When you are owed compensation, the Bank will calculate how much you should get. The Bank must then pay you the compensation in a way that is set out in the regulations, or in a way that the Bank decides is suitable. You can find more information about how this works, but it is also subject to what is said in section 220. The Bank has to follow certain rules when paying you 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=LMS506614.
218: Bank may determine interest accrued, or
"The bank can estimate the interest on your savings if it's too hard to calculate exactly."
220: Bank not required to pay compensation if cannot act with reasonable certainty, or
"Banks don't have to pay compensation if they can't work things out clearly"
After the Bank calculates the entitlement of an eligible depositor to compensation under this Part, the Bank must pay the compensation to, or on account of, the eligible depositor—
This section is subject to section 220.
