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Deposit Takers Act 2023

Crisis management and resolution - Resolution of licensed deposit takers and associated persons

277: Date on which, and time at which, resolution starts

You could also call this:

"When a licensed deposit taker's problems are fixed by the government, this is when it starts"

Illustration for Deposit Takers Act 2023

When the government makes an Order in Council under section 274, it must say when it starts. You need to know the Order in Council cannot start before it is made. The date and time are important for a licensed deposit taker. A licensed deposit taker enters resolution when the Order in Council starts. You will know it is in resolution until the resolution ends under section 282. This means it is being managed to fix its problems. There are some exceptions to when a licensed deposit taker enters resolution. For example, a subsidiary enters resolution when it is acquired, as referred to in section 275(2). A body corporate enters resolution when it is formed and registered, as referred to in section 316 or 321.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS530175.

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Money and consumer rights > Banking and loansBusiness > Industry rules
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"What happens to overseas banks in New Zealand if they get into trouble"

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278: Questions about whether transactions are before or after resolution, or

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Part 7Crisis management and resolution
Resolution of licensed deposit takers and associated persons

277Date on which, and time at which, resolution starts

  1. An Order in Council made under section 274 must specify the date on which, and the time at which, it comes into force.

  2. The date and time must not be earlier than the date on which, and the time at which, the Order in Council is made.

  3. A licensed deposit taker or an associated person—

  4. enters resolution when the Order in Council comes into force (or as referred to in subsection (4)); and
    1. remains in resolution until the end of the resolution under section 282.

      1. However,—

      2. a subsidiary that is in resolution as referred to in section 275(2) enters resolution when it is acquired:
        1. a body corporate that is in resolution as referred to in section 316 or 321 enters resolution when it is formed and registered.

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