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Deposit Takers Act 2023

Crisis management and resolution - Conduct of resolution - Bank may form body corporate to acquire New Zealand business

317: Vesting of property or rights subject to security interest

You could also call this:

"Transferring property or rights when someone else has a security interest"

Illustration for Deposit Takers Act 2023

You can get an order to move property and rights from one company to another. This can happen even if someone else has a security interest in that property. The order is made under section 314. You need to know that the property and rights will still be subject to the security interest. This means the security interest does not go away when the property and rights are moved. The security interest stays with the property and rights. If property and rights are moved to a new company, they are still subject to any security interests. This is what happens when an order is made under section 314. The security interests stay in place.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS533892.

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Topics:
Money and consumer rights > Consumer protectionBusiness > Industry rules
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316: Body corporate is also subject to resolution, or

"A company is also subject to special rules during a financial crisis."

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318: Proof of vesting, or

"Proof that a company owns something"

Part 7Crisis management and resolution
Conduct of resolution: Bank may form body corporate to acquire New Zealand business

317Vesting of property or rights subject to security interest

  1. An order may be made under section 314 vesting any property and rights of an overseas licensed deposit taker (A) in a body corporate (B) despite the existence, or the terms and conditions, of any security interest over the property, or over those rights, in favour of any other person.

  2. Any property or rights that are declared to vest under an order made under section 314 in B and that are subject to a security interest in favour of any other person continue to be subject to the security interest.

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