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Deposit Takers Act 2023

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

332: Bank may not suspend payment of amount included in netted balance

You could also call this:

"Banks can't stop paying part of the money they owe you if it's part of a special calculated total."

Illustration for Deposit Takers Act 2023

If you owe money to a bank, the bank can stop paying you some of the money it owes you, but there are rules about this. The bank cannot stop paying an amount that is part of a netted balance, which is calculated according to rules like those in section 310C of the Companies Act 1993 or section 257 of the Insolvency Act 2006. However, the bank can stop paying the total netted balance, as stated in section 330.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS533509.

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

"You still have to pay back debts to a bank that got into trouble after you borrowed the money."

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333: Bank’s or resolution manager’s powers under regulations, or

"Rules that give banks extra powers to help them work properly"

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

332Bank may not suspend payment of amount included in netted balance

  1. Section 330 does not authorise the Bank to suspend the payment of an amount that would be included in the calculation of a netted balance in accordance with—

  2. section 310C of the Companies Act 1993; or
    1. section 257 of the Insolvency Act 2006; or
      1. a designated FMI’s rules.

        1. However, section 330 applies to the payment of the netted balance.

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