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Deposit Takers Act 2023

Crisis management and resolution - Moratorium and restriction on resolution trigger

295: Bank may reduce or extend stay

You could also call this:

"The Bank can change the time it helps a bank or organisation in trouble."

Illustration for Deposit Takers Act 2023

The Bank can change the time for a licensed deposit taker that is in trouble. You can think of a licensed deposit taker as a bank or other organisation that looks after people's money. The Bank can issue a notice to make this change before a certain time. The new time can be earlier or later than the original time. If the new time is later, the Bank must be satisfied with certain things, which are explained in section 296. This notice can apply to all or some of the things mentioned in section 294(2). The Bank's notice can affect different types of things, or just some of them. You can find more information about this in section 294(1)​(b) and section 294(2). The Bank has the power to make these changes to help manage the situation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS532282.

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Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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294: Restriction on resolution trigger does not limit or prevent certain things in relation to derivatives, etc, after stay, or

"What happens to your agreements with a bank in trouble, after a stay"

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296: Matters Bank must be satisfied of when extending stay, or

"What a bank must check before giving more time to pay debts"

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

295Bank may reduce or extend stay

  1. The Bank may, before the default time, issue a notice that specifies an earlier or a later time for the purposes of section 294(1)(b) in respect of a licensed deposit taker (A) that is in resolution.

  2. The time that is specified may be—

  3. before the default time; or
    1. after the default time if the Bank is satisfied of all of the matters set out in section 296.

      1. The notice may relate to all things referred to in section 294(2) or to a class or classes of those things.

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