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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 a deposit taker's responsibilities"

Illustration for Deposit Takers Act 2023

You have obligations if you are a deposit taker. If something is vested, it does not change these obligations. It does not make them go away or reduce them. You still have to do what you agreed to do. If you are a deposit taker, vesting something under section 314 does not mean you have broken any agreements. You still have to keep your promises to people. This is important to remember when something is vested.

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

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Topics:
Money and consumer rights > Banking and loans
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314: Bank may form body corporate to acquire New Zealand business, or

"A New Zealand bank can create a new company to help a troubled overseas bank in New Zealand."

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316: Body corporate is also subject to resolution, or

"A company is also subject to special rules during a financial crisis."

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.

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