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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 deadline for a bank in trouble to be sooner or later."

Illustration for Deposit Takers Act 2023

The Bank can send a notice that changes the time for a licensed deposit taker that is in trouble. You can think of a licensed deposit taker as a bank or other place where people keep their money. The notice can say the time is earlier or later than originally planned, and it is related to what is said in section 294(1)(b).

The new time can be before or after the original time, but if it is after, the Bank must be sure of certain things that are listed in section 296. The Bank's notice can be about all the things mentioned in section 294(2), or just some of them. This means the notice can apply to everything or just certain parts.

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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.

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

"The government helping a bank in trouble doesn't stop you doing certain things with your bank agreements."

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

"Before a bank extends a stay, it must be sure you can pay your debts on time and have enough money."

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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