Plain language law

New Zealand law explained for everyone

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 someone selling a business or assets under certain conditions."

Illustration for Deposit Takers Act 2023

The Bank can approve the sale of a licensed deposit taker's business or assets if they think certain circumstances exist. You can find these circumstances in section 265(2) for a licensed deposit taker. The Bank can also approve the sale of an associated person's business or assets if they think certain circumstances exist, which are listed in section 266(2).

If the Bank approves a sale, they must tell the parties involved in writing. The Bank's approval means that the sale is legal and valid, even if other laws or rules would normally require extra consent or permission.

The Bank makes these decisions to help manage licensed deposit takers and their associated persons.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

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

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
Previous

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."

Next

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.

          Compare