Sept. 9.] THE NEW ZEALAND GAZETTE. 2293

thinks fit, contain covenants for such right of renewal as may be determined upon.

45. Every lease shall be prepared by the Board, and shall, where not inapplicable, be in the Form M in the Schedule hereto, and shall contain such covenants, conditions, and agreements not being inconsistent with the provisions of the said Act or these regulations, and when not otherwise provided shall be subject to the stipulations following :—

(a.) No lessee shall transfer the possession of the land leased to him, or any part thereof, by sale, underlease, or other disposition, except the sanction of the Board shall be first obtained. No application for such sanction shall be considered until such lessee has been twelve months in possession of the demised land.

(b.) No lessee shall mortgage his interest in any lease except with the consent of the Board first obtained.

(c.) When a statutory declaration is required from any lessee, no transferee, and no purchaser of any lease under any power of sale vested in any mortgagee, assignee, or trustee in bankruptcy, shall be admitted into possession or occupation of the land comprised in such lease until he has deposited with the Board a statutory declaration in Form K aforesaid.

(d.) Every lawful transferee of any lease or purchaser as aforesaid of any lease shall have all the rights and privileges, and be subject to the same obligations, as the original lessee: Provided that the transferor shall be liable for the instalment of rent which shall become due next after such transfer.

The foregoing conditions as regards leases shall operate and shall be deemed to bind the Board and the lessee as fully and effectively as if they were set forth in every lease.

46. Every lessee shall, within twelve months of the commencement of his term, and thereafter for a period of six consecutive years, reside on some portion of the lands leased by him: Provided that the foregoing condition shall not apply to any person who has acquired an interest in any lease under an intestacy or by virtue of a will.

47. The Board may dispense with the necessity of such residence, in the case of bush or swamp lands, during the first four years of the term, and altogether as to all lands if the lessee resides on lands contiguous to the lands leased. Lands shall be deemed to be contiguous to each other if only separated by a road or stream, or by such interval of space as the Board may in each case determine.

48. When any two lessees shall lawfully intermarry, the Board may dispense with residence by either of such lessees on the lands comprised in one of the leases.

49. Every lessee shall bring into cultivation,—

(a.) Within one year from the date of his lease, not less than one-twentieth of the land leased by him;

(b.) Within two years from the date of his lease, not less than one-tenth of the land leased by him;

(c.) Within four years from the date of his lease, not less than one-fifth of the land leased by him:

and shall, within six years from the date of his lease, in addition to the cultivation of one-fifth of the land, have put substantial improvements of a permanent character on first-class land to the value of £1 for every acre of such land, and on second-class land to an amount equal to the net price of every acre of such land: Provided that in no case shall the additional improvements required be more than 10s. per acre on second-class land, or 2s. 6d. per acre on third-class land: Provided, further, that the Board may modify the conditions of this regulation in the case of land which in its opinion is of poor quality and suitable for pastoral purposes only.

Surrender and Forfeiture of Leases.

50. Whenever a lease is surrendered or forfeited for breach of conditions, the Board shall cause a valuation to be made on recovering possession of the land, which valuation shall show the unexhausted value of the improvements thereon; and in again submitting such land for lease shall stipulate that the amount of the valuation of such improvements shall be payable to the Board by the incoming lessee before the execution of a lease in his favour.

51. In every case of the forfeiture of a lease for breach of conditions, the amount of the valuation for improvements, or of any part thereof, less the amount of expense incurred in recovering possession of the land and in the subsequent disposal thereof, shall, at the discretion of the Board, be payable to the outgoing lessee, or his assignee; but no claim shall be made against the Board in respect of the value of improvements if the Board shall fail to again lease the land.

Renewal of Leases.

52. Not sooner than one year and not later than three months before the end of the original or renewed term for which a lease is granted, a valuation shall be made by arbitration, or in some other manner that may be agreed upon between the Board and the lessee, of the then value of the fee-simple of the lands then included in such lease, and also a valuation of all substantial improvements of a permanent character made by the lessee during the term and then in existence on the land then comprised in the lease. After the making and publishing of the above-mentioned awards, which shall be effected by serving a copy of the same on the lessee and another copy on the Board, but not later than two months before the expiry of the term for which the lessee then holds the lands, the lessee shall elect, by notice in writing delivered to the Board, whether he will accept a new lease of the said lands for a further term of the same duration and upon similar conditions as the original lease at a rental equal to £5 per centum on the value of the lands after deducting therefrom the value of the substantial improvements of a permanent character as fixed respectively by the valuation.

53. If the lessee shall not elect to accept a new lease as above mentioned, or shall refuse or neglect to execute a lease within seven days after the same is tendered to him for the purpose, a lease of the said lands shall, not later than one month before the end of the term for which the terminating lease was granted, be put up to competition by public tender for such further term of the same duration as the original lease on the following terms and conditions :—

(a.) The upset rent shall be such rent as shall be fixed by the Board, not being a greater sum than that at which the lease was offered to the outgoing lessee under the last preceding clause.

(b.) The amount of such upset rent shall be stated in the advertisements calling for tenders; and it shall be a condition of tender that the tenderer shall, together with his tender, deposit the amount of one-half year’s rent, which shall be returned to him if he fails to obtain the lease.

(c.) If any person other than the outgoing lessee be declared the lessee, he shall, within seven days after the day fixed for the opening of the tenders, pay over to the Board the amount of the value of the substantial improvements of a permanent character as fixed in the manner provided by the last preceding clause.

(d.) When the day has arrived on which the terminating lease expires, or thereafter, if the Board shall have satisfied itself that the outgoing lessee has let the new lessee into quiet possession of the lands to be leased, and that none of the improvements on the lands which were thereon when the valuations mentioned in the last preceding clause were made have been destroyed or appreciably damaged, the Board shall pay over to the outgoing lessee the amount received by it from the incoming lessee as aforesaid.

(e.) If any of the improvements as mentioned in the preceding subclause have been destroyed or appreciably damaged, as in the said subclause referred to, then the value of the improvements so destroyed, or the cost of repairing such damage, shall be decided by the Board or some person appointed by it, and the amount so fixed, with the costs attending such decision, shall be deducted from the amount payable as aforesaid to the outgoing lessee, and, save the amount deducted for costs, shall be returned to the incoming lessee.

54. If such lease shall not be disposed of as above mentioned to some person other than the lessee, or if such person fails to execute the lease in triplicate or to pay the sum offered by him as aforesaid within fourteen days after being required to do so, then the lessee may again, within thirty days after the day fixed for the opening of the tenders, elect in manner aforesaid whether he will accept a new lease as aforesaid; and if he does not elect to accept the same, or refuses or neglects to execute such lease within seven days after the same is tendered to him for the purpose, then he may continue as lessee of the said land from year to year, so long as he shall pay the rent reserved by his lease, and observe and perform the covenants and conditions thereof, or until the Board shall succeed in again leasing the land, unless prior thereto he shall elect to accept a new lease as aforesaid.

55. The Board, in granting a new or renewed lease, may make provision that the right to take possession under such lease shall always commence on the 1st day of January or 1st day of July in any year.