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Deposit Takers Act 2023

Crisis management and resolution - Conduct of resolution - Bank may dispose of business undertaking or property, rights, or liabilities

319: Bank’s disposal power

You could also call this:

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

Illustration for Deposit Takers Act 2023

The Bank can do things with a licensed deposit taker that is in trouble. You can think of the deposit taker as a business that people put their money into. The Bank can sell or get rid of the whole business or just parts of it. The Bank can also sell or get rid of the business's property or rights, or get rid of its debts. It can even transfer financial products that the business made.

The Bank can sell or transfer these things to anyone it wants, and it can set any conditions it likes. This means the Bank has a lot of power to decide what happens to the business and its assets.

You can look at similar laws from the past, like the one from 1989, to see how things have changed.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS534583.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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318: Proof of vesting, or

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

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320: Bank may dispose of business undertaking, etc, to bridge institution or asset management vehicle, or

"The Bank can sell its business to a new company to help it stay afloat."

Part 7Crisis management and resolution
Conduct of resolution: Bank may dispose of business undertaking or property, rights, or liabilities

319Bank’s disposal power

  1. The Bank may do 1 or more of the following in relation to a licensed deposit taker in resolution (A):

  2. sell, transfer, or otherwise dispose of the whole or any part of the business undertaking of A:
    1. sell, transfer, or otherwise dispose of any property or rights of A:
      1. transfer or otherwise dispose of any liabilities of A:
        1. transfer any financial products (in respect of which A is the issuer).

          1. A sale, transfer, or disposal may be made to any person or persons, and on any terms and conditions, that the Bank thinks fit.

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