The Short Title of this Act is “The Otago School Commissioners Empowering Act, 1892.”

It shall be lawful for the said Commissioners, with the consent of the lessee, from time to time during the remainder of the term granted by the said lease, to resume possession of any part or parts of the said run not exceeding in the whole five thousand acres, and so that any land the possession of which shall be so resumed shall be taken in a continuous block along the Te Anau Lake and the Waiau River, between the Upukerora River and the southern boundary of the said run.

Whenever the said Commissioners shall resume possession of any part of the said run as aforesaid, the part of the said run of which possession shall be so resumed shall cease to be affected by the said lease; and the annual rent payable under the said lease shall be reduced during the remainder of the term thereby granted by a sum equal to one shilling and sixpence per acre up to two thousand acres of the land of which possession shall be so resumed, and one shilling per acre of any such land in excess of two thousand acres, but so as in no way to affect the provision for valuation contained in the said lease, and, except as aforesaid, no such resumption of possession shall affect or prejudice the said lease, which shall in such case be read and construed from time to time as if the lands for the time being remaining subject to the said lease had been the only lands originally included therein.

It shall be lawful for the said Commissioners to grant in favour of William Snodgrass, of Te Anau, hotelkeeper, a lease for a term coterminous with the term granted by the said lease of the twenty-eighth day of August, one thousand eight hundred and eighty-six, of any part of the land of which possession may be so resumed as aforesaid, not exceeding in the whole forty acres, at such rent not being less than twenty pounds per annum as the said Commissioners shall determine; and such lease may contain such provisions as to the payment by any incoming tenant of the lands thereby demised of all or any part of the value of the buildings and other improvements standing on such lands at the expiration of the term thereby granted, whether such buildings or other improvements shall have been erected or made prior to or subsequent to such lease being executed, and also such provisions as to the renewal from time to time of the term thereby granted, and such other terms, covenants, conditions, powers, and provisions as the said Commissioners shall determine.

It shall be lawful for the said Commissioners, without prejudice to their powers under section four hereof, to let any lands of which possession shall be so resumed as aforesaid in the manner prescribed by law in respect of the other lands vested in them.