Plain language law

New Zealand law explained for everyone

Deposit Takers Act 2023

Crisis management and resolution - Conduct of resolution - Bank may form body corporate to acquire New Zealand business

315: Vesting does not affect deposit taker’s obligations or place it in breach

You could also call this:

"Vesting does not change what you promised to do"

Illustration for Deposit Takers Act 2023

If a vesting happens under section 314, it does not change any obligations you have as an overseas licensed deposit taker. You still have to do what you said you would do. A vesting also does not mean you have broken any agreements you made with someone else. You are still responsible for keeping your promises.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS537248.

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

314: Bank may form body corporate to acquire New Zealand business, or

"The Bank of New Zealand can help a struggling overseas bank by creating a new company to take over its New Zealand business."

Next

316: Body corporate is also subject to resolution, or

"A company set up by a bank is also controlled by a special manager during difficult times."

Part 7Crisis management and resolution
Conduct of resolution: Bank may form body corporate to acquire New Zealand business

315Vesting does not affect deposit taker’s obligations or place it in breach

  1. A vesting under section 314—

  2. does not reduce, extinguish, or affect any obligation or liability of the overseas licensed deposit taker (A); and
    1. does not constitute a breach or repudiation of any agreement entered into by A with any person.

      Compare