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Deposit Takers Act 2023

Crisis management and resolution - Covered bonds - Registration of covered bond programmes

414: Bank must give notice of proposal to decline application

You could also call this:

"The bank must tell you if they might not approve your application and why."

Illustration for Deposit Takers Act 2023

If you apply to start a covered bond programme, the Bank might decide not to approve it. The Bank must tell you why they want to decline your application within 60 working days of getting all the information they need. They will ask you to give them more information or explain why you think they should approve your application.

You have 10 working days to respond to the Bank's notice. The Bank will think about what you say and any extra information you give them. Then, they will tell you their final decision within 5 working days of the deadline for your response.

You can look at what the law said before in the 1989 No 157 legislation to compare it with the current law. The Bank follows a process to make sure they make a fair decision about your application. This process helps the Bank make a decision that is based on the information you give them and what you say in response to their notice.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS498010.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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413: Bank must give notice of approval, or

"The bank must let you know if your application is approved within 60 working days."

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415: Bank and issuer may agree to modify time limits, or

"Banks and issuers can agree to change deadlines together."

Part 7Crisis management and resolution
Covered bonds: Registration of covered bond programmes

414Bank must give notice of proposal to decline application

  1. If the Bank proposes to decline the application, the Bank must, within 60 working days after receiving all of the information required to determine the application,—

  2. give the issuer notice of the proposed decision and the reasons for it; and
    1. invite the issuer to provide, within 10 working days after the date of the notice, submissions or further information in response to the proposed decision; and
      1. have regard to any submissions and further information it receives from the issuer; and
        1. give notice of its final decision to the issuer within 5 working days after the period specified in paragraph (b) (whether or not the Bank receives any submissions or further information).

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