237B   Transformation of landholder’s water entitlement

(1)  The holders of an access licence for the water supply district of a private water trust may make an application under Division 4 of Part 2 of Chapter 3 for the purpose of wholly or partly transforming a landholder’s water entitlement into an access licence under this Act.

(2)  On transformation of the whole or part of a landholder’s water entitlement to an access licence:

(a)  the landholder is not entitled to vote (as a member of the trust or as a voting member in the water supply district) on any matter relating to the transformation of one or more other landholders’ water entitlements or the supply of water to landholders who have not transformed their water entitlements, and

(b)  the members of the trust and the trust may continue to exercise functions in relation to any works that are located on the landholding for which they exercised functions immediately before the transformation (whether or not the trust is to deliver the landholders’ water entitlement under the access licence or the landholding remains in the water supply district of the trust).

(3)  If the whole of a landholder’s water entitlement is transformed and the landholder does not have a right to the delivery of that water by the trust:

(a)  the landholder is not entitled to vote as a landholder within the water supply district of the trust, and

(b)  the trust must not fix rates and charges in respect of the landholder’s landholding for that water (other than termination charges).

(4)  The regulations may make provision for or with respect to:

(a)  other circumstances in which a landholder whose landholder’s water entitlement has been transformed ceases to be a voting member in the water supply district of the trust, and

(b)  the voting rights of landholders who have partially transformed their landholders’ water entitlements.

(5)  The members of a trust may require a landholder to provide security as a condition of consent to transformation of the whole or part of the landholder’s water entitlement, subject to the regulations.

(6)  Without limiting subsection (5), the following kinds of security may be required by the members of a trust:

(a)  a charge over a part of an irrigation right that is not transformed,

(b)  a charge over an access licence or other entitlement to water acquired by the person and resulting from the transformation,

(c)  a guarantee by an authorised deposit-taking institution,

(d)  a deposit lodged with the trust.

(7)  In addition to any other charges it may fix under this Part, the members of a trust may fix the following charges:

(a)  (Repealed)

(b)  charges payable by a landholder for the delivery of water after transformation of the whole or part of the landholder’s water entitlement.