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Deposit Takers Act 2023

Crisis management and resolution - Bank may apply to put deposit takers and associated persons into liquidation

422: Liquidation of licensed deposit takers and associated persons

You could also call this:

"What happens when a bank or money keeper is closed down"

Illustration for Deposit Takers Act 2023

You are a person this section applies to if you are a licensed deposit taker. You can also be a person this section applies to if you are associated with a licensed deposit taker, you are in resolution, and you are not a licensed deposit taker yourself. The Bank or a resolution manager can ask the court to put you into liquidation under the Companies Act 1993. You can be put into liquidation whether you are a company, an association, or an overseas company. A resolution manager needs the Bank's approval before they can ask the court to put you into liquidation. When the court looks at the application, they must treat it as if it were a certain type of application under the Companies Act 1993. This section does not change or affect other laws that say how to wind up or liquidate a company. You can find more information about this in the Companies Act 1993, which you can read here https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM319569 and here https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321678 and here https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM322879

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS534972.

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Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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421: Limitation on application of resolution, statutory management, etc, provisions to covered bond SPV, or

"Rules to protect property in a covered bond programme when an issuer has problems"

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423: When court may appoint liquidator, or

"Court can appoint a liquidator if a company can't pay its debts or has broken important rules"

Part 7Crisis management and resolution
Bank may apply to put deposit takers and associated persons into liquidation

422Liquidation of licensed deposit takers and associated persons

  1. This section applies to a person (A) if—

  2. A is a licensed deposit taker (whether or not it is in resolution); or
    1. A—
      1. is an associated person of a licensed deposit taker; and
        1. is in resolution; and
          1. is not itself a licensed deposit taker.

          2. The Bank or a resolution manager may apply to the court under the Companies Act 1993 to put A into liquidation under that Act.

          3. Subsection (2) applies whether A is a company, an association, or an overseas company.

          4. A resolution manager may apply only with the prior approval of the Bank.

          5. An application under this section must be treated as if it were an application under section 241(2)(c) of the Companies Act 1993 (and, in the case of an overseas company, also an application under section 342 of that Act).

          6. This section does not limit or affect any other legislation that provides for the winding up, liquidation, or dissolution of a body corporate or a class of body corporate.

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