Crown Entities Act 2004

Miscellaneous provisions - Transitional and savings provisions

197: Continuation of pre-1 April 2005 securities, borrowing, guarantees, indemnities, and derivative transactions

You could also call this:

"Old agreements and debts from before 1 April 2005 are still valid for Crown entities"

Illustration for Crown Entities Act 2004

If you are part of a Crown entity, this section is about things you did before 1 April 2005. You might have borrowed money, given guarantees, or entered into special agreements. Even though the Crown Entities Act 2004 is now in place, these things are still okay. You can still do these things because they were done before the Act applied, specifically before sections 160 to 164 applied. The rules of these agreements can be changed, but only if the Minister of Finance says it is okay.

If someone is suing a Crown entity, this section does not apply to the people in the entity, like members or employees. This means that some rules do not apply to them in the same way. The Minister of Finance has a say in what can be done with these agreements after 1 April 2005.

You should note that this section has some exceptions, and it does not cover everything. It is about what was done before 1 April 2005 and how it is affected by the new Act. The Minister of Finance plays a role in deciding what can be done with these old agreements.

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This page was last updated on 18 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM331107.

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196: Existing law on securities, borrowing, guarantees, indemnities, and derivative transactions continues to apply until 1 April 2005, or

"Old rules about borrowing and guarantees still apply until 1 April 2005"

198: Reporting obligations in respect of financial years ending before 1 July 2006, or

"Old finance reporting rules apply for Crown entities' financial years ending before 1 July 2006"

Part 5Miscellaneous provisions
Transitional and savings provisions

197Continuation of pre-1 April 2005 securities, borrowing, guarantees, indemnities, and derivative transactions

This section applies to any security, borrowing, guarantee, indemnity, or derivative transaction that a Crown entity has lawfully acquired, given, or entered into before 1 April 2005 that the Crown entity would be restricted from having, acquiring, giving, or entering into under this Act after sections 160 to 164 apply.
The security, borrowing, guarantee, indemnity, or derivative transaction is not affected by the enactment of this Act.
However, the terms of the security, borrowing, guarantee, indemnity, or derivative transaction may be amended, or any options resulting from the security, borrowing, or derivative may be taken up, on and after 1 April 2005, only if permitted by the Minister of Finance.
This section does not apply to an indemnity in respect of a member, office holder, employee, committee member, or other individual of a Crown entity in relation to a claim or proceeding.