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New Zealand law explained for everyone

Deposit Takers Act 2023

Crisis management and resolution - Conduct of resolution - Court may give directions

334: Court may give directions

You could also call this:

"The court can tell a troubled bank what to do to fix its problems."

Illustration for Deposit Takers Act 2023

The court can give directions about a licensed deposit taker that is in trouble. You need to know that this can include directions about the business or property of the deposit taker. The court can also give directions about how the business or property is managed.

The court's directions can be about how certain powers are used under this part of the law. If the court gives directions, everyone must follow them.

The resolution manager can ask the court for directions, but only if the Bank agrees first. The court's power to give directions is similar to a law from 1989, which you can find on the legislation.govt.nz website.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS535227.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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333: Bank’s or resolution manager’s powers under regulations, or

"Rules that give banks extra powers to help them work properly"

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335: Application of certain provisions of Companies Act 1993, or

"Rules from the Companies Act 1993 that apply to deposit takers in trouble"

Part 7Crisis management and resolution
Conduct of resolution: Court may give directions

334Court may give directions

  1. The court may, on an application made by the Bank or the resolution manager, give directions concerning any of the following:

  2. the business or property of a licensed deposit taker in resolution:
    1. the management or administration of that business or property:
      1. the exercise of any powers under this subpart.

        1. Every person is bound by the directions.

        2. The resolution manager may apply only with the prior approval of the Bank.

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