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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

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

You could also call this:

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

Illustration for Deposit Takers Act 2023

You can think of a bank as a business. The Bank can get rid of its business or parts of it to a special kind of company. The Bank can form a new company and register it under the Companies Act 1993. It can also buy or sell shares in this new company. The Bank can sell or transfer parts of its business to this new company. It can then sell shares in this new company to anyone it chooses. The Bank can also sell the whole or part of the new company's business to anyone. This rule does not stop the Bank from using any other powers it has.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS534634.

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Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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319: Bank’s disposal power, or

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

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321: Body corporate is also subject to resolution, or

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

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

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

  1. For the purposes of section 319, the Bank may do 1 or more of the following:

  2. form and register a body corporate (B) under the Companies Act 1993:
    1. subscribe for or acquire all or any of the shares of B:
      1. make 1 or more sales, transfers, or dispositions to B under section 319(1)(a) to (c):
        1. offer, issue, or sell all or any of the shares in B to any person, credited as fully or partly paid, on the terms and conditions that the Bank thinks fit:
          1. sell, transfer, or dispose of the whole or any part of the business undertaking of B to any 1 or more persons on the terms and conditions that the Bank thinks fit.

            1. This section does not limit any other powers of the Bank.

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