Deposit Takers Act 2023

Depositor compensation scheme - Depositor Compensation Fund

199: Payments out of fund

You could also call this:

"When the fund's money can be used to help the Bank do its job or pay expenses"

Illustration for Deposit Takers Act 2023

Money can be paid out of the fund to help the Bank do its job under this part of the law. You might see money paid out to compensate people, as outlined in subpart 3, or to help the Bank give information to the public about the scheme. The Bank can also use the fund to pay for its own expenses related to its work under this part of the law.

The fund can also be used to support a resolution measure for a licensed deposit taker, as outlined in subpart 5. Additionally, the fund can be used to pay taxes owed on the fund and to cover the costs of the Crown when the Minister is doing their job under subpart 8.

The fund can be used to repay money that was borrowed under subpart 8, and to pay any interest or fees related to that borrowing.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS501354.


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"What's in the fund: money from levies, interest, investments, and other allowed sources."


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"The Bank can split costs between jobs to work out what to pay from a certain fund."

Part 6Depositor compensation scheme
Depositor Compensation Fund

199Payments out of fund

  1. Money may be paid out of the fund—

  2. to pay for the Bank performing or exercising its functions, powers, or duties under this Part, including—
    1. paying compensation under subpart 3; and
      1. paying the Bank’s expenditure incurred in connection with providing, or facilitating the provision of, information to the public in connection with the scheme; and
        1. paying all expenditure incurred by the Bank in connection with the Bank performing or exercising its functions, powers, or duties under this Part; and
        2. to support a resolution measure undertaken in relation to a licensed deposit taker under subpart 5; and
          1. to pay the taxation liabilities arising in respect of the fund; and
            1. to pay the costs of the Crown in connection with the Minister performing, or preparing to perform, the Minister’s duties under subpart 8 (for example, the costs incurred in holding additional liquidity in preparation for performing those duties); and
              1. to repay any money provided to the fund under subpart 8, and to pay any interest or fees, charges, or costs in connection with the provision of the money.