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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:

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

Illustration for Deposit Takers Act 2023

If you are an issuer, you must issue a covered bond under a registered programme. You cannot issue a covered bond outside of this programme. If you do, you will commit an offence and may have to pay a fine. The fine can be up to $100,000 if you are an individual, or up to $2,500,000 in any other case, as stated in the Deposit Takers Act 2023, which you can find more information about by comparing to the 1989 No 157 s 139E(4).

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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.

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

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

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407: Register of registered covered bond programmes, or

"A public list of approved covered bond programmes that you can look at anytime."

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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