Best Project Finance Lawyers in Feilding

About Project Finance Law in Feilding, New Zealand

Project finance is the legal and commercial framework used to fund major infrastructure and development projects where the project itself is the primary source of repayment. In Feilding, a regional town in the Manawatu district, project finance matters often arise for renewable energy projects, large-scale agriculture and horticulture facilities, transport improvements, property development, and community infrastructure such as water and wastewater upgrades.

Project finance in New Zealand combines national legislation, central government policy, and local council consenting and planning rules. Typical structures use a special purpose vehicle or SPV - usually a company - to isolate project risk from sponsors. Funders lend against future project cash flows and take security over project assets and contracts rather than over sponsor balance sheets alone.

Why You May Need a Lawyer

Project finance transactions are legally complex and usually involve multiple parties - sponsors, lenders, contractors, offtakers, suppliers, local councils and sometimes central government agencies. A lawyer is critical in many situations, including:

- Negotiating and drafting finance documents such as loan agreements, facility agreements and security documents.

- Structuring the SPV and advising on company law, director duties and governance under the Companies Act 1993.

- Preparing and reviewing construction and engineering contracts - for example EPC or design-and-build contracts - and advising on risk allocation, liquidated damages and performance guarantees.

- Managing land title and property issues including mortgages, easements and covenant arrangements under the Land Transfer Act and related property law.

- Securing regulatory and resource consents required by the Resource Management Act 1991 and the Building Act 2004, and advising on compliance with district plans administered by Manawatu District Council and regional rules set by Horizons Regional Council.

- Advising on security registration under the Personal Property Securities Act 1999 - including registration on the Personal Property Securities Register or PPSR - and ensuring perfection of security interests.

- Addressing tax, foreign investment and competition issues, including compliance with the Overseas Investment Act and the Financial Markets Conduct Act where relevant.

- Conducting due diligence for lenders and investors, resolving disputes and handling insolvency or enforcement scenarios.

Local Laws Overview

Several New Zealand laws are especially relevant to project finance in Feilding. Key points to be aware of include:

- Resource Management Act 1991 - Projects that affect land use, water, discharges or the coastal marine area typically need resource consents. Feilding projects will be assessed against the Manawatu District Plan and regional plans administered by Horizons Regional Council. Consents can affect project timelines and cost, and conditions can be strict.

- Building Act 2004 - Building consents, inspections and code compliance are required for construction. Compliance with earthquake code and structural standards may be relevant for larger structures.

- Companies Act 1993 - Many projects use an SPV company. Directors and officers face duties and liabilities under the Companies Act that can affect project governance.

- Personal Property Securities Act 1999 - Lenders take security over equipment, receivables and other personal property by registering interests on the PPSR. Registration timing and priority rules matter for enforcement.

- Land Transfer Act - Titles and mortgages over land are registered through Land Information New Zealand or LINZ. Mortgage, easement and covenant documentation is key for lenders taking real property security.

- Contract and Commercial Law Act 2017 and common law principles govern commercial contracts for supply, construction and services. Carefully drafted contracts reduce disputes and allocation of risk.

- Overseas Investment Act - If an investor is a foreign person and the project involves sensitive land or significant business assets, approval from the Overseas Investment Office may be required.

- Health and Safety at Work Act 2015 - Construction and operational phases must comply with health and safety obligations. Primary duty holders may include the PCBU - person conducting a business or undertaking - which can be the SPV or contractor.

Local consenting authorities - primarily Manawatu District Council for district matters and Horizons Regional Council for regional environmental matters - enforce many of these laws. Familiarity with their consenting processes and timeframes is crucial for project planning.

Frequently Asked Questions

What is project finance and how is it different from corporate finance?

Project finance funds a specific project and relies mainly on the project’s cash flows and assets for repayment. Corporate finance uses a company’s overall balance sheet and creditworthiness. Project finance often uses non-recourse or limited-recourse loan structures to isolate project risk.

Do I need a special company for a project in Feilding?

Yes - many projects use an SPV company to ring-fence project assets and liabilities. An SPV helps clarify who has rights and obligations and can make it easier for lenders to take security. A lawyer can advise on the right corporate structure for tax, liability and governance reasons.

What consents will I need from local authorities?

Consents depend on the project. Common requirements include resource consents under the RMA for land use, water take or discharge, building consents under the Building Act, and permits under district plans. Horizons Regional Council and Manawatu District Council are the main regulators in Feilding.

How do lenders secure their loans on a project?

Lenders typically take a package of security: mortgages over land, charges over bank accounts, assignment of contracts and receivables, security over plant and equipment registered on the PPSR, and guarantees or security from sponsors where provided. Perfection and priority of security is essential and depends on proper registration and documentation.

What is the Personal Property Securities Register and why does it matter?

The PPSR records security interests in personal property. Lenders register their interests on the PPSR to establish priority and to perfect their security. Failure to register correctly can result in loss of priority and difficulty enforcing security.

Are there foreign investment rules that could affect my project?

Potentially. If an overseas person wants to acquire sensitive land or significant business assets, approval under the Overseas Investment Act may be required. Legal advice early in the process is important to identify whether the project triggers those rules.

What are common risks in a project finance deal?

Key risks include construction delays and cost overruns, contractor default, market risk for offtake agreements, environmental and consenting risk, regulatory change, and sponsor insolvency. Contracts and security packages aim to allocate and mitigate these risks between parties.

How long does the consenting and financing process usually take?

Timelines vary widely. Simple projects with no significant environmental impacts might take a few months for consents. Larger projects can take a year or longer due to resource consents, public consultation, technical studies and lender due diligence. Financing negotiations and documentation can add several months.

What should I include in due diligence before committing to a project?

Due diligence should cover title and property rights, environmental and resource consent status, contractual obligations and change provisions, financial models and assumptions, tax structuring, health and safety compliance, plant and equipment ownership, and any regulatory or foreign investment approvals required.

What happens if the project runs into financial trouble?

Trouble may trigger enforcement by lenders under the security documents, renegotiation of contracts or debt restructuring, or formal insolvency processes. The outcome depends on the strength of security, available cash flows, and willingness of stakeholders to restructure. Early legal advice helps preserve options and value.

Additional Resources

Manawatu District Council - local planning, building and consenting authority for Feilding projects and the place to find district plan rules and consent application processes.

Horizons Regional Council - regional consenting authority for water, discharges to air and land, and other environmental matters in the Manawatu region.

Land Information New Zealand - manages land titles and property registration under the Land Transfer Act, and provides guidance on mortgages and easements.

Personal Property Securities Register - central registry for security interests in personal property under the Personal Property Securities Act.

New Zealand Infrastructure Commission Te Waihanga - national agency that provides guidance and best practice on infrastructure planning, procurement and investment.

Overseas Investment Office - administers approvals under the Overseas Investment Act for foreign investment in sensitive land or significant business assets.

New Zealand Law Society - for directories of registered lawyers and guidance on finding a solicitor with project finance experience.

Next Steps

If you are considering a project in Feilding and need legal assistance, follow these steps:

- Early assessment - speak to a lawyer early to identify consents, approvals and potential legal hurdles. Early legal input can reduce delays and unexpected costs.

- Assemble your team - in addition to a project finance lawyer, you may need planners, engineers, quantity surveyors, tax advisors and environmental consultants. A coordinated team improves planning and risk management.

- Prepare clear documentation - ensure that the SPV structure, shareholder arrangements, construction contracts and finance documents are well drafted and aligned with the project timetable and commercial terms.

- Complete due diligence - engage legal and technical due diligence before signing major contracts or committing significant capital.

- Engage with local authorities - consult with Manawatu District Council and Horizons Regional Council early on for pre-application meetings and to understand consenting pathways and requirements.

- Consider dispute resolution and enforcement - include clear dispute resolution steps and enforcement mechanisms in contracts so parties know how disputes will be handled.

If you would like help finding a lawyer in Feilding with project finance experience, start by checking the New Zealand Law Society directory or ask for referrals from local business groups. Meet more than one adviser, ask about relevant experience, fee structures and who will be the day-to-day contact on your matter.