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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 a netted balance, but can stop the whole balance."

Illustration for Deposit Takers Act 2023

You cannot stop paying an amount that is part of a netted balance. This is because the rules in section 310C of the Companies Act 1993, section 257 of the Insolvency Act 2006, or a designated FMI's rules are used to calculate the netted balance. However, the bank can stop paying the netted balance itself, as per 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.

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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

"Banks can't stop paying debts made after they get into trouble"

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

"Rules that give extra powers to banks or managers in case of problems"

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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