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Deposit Takers Act 2023

Depositor compensation scheme - Entitlement to compensation - Other matters relating to calculation of entitlement

216: Liabilities owed to licensed deposit taker must be disregarded

You could also call this:

"Ignore debts to banks when calculating compensation"

Illustration for Deposit Takers Act 2023

When you are working out how much compensation you can get, you do not need to think about any money you owe to the bank or other deposit taker. The amount of money you owe them is not included in the calculation. You only need to look at how much money you have in the account to figure out your entitlement.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS506605.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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215: Regulations may impose conditions, or

"Rules can set conditions for getting compensation"

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217: Bank may rely on licensed deposit taker’s records and information from eligible depositors and other persons, or

"Banks can use information from deposit takers and customers when paying compensation"

Part 6Depositor compensation scheme
Entitlement to compensation: Other matters relating to calculation of entitlement

216Liabilities owed to licensed deposit taker must be disregarded

  1. For the purposes of calculating the amount of compensation that an eligible depositor is entitled to under this Part, the liabilities (if any) that are owing by the eligible depositor to the licensed deposit taker must be disregarded.