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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

318: Proof of vesting

You could also call this:

"How a new company proves it owns a business or property"

Illustration for Deposit Takers Act 2023

When a bank forms a new company to take over a New Zealand business, you might wonder how the new company proves it now owns the business. If the new company shows a document that meets certain requirements, it is enough proof that the property now belongs to the new company, unless someone can show otherwise. The document must be signed by the new company, relate to property the old company owned, and state that the property now belongs to the new company under section 314.

This proof applies whether the document is a transfer document or not. You should know that a registrar is someone who keeps official records, like the Registrar-General of Land or a Registrar of Deeds. When the new company shows the document to a registrar, it is proof that the property now belongs to the new company, as long as no one can show that this is not true.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS533901.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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317: Vesting of property or rights subject to security interest, or

"When a bank takes over a business, a court can transfer its property to a new company, even if someone else has a claim on it."

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319: Bank’s disposal power, or

"The Bank's power to sell or get rid of a troubled deposit taker's business or assets"

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

318Proof of vesting

  1. A registrar is not obliged solely by reason of section 314 to change the name of the licensed deposit taker (A) referred to in that section to that of the body corporate (B) formed and registered under that section in any register or in any document.

  2. If B presents to a registrar or any other person an instrument that meets the requirements of subsection (3), the instrument is, in the absence of evidence to the contrary, sufficient proof that the property that is the subject of the instrument is vested in B.

  3. The requirements are that the instrument—

  4. is executed or purports to be executed by B; and
    1. relates to any property held by A before the date specified in an Order in Council made under section 314; and
      1. contains a statement that the property has become vested in B under that section.

        1. Subsection (2) applies whether or not the instrument is or includes an instrument of transfer.

        2. In this section, registrar means the Registrar-General of Land, a Registrar of Deeds, or any other person required under any legislation to keep any register.

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