2298

THE NEW ZEALAND GAZETTE.

[No. 74

18. When the Board shall declare any person to be the
    purchaser or lessee of any lot, it shall forthwith notify the
    same to such person by registered letter to the address given
    in the tender. If two or more persons jointly tender, the
    notice shall be posted to each of such persons. Such notice
    shall be in the Form L in the Schedule hereto or to the effect
    thereof. In the case of a sale the Board shall call upon the
    person declared the purchaser to pay ten per centum of the
    purchase-money tendered, and to execute a memorandum of
    contract in the Form T in the Schedule hereto.

19. If any person who has been declared a purchaser or
    lessee as aforesaid shall fail to execute his contract of sale or
    his lease within thirty days after being required by notice
    to do so, then his deposit shall be absolutely forfeited to the
    Board, and the right of such person under such tender shall
    absolutely cease and determine. When any person shall
    forfeit his right as aforesaid, and as often as such a case shall
    occur from time to time until the land be disposed of, or until
    there be a failure of tenderers whose tenders are formal, the
    Board may declare the next highest tenderer whose tender is
    not informal to be the purchaser or lessee; or, if the price or
    rent offered by two or more persons is the same amount, and
    is higher than the price or rent offered by any other tenderer
    save the one who has so forfeited his right as aforesaid, may
    decide by lot which of such other persons shall be the pur-
    chaser or lessee. Every person declared a purchaser or lessee
    under this section shall, upon his paying the deposit and fees
    as aforesaid, be declared to have become the purchaser or
    lessee on the day of the opening of the tenders as if he had
    been declared on such day.

20. If no tender shall be received prior to the time fixed for
    opening the tenders for any of the leases of the lots advertised
    for sale or lease, any person may at any time thereafter apply
    to purchase or lease the same, unless the same shall have been
    withdrawn by the Board, and be declared the purchaser or
    lessee, at the upset price or rental fixed, upon complying with
    the other conditions prescribed as to tenders. If in any
    such case two or more applicants shall lodge their tenders
    on the same day, the right to purchase or lease the land the
    subject of such tenders shall be decided by lot.

21. The Board may at any time reduce the upset value of
    the land which it has for three months failed to sell or lease,
    and may again call for tenders for the same at such reduced
    value.

Italics or Leases by Public Auction.

22. The foregoing regulations as to sales or leases by public
    tender shall, where not inapplicable, apply to sales or leases
    by public auction.

23. The successful purchaser or lessee at auction shall be
    required, on the acceptance of his bid, to make the statutory
    declaration referred to in Regulation 12 hereof. In the
    case of a sale he shall further be required to make the pay-
    ment and execute the memorandum of contract mentioned
    in Regulation 18 hereof; in the case of a lease he shall be
    required to make the payment mentioned in Regulation 13.

General Conditions as to Leases.

24. No lease shall comprise a greater area than 5,000 acres
    of land, or the equivalent thereof, calculated in the manner
    following : Every acre of first-class land shall be reckoned
    as 7½ acres, and every acre of second-class land shall be
    reckoned as 2½ acres. No lessee or person, by himself or by
    or jointly with any other person on his behalf, shall hold
    at one time, whether as occupier, lessee, assignee, sublessee,
    or otherwise, a greater area than 5,000 acres of land, or the
    equivalent thereof as above specified : Provided always that
    land held under tenure the term of which expires within nine
    months shall not be deemed to be land held or occupied
    within the meaning of this regulation unless the lessee has a
    right to the renewal of such lease. Any occupation license,
    lease, assignment, sublease, or other instrument in contra-
    vention of this regulation shall be illegal and void from the
    commencement : Provided always that this regulation shall
    not apply to any person who acquires an interest in any
    lease by bankruptcy or under an intestacy, or by virtue of
    a will, or to land declared by resolution to be of poor quality
    and unworkable except in areas exceeding 5,000 acres.

25. The term fixed by the lease shall be for such period
    as the Board may determine, and the lease may, if the Board
    thinks fit, contain covenant for such right of renewal as may
    be determined upon.

26. Every lease shall be prepared by the Board, and shall,
    where granted under Part I of the said Act, be in the Form M
    in the Schedule hereto, and shall contain such covenants, con-
    ditions, and agreements not being inconsistent with the pro-
    visions of the said Act or these regulations, and, subject to
    any special conditions, 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, under-
lease, 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 ob-
tained.

(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 ad-
mitted 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 obliga-
tions 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 effectually as if they were set forth in every lease.

27. Leases to Maoris under Part II of the said Act shall
    be in Form S in the Schedule hereto, or to the effect thereof.

28. The Board may where necessary alter the prescribed
    forms of lease to conform with the requirements of any
    particular case.

29. Every lessee shall, within twelve months of the com-
    mencement 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.

30. 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 sepa-
    rated by a road or stream or by such interval of space as
    the Board may in each case determine.

31. 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.

32. 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 addi-
tion to the cultivation of one-fifth of the land, have put sub-
stantial 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.

33. 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.

34. 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 in case the Board shall fail to again lease the
    land.

Renewal of Leases.

35. Not sooner than one year and not later than three
    months before the end of the original or renewed term for
    which the lease is granted, a valuation shall be made by arbi-