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Deposit Takers Act 2023

Crisis management and resolution - Conduct of resolution - Resolution manager’s general powers

306: Resolution manager may carry on business of licensed deposit taker

You could also call this:

"Someone can take over a struggling bank to keep it running."

Illustration for Deposit Takers Act 2023

If a licensed deposit taker is in trouble, a resolution manager can take over and run all or part of its business. The resolution manager has the power to do what is needed to keep the business going. You can find more information about this by looking at the link to the earlier law https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM201275

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS533515.

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Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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305: Resolution manager has powers of deposit taker and of its shareholders, members, and board, or

"A person helping a troubled company can make decisions like its owners."

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307: Resolution manager may pay creditors and compromise claims, or

"Helping a deposit taker in trouble by paying debts or making deals"

Part 7Crisis management and resolution
Conduct of resolution: Resolution manager’s general powers

306Resolution manager may carry on business of licensed deposit taker

  1. The resolution manager may carry on all or any part of the business of the licensed deposit taker in resolution and has, in relation to the deposit taker, all of the powers, rights, and authorities that are necessary or desirable to carry on that business.

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