Plain language law

New Zealand law explained for everyone

Accident Compensation Act 2001

Accident Compensation Corporation - Provisions relating to accountability of Corporation

276: Power to borrow, etc

You could also call this:

“ACC can borrow money and make financial promises, but must follow rules”

The Accident Compensation Corporation (ACC) can borrow money, give security, and make guarantees and indemnities. They need to follow rules set by the Minister of Finance when they do this.

When ACC borrows money, they can put it into any of their accounts. They can use this borrowed money for anything that the account is normally used for.

If ACC puts borrowed money into an account, they can use money from that same account to pay back the loan. They can also use the account to pay for the interest on the loan and any other costs related to borrowing the money, including ACC’s own costs for managing the loan.

These rules work alongside the rules in Part 6 of the Accident Compensation Act. ACC can still split up costs between different accounts as allowed by section 274 of the Act.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM103190.

Topics:
Money and consumer rights > Banking and loans Government and voting > Government departments Health and wellbeing > Healthcare services
Previous

275: Investments, or

"How ACC handles and invests extra money"

Next

277: Loans and grants to Corporation, or

"The government can no longer give money to ACC"

Part 7 Accident Compensation Corporation
Provisions relating to accountability of Corporation

276Power to borrow, etc

  1. The Corporation may borrow money, give security, and issue guarantees and indemnities in accordance with procedures approved by the Minister of Finance.

  2. Without limiting any other purposes for which money borrowed may be applied, the Corporation may pay any money borrowed under subsection (1) into any of the Accounts.

  3. If any money borrowed is held in an Account, the Corporation may apply the money so held for any purpose for which money held in that Account may be applied.

  4. If any money borrowed is paid into an Account, the Corporation may repay from that Account the money so borrowed and paid in and may pay from that Account not only the interest incurred in respect of the money so borrowed and paid in but also the other costs (including the administrative costs of the Corporation) in borrowing that money.

  5. Subsections (2) to (4) supplement the provisions of Part 6.

  6. Nothing in this section prevents the Corporation from apportioning any costs in accordance with section 274.