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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 bank is removed and then added back to the register while being sorted out."

Illustration for Deposit Takers Act 2023

If you are a licensed deposit taker and you have been removed from the New Zealand register under section 317 of the Companies Act 1993 while in resolution, but then you are restored to the register under section 328 of the Companies Act 1993, you will still be in resolution. You will continue to be in resolution from the time you are restored to the register. However, this will not happen if the Bank publishes a notice in the Gazette before you are restored, stating that you will not continue to be in resolution.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS535247.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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338: Prior insolvency process must cease, or

"If a deposit taker is in trouble, other processes to shut it down must stop for now."

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340: Appointment of auditors, or

"The Bank picks a licensed auditor to check a deposit taker's finances when they're in trouble."

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.

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