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Deposit Takers Act 2023

Crisis management and resolution - Bank may give directions, approve sales, and replace directors - Bank may give directions

268: Direction must be in writing and state grounds

You could also call this:

"A bank must give you a written notice with reasons when giving you a direction."

Illustration for Deposit Takers Act 2023

If you get a direction from a bank, it must be in writing. The direction must also say why it is being given to you. This means the bank has to explain the reasons for the direction.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS529207.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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267: Scope of directions, or

"The Bank can give instructions to businesses that take deposits on how to fix problems or run their business."

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269: Bank may approve sale or disposition, or

"The Bank can say yes to someone selling a business or assets under certain conditions."

Part 7Crisis management and resolution
Bank may give directions, approve sales, and replace directors: Bank may give directions

268Direction must be in writing and state grounds

  1. A direction given under this subpart must—

  2. be in writing; and
    1. state the grounds on which it is given.