Deposit Takers Act 2023

Depositor compensation scheme - Depositor Compensation Fund

200: Bank may apportion expenditure

You could also call this:

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

Illustration for Deposit Takers Act 2023

The Bank can decide how to split the costs of something if it thinks the costs are related to two things: the Bank doing its job under this part of the law, and the Bank doing another job. You need to know the Bank does different jobs, and sometimes the costs are shared between them. The Bank gets to choose how to split these costs to figure out how much should come from a certain fund, which is talked about in section 199(a).

The Bank decides how much of the cost is for the fund under section 199(a), and that amount is treated as a cost for that fund. This means the Bank has to keep track of the costs and make sure they are counted correctly for the fund. The costs are split so the Bank can work out what to pay from the fund.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS508857.


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199: Payments out of fund, or

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Part 6Depositor compensation scheme
Depositor Compensation Fund

200Bank may apportion expenditure

  1. This section applies if the Bank reasonably considers that expenditure is related to both—

  2. the Bank performing or exercising its functions, powers, or duties under this Part; and
    1. the Bank performing or exercising any other functions, powers, or duties.
      1. The Bank may apportion the expenditure in the manner that the Bank thinks fit so as to determine the part of the expenditure that is to be met out of the fund under section 199(a).

      2. The part of the expenditure determined in relation to the fund must be treated as expenditure under section 199(a).