A security interest may be a mortgage or charge and may be registered or unregistered.
A mortgage is typically held over land. The mortgagee (e.g. a bank) will have the power to sell the mortgaged land in the event that the mortgagor (e.g. the landowner) defaults on the mortgage. Mortgages may be registered on the Real Property Act Register, otherwise known as the Land Titles Register.
A charge may only be held against a corporation and is registered on the Corporations Act register administered by the Australian Securities and Investment Commission. This register is commonly known as the ASIC register.
Not all security interests are registered on the land titles register or the ASIC register. There are security interests registered on the General Register of Deeds. In addition, some security interests may not be registered at all.
Security interests under the Water Management Act 2000
Under the Water Management Act 2000, security interests may be registered directly against a water access licence on the Water Access Licence Register administered by the Land and Property Information (LPI).
Under the licence conversion provisions of the Water Management Act 2000, a security interest (registered or unregistered) that relates to a 'prior' licence under the Water Act 1912 is taken to be a security interest against the replacement water access licence.
For more information about security interests and water access licences:
- refer to the encumbrances section in the Guide to water access licences and certificates (PDF 115 KB).
Registering new security interests
Converting existing security interests
A person holding a security interest in relation to a prior licence needs to indicate whether or not they want that interest registered against the replacement water access licence on the Water Access Licence Register. A period of three years after conversion is provided to do this. All unclaimed prior licence interests at the end of that three year period are extinguished.
DPI Water will then instruct LPI to allow registration of water access licence dealings and the Water Access Licence Certificate is released. A certificate is needed to buy or sell water (through 'dealings').
For more information on the security interest component of the licence conversion process, see Converting security interests relating to 'prior' Water Act 1912 licences.
Converting security interests if you are a water access licence holder
As a holder of water access licence, you may want to buy, sell or change your replacement water access licence by means of a water access licence dealing within the three year period for registering prior licence interests. To do this, you will need to initiate and complete the resolution of the prior licence interests. This means you will need to:
- determine the details of the prior licence interests
- request those interest holders to nominate whether they want the interest registered
- lodge the interest holder responses with the DPI
DPI Water can then instruct LPI to register the 'claimed' interests and release the water access licence for dealings.
To register a prior licence interest in your water access licence:
- read the Guide to secured interest registration by holders of replacement water access licences (PDF 84 KB)
- complete the application form Secured interest registration by holders of replacement water access licences (PDF 358 KB).
Converting security interests if you are a security interest holder
Prior licence security interests will be registered by DPI Water on request within three years of the commencement date of the water access licence, providing that:
- the security interest holder notifies the water access licence holder of their intention to register the interest, and a period of 90 days elapses; and
- the security interest holder certifies that they have undertaken step 1.
The wording of the notice to the water access licence holder must comply with the following template notice: Mortgagee notice of registration of security interest issue to water access licence holders (RTF 38 KB).
Note that a security interest holder is exempt from this requirement if the licence holder requests DPI Water, in writing, to have the security interest registered on your behalf. This will typically happen when the water access licence holder wants to undertake a dealing before three years expires and before the prior licence interests are resolved by the interest holders.
Security interest holders can use the Water Access Licence Number Search in the online Security Interest Conversion system.
If only the Water Act 1912 licence number is known, use the NSW Water Register to find out the replacement Water Access Licence number. Select the option 'Search for information about a water licence or approval' in the NSW Water Register.
Security interest holders can also apply for access to use the Security Interest Conversion system to search for all replacement water access licences in which the user may have a prior licence interest and, once the 90 day notification process is complete, lodge claims online with DPI Water.
To apply for access, go to the Security Interest Conversion system and complete the online request by email to seek approval for LOGIN and PASSWORD access.
Alternatively, security interest holders can lodge a request to register a prior licence interest by sending details in the form: Request to register a security interest in a replacement water access licence, or notification that no security interest exists (initiated by security interest holder) (PDF 321 KB).
Converting security interests relating to 'prior' Water Act 1912 licences
When a water sharing plan commences under the Water Management Act 2000, licences issued under the Water Act 1912 are converted to water access licences (and approvals).
The conversion is completed with issue of a Water Access Licence Certificate. A certificate is needed to buy or sell water (through dealings).
The Water Management Act 2000 provides that any security interest relating to a 'prior' licence under the Water Act 1912 continues as an equivalent interest in the replacement water access licence. The party holding that interest needs to indicate whether or not they wish to register it on the WAL Register against the replacement water access licence. They have three years from the commencement of the replacement water access licence to lodge their claim. Any interests which have not been claimed within that time period are extinguished.
Once all prior interests are resolved (registered or repudiated) the notation preventing registration of dealings is removed and the certificate is issued. In the case of a licence with a security interest, the certificate is typically issued to the holder of a security interest.
On this page
- Security interests under the Water Management Act 2000
- Registering new security interests
- Converting existing security interests
- Converting security interests if you are a water access licence holder
- Converting security interests if you are a security interest holder
- Converting security interests relating to 'prior' Water Act 1912 licences