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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 can sell or get rid of parts of a troubled deposit taker's business."

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 Bank like a helper that makes big decisions. The Bank can sell or get rid of parts of the deposit taker's business. The Bank can sell or get rid of the deposit taker's property or rights. You can think of property like a house or a car, and rights like being able to do something. The Bank can also get rid of the deposit taker's liabilities, which are like debts. The Bank can make these decisions and sell or get rid of things to anyone it chooses. It can also decide the terms and conditions of the sale, which are like the rules of the deal. The Bank has a lot of power to make decisions about the deposit taker, as seen in the previous law.

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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.

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Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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"Proof that a company owns something"

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

"A bank can sell its business or parts of it to another company."

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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