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Companies Act 1993

Liquidations - Creditors' claims

310N: Bank to notify recognised clearing house about Bank's intention to revoke or vary declaration under section 310K

You could also call this:

“Bank must inform and consult clearing house before changing its declaration”

If the Reserve Bank wants to change or cancel a declaration it made under section 310K, it must follow some rules. First, the Reserve Bank must tell the recognised clearing house in writing at least 7 days before it plans to make any changes. This gives the clearing house time to prepare. Next, the Reserve Bank must give the clearing house a fair chance to share its thoughts on the matter. Finally, the Reserve Bank has to think carefully about what the clearing house has said before making any decisions. These steps make sure that the clearing house has a say in decisions that affect it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM322398.

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310M: Bank may impose conditions in declaration under section 310K, or

“Bank can set rules for clearing houses when making declarations”

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310O: Transactions under recognised multilateral netting agreement not affected by variation or revocation of declaration under section 310K, or

“Changes to declarations don't affect existing transactions under recognised agreements”

Part 16 Liquidations
Creditors' claims

310NBank to notify recognised clearing house about Bank's intention to revoke or vary declaration under section 310K

  1. The Bank must not revoke or vary a declaration made under section 310K unless—

  2. the recognised clearing house to which the notice applies has been given not less than 7 days' notice in writing of the Bank's intention to do so; and
    1. the clearing house has a reasonable opportunity to make submissions to the Bank; and
      1. the Bank considers those submissions.

        Notes
        • Section 310N: inserted, on , by section 15 of the Companies Amendment Act 1999 (1999 No 19).