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Deposit Takers Act 2023

Crisis management and resolution - Moratorium and restriction on resolution trigger

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

You could also call this:

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

Illustration for Deposit Takers Act 2023

You enter a special situation called resolution when a deposit taker has problems. This situation does not stop you from doing things you normally do with debts or rights you got after the deposit taker entered resolution. You can still take actions related to these debts or rights as stated in Section 284(1)(a), (b), and (d) to (h).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS530928.

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Topics:
Money and consumer rights > Banking and loans
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290: Moratorium and restriction on resolution trigger do not affect existence or priority of security interest, or

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

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292: Moratorium and restriction on resolution trigger do not limit or affect certain rights under netting agreement or rights under rules of designated FMI, or

"Some rules don't limit your rights when dealing with money and agreements"

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

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

  1. Section 284(1)(a), (b), and (d) to (h) does not limit or prevent a person from taking any of the actions specified in those paragraphs in relation to an obligation incurred or a right granted under a deed, an instrument, a trust, or an agreement entered into by the licensed deposit taker after the date on which, and the time at which, the deposit taker enters resolution.

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