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Deposit Takers Act 2023

Crisis management and resolution - Conduct of resolution - Bank may suspend payment of money owing

330: Bank may suspend payment of money owing

You could also call this:

"The bank can stop paying you money it owes if it's having problems."

Illustration for Deposit Takers Act 2023

You can have money in a bank. The bank may stop paying you the money it owes you. This can happen if the bank is having problems. The bank can also stop paying debts or obligations it has to you. The bank can do this even if it has an agreement with you. If the bank stops paying you, it does not mean it has broken its agreement with you. There are some other rules that apply to this situation, which are in sections 331, 332, and 421(1) to (3).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS533507.

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Topics:
Money and consumer rights > Banking and loans
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331: Bank may not suspend or cancel obligation incurred after deposit taker enters resolution, or

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Part 7Crisis management and resolution
Conduct of resolution: Bank may suspend payment of money owing

330Bank may suspend payment of money owing

  1. The Bank may, in respect of a licensed deposit taker in resolution,—

  2. suspend in whole or in part the repayment of any deposit, or the payment of any debt, or the discharge of any obligation, to any person; and
    1. cancel the obligation to provide funding to any person.

      1. This section applies despite the terms of any agreement.

      2. A suspension or cancellation does not constitute a breach or repudiation of any agreement entered into by the deposit taker with any person.

      3. This section is subject to sections 331, 332, and 421(1) to (3).

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