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Deposit Takers Act 2023

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

269: Bank may approve sale or disposition

You could also call this:

"The Bank can say yes to selling a deposit taker's business or assets in certain situations."

Illustration for Deposit Takers Act 2023

The Bank can approve the sale of a licensed deposit taker's business or assets. You need to know the Bank will only do this if they think certain circumstances exist, which are listed in section 265(2) for licensed deposit takers or section 266(2) for associated people. The Bank's approval must be in writing and it means other laws that normally require consent or permission do not apply.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS529221.

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Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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268: Direction must be in writing and state grounds, or

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

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270: Power to remove, replace, or appoint director of licensed deposit taker, or

"The Bank can remove or appoint a director of a company that takes deposits if it's in trouble."

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

269Bank may approve sale or disposition

  1. The Bank may approve a sale or other disposition of the whole or part of the capital or business undertaking of either or both of the following:

  2. a licensed deposit taker, if the Bank has reasonable grounds to believe that 1 or more of the circumstances listed in section 265(2) exist:
    1. an associated person of the licensed deposit taker, if the Bank has reasonable grounds to believe that 1 or more of the circumstances listed in section 266(2) exist.

      1. If the Bank grants an approval,—

      2. it must be given by written notice to the parties; and
        1. the provisions of any legislation, or of any instrument, requiring any consent, licence, permission, or clearance or other authority do not apply as a condition of the legality or validity of the sale or other disposition.

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