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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

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

You could also call this:

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

Illustration for Deposit Takers Act 2023

You need to know when the Bank sells a licensed deposit taker's property. The Bank must pay the person with a security interest in the property from the sale money. This happens after the Bank gets paid for selling the property, and it happens before anyone else gets paid.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS534958.

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Topics:
Money and consumer rights > Banking and loansHousing and property > Buying and selling homes
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323: Bank may sell, transfer, or dispose of property despite security interest, or

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

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325: When property continues to be subject to security interest, or

"What happens to security interests when a bank sells your property"

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

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

  1. This section applies if—

  2. the Bank sells, transfers, or otherwise disposes of any property under section 319(1); and
    1. the property is subject to a security interest (other than a security interest of the kind described in section 327).

      1. The person entitled to the security interest must be paid out of the proceeds of sale, transfer, or other disposition in priority to all other claims other than the Bank’s costs in selling, transferring, or otherwise disposing of the property.

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