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Reserve Bank of New Zealand Act 2021

Reserve Bank of New Zealand - Validity of acts

17: Some natural person acts protected

You could also call this:

"Some things you do with the Reserve Bank are okay even if they're not perfectly legal"

Illustration for Reserve Bank of New Zealand Act 2021

You can enforce a transaction with the Reserve Bank of New Zealand even if it is a natural person act, unless you knew or should have known it was against the law or not for the purpose of the Bank's functions. You must prove you did not have this knowledge if you rely on this rule. The Bank must report any invalid transactions it enforces in its annual report. You still have other remedies, like contract remedies, under the general law. The Bank's annual report will include details of transactions that were invalid under section 16 but were enforced. This rule does not change your other rights under the law. The Reserve Bank of New Zealand has to follow the law and report certain transactions. You can find more information about this in the section 16 of the Reserve Bank of New Zealand Act 2021. The Bank's reports will help you understand what transactions were enforced.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS287026.

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16: Acts in breach of statute are invalid, or

"Doing something against the law or without a good reason is not allowed for the Reserve Bank"

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18: Limits on protection of natural person acts, or

"What you can still do even if someone's actions are protected by law"

Part 2Reserve Bank of New Zealand
Validity of acts

17Some natural person acts protected

  1. Section 16, or any rule of law to similar effect, does not prevent a person dealing with the Bank from enforcing a transaction that is a natural person act unless the person dealing with the Bank had, or ought reasonably to have had, knowledge—

  2. of an express restriction in an Act that makes the act contrary to, or outside the authority of, the Act; or
    1. that the act is done otherwise than for the purpose of performing the Bank's functions.

      1. A person who relies on subsection (1) has the onus of proving that that person did not have, and ought not reasonably to have had, the knowledge referred to in that subsection.

      2. The Bank must report, in its annual report, each transaction that the Bank has performed in the year to which the report relates that was invalid under section 16 but enforced in reliance on this section.

      3. This section does not affect any person’s other remedies (for example, remedies in contract) under the general law.

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