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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:

"The resolution manager can pay debts and make deals to settle claims with people owed money."

Illustration for Deposit Takers Act 2023

If you are a creditor of a licensed deposit taker that is in resolution, the resolution manager can pay you some or all of the money you are owed. The resolution manager can also make a deal with you to settle your claim. They can compromise on debts and claims between the deposit taker and anyone else. The resolution manager can deal with questions about the deposit taker's property and give a complete or partial discharge of debts or claims. You can find more information about this by looking at the relevant section of a previous act. The resolution manager has the power to make these decisions to help resolve the situation with the deposit taker.

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

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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306: Resolution manager may carry on business of licensed deposit taker, or

"Someone can take over a troubled bank or lender to help sort it out."

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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.

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