownership Savings Act 1974.
2: Interpretation
1: In this Act, unless the context otherwise requires,— authorised savings institution
a: Post Office Bank Limited:
b: a trustee savings bank established under the Trustee Savings Banks Act 1948
c: a building society which is an approved society under section 56D section 113O
d:
e: the Corporation Commissioner State Sector Act 1988 Corporation depositor farm Farm Ownership Account farm ownership requirements section 14I farming purposes
a: the acquisition by him of a farm; or
b: the engagement by him in sharefarming Home Ownership Account subsection (1) of section 2 Minister Ordinary Farm Ownership Account Ordinary Fishing Vessel Ownership Account section 2 Ordinary Home Ownership Account section 2(1) purchase grant section 7 or section 7A qualifying date qualifying year sharefarmer sharefarming Special Farm Ownership Account Special Fishing Vessel Ownership Account section 2 Special Home Ownership Account section 2(1) terminating date withdrawal certificate section 14F
2: For the purposes of this Act, a farm may be acquired by a depositor—
a: by the purchase of an estate in fee simple in a farm; or
b: by the purchase of a leasehold estate in a farm for a remaining term (including any rights of renewal) of not less than 21 years ; or
c: in relation to a farm acquired for the purposes of aquaculture, any lease or licence granted under the Marine Farming Act 1971 Section 2(1) authorised savings institution replaced 1 July 1987 State-Owned Enterprises Amendment Act 1987 Section 2(1) authorised savings institution replaced 1 September 1987 section 41(3) Building Societies Amendment Act 1987 Section 2(1) authorised savings institution repealed 22 May 1998 section 22(1) Private Savings Banks (Transfer of Undertakings) Act 1992 Section 2(1) authorised savings institution inserted 2 April 1985 Farm Ownership Savings Amendment Act 1985 Section 2(1) Commissioner inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 2(1) Commissioner amended 1 April 1988 section 90(a) State Sector Act 1988 Section 2(1) Corporation replaced 1 July 1994 section 14 National Bank of New Zealand Limited Act 1994 Section 2(1) farm replaced 22 October 1981 Farm Ownership Savings Amendment Act 1981 Section 2(1) Farm Ownership Account replaced 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 2(1) farm ownership requirements inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 2(1) farming purposes inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 2(1) Ordinary Farm Ownership Account inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 2(1) Ordinary Fishing Vessel Ownership Account inserted 25 November 1977 section 29 Fishing Vessel Ownership Savings Act 1977 Section 2(1) Ordinary Home Ownership Account inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 2(1) purchase grant amended 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 2(1) sharefarmer replaced 22 October 1981 Farm Ownership Savings Amendment Act 1981 Section 2(1) Special Farm Ownership Account inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 2(1) Special Fishing Vessel Ownership Account inserted 25 November 1977 section 29 Fishing Vessel Ownership Savings Act 1977 Section 2(1) Special Home Ownership Account inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 2(1) withdrawal certificate inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 2(2)﻿(b) amended 22 October 1981 Farm Ownership Savings Amendment Act 1981 Section 2(2)﻿(c) inserted 22 October 1981 Farm Ownership Savings Amendment Act 1981
2A: Cessation of opening of new Farm Ownership Accounts
Notwithstanding any other provisions in this Act, no person shall open a Farm Ownership Account on or after 19 June 1987. Section 2A inserted 19 June 1987 Farm Ownership Savings Amendment Act 1987
1: Ordinary Farm Ownership Accounts
Part 1 heading inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976
3: Eligible savings
1: Subject to this section, for the purposes of this Act the amount of the eligible savings, in relation to the Ordinary
a: where that date is the qualifying date, $250:
b: where that date is during any qualifying year, the lesser of—
i: the balance of the Account at that date:
ii: the sum of the amount of the eligible savings on the day immediately preceding the first day of that qualifying year and $5,000
2: Notwithstanding anything in subsection (1), in no case shall the amount of the eligible savings, in relation to the Ordinary $60,000
3:
4: Where any amount is withdrawn from the Ordinary provided that the amount of the eligible savings shall not be reduced to the extent that, before the amount of the withdrawal is taken into consideration, the balance of the Account at that date exceeds the amount of the eligible savings at that date.
5: Where a depositor withdraws the whole or any part of the balance in his Ordinary or for the purpose of determining the qualifying date of the Account Section 3(1) amended 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 3(1)﻿(b)﻿(ii) amended 18 September 1980 Farm Ownership Savings Amendment Act 1980 Section 3(2) amended 18 September 1980 Farm Ownership Savings Amendment Act 1980 Section 3(2) amended 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 3(3) repealed 18 September 1980 Farm Ownership Savings Amendment Act 1980 Section 3(4) amended 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 3(5) amended 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 3(5) amended 25 November 1976 Farm Ownership Savings Amendment Act 1976
4: Notice of conditions
The terms and conditions upon which applications for purchase grants will be considered, purchase grants allowed and paid, and balances in Home Ownership Accounts and Ordinary Fishing Vessel Ownership Accounts Ordinary Section 4 amended 25 November 1977 section 29 Fishing Vessel Ownership Savings Act 1977 Section 4 amended 25 November 1976 Farm Ownership Savings Amendment Act 1976
5: Persons eligible to open accounts
No person shall be entitled to open an Ordinary Farm Ownership Account unless he has attained the age of 15 years and—
a: is a pupil at a secondary school in New Zealand and certifies in writing that he intends to become a farmer in New Zealand; or
b: is undertaking, at any university or other similar institution in New Zealand or elsewhere, a course of study which will be of material assistance in enabling him to become an efficient farmer; or
c: is exclusively or principally engaged or employed in the farming industry in New Zealand or in any associated industry servicing the farming industry in New Zealand; or
d: has had other relevant experience or has other relevant qualifications which will assist him or enable him to become an efficient farmer; or
e: is the spouse of a depositor. Section 5 replaced 18 September 1980 Farm Ownership Savings Amendment Act 1980
6: Persons ineligible to receive grants
1: In this section the expression substantial interest in land
1A: Where a depositor has entered into an unconditional contract to purchase a farm and it is a term of that contract that possession of the farm is not to be given until a specified later date, being a date not later than 6 months after the date on which that contract becomes unconditional, the depositor shall be deemed not to have acquired a substantial interest in land for the purposes of this section until that later date.
2: Subject to subsection (3) and notwithstanding any other provision in this Act Ordinary
a: is not a New Zealand citizen; or
b: solely or jointly or in common with any other person holds or has held a substantial interest in land in New Zealand or elsewhere; or
c: solely or jointly with any other person has or has had at any time a controlling interest in any limited liability company or in any other body corporate which at that time held any substantial interest in land in New Zealand or elsewhere; or
d: solely or jointly with any other person has received a purchase grant; or
e: is the spouse of any person to whom paragraph (b) or paragraph (c) or paragraph (d) would apply if that person were a depositor; or
f: has not, since the opening of his Ordinary provided that the foregoing provisions of this paragraph shall not apply in any case where—
i: the spouse of the depositor is entitled to receive or has received a purchase grant or a withdrawal certificate; and
ii: all money payable under this Act to the depositor and his or her spouse will be used to enable them to acquire a farm for their joint ownership and occupation.
3: Having regard to the special circumstances of any case, the Corporation may in its discretion grant, either wholly or partly, and conditionally or unconditionally, a purchase grant to any depositor of a class specified in subsection (2). Section 6(1A) inserted 18 September 1980 Farm Ownership Savings Amendment Act 1980 Section 6(2) amended 18 September 1980 Farm Ownership Savings Amendment Act 1980 Section 6(2) amended 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 6(2)﻿(f) amended 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 6(2)﻿(f) proviso inserted 18 October 1978 Farm Ownership Savings Amendment Act 1978 Section 6(3) inserted 18 September 1980 Farm Ownership Savings Amendment Act 1980
7: Purchase grants
1: Subject to this Act, where the Corporation is satisfied that the grant is to be used by a depositor in the acquisition of a farm in New Zealand, there shall, to the extent to which the Corporation is satisfied that the eligible savings of the depositor are to be used by the depositor in the acquisition of the farm, be paid by the Corporation to the depositor—
a: where the terminating date is not less than 3 years
b: where the terminating date is not less than 6 years but less than 7 years from the qualifying date, a purchase grant equal to 30% of the depositor's eligible savings:
c: where the terminating date is not less than 7 years but less than 8 years from the qualifying date, a purchase grant equal to 35% of the depositor's eligible savings:
d: where the terminating date is not less than 8 years but less than 9 years from the qualifying date, a purchase grant equal to 40% of the depositor's eligible savings:
e: where the terminating date is not less than 9 years but less than 10 years from the qualifying date, a purchase grant equal to 45% of the depositor's eligible savings:
f: where the terminating date is on or after the tenth anniversary of the qualifying date, a purchase grant equal to 50% of the depositor's eligible savings.
2: Notwithstanding anything in subsection (1), the percentages specified in any paragraph of that subsection may, from time to time, be varied by the Governor-General by Order in Council.
3: No purchase grant shall be paid to any depositor in respect of any eligible savings withdrawn by him from his Ordinary 3 years
4: Where a depositor dies before the depositor has been paid a purchase grant, the personal representatives of the depositor may, to provide a farm for the widow or widower or any dependant of the depositor, apply for a purchase grant and the Corporation may deal with the application in the same manner, with any necessary modifications, as if the depositor had made the application.
5: No depositor shall be paid more than 1 purchase grant or, subject to section 10 Ordinary Section 7(1)﻿(a) amended 18 September 1980 Farm Ownership Savings Amendment Act 1980 Section 7(3) amended 18 September 1980 Farm Ownership Savings Amendment Act 1980 Section 7(3) amended 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 7(5) amended 25 November 1976 Farm Ownership Savings Amendment Act 1976
7A: Purchase grants to sharefarmers
1: Subject to section 6(2) section 7
a: where the terminating date is not less than 3 years but less than 6 years after the qualifying date, a purchase grant equal to 25% of the depositor's eligible savings:
b: where the terminating date is not less than 6 years after the qualifying date, a purchase grant calculated in accordance with paragraphs (b) to (f) of section 7(1)
2: Notwithstanding subsection (1), the percentage specified in subsection (1)﻿(a) may, from time to time, be varied by the Governor-General by Order in Council.
3: No purchase grant, pursuant to this section, shall be paid to any depositor in respect of any eligible savings which are, earlier than 3 years after the qualifying date of his Ordinary Farm Ownership Account, withdrawn from that Account.
4: Notwithstanding the foregoing provisions of this section, no person shall be entitled to receive a purchase grant under this section unless, in the opinion of the Corporation, at the time he applies for the grant, he possesses sufficient knowledge and experience to enable him competently to engage in the kind of sharefarming in which he intends to engage and has an agreement with the proprietor of any agricultural, pastoral, or horticultural land to work that land as a sharefarmer for a term of at least 3 years or such shorter period as the Corporation may approve. Section 7A inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976
7B: Additional grants to sharefarmers on purchase of farm
Notwithstanding anything in this Act, where a depositor has received a purchase grant under section 7A section 14B(b) section 7 provided that—
a: the total amount payable to the depositor in respect of both grants shall not exceed the maximum amount of the purchase grant otherwise payable to the depositor under this Act:
b: no further purchase grant shall be payable under section 7 section 7A Section 7B inserted 18 October 1978 Farm Ownership Savings Amendment Act 1978
8: Preservation of rights
Where, by reason of an Order in Council made pursuant to subparagraph (ii) of paragraph (b) of subsection (1) or subsection (2) of section 3 section 7 or subsection (2) of section 7A Section 8 amended 25 November 1976 Farm Ownership Savings Amendment Act 1976
9: Disposition of farm within 5 years of payment of purchase grant
Section 9 repealed 25 November 1976 Farm Ownership Savings Amendment Act 1976
10: Aggregation of grants
The purchase grant payable under this Act may be aggregated when 2 depositors who have separate Ordinary Section 10 amended 25 November 1976 Farm Ownership Savings Amendment Act 1976
11: Joint accounts
Where 2 depositors have a joint Ordinary Ordinary Section 11 amended 25 November 1976 Farm Ownership Savings Amendment Act 1976
12: Transferability
1: Subject to this Act, balances in an Ordinary Fishing Vessel Ownership Account an Ordinary Farm Ownership Account
2: Balances in an Ordinary Farm Ownership Account with any authorised savings institution may be transferred to an Ordinary Farm Ownership Account with any other authorised savings institution.
3: Any transfer of an Ordinary Farm Ownership Account of any depositor from one authorised savings institution to another authorised savings institution shall not affect the calculation of eligible savings or the rights of the depositor. Section 12(1) amended 22 May 1998 section 3(a) Farm and Fishing Vessel Ownership Savings Schemes (Closure) Act 1998 Section 12(1) amended 25 November 1977 section 29 Fishing Vessel Ownership Savings Act 1977 Section 12(1) amended 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 12(2) replaced 19 June 1987 Farm Ownership Savings Amendment Act 1987 Section 12(3) replaced 19 June 1987 Farm Ownership Savings Amendment Act 1987
13: Payment to Corporation
The Minister may from time to time, without further appropriation than this section, pay from a Crown Bank Account Section 13 amended 25 January 2005 section 83(7) Public Finance Act 1989
14: Exemption from income tax
All purchase grants shall be exempt from income tax.
2: Special Farm Ownership Accounts
Part 2 inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976
14A: Special Farm Ownership Accounts
1: Subject to this Act on and after 1 November 1976 any person may open in his own name and for his own use (but not jointly or in common with any other person) a Special Farm Ownership Account and the provisions of the Income Tax Act 2004
2: No person who has, in relation to an Ordinary Farm Ownership Account, been paid either solely or jointly with any other depositor any purchase grant or who has, in relation to a Special Farm Ownership Account, withdrawn any amount from that Account pursuant to a withdrawal certificate (not being an amount which has subsequently been redeposited in full and in respect of which the withdrawal certificate has been cancelled pursuant to section 14F(4)
3: No person who is a depositor in relation to a Special Farm Ownership Account or who has withdrawn any amount from a Special Farm Ownership Account pursuant to a withdrawal certificate (not being an amount which has subsequently been redeposited in full and in respect of which the withdrawal certificate has been cancelled pursuant to section 14F(4)
4: No person who is a depositor in relation to an Ordinary Farm Ownership Account with any authorised savings institution shall open a Special Farm Ownership Account with any other authorised savings institution.
5: Where any person is a depositor in relation to an Ordinary Farm Ownership Account jointly with any other person, he shall not open a Special Farm Ownership Account unless the other person has given up his interest in the joint Account or the joint Account is severed into separate Ordinary Farm Ownership Accounts: provided that where any Ordinary Farm Ownership Account is so dealt with, the qualifying date (if any) of the sole Account or Accounts so created shall not, by reason thereof, be changed. Section 14A inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 14A(1) amended 1 April 2005 section YA 2 Income Tax Act 2004
14B: Existing Ordinary Farm Ownership Accounts
Where at the time a depositor opens a Special Farm Ownership Account he is also a depositor in relation to an Ordinary Farm Ownership Account—
a: if there is in respect of the Ordinary Farm Ownership Account a qualifying date, that date shall be the qualifying date in respect of the Special Farm Ownership Account; and
b: except for interest which may from time to time accrue and be payable in respect of the balance in the Ordinary Farm Ownership Account, no other deposits shall be made thereafter in the Ordinary Farm Ownership Account. Section 14B inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976
14C: Transferability
1: Subject to this Act, balances provided that this subsection shall not apply unless the whole of the balance in
2: Where the balance in any Special Fishing Vessel Ownership Account
3: Balances in a Special Farm Ownership Account with any authorised savings institution may be transferred to a Special Farm Ownership Account with any other authorised savings institution.
4: Any transfer of a Special Farm Ownership Account of any depositor from one authorised savings institution to another authorised savings institution shall not affect the calculation of eligible savings or the rights of the depositor. Section 14C inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 14C(1) replaced 19 June 1987 Farm Ownership Savings Amendment Act 1987 Section 14C(1) amended 22 May 1998 section 3(b) Farm and Fishing Vessel Ownership Savings Schemes (Closure) Act 1998 Section 14C(1) proviso amended 22 May 1998 section 3(c) Farm and Fishing Vessel Ownership Savings Schemes (Closure) Act 1998 Section 14C(2) amended 22 May 1998 section 3(d) Farm and Fishing Vessel Ownership Savings Schemes (Closure) Act 1998 Section 14C(2) amended 25 November 1977 section 29 Fishing Vessel Ownership Savings Act 1977 Section 14C(3) replaced 19 June 1987 section 4(2) Farm Ownership Savings Amendment Act 1987 Section 14C(4) inserted 19 June 1987 Farm Ownership Savings Amendment Act 1987
14D: Withdrawal and transfers from Special Farm Ownership Account
1: Subject to this section and section 14C section 14C or section 17
2: A depositor may at any time withdraw or transfer any amount from his Special Farm Ownership Account if, after the amount is withdrawn or transferred, the balance of the Account is not reduced to an amount less than the closing balance of the Account at 31 March immediately preceding the date of that withdrawal or transfer: provided that a depositor who has deposited in his Special Farm Ownership Account an amount in any one financial year in excess of the maximum amount of any increase in savings on which a rebate is allowable under section KG 1(1) Income Tax Act 2004
3: In the case of any withdrawal or transfer to which subsection (2) does not apply—
a: where the withdrawal or transfer (not being a transfer allowed under section 14C
b: where the withdrawal or transfer is made pursuant to a withdrawal certificate, the amount of the balance of the Account is to be withdrawn and the Account closed unless by the terms and conditions of the withdrawal certificate a lesser amount is to be withdrawn and the Account is to remain open.
4: Where any Special Farm Ownership Account is closed pursuant to subsection (3), the authorised savings institution with which the Account is held shall forthwith notify the Commissioner and the Corporation in writing, stating—
a: the name of the depositor:
b: the amount of the withdrawal which resulted in the closure of the Account:
c: the closing balance of the Account as at 31 March immediately preceding the date of the closure:
d: the amount stated in the withdrawal certificate (if any): provided that the authorised savings institution shall not notify the Corporation if the withdrawal was made otherwise than pursuant to a withdrawal certificate. Section 14D inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 14D(1) amended 25 November 1977 section 29 Fishing Vessel Ownership Savings Act 1977 Section 14D(2) proviso inserted 18 September 1980 Farm Ownership Savings Amendment Act 1980 Section 14D(2) proviso amended 1 April 2005 section YA 2 Income Tax Act 2004 Section 14D(2) proviso amended 1 April 1995 section YB 1 Income Tax Act 1994
14E: Reopening of Special Farm Ownership Accounts
1: Where—
a: a Special Farm Ownership Account is closed pursuant to a withdrawal certificate issued under section 14F
b: the amount withdrawn is used by the depositor as a deposit under a conditional agreement to acquire a farm or any farming livestock or farming plant or machinery and the agreement fails to become binding,— the Corporation may determine that the Account shall be reopened, subject to the depositor paying into the Account the whole of the amount withdrawn or such part as the Corporation determines, and the Corporation shall notify the authorised savings institution and the Commissioner accordingly.
2: Where any Special Farm Ownership Account is reopened pursuant to subsection (1), the authorised savings institution shall notify the Corporation and the Commissioner accordingly. Section 14E inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976
14F: Withdrawal certificates
1: Subject to this Act, the Corporation shall, on application made to it in writing by any depositor in relation to a Special Farm Ownership Account not earlier than 3 years
2: Subject to this Act and notwithstanding subsection (1), the Corporation shall, on application made to it in writing by any depositor in relation to a Special Farm Ownership Account not earlier than 3 years after the qualifying date of the Account, issue to him a withdrawal certificate for the balance of the Account or a specified amount to be stated in the certificate where it is satisfied that that balance or that amount is to be used by the depositor in order to purchase farming livestock, or farming plant or machinery for the purpose of sharefarming in New Zealand for the first time.
3: Any withdrawal certificate may be issued subject to such terms and conditions as are set forth in the certificate and which the Corporation considers it necessary or desirable to impose to ensure that any amount withdrawn from a Special Farm Ownership Account pursuant to the certificate is used by the depositor for the purposes for which the certificate was issued.
4: Where any depositor has, pursuant to a withdrawal certificate withdrawn any amount from his Special Farm Ownership Account and redeposits the whole or any part of that amount in his Account, the withdrawal certificate shall be cancelled by the Corporation to the extent of the amount redeposited and the Commissioner notified accordingly.
5: Any withdrawal certificate shall cease to have any force or effect on or after any date that may be specified therein in that behalf or, if no such date is specified therein, on the expiration of 6 months after the date of the certificate.
6: Subject to section 14D(3)﻿(b) Section 14F inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 14F(1) amended 18 September 1980 Farm Ownership Savings Amendment Act 1980
14G: Ineligible depositors
Notwithstanding anything in this Act, no depositor shall be eligible to obtain a withdrawal certificate in respect of a Special Farm Ownership Account if, in the opinion of the Corporation, the depositor would not be eligible for any benefits under Part 1 provided that, having regard to the special circumstances of any case, the Corporation may, in its discretion issue a withdrawal certificate, either in respect of the whole or part of the balance in the Account, and conditionally or unconditionally to any depositor. Section 14G inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976
14H: Breach of farm ownership requirements
Where the Corporation at any time knows or has reason to believe or suspect that a depositor who has been issued with a withdrawal certificate has failed to comply with any farm ownership requirements to which he may be or may become subject, the Corporation shall forthwith in writing inform the Commissioner accordingly. Section 14H inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976
3: General provisions
Part 3 heading inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976
14I: Restrictions on dispositions
1: For the purposes of this Act, the term restriction period
a: in relation to an Ordinary Farm Ownership Account of any depositor who has purchased a farm
b: in relation to a Special Farm Ownership Account of any depositor who has purchased a farm
c: in relation to an Ordinary Farm Ownership Account of any depositor who has engaged in sharefarming, the period of 2 years commencing on the date on which a purchase grant is paid to the depositor:
d: in relation to a Special Farm Ownership Savings Account of any depositor who has engaged in sharefarming, the period of 2 years commencing on the date on which the depositor, pursuant to a withdrawal certificate, withdrew any money from the Account.
2: No depositor shall, without on each occasion the prior written consent of the Corporation, sell, lease, sublease, part with the possession of, mortgage, encumber or otherwise alienate or dispose of (at law or in equity) the whole or any part of any land in relation to the purchase of which the depositor has received a purchase grant or been issued with a withdrawal certificate prior to the expiration, in relation to that land, of the restriction period: provided that the foregoing provisions of this subsection shall not apply to—
a: any memorandum of mortgage or other encumbrance granted by the depositor over his estate or interest in any such land to secure any loan made to him by the Corporation, or by the Housing New Zealand Corporation
b: any transmission of the depositor's estate or interest in any such land. Section 14I inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 14I(1)﻿(a) amended 18 September 1980 Farm Ownership Savings Amendment Act 1980 Section 14I(1)﻿(b) amended 18 September 1980 Farm Ownership Savings Amendment Act 1980 Section 14I(1)﻿(c) inserted 18 September 1980 Farm Ownership Savings Amendment Act 1980 Section 14I(1)﻿(d) inserted 18 September 1980 Farm Ownership Savings Amendment Act 1980 Section 14I(2)﻿(a) amended 1 July 2001 section 49A Housing Corporation Act 1974
14J: Effect of dispositions within restriction period
If a depositor, contrary to section 14I
a: refund to the Corporation any purchase grant which he has received in respect of his deposits in his Ordinary Farm Ownership Account; and
b: pay to the Corporation subpart ID provided that, having regard to the special circumstances of any case, the Corporation may, in its discretion, waive, either wholly or partly, the depositor's obligation to—
a: refund any purchase grant under this section; or
b: pay withdrawal tax which, under subpart ID Section 14J inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 14J(b) amended 1 April 2005 section YA 2 Income Tax Act 2004 Section 14J(b) amended 18 September 1980 Farm Ownership Savings Amendment Act 1980 Section 14J proviso inserted 19 June 1987 Farm Ownership Savings Amendment Act 1987 Section 14J proviso paragraph (b) amended 1 April 2005 section YA 2 Income Tax Act 2004
14K: Effect of cessation of sharefarming
If a depositor has been paid a purchase grant or been issued with a withdrawal certificate to enable him to engage in sharefarming, and within the restriction period he—
a: ceases to be engaged as a sharefarmer otherwise than in consequence of acquiring a farm for his own occupation
b: fails in accordance with the best farming or agricultural practice to replace any farming livestock or farming plant or machinery which he sells or otherwise disposes of, or which are lost or damaged or worn out, or in the case of livestock, die,— he shall—
c: be deemed not to have observed the farm ownership requirements; and
d: refund to the Corporation any purchase grant which he has received in respect of his deposits in his Ordinary Farm Ownership Account; and
e: pay to the Corporation subpart ID provided that, having regard to the special circumstances of any case, the Corporation may, in its discretion, waive, either wholly or partly, the depositors obligation to—
a: refund any purchase grant under this section; or
b: pay withdrawal tax which, under subpart ID Section 14K inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 14K(a) amended 18 October 1978 Farm Ownership Savings Amendment Act 1978 Section 14K(e) amended 1 April 2005 section YA 2 Income Tax Act 2004 Section 14K(e) amended 18 September 1980 Farm Ownership Savings Amendment Act 1980 Section 14K proviso inserted 19 June 1987 Farm Ownership Savings Amendment Act 1987 Section 14K proviso paragraph (b) amended 1 April 2005 section YA 2 Income Tax Act 2004
14L: Charges and caveats
1: To secure any money which may, pursuant to this Act, or subpart ID
a: execute and register, against the title to the depositor's land referred to in section 14I Land Charges Registration Act 1928
b: lodge a caveat in favour of the Corporation against such title pursuant to the Land Transfer Act 1952
c: in addition to or instead of executing and registering any such charge or executing and lodging any such caveat, take such security over all or any of the lands or chattels of the depositor pursuant to this section in such sum as the Corporation may consider appropriate.
2: To register any such charge or to lodge any such caveat it shall not be necessary to produce to a Registrar
3: Where any such charge is so registered or any such caveat is so lodged, it shall be the duty of the Registrar Land Transfer Act 1952
4: Subject to section 14I Registrar
5: No such charge or caveat shall be discharged, released, modified or varied except by the Corporation or pursuant to an Order of the High Court
6: No Section 14L inserted 25 November 1976 Farm Ownership Savings Amendment Act 1976 Section 14L(1) amended 1 April 2005 section YA 2 Income Tax Act 2004 Section 14L(2) amended 1 June 2002 Land Transfer (Computer Registers and Electronic Lodgement) Amendment Act 2002 Section 14L(3) amended 1 June 2002 Land Transfer (Computer Registers and Electronic Lodgement) Amendment Act 2002 Section 14L(4) amended 1 June 2002 Land Transfer (Computer Registers and Electronic Lodgement) Amendment Act 2002 Section 14L(5) amended 1 April 1980 section 12 Judicature Amendment Act 1979 Section 14L(6) amended 20 May 1999 section 7 Stamp Duty Abolition Act 1999
14M: Removal of criteria for payment of purchase grant or issue of withdrawal certificate
1: Notwithstanding any other provision in this Act, any Farm Ownership Account depositor may withdraw the balance of the Account and close the Account if, after 18 June 1987, he or she either makes no further deposits in that Account or makes deposits in the Account which, in the opinion of the Corporation, were made without knowledge of this section.
2: Where the depositor exercises his or her rights under subsection (1), the Corporation shall, in respect of an Ordinary Farm Ownership Account, on the application of a depositor, pay to the depositor a purchase grant pursuant to either section 7 section 7A Part 1 provided that the purchase grant shall be calculated from the qualifying date until the close of 18 June 1987, and all Ordinary Farm Ownership Accounts of under 3 years duration shall attract a purchase grant of 25% of the depositor's eligible savings.
3: Where the depositor exercises his or her rights under subsection (1), the Corporation shall, in respect of a Special Farm Ownership Account, issue to the depositor a withdrawal certificate pursuant to section 14F Part 2
4: Notwithstanding the foregoing provisions of this section, no person shall be entitled to receive a purchase grant or a withdrawal certificate pursuant to this section where the Farm Ownership Account was formerly a Home Ownership Account which was transferred to a Farm Ownership Account pursuant to section 12(1) section 14C(1) Section 14M inserted 19 June 1987 Farm Ownership Savings Amendment Act 1987
15: Information to be supplied to Minister or Corporation
Notwithstanding anything in any other Act, every authorised savings institution shall furnish to the Minister or to the Corporation such information and particulars in relation to Farm Ownership Accounts opened with the institution as the Minister may from time to time require to be furnished: provided that nothing in this section shall authorise the Minister to require any authorised savings institution to furnish any information which, in accordance with accepted banking practice, a banker is not obliged to disclose without the consent of the depositor concerned, unless that consent has been obtained.
16: Offences and penalties
1: Every person commits an offence against this Act who—
a: makes any statement knowing it to be false in any material particular or otherwise wilfully misleads or attempts to mislead the Corporation or any officer of the Corporation or any other person in relation to any application for a purchase grant for himself or any other person:
b: being a person to whom a purchase grant has been paid under this Act—
i: fails, within a reasonable time after being required to do so, to supply in writing to the Corporation any information requested by the Corporation for the purpose of ascertaining whether or not the terms and conditions under which the purchase grant was paid have been fulfilled or whether or not any event has taken place by reason of which the purchase grant or any part thereof is repayable: provided that no person shall be required to supply any information tending to incriminate himself; or
ii: supplies any information knowing it to be false in any material particular.
2: Any person who commits an offence under subsection (1) is liable on
a: to imprisonment for a term not exceeding 6 months or to a fine not exceeding $1,000; and
b: to repay in full to the Corporation any purchase grant wrongfully obtained. Section 16(2) amended 1 July 2013 section 413 Criminal Procedure Act 2011
17: Regulations
1: The Governor-General may from time to time, by Order in Council, make regulations in regard to any matter or for any purpose for which regulations are prescribed or contemplated by this Act or may be necessary for giving full effect to the provisions of this Act and for the due administration thereof.
2: Without limiting the general power to make regulations conferred by subsection (1), regulations may be made under that subsection—
a: prescribing the mode of making application for purchase grants:
b: prescribing the procedure for payment of purchase grants:
c: prescribing offences in respect of the contravention of or non-compliance with any regulations made under this Act or any term or condition given pursuant to any such regulations, and prescribing penalties on Section 17(2)﻿(c) amended 1 July 2013 section 413 Criminal Procedure Act 2011
18: Consequential amendment
Section 18 repealed 28 August 1977 Trustee Savings Banks Amendment Act 1977
4: Closure of Farm Ownership Accounts by 30 June 2001
Part 4 inserted 22 May 1998 section 4 Farm and Fishing Vessel Ownership Savings Schemes (Closure) Act 1998
19: All existing accounts to be closed as at 30 June 2001
1: All Farm Ownership Accounts in existence on 30 June 2001 are to be closed as at that date and their balances paid to their depositors.
2: Where an Ordinary Farm Ownership Account is closed under subsection (1)—
a: the Corporation must pay to the depositor a purchase grant under either section 7 section 7A Part 1
b: nothing in sections 14I to 14L
3: Where a Special Farm Ownership Account is closed under subsection (1)—
a: the Corporation must issue to the depositor a withdrawal certificate under section 14F Part 2
b: nothing in sections 14I to 14L Part I Income Tax Act 2004 Section 19 inserted 22 May 1998 section 4 Farm and Fishing Vessel Ownership Savings Schemes (Closure) Act 1998 Section 19(3)﻿(b) amended 1 April 2005 section YA 2 Income Tax Act 2004
20: Unrestricted withdrawals may be made by persons making no further deposits after 30 June 1998
1: A Farm Ownership Account depositor may withdraw the balance of the Account and close the Account if the depositor has made no deposits in the Account after 30 June 1998.
2: If a depositor with an Ordinary Farm Ownership Account closes his or her Account under this section—
a: the Corporation must pay to the depositor a purchase grant under either section 7 section 7A Part 1
b: nothing in sections 14I to 14L
3: If a depositor with a Special Farm Ownership Account closes his or her Account under this section—
a: the Corporation must issue to the depositor a withdrawal certificate under section 14F Part 2
b: nothing in sections 14I to 14L Part I Income Tax Act 2004
4: If a person with a Special Farm Ownership Account makes any deposit into that Account during the period 15 May 1998 to 30 June 1998 (both dates inclusive), the amount of the deposit, to the extent that it is not subsequently withdrawn in accordance with section 14D(2)
a: is to be excluded from the withdrawal certificate given under subsection (3)﻿(a); and
b: falls to be treated as withdrawal income subject to withdrawal tax in accordance with subpart IZ Section 20 inserted 22 May 1998 section 4 Farm and Fishing Vessel Ownership Savings Schemes (Closure) Act 1998 Section 20(3)﻿(b) amended 1 April 2005 section YA 2 Income Tax Act 2004 Section 20(4)﻿(b) amended 1 April 2005 section YA 2 Income Tax Act 2004
21: Parts 1 to 3 to continue to apply to persons making deposits after 30 June 1998
If a depositor with a Farm Ownership Account makes any deposit into that Account on or after 30 June 1998, the provisions of Parts 1 to 3 section 19 Section 21 inserted 22 May 1998 section 4 Farm and Fishing Vessel Ownership Savings Schemes (Closure) Act 1998