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Deposit Takers Act 2023

Crisis management and resolution - Moratorium and restriction on resolution trigger

285: Period of moratorium

You could also call this:

"Time limit for helping a troubled deposit taker sort out its problems"

Illustration for Deposit Takers Act 2023

When a deposit taker is in trouble, a moratorium can be put in place to help sort things out. The moratorium under section 284(1) ends after a certain time. This time is either when the resolution is finished or 12 months after the deposit taker started the resolution process.

The Bank can extend the moratorium for up to 12 more months if needed. It can do this by putting a notice in the Gazette. The Bank can extend the moratorium more than once.

The Bank will only extend the moratorium if it thinks it is necessary or desirable to help with certain purposes, which are outlined in section 259(1)(a) and (b). The Bank must issue a notice to extend the moratorium before the current period ends.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS532409.

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

285Period of moratorium

  1. The moratorium under section 284(1) ends on the earlier of the following:

  2. the end of the resolution:
    1. the close of the date that is 12 months after the date on which the licensed deposit taker enters resolution.

      1. However, the Bank may, by notice in the Gazette, extend the period of the moratorium under section 284(1) beyond the period referred to in subsection (1)(b) for a further period not exceeding 12 months, and may in the same manner extend that period on successive occasions.

      2. The Bank may extend the period of the moratorium only if it is satisfied that it is necessary or desirable to do so for either or both of the purposes in section 259(1)(a) and (b).

      3. The Bank may only issue a notice to extend the period of the moratorium before the end of the period to be extended.

      4. An extension may relate separately to a licensed deposit taker and any 1 or more associated persons of the deposit taker.