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Deposit Takers Act 2023

Crisis management and resolution - Covered bonds - Interpretation relating to covered bonds

405: Meaning of issuer

You could also call this:

"What 'issuer' means in this law: a company that issues special bonds or guarantees them"

Illustration for Deposit Takers Act 2023

When you hear the term 'issuer' in this part of the law, it refers to a licensed deposit taker that issues or intends to issue covered bonds, or guarantees covered bonds. This can also be an entity, or a group of entities, specified in the regulations that issues or intends to issue covered bonds, or guarantees them. You might see this term used to describe a deposit taker that has had its licence cancelled, but still has a registered covered bond programme.

If a licensed deposit taker has its licence cancelled under subpart 6 of Part 2, and it has a registered covered bond programme, it is still considered an issuer. When you are trying to understand who the issuer is, you need to consider the specific circumstances.

If one issuer transfers all its rights and obligations related to a covered bond programme to another issuer, the new issuer is then responsible for those rights and obligations from the time of the transfer.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS475565.

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404: Meaning of covered bond SPV, or

"What is a covered bond SPV, a person who guarantees special bonds using transferred property"

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406: Issuer may issue covered bond only under registered programme, or

"Issuers must only sell special bonds, called covered bonds, as part of an approved plan."

Part 7Crisis management and resolution
Covered bonds: Interpretation relating to covered bonds

405Meaning of issuer

  1. For the purposes of this subpart, issuer—

  2. means—
    1. a licensed deposit taker that issues or intends to issue covered bonds, or guarantees covered bonds:
      1. an entity, or a member of a class of entities, specified in the regulations that issues or intends to issue covered bonds, or guarantees such covered bonds; and
      2. includes a deposit taker referred to in paragraph (a)(i) that—
        1. has had its licence cancelled under subpart 6 of Part 2; and
          1. has a registered covered bond programme.

          2. However, if an issuer (issuer A) transfers all of the rights and obligations relating to a covered bond programme to another issuer (issuer B), issuer B is, from the time of the transfer, the issuer for the purposes of this subpart.

          3. Subsection (2) does not affect the rights or obligations of issuer A before the transfer.

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