Plain language law

New Zealand law explained for everyone

Deposit Takers Act 2023

Crisis management and resolution - Moratorium and restriction on resolution trigger

290: Moratorium and restriction on resolution trigger do not affect existence or priority of security interest

You could also call this:

"Your rights to a deposit taker's property are still safe."

Illustration for Deposit Takers Act 2023

You have a security interest over a licensed deposit taker's property. This means you have a right to that property if the deposit taker cannot pay its debts. Sections 284 and 287 do not change this right or its priority over other debts.

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 It might be out of date or be missing some parts.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

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS530927.

This page was last updated on — View changes

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

289: Bank may waive application of moratorium and restriction on resolution trigger, or

"The Bank can choose to let some creditors keep doing what they were doing, even during a pause."

Next

291: Moratorium does not limit or prevent obligations incurred or rights granted after deposit taker enters resolution, or

"What happens to debts and rights when a bank has problems and enters resolution"

Part 7Crisis management and resolution
Moratorium and restriction on resolution trigger

290Moratorium and restriction on resolution trigger do not affect existence or priority of security interest

  1. Sections 284 and 287 do not affect the existence of any security interest over the property of the licensed deposit taker or its priority over other debts.

Compare