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COMMUNITY LAND MANAGEMENT ACT 1989 - SECT 23
Restriction on powers during initial period
23 Restriction on powers during initial period
(1) During the initial period for its related scheme, an association may not,
unless an order made under subsection (4) otherwise provides-- (a) incur a
debt of an amount in excess of the amount then available for repayment of the
debt from the administrative fund or sinking fund, or
(b) borrow money or
give security for the repayment of money, or
(c) make, amend or repeal a
by-law creating restricted property.
(2) During the initial period for a
neighbourhood scheme, the neighbourhood association may not, unless an order
made under subsection (4) otherwise provides-- (a) grant a lease of
neighbourhood property, or
(b) create an easement burdening land within the
neighbourhood scheme or a restriction on the use of any such land, or
(c)
release an easement, or a restriction on the use of land, that benefits
neighbourhood property, or
(d) dedicate association property, or
(e)
transfer neighbourhood property except by way of sale to a resuming authority
under section 34 of the Community Land Development Act 1989 , or
(f) erect a
structure on neighbourhood property, or
(g) subdivide or create
neighbourhood property.
(3) During the initial period for a scheme, a
developer may not, unless an order made under subsection (4) otherwise
provides-- (a) convert to association property a neighbourhood lot within the
scheme, or
(b) subdivide a neighbourhood lot within the scheme.
(4) A
restriction imposed by subsection (1), (2) or (3) may be waived, varied or
extinguished by order of the Tribunal on application by the association or
developer to which the restriction applies.
(5) An association may recover
from the original proprietor under the relevant scheme-- (a) as a debt--any
liability incurred by the association because of a breach of subsection (1),
(2) or (3), or
(b) as damages--any loss suffered by the association as a
result of such a breach.
(6) A member of an association other than the
original proprietor under the relevant scheme may recover from the
original proprietor as damages any loss suffered by the member because of a
breach of subsection (1), (2) or (3).
(7) It is a defence to an action under
this section for debt or damages if it is proved that the
original proprietor-- (a) did not know of the breach on which the action is
based, or
(b) was not in a position to influence the conduct of the
association in relation to the breach, or
(c) being in such a position, used
due diligence to try to prevent the breach.
(8) A remedy available under this
section does not affect any other remedy.
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