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Deposit Takers Act 2023

Crisis management and resolution - Covered bonds - Main duties of issuer

406: Issuer may issue covered bond only under registered programme

You could also call this:

"Only issue covered bonds as part of a registered programme or you may be fined."

Illustration for Deposit Takers Act 2023

You cannot issue a covered bond unless it is part of a registered programme. If you issue a covered bond outside a registered programme, you break the law. You can be fined if you break this law, with the amount depending on whether you are an individual or an organisation, up to $100,000 for an individual or $2,500,000 for an organisation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS498008.

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Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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405: Meaning of issuer, or

"What is an issuer in the law about deposit takers?"

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407: Register of registered covered bond programmes, or

"A public list of special loan programmes kept by the Bank"

Part 7Crisis management and resolution
Covered bonds: Main duties of issuer

406Issuer may issue covered bond only under registered programme

  1. An issuer must not issue, or permit the issue of, a covered bond other than under a registered covered bond programme.

  2. An issuer that contravenes subsection (1) commits an offence and is liable on conviction,—

  3. in the case of an individual, to a fine not exceeding $100,000:
    1. in any other case, to a fine not exceeding $2,500,000.

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