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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 property even if someone else has a claim on it"

Illustration for Deposit Takers Act 2023

If you have a security interest in a property, it means you have a claim on that property. A bank can still sell, transfer, or get rid of the property even if you have a security interest in it. The bank can do this if it is using a power given to it under section 319 or section 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.

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 a business doesn't always need extra approvals from others under certain laws 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 a licensed deposit taker's property, who gets the sale money 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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