Home Ownership Savings Act 1974

1: Short Title and application
1: This Act may be cited as the Home Ownership Savings Act 1974.
2: This Act shall apply with respect to all Home Ownership Accounts with an authorised savings institution, whether opened before or after the commencement of this Act.
2: Interpretation
1: In this Act, unless the context otherwise requires,— authorised savings institution
a: Post Office Bank Limited:
b: a trustee bank established under the Trustee Banks Act 1983
c: a building society which is an approved society under section 56D section 113O
d: benefits Commissioner State Sector Act 1988 Corporation Housing New Zealand Corporation depositor dwelling , or by the depositor and any person who is intended by the depositor to reside with the depositor in the dwelling Home Ownership Account home ownership requirements section 14K housing purposes interest subsidy section 7 Minister Ordinary Home Ownership Account purchase grant section 6 and includes any additional purchase grant payable under section 7A qualifying date
a: where the account was opened before 1 January 1982—
i: if on 31 December 1981 there was a qualifying date in respect of the account, that qualifying date:
ii: if on 31 December 1981 there was not a qualifying date in respect of the account, 1 January 1982:
b: where the account is opened on or after 1 January 1982, the date on which the account is opened qualifying year Special Home Ownership Account terminating date or to any Home Ownership Account
a: the date of payment of a purchase grant to the depositor:
b: the fifth anniversary of the qualifying date of the Home Ownership Account of the depositor,— whichever is the earlier withdrawal certificate section 14F
2: In subsection (3) any other person
a: the spouse of the depositor; or
b: any other depositor; or
c: any person who is intended by the depositor to reside with the depositor.
3: For the purposes of this Act, a dwelling may be acquired by a depositor—
a: by the purchase or acquisition by the depositor, or jointly or in common by the depositor and any other person, of an estate in fee simple or an estate of leasehold in a dwelling; or
b: by the erection of a dwelling on land which is held, or to be held, by the depositor, or jointly or in common by the depositor and any other person, for an estate in fee simple or an estate of leasehold; or
c: in the case of a unit or flat, by the acquisition by the depositor, or jointly or in common by the depositor and any other person, of shares in a limited liability company or of an undivided share or undivided interest in the land on which the dwelling is situated, or in any other way. Section 2(1) authorised savings institution replaced 1 April 1987 State-Owned Enterprises Amendment Act 1987 Section 2(1) authorised savings institution amended 1 April 1984 Trustee Banks Act 1983 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) Commissioner inserted 25 November 1976 Home Ownership Savings Amendment Act 1976 Section 2(1) Commissioner amended 1 April 1988 section 90(a) State Sector Act 1988 Section 2(1) Corporation amended 1 July 2001 section 24(1) Housing Corporation Amendment Act 2001 Section 2(1) dwelling amended 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 2(1) Farm Ownership Account repealed 25 November 1976 Home Ownership Savings Amendment Act 1976 Section 2(1) Home Ownership Account replaced 25 November 1976 Home Ownership Savings Amendment Act 1976 Section 2(1) home ownership requirements inserted 25 November 1976 Home Ownership Savings Amendment Act 1976 Section 2(1) housing purposes inserted 25 November 1976 Home Ownership Savings Amendment Act 1976 Section 2(1) housing purposes amended 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 2(1) Ordinary Farm Ownership Account repealed 3 June 2017 section 4(2) Statutes Repeal Act 2017 Section 2(1) Ordinary Fishing Vessel Ownership Account repealed 3 June 2017 section 4(2) Statutes Repeal Act 2017 Section 2(1) Ordinary Home Ownership Account inserted 25 November 1976 Home Ownership Savings Amendment Act 1976 Section 2(1) purchase grant amended 25 November 1976 Home Ownership Savings Amendment Act 1976 Section 2(1) qualifying date replaced 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 2(1) Special Farm Ownership Account repealed 3 June 2017 section 4(2) Statutes Repeal Act 2017 Section 2(1) Special Fishing Vessel Ownership Account repealed 3 June 2017 section 4(2) Statutes Repeal Act 2017 Section 2(1) Special Home Ownership Account inserted 25 November 1976 Home Ownership Savings Amendment Act 1976 Section 2(1) terminating date amended 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 2(1) withdrawal certificate inserted 25 November 1976 Home Ownership Savings Amendment Act 1976 Section 2(2) replaced 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 2(3) inserted 1 January 1982 Home Ownership Savings Amendment Act 1981
2A: Cessation of opening of new Home Ownership Accounts
Notwithstanding any other provision in this Act, no person shall open a Home Ownership Account on or after 1 August 1986. Section 2A inserted 1 August 1986 Home Ownership Savings Amendment Act 1986
1: Ordinary Home Ownership Accounts
Part 1 heading inserted 25 November 1976 Home Ownership Savings Amendment Act 1976
3: Eligible savings
1: Subject to subsection (2)
2: Notwithstanding anything in subsection (1)
a: the eligible savings in relation to any Ordinary Home Ownership Account shall not exceed the total amount of $10,250 or such greater amount as may be specified from time to time by the Governor-General by Order in Council:
b: subject to subsections (4) and (5)
c: where any sum or sums of money amounting in all to a sum in excess of $3,000 is or are, in any qualifying year applicable to any Ordinary Home Ownership Account, deposited in or credited to that account then, for the purposes of this Act, the whole of the excess shall be deemed to have been deposited in the account immediately upon the commencement of the next qualifying year (if any) applicable to the account.
3: Where any amount is withdrawn from the Ordinary Home Ownership Account of any depositor at any date—
a: where that date is during any qualifying year, the amount of the eligible savings in the account at that date and at all earlier dates shall be reduced by the amount of the withdrawal; and
b: where that date is after the end of the qualifying year ending with the fifth anniversary of the qualifying date, the amount of the eligible savings in the account at that date shall be reduced by the amount of the withdrawal,— so far as the amount of the eligible savings extends: 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.
4: Where a depositor withdraws the whole or any part of the money standing to the depositor's credit in the depositor's Ordinary Home Ownership Account for the acquisition by the depositor of land on which to erect a dwelling and, before the dwelling is erected, the depositor sells that land and restores all or part of the net proceeds of sale into that account as soon as practicable, then the amount of the withdrawal, to the extent that it has been so restored, shall be deemed not to have been withdrawn from the account for the purpose of calculating the amount of the depositor's eligible savings if the depositor has made only 1 such withdrawal.
5: Where a depositor withdraws the whole or any part of the money standing to the depositor's credit in the depositor's Ordinary Home Ownership Account to be used by the depositor as a deposit under a conditional agreement to acquire a dwelling, and the agreement fails to become binding and the depositor restores all or part of the amount of the withdrawal into that account as soon as practicable, the amount of the withdrawal, to the extent to which it has been so restored, shall be deemed not to have been withdrawn from the account for the purpose of calculating the amount of the depositor's eligible savings if, in relation to each such conditional contract respectively, the depositor has made only 1 withdrawal from the depositor's account. Section 3 replaced 1 January 1982 Home Ownership Savings Amendment Act 1981
4: Notice of conditions
The terms and conditions upon which applications for benefits will be considered and Section 4 amended 3 June 2017 section 4(2) Statutes Repeal Act 2017
5: Ineligible depositors
1: Notwithstanding anything in this Act but subject to subsections (2) to (4), no depositor shall be eligible for any benefits where, in the opinion of the Corporation, the depositor or, in the case of a joint Ordinary Home Ownership Account, either of the depositors—
a: either solely or jointly or in common with any other person holds or has held any beneficial interest (including a life estate or life interest) in a dwelling in New Zealand or elsewhere; or
b: either solely or jointly or in common with any other person has or had at any time a controlling interest in any limited liability company which at that time held any beneficial interest in a dwelling in New Zealand or elsewhere; or
c: either solely or jointly with any other person has previously received any benefits.
2: Having regard to the special circumstances of any case, the Corporation may in its discretion grant, either wholly or partly, and conditionally or unconditionally, benefits to any such depositor.
3: For the purposes of paragraphs (a) and (b) of subsection (1), a beneficial interest in a dwelling
4: Where a depositor has entered into an unconditional contract to purchase or otherwise acquire a dwelling and it is a stipulation of that contract that possession of the dwelling is not to be given until a specified date (being a date not later than 6 months after the date upon which the contract becomes unconditional), the depositor shall be deemed not to have acquired, by virtue of that contract, a beneficial estate or beneficial interest in that dwelling for the purposes of this Act until the arrival of that date of possession or until the depositor, by virtue of that contract or otherwise howsoever, sooner enters into and takes possession of the dwelling. Section 5 replaced 1 January 1982 Home Ownership Savings Amendment Act 1981
6: Purchase grant
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 dwelling in New Zealand, there shall be paid by the Corporation to the depositor a grant of an amount equal to 25% (or such other percentage as the Governor-General may, from time to time, by Order in Council declare) of the amount of the eligible savings of the depositor to the extent that the Corporation is satisfied that the eligible savings are to be used by the depositor in the acquisition of that dwelling.
2: No purchase grant shall be paid to any depositor in respect of any eligible savings withdrawn earlier than 2 subsection (3)
3: Where a depositor at any time uses, for the purposes of this Act, all or any of his eligible savings for the acquisition by the depositor of land in New Zealand upon which to erect a dwelling for the depositor's housing purposes and if, when the depositor acquires the land, there is a building on the land, then, within 3 months after such acquisition, the depositor shall remove that building from the land unless the Corporation, in its discretion and subject to such conditions as it considers fit to impose, permits the building or any part of it to remain on the land.
4: Where a depositor dies before he or she has been allowed a purchase grant, the personal representatives of the depositor may, to provide a dwelling 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
6: A purchase grant may, at the discretion of the Corporation, be paid in respect of the acquisition by the depositor of a dwelling to be occupied by him at some future time. Section 6(2) amended 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 6(3) replaced 1  January 1982 Home Ownership Savings Amendment Act 1981 Section 6(5) amended 25 November 1976 Home Ownership Savings Amendment Act 1976 Section 6(6) inserted 1 January 1982 Home Ownership Savings Amendment Act 1981
7: Interest subsidy
1: Subject to this Act, there shall be paid by the Corporation to every depositor who has been paid a purchase grant in respect of a dwelling, and who has—
a: borrowed money at interest to assist in the acquisition of the dwelling; or
b: entered into an agreement, involving the payment of interest for a term in excess of 1 year, to purchase the dwelling,— an interest subsidy under this section for each year of the term of the loan or agreement (not exceeding 5 years)
2: The interest subsidy under this section in relation to each depositor and each year shall be an amount equal to the sum of—
a: an amount equal to 2.5% of the amount by which the amount of his eligible savings at the terminating date exceeds the amount of his eligible savings at the date 1 year before the terminating date; and
b: an amount equal to 5% of the amount by which the amount of his eligible savings at the date 1 year before the terminating date exceeds the amount of his eligible savings at the date 2 years before the terminating date; and
c: an amount equal to 7.5% of the amount by which the amount of his eligible savings at the date 2 years before the terminating date exceeds the amount of his eligible savings at the date 3 years before the terminating date; and
d: an amount equal to 10% of the amount by which the amount of his eligible savings at the date 3 years before the terminating date exceeds the amount of his eligible savings at the date 4 years before the terminating date; and
e: an amount equal to 12.5% of the amount of his eligible savings at the date 4 years before the terminating date: provided that in no year shall the amount of the interest subsidy exceed an amount which reduces the average interest rate paid on all money owing in relation to the acquisition of the dwelling and the land on which the dwelling is erected below the rate of 3% per annum, or such other rate as the Governor-General may, from time to time, by Order in Council declare.
3: Where a person who is receiving an interest subsidy in respect of money owing in relation to the acquisition of a dwelling dies, and the widow or widower or any dependant of that person continues to reside in that dwelling and to pay interest in respect of that money, that interest subsidy shall continue to be payable in the same manner, with any necessary modifications, as if that person had not died. Section 7(1) amended 1 January 1982 Home Ownership Savings Amendment Act 1981
7A: Capitalisation of interest subsidy
1: Every depositor who is entitled to receive an interest subsidy under section 7 section 6
2: Every such additional purchase grant shall be an amount calculated in accordance with the following formula, or such other formula as may be fixed from time to time by Order in Council: a × (1.085) n (1.085) n where— a is the amount of the annual interest subsidy; and n is the number of years in respect of which that annual interest subsidy is payable. Section 7A inserted 25 November 1976 Home Ownership Savings Amendment Act 1976 Section 7(2) replaced 25 November 1976), on 1 January 1982 Home Ownership Savings Amendment Act 1981
8: Preservation of benefits
Where, by reason of an Order in Council made pursuant to section 3(2)﻿(a) section 6(1) section 7(2) section 7A(2) Section 8 amended 1 January 1982 Home Ownership Savings Amendment Act 1981
9: Disposition of dwelling within 5 years of payment of purchase grant
Section 9 repealed 25 November 1976 Home Ownership Savings Amendment Act 1976
10: Aggregation of benefits
The benefits payable under this Act may be aggregated when 2 depositors who have separate Ordinary Section 10 amended 25 November 1976 Home Ownership Savings Amendment Act 1976
11: Joint accounts
Where 2 depositors have a joint Ordinary Ordinary Section 11 amended 25 November 1976 Home Ownership Savings Amendment Act 1976
11A: New joint Ordinary Accounts not to be opened
1: A person may not open an Ordinary Home Ownership Account jointly or in common with any other person after the expiry of 31 December 1981.
2: Any account purported to have been so opened shall be deemed not to be an Ordinary Home Ownership Account. Section 11A inserted 1 January 1982 Home Ownership Savings Amendment Act 1981
12: Transferability
1:
2: Balances in an Ordinary Home Ownership Account with any authorised savings institution may be transferred to an Ordinary Home Ownership Account with any other authorised savings institution.
3: Any transfer of an Ordinary Home 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) repealed 3 June 2017 section 4(2) Statutes Repeal Act 2017 Section 12(2) replaced 30 March 1987 Home Ownership Savings Amendment Act 1987 Section 12(3) replaced 30 March 1987 Home Ownership Savings Amendment Act 1987
13: Payment to Corporation
The Minister of Finance may from time to time, without further appropriation than this section, pay from a Crown Bank Account Section 13 amended 25 January 2005 section 65R(3) Public Finance Act 1989
14: Exemption from income tax
All benefits shall be exempt from income tax.
2: Special Home Ownership Accounts
Part 2 inserted 25 November 1976 Home Ownership Savings Amendment Act 1976
14A: Special Home 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 purpose (but not jointly or in common with any other person) a Special Home Ownership Account and the provisions of the Income Tax Act 2007
2: No person who has, in relation to an Ordinary Home Ownership Account, been paid either solely or jointly with any other depositor any benefit or who has, in relation to a Special Home 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 Home Ownership Account or who has withdrawn any amount from a Special Home 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 Home Ownership Account with any authorised savings institution shall open a Special Home Ownership Account with any other authorised savings institution.
5: Where any person is a depositor in relation to an Ordinary Home Ownership Account jointly with any other person, he shall not open a Special Home Ownership Account unless the other person has given up his interest in the joint account or the joint account is severed into separate Ordinary Home Ownership Accounts: provided that where any Ordinary Home 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.
6: Except for interest which may from time to time accrue, no deposits shall, for the purposes of this Act, be made in any Special Home Ownership Account after the end of the qualifying year ending with the fifth anniversary of the qualifying date of the account.
7: If, in any financial year ending with 31 March, the amount of money deposited in or credited to a Special Home Ownership Account exceeds $3,000, the amount of that excess (to the extent that it does not itself exceed $3,000) shall be deemed to have been deposited in that account on the commencement of the financial year next following. Section 14A inserted 25 November 1976 Home Ownership Savings Amendment Act 1976 Section 14A(1) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 14A(7) inserted 1 January 1982 Home Ownership Savings Amendment Act 1981
14B: Existing Ordinary Home Ownership Accounts
Where at the time a depositor opens a Special Home Ownership Account he is also a depositor in relation to an Ordinary Home Ownership Account—
a: if there is in respect of the Ordinary Home Ownership Account a qualifying date, that date shall be the qualifying date in respect of the Special Home 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 Home Ownership Account, no other deposits shall be made thereafter in the Ordinary Home Ownership Account. Section 14B inserted 25 November 1976 Home Ownership Savings Amendment Act 1976
14C: Transferability
1:
2:
3: Balances in a Special Home Ownership Account with any authorised savings institution may be transferred to a Special Home Ownership Account with any other authorised savings institution.
4: Any transfer of a Special Home 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 Home Ownership Savings Amendment Act 1976 Section 14C(1) repealed 3 June 2017 section 4(2) Statutes Repeal Act 2017 Section 14C(2) repealed 3 June 2017 section 4(2) Statutes Repeal Act 2017 Section 14C(3) replaced 30 March 1987 Home Ownership Savings Amendment Act 1987 Section 14C(4) inserted 30 March 1987 Home Ownership Savings Amendment Act 1987
14D: Withdrawal and transfers from Special Home Ownership Account
1: Subject to this section
2: A depositor may at any time withdraw or transfer any amount from his Special Home 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.
3: In any case where subsection (2)
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 Home Ownership Account is closed pursuant to subsection (3)
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 the 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.
5: Notwithstanding anything in this section, where a depositor who has deposited in his Special Home Ownership account an amount in any 1 financial year ending with 31 March in excess of the maximum amount of any increase in savings on which tax credit is allowed under section LZ 9 Section 14D inserted 25 November 1976 Home Ownership Savings Amendment Act 1976 Section 14D(1) amended 3 June 2017 section 4(2) Statutes Repeal Act 2017 Section 14D(5) inserted 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 14D(5) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007
14E: Reopening of Special Home Ownership Accounts
1: Where—
a: a Special Home Ownership Account is closed pursuant to a withdrawal certificate issued under section 14F(1)
b: the amount withdrawn is used by the depositor as a deposit under a conditional agreement to acquire a dwelling 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—
a: a Special Home Ownership Account is closed pursuant to a withdrawal certificate issued under section 14F(2)
b: the amount withdrawn was used by the depositor for the acquisition of land on which to erect a dwelling, and, before the dwelling is erected, the depositor, with the written approval of the Corporation, sells the land,— the Corporation may determine that the account shall be reopened subject to the depositor paying into the account the whole of the proceeds of sale or such part as the Corporation determines, and the Corporation shall notify the authorised savings institution and the Commissioner accordingly.
3: Where any Special Home Ownership Account is reopened pursuant to subsection (1) or subsection (2) Section 14E inserted 25 November 1976 Home Ownership Savings Amendment Act 1976
14F: Withdrawal certificate
1: Subject to this Act, the Corporation shall, on application made to it in writing by any depositor in relation to a Special Home Ownership Account not earlier than 2 provided that the Corporation shall not issue such a certificate in respect of any sum of money that has not been deposited in or credited to the account for at least 3 months.
1A: In respect of any Special Home Ownership Account, or in respect of any Special Home Ownership Account which has, pursuant to section 14E
2: Subject to this Act and notwithstanding subsection (1) provided that this subsection shall not apply in respect of any land which has any building erected thereon unless the Corporation is satisfied that the building is to be demolished or removed within 3 months after the date on which the land is acquired, or the Corporation in its discretion permits the building or any part of it to be retained on the land.
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 Home 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 Home Ownership Account, and redeposits the whole or part of that amount in his account, the withdrawal certificate shall be cancelled to the extent of the amount redeposited.
5: Where a depositor dies before the depositor has been issued with a withdrawal certificate, the personal representatives of the depositor may apply to the Corporation for a withdrawal certificate for such amount as is to be used to provide a dwelling for the widow or widower or any dependant of the depositor, and the Corporation may deal with the application in the same manner, with any necessary modification, as if the depositor had made the application, and the other provisions of this Act shall apply accordingly.
6: 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 3 months after the date of the certificate.
7: Every withdrawal certificate shall require the authorised savings institution to close the Special Home Ownership Account of the depositor unless
8: A withdrawal certificate may, at the discretion of the Corporation, be issued in respect of the acquisition of a dwelling to be occupied by the depositor at some future time. Section 14F inserted 25 November 1976 Home Ownership Savings Amendment Act 1976 Section 14F(1) amended 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 14F(1) proviso inserted 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 14F(1A) inserted 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 14F(2) amended 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 14F(7) amended 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 14F(8) inserted 1 January 1982 Home Ownership Savings Amendment Act 1981
14G: Ineligible depositors
Notwithstanding anything in this Act, no depositor shall be eligible to obtain a withdrawal certificate in respect of a Special Home Ownership Account where, 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 Home Ownership Savings Amendment Act 1976
14H: Breach of home ownership requirements
Where the Corporation at any time knows or has reason to believe or suspect that a depositor who has been issued a withdrawal certificate has failed to fulfil any home 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 Home Ownership Savings Amendment Act 1976
3: General provisions
Part 3 inserted 25 November 1976 Home Ownership Savings Amendment Act 1976
14I: Available savings
1: For the purposes of this Act, but subject to subsection (2)
a: the total of—
i: all eligible savings:
ii: all amounts withdrawn pursuant to a withdrawal certificate:
iii: in the case of an Ordinary Home Ownership Account, the amount of any purchase grant paid or payable in respect of that account,— used or to be used by the depositor for housing purposes:
b: the sum of $7,500 provided that if a depositor is a depositor in relation to an Ordinary Home Ownership Account and also a depositor in relation to a Special Home Ownership Account the available savings shall, in relation to both accounts, not exceed in the aggregate the amount so prescribed in this paragraph.
2: Notwithstanding subsection (1)
a: in the case of an Ordinary Home Ownership Account, where the depositor is ineligible to receive any benefits; and
b: in relation to a Special Home Ownership Account, to the extent that any amounts are withdrawn from the Account otherwise than pursuant to a withdrawal certificate. Section 14I inserted 25 November 1976 Home Ownership Savings Amendment Act 1976 Section 14I(1)﻿(b) amended clause 2 Home Ownership Savings (Increased Amount) Order 1982
14J: Loans
1: Where a depositor has, or has had, a Home Ownership Account with an authorised savings institution and intends to borrow any amount from that institution for the purposes of acquiring or erecting a dwelling in New Zealand for his housing purposes, the Corporation may, in its discretion and subject to this Act—
a: advance to the depositor; or
b: advance to that institution, and that institution may so borrow for the purpose of lending it to the depositor— an equivalent amount, but not exceeding the amount of the depositor's available savings.
2: Sections 26 27 28 29 subsection (1) or depositor provided that, and notwithstanding section 25(1) or depositor
3: Notwithstanding the foregoing provisions of this section, the Governor-General may from time to time, by Order in Council, specify the terms and conditions subject to which,—
a: the Corporation may make advances to authorised savings institutions or depositors
b: authorised savings institutions may make loans to depositors.
4: Notwithstanding subsection (3)
a: the Corporation may, when advancing, pursuant to this section, any amount to any authorised savings institution or depositor
b: an authorised savings institution may, when making any loan to which this section applies to any depositor, make the loan on such terms and conditions (not inconsistent with those specified in any Order in Council referred to in that subsection), as the institution may think fit to impose.
5: Every advance made, pursuant to the foregoing provisions of this section, by the Corporation to an authorised savings institution or depositor section 24 Section 14J inserted 25 November 1976 Home Ownership Savings Amendment Act 1976 Section 14J(1) replaced 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 14J(2) amended 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 14J(2) amended 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 14J(3)﻿(a) amended 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 14J(4)﻿(a) amended 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 14J(5) amended 1 January 1982 Home Ownership Savings Amendment Act 1981
14K: Restrictions on dispositions
1: For the purposes of this Act the term restriction period
a: in relation to an Ordinary Home Ownership Account of any depositor, the period of 5 years commencing on the date on which a purchase grant is paid to the depositor , or, if the grant is paid in respect of a dwelling for future occupation under section 6(6)
b: in relation to a Special Home Ownership Account of any depositor, the period of 5 years commencing on—
i: if the withdrawal was made pursuant to a withdrawal certificate to enable the depositor to acquire a dwelling, the date on which the dwelling was acquired by the depositor; or
ii: if the withdrawal was made pursuant to a withdrawal certificate to enable the depositor to acquire land upon which to erect a dwelling, the date on which the construction of that dwelling was completed: provided that, if a withdrawal certificate is issued in respect of the acquisition of a dwelling for future occupation under section 14F(8)
2: No depositor shall, without on each occasion the subsection (1) 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 dwelling or in any such land to secure any loan made to him by the Corporation, or by The National Bank
b: any settlement of such dwelling as a joint family home under the provisions of the Joint Family Homes Act 1964
c: any charge granted by the depositor over his estate or interest in such dwelling to secure any advance made to him under the Family Benefits (Home Ownership) Act 1964
d: any transmission of the depositor's estate or interest in any such dwelling or in any such land. Section 14K inserted 25 November 1976 Home Ownership Savings Amendment Act 1976 Section 14K(1)﻿(a) amended 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 14K(1)﻿(b) proviso inserted 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 14K(2) amended 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 14K(2) amended 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 14K(2) proviso paragraph (a) amended 1 July 1994 section 5(1)﻿(a) National Bank of New Zealand Limited Act 1994
14L: Effect of dispositions within restriction period
If a depositor, contrary to section 14K , or fails or ceases to occupy any such dwelling,
a: refund to the Corporation all benefits which he has received in respect of his deposits in his Ordinary Home Ownership Account; and
b: pay to the Corporation sections RZ 7 to RZ 10 Section 14L inserted 25 November 1976 Home Ownership Savings Amendment Act 1976 Section 14L amended 1 January 1982 Home Ownership Savings Amendment Act 1981 Section 14L(b) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 14L(b) amended 1 January 1982 Home Ownership Savings Amendment Act 1981
14M: Charges and caveats
1: To secure any money which may, pursuant to this Act, or sections RZ 7 to RZ 10
a: execute and register, against the title to the depositor's dwelling or land referred to in section 14K Land Charges Registration Act 1928
b: lodge a caveat in favour of the Corporation against such title pursuant to the Land Transfer Act 1952
2: To register any such charge or to lodge any such caveat it shall not be necessary to produce to a
3: Where any such charge is so registered or any such caveat is so lodged, it shall be the duty of the Land Transfer Act 1952
4: Subject to section 14K
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
6: No Section 14M inserted 25 November 1976 Home Ownership Savings Amendment Act 1976 Section 14M(1) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 14M(2) amended 1 June 2002 section 38(2) Land Transfer (Computer Registers and Electronic Lodgement) Amendment Act 2002 Section 14M(3) amended 1 June 2002 section 38(2) Land Transfer (Computer Registers and Electronic Lodgement) Amendment Act 2002 Section 14M(5) amended 1 April 1980 section 12 Judicature Amendment Act 1979 Section 14M(6) amended 20 May 1999 section 7 Stamp Duty Abolition Act 1999
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 Home 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 benefit for himself or any other person:
b: being a person to whom a benefit 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 benefit was paid have been fulfilled or whether or not any event has taken place by reason which the benefit 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)
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 benefits 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)
a: prescribing the mode of making application for benefits:
b: prescribing the procedure for payment of benefits:
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