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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:

"You can still pay debts or use your rights even if a deposit taker is in trouble."

Illustration for Deposit Takers Act 2023

If a deposit taker enters resolution, you can still take certain actions. You can do things like pay debts or use rights you got from the deposit taker after they entered resolution. This is because the rules in [Section 284(1)(a), (b), and (d) to (h)] do not stop you from doing these things.

When a deposit taker enters resolution, it means they are having trouble and need help. You can still do things you normally would, even if the deposit taker is in trouble. The rules are clear that you can take actions related to debts or rights you got after the deposit taker entered resolution.

You can look at the [1989 No 157 s 122(5)] to compare with this rule. This can help you understand how the rules have changed over time. It is good to know how the rules work so you can make informed decisions.

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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.

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

"Having a security interest in something a deposit taker owns stays the same, no matter what."

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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

"Rules to help a bank in trouble don't affect special agreements between banks or their rights in certain markets."

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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