Plain language law

New Zealand law explained for everyone

Deposit Takers Act 2023

Crisis management and resolution - Conduct of resolution - Relationship between resolution and other legislation and processes

339: Continuation of resolution if restored

You could also call this:

"What happens if a removed bank is put back on the register while being resolved"

Illustration for Deposit Takers Act 2023

You are a licensed deposit taker that has been removed from the New Zealand register under section 317 of the Companies Act 1993 while in resolution. If you are restored to the register under section 328 of the Companies Act 1993, you continue to be in resolution from the time you are restored. The Bank can publish a notice in the Gazette to stop this from happening.

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 It might be out of date or be missing some parts.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=LMS535247.

This page was last updated on — View changes

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
Previous

338: Prior insolvency process must cease, or

"Stop other processes when fixing a troubled deposit taker"

Next

340: Appointment of auditors, or

"The Bank chooses a licensed auditor to check a deposit taker's finances."

Part 7Crisis management and resolution
Conduct of resolution: Relationship between resolution and other legislation and processes

339Continuation of resolution if restored

  1. This section applies if a licensed deposit taker (A)—

  2. has been removed from the New Zealand register under section 317 of the Companies Act 1993 while in resolution; but
    1. is restored to the New Zealand register under section 328 of the Companies Act 1993.

      1. A continues to be in resolution from the time A is restored.

      2. However, subsection (2) does not apply if, before A is restored, the Bank publishes a notice in the Gazette that states that subsection (2) will not apply to A.

      Compare