Plain language law

New Zealand law explained for everyone

Deposit Takers Act 2023

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

307: Resolution manager may pay creditors and compromise claims

You could also call this:

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

Illustration for Deposit Takers Act 2023

The resolution manager can help a licensed deposit taker in trouble. You can think of a resolution manager like a person who helps sort out problems. The resolution manager may pay some or all of the money owed to creditors, which are people or businesses the deposit taker owes money to. The resolution manager can also make a deal with creditors or people who think they are owed money. They can work out problems with the deposit taker's property and debts. The resolution manager can even cancel some or all of the debts owed by the deposit taker.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS533516.

This page was last updated on — View changes

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
Previous

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

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

Next

308: Resolution manager may offer and issue deposit taker’s financial products, or

"Someone fixing a troubled bank can sell its financial products to help fix the problem."

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

307Resolution manager may pay creditors and compromise claims

  1. The resolution manager may do 1 or more of the following in relation to a licensed deposit taker in resolution:

  2. pay, in whole or in part, any creditor or class of creditors of the deposit taker:
    1. make a compromise or an arrangement with a creditor, or person claiming to be a creditor, of the deposit taker:
      1. compromise all calls, debts, and claims subsisting, or supposed to subsist, between the deposit taker and any other person:
        1. deal with all questions relating to the property of the deposit taker:
          1. give a complete or partial discharge in relation to any calls, debts, or claims subsisting, or supposed to subsist, between the deposit taker and any other person.

            Compare