Plain language law

New Zealand law explained for everyone

Deposit Takers Act 2023

Regulation of deposit takers - Credit rating

64: Licensed deposit taker must notify Bank of change in rating

You could also call this:

"Tell the Bank if your credit rating changes"

Illustration for Deposit Takers Act 2023

If you are a licensed deposit taker, you must tell the Bank if your credit rating changes. You have 20 working days to do this after you get notice of the change. You must give the Bank a certificate from the approved rating agency that shows your new rating.

The certificate must have the date it was given on it. This is an important detail that must be included. You will use this certificate to inform the Bank about your new credit rating.

If you do not follow this rule, you can get in trouble. You might have to pay a fine of up to $10,000 or a court could fine you up to $25,000.

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 It might be out of date or be missing some parts.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=LMS475776.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
Previous

63: Bank may review approval, or

"The Bank can check and cancel approval of a rating agency at any time if it's not doing a good job."

Next

65: Licensed deposit taker must notify Bank of credit watch warning, or

"Licensed deposit takers must tell the Bank within 20 working days if they get a credit watch warning about their credit rating."

Part 3Regulation of deposit takers
Credit rating

64Licensed deposit taker must notify Bank of change in rating

  1. A licensed deposit taker must, within 20 working days after receiving notice that its credit rating has changed, deliver to the Bank a certificate by the approved rating agency of the new rating.

  2. The certificate must state the date on which it was given.

  3. A licensed deposit taker that contravenes this section commits an infringement offence and is liable to—

  4. an infringement fee of $10,000; or
    1. a fine imposed by a court not exceeding $25,000.