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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 special instruction starts, and what time it begins, for companies to follow new rules."

Illustration for Deposit Takers Act 2023

When the government makes an Order in Council under section 274, it must say when it starts and what time it starts. You need to know the date and time cannot be before the Order in Council is made. The Order in Council is like a special instruction that tells people what to do.

When the Order in Council starts, a licensed deposit taker or an associated person enters a process called resolution. You are in resolution until it ends under section 282. This means you have to follow special rules until the resolution is finished.

But there are some exceptions, for example, a subsidiary can enter resolution when it is acquired, as referred to in section 275(2). A body corporate can enter resolution when it is formed and registered, as referred to in section 316 or 321. These are special cases that have different rules.

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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.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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276: Resolution for overseas persons, or

"Rules for overseas businesses in trouble in New Zealand"

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

"Figuring out if something happened before or after a bank got into trouble"

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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