Guides
Guide to Third Party Security Interests
December 2011
This guide is for Account Holders and third parties who want to record the third party’s security interest under the Personal Property Securities Act 1999 over all of the emission units in a Holding Account, in accordance with Regulation 18 of the Climate Change (Unit Register) Regulations 2008.
Preconditions
The Account Holder must consent to the recording of the third party’s security interest over all the emission units (units) in a Holding Account.
Important Notes
- A recorded security interest prevents transfers of any units out of the account.
- The third party must consent before a recorded security interest over a Holding Account can be removed
- The third party must consent before a recorded security interest over a Holding Account can be temporarily suspended for a specified time to enable units to be transferred out of the Holding Account
- A security interest will prevent surrender of units from a Holding Account to meet emission liabilities under the Climate Change Response Act 2002 unless the third party consents to removal of the transfer block on the Holding Account.
- Forms are available once you have logged on, to record, remove and temporarily suspend a third party security interest.
Common Questions and Answers
Is there a fee payable to record or remove a third party security interest? No.
Can a third party with a recorded security interest access my Holding Account? No. However the third party is entitled to know the balance of the Holding Account and can obtain this information from the NZEUR Registrar.
Can a third party with a recorded security interest undertake transactions on my Holding Account? No.
This guide is based on the law at the date of issuance. The information in this guide does not alter the laws of New Zealand or other official guidelines or requirements. Readers of this guide should take specific advice from qualified professional people before undertaking any action following information received from this guide.
