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Deposit Takers Act 2023

Licensing of deposit takers - Cancellation

53: Cancellation of licence

You could also call this:

"When the Bank can cancel a deposit taker's licence for breaking rules or not meeting conditions."

Illustration for Deposit Takers Act 2023

The Bank can cancel a licence if they are satisfied that you have given false information under section 16 and you have not started borrowing and lending money in New Zealand. The Bank can also cancel your licence if you break a condition under section 24(1)(e)(i), which says you must start borrowing and lending money in New Zealand within a certain time. You can have your licence cancelled if you are not a deposit taker and do not owe money to anyone who has deposited money with you.

The Bank can cancel your licence if you have been liquidated, wound up, or dissolved, or if you no longer exist. If you are not a deposit taker, the Bank might ignore any obligation you have to pay money under certain rules when deciding whether to cancel your licence, such as those under subpart 4 of Part 6. This means the Bank can still cancel your licence even if you have some obligations to pay money.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS472201.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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54: Process for cancelling licence, or

"How the Bank cancels a licence: a step-by-step process"

Part 2Licensing of deposit takers
Cancellation

53Cancellation of licence

  1. The Bank may cancel a licence held by a person (A) if the Bank is satisfied that—

  2. the information provided under section 16 is false or misleading in a material particular and A has not yet commenced carrying on the business of borrowing and lending money in New Zealand:
    1. A has contravened a condition under section 24(1)(e)(i) (which requires A to commence carrying on the business of borrowing and lending money in New Zealand within a particular period):
      1. A is not, or is no longer, a deposit taker and A does not owe any obligations to pay money to any eligible depositor under any protected deposit:
        1. A has been liquidated, wound up, or dissolved or has otherwise ceased to exist.

          1. For the purposes of subsection (1)(c), the Bank may disregard any obligation on A to pay money under a right of subrogation under subpart 4 of Part 6.