Plain language law

New Zealand law explained for everyone

Deposit Takers Act 2023

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

325: When property continues to be subject to security interest

You could also call this:

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

Illustration for Deposit Takers Act 2023

You own property that has a security interest on it. If the Bank sells this property to a company, the security interest stays. The company is formed under a specific law, which you can find in section 320(1)(a).

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS534959.

This page was last updated on — View changes

Topics:
Money and consumer rights > Banking and loansHousing and property > Buying and selling homes
Previous

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."

Next

326: When proceeds of sale of shares or property of new body corporate must be paid to holder of security interest, or

"When a bank must pay a person with a security interest after selling shares or property"

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

325When property continues to be subject to security interest

  1. If the Bank sells, transfers, or otherwise disposes of any property of the licensed deposit taker to a body corporate formed and registered under section 320(1)(a) and the property is subject to a security interest, the property continues to be subject to the security interest.

Compare