NEW ZEALAND GAZETTE, No. 75 — 25 AUGUST 2016

Section 26 Block LII, Town of Invercargill

Section 27 Block LII, Town of Invercargill

Section 28 Block LII, Town of Invercargill

Lot 1 DP 3367

Lot 2 DP 3367

Lot 3 DP 3367

Lot 4 DP 3367

Lot 5 DP 2694

0.1012 Section 6 Block LII, Town of Invercargill SL10A/274

Second Schedule

Encumbrance

For valuable consideration, the owner of all the land in the First Schedule, together with their heirs, successors and assigns ("Encumbrancer"), agrees to encumber all of the lands in the First Schedule ("Land") for the benefit of Her Majesty The Queen ("Encumbrancee") for a term of 999 years from the publication date of this notice in the New Zealand Gazette, determinable under clause 3 hereof with an annual rent charge of $1.00 to be paid in January of each year if demanded, and to covenant with the Encumbrancee to secure compliance by the Encumbrancer with the agreements set out in this encumbrance.

1. The Encumbrancer acknowledges that the covenants in this Encumbrance are of a permanent nature, and the Encumbrancer shall not be entitled to a discharge of the Encumbrance during the term, whether by payment of the total security or otherwise.

2. The Encumbrancer covenants with the Encumbrancee that:

   a. the Encumbrancer will not dispose of any or all of the Land without first satisfying its obligations under section 40 of the Public Works Act 1981, and

   b. the Encumbrancer will advise the Encumbrancee of the proposed sale, and

   c. if the Encumbrancer sells any or all of the Land before the expiration of five years from the date of publication of this notice in the New Zealand Gazette, the Encumbrancer shall pay 20% of the net proceeds of sale (or such lesser amount agreed by the Encumbrancee) to the Encumbrancee.

3. This rent-charge shall immediately determine and the Encumbrancer shall be entitled to a discharge of this encumbrance if the covenants expressed herein become obsolete or no longer enforceable or where any sunset provision is enacted amending section 40 of the Public Works Act 1981 which provision makes the term of this Instrument redundant.

4. The Encumbrancer shall pay its own costs incurred during the course of this encumbrance.

5. Sections 97, 154 and 156 of the Land Transfer Act 1952, and sections 23, 289 and 301–302 of the Property Law Act 2007 shall apply to this Encumbrance but otherwise (and without prejudice to the Encumbrancee’s rights of action at common law as a rent-chargee) the Encumbrancee shall not be entitled to any of the powers and remedies given to encumbrancees by the Land Transfer Act 1952 and the Encumbrancee and its successors and assigns shall not be entitled to any of the powers and remedies given to mortgagees under the Land Transfer Act 1952 or the Property Law Act 2007.

6. The Encumbrancer covenants with the Encumbrancee:

   a. to pay all legal costs and disbursements in the execution, registration, enforcement and any ultimate release of this Encumbrance Instrument, in respect of any consents sought by the Encumbrancer from the Encumbrancee to the registration of any instrument, and in respect of the performance and observance by the Encumbrancer of this Encumbrance Instrument including legal costs on a solicitor/client basis; and

   b. to otherwise indemnify the Encumbrancee against any claims, loss and expense of whatever kind incurred by the Encumbrancee as a consequence of the Encumbrancer failing to comply with this

77