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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

325: When property continues to be subject to security interest

You could also call this:

"What happens to a security interest when a bank sells property to a new company"

Illustration for Deposit Takers Act 2023

If the Bank sells or transfers property of a licensed deposit taker to a new company, you need to know what happens to any security interest on that property. The property will still be subject to the security interest if it is sold or transferred to a company formed under section 320(1)(a). This means the security interest stays with the property, even when it is owned by the new company.

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

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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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?"

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

"Paying the owner of a security interest when a bank sells a new company's 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.

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