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Deposit Takers Act 2023

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

418: Offence to fail to take corrective action

You could also call this:

"Breaking the law if you don't follow a correction notice"

Illustration for Deposit Takers Act 2023

If you are an issuer and you get a notice under section 417, you must do what it says. You will commit an offence if you do not do what the notice says and you do not have a good reason for not doing it.

If you commit this offence, you can get a fine when you are convicted.

If you are an individual, your fine can be up to $100,000, but if you are not an individual, your fine can be up to $2,500,000.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS498012.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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417: Bank may require corrective action, or

"The bank can ask you to fix a problem if you don't follow the rules."

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

418Offence to fail to take corrective action

  1. An issuer commits an offence if the issuer, without reasonable excuse, fails to comply with a notice issued under section 417.

  2. An issuer that commits an offence against this section 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.