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Deposit Takers Act 2023

Crisis management and resolution - Conduct of resolution - Expenses

347: Expenses of resolution

You could also call this:

"Paying costs to fix problems with deposit takers"

Illustration for Deposit Takers Act 2023

You pay the costs of resolving a problem with a deposit taker. The Bank or resolution manager incurs these costs when doing their job under this law and other related parts, such as subparts 4, 5, 7, and 8. These costs are paid from the deposit taker's property before other claims are paid. You can pay these costs from the property of the deposit taker, a subsidiary, or a company formed under section 314 or 320. The Bank or resolution manager decides how to split these costs between these people. They can choose how to apportion the costs as they think fit.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS536018.

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Topics:
Money and consumer rights > Banking and loans
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Part 7Crisis management and resolution
Conduct of resolution: Expenses

347Expenses of resolution

  1. All costs, charges, and expenses properly incurred by the Bank or the resolution manager in the performance or exercise of the Bank’s or the resolution manager’s functions, duties, and powers under this subpart and subparts 4, 5, 7, and 8 are payable out of the property of any 1 or more of the following in priority to all other claims:

  2. the licensed deposit taker:
    1. a subsidiary or other associated person that is in resolution:
      1. a body corporate formed and registered under section 314 or 320.

        1. The Bank or the resolution manager (as the case may be) may apportion the costs, charges, and expenses between those persons in the manner that the Bank or the resolution manager thinks fit.

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