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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

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

You could also call this:

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

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You need to know when the Bank must pay the person with a security interest. This happens when the Bank sells shares or property of a new company, and that property has a security interest. The person with the security interest gets paid first from the sale money, except for the Bank's selling costs. You are involved if the Bank sells shares of a new company and its property has a security interest, not like the one in section 327. Or, if the Bank sells the company's property that has a security interest, not like the one in section 327. The new company is one that is formed and registered under section 320(1)‎(a). The person with the security interest is paid from the sale money before others, except for the Bank's costs.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS534960.

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Money and consumer rights > Banking and loansBusiness > Industry rules
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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"

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

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

  1. This section applies if—

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

      2. In this section, B is a body corporate that is formed and registered under section 320(1)(a).

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