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Deposit Takers Act 2023

Crisis management and resolution - Covered bonds - Resolution or statutory management, etc, of issuer

421: Limitation on application of resolution, statutory management, etc, provisions to covered bond SPV

You could also call this:

"Rules to protect property in a covered bond programme when an issuer has problems"

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You need to know about rules for covered bond SPVs. These rules are about what happens when an issuer has problems. The rules say what can and can't be done with property in a cover pool. You can transfer the legal title to property from an issuer to a covered bond SPV. You can also transfer documentation or data about the property. A covered bond SPV can exercise a power of attorney granted by the issuer. The issuer must pay money collected on behalf of the SPV to the SPV. These rights can be enforced by the SPV. But these rules only apply if the covered bond SPV owns the property and the programme is registered under section 412. A covered bond SPV is not considered an associated person or subsidiary for certain purposes, such as section 38(1)(a) of the Corporations (Investigation and Management) Act 1989 or section 170(1)(b) of the Insurance (Prudential Supervision) Act 2010.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS519210.

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Money and consumer rights > Banking and loansBusiness > Industry rules
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Part 7Crisis management and resolution
Covered bonds: Resolution or statutory management, etc, of issuer

421Limitation on application of resolution, statutory management, etc, provisions to covered bond SPV

  1. Subsections (2) and (3) apply in relation to the following provisions:

  2. sections 284(1), 287, 303, 330(1), and 345(1) of this Act:
    1. section 248 of the Companies Act 1993:
      1. sections 42(1), 43(1), 44(1), and 45(2) of the Corporations (Investigation and Management) Act 1989.

        1. Nothing in a provision referred to in subsection (1)—

        2. prevents the transfer of the legal title to property in a cover pool from an issuer to a covered bond SPV:
          1. prevents the transfer, under a contract, of any documentation or data relating to property in a cover pool from the issuer to a covered bond SPV or a person acting on behalf of that SPV:
            1. prevents a covered bond SPV, or a person acting on behalf of that SPV, from exercising a power of attorney granted by the issuer in relation to property in a cover pool:
              1. affects the issuer’s obligation to pay money collected on behalf of, and held on trust for, a covered bond SPV, to that SPV:
                1. prevents the enforcement of any of the above rights by, or on behalf of, a covered bond SPV.

                  1. However, subsection (2) applies only if—

                  2. the covered bond SPV is the owner of the property in the cover pool; and
                    1. the covered bond programme is registered under section 412.

                      1. A covered bond SPV is not—

                      2. an associated person for the purposes of section 38(1)(a) of the Corporations (Investigation and Management) Act 1989 or section 170(1)(b) of the Insurance (Prudential Supervision) Act 2010; or
                        1. an associate of a person for the purposes of section 95(1)(b) of the Overseas Investment Act 2005; or
                          1. a subsidiary for the purposes of section 38(2) of the Corporations (Investigation and Management) Act 1989, section 95(2) of the Overseas Investment Act 2005, or section 170(2) of the Insurance (Prudential Supervision) Act 2010; or
                            1. a related company for the purposes of section 271 of the Companies Act 1993.

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