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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

323: Bank may sell, transfer, or dispose of property despite security interest

You could also call this:

"Banks can sell things even if someone else has a claim on them"

Illustration for Deposit Takers Act 2023

You can think of a bank as a place where people keep their money. If a bank has the power to sell or get rid of something, it can do so even if someone else has a security interest in it. A security interest is like a special kind of loan where someone uses something they own as a guarantee they will pay the loan back. The bank's power to sell or get rid of something comes from sections like section 319 or 320.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS534957.

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Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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322: Consents not required under other legislation or agreement, and transactions do not constitute breach, or

"Selling or transferring things doesn't break rules or agreements"

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324: When proceeds of sale of licensed deposit taker’s property must be paid to holder of security interest, or

"When the Bank sells property, it must pay the person with a security interest first."

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

323Bank may sell, transfer, or dispose of property despite security interest

  1. A Bank may exercise a power under section 319 or 320 in respect of any property despite the existence, and the terms and conditions, of any security interest over the property in favour of any other person.

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