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New Zealand law explained for everyone

Deposit Takers Act 2023

Crisis management and resolution - Resolution of licensed deposit takers and associated persons

278: Questions about whether transactions are before or after resolution

You could also call this:

"Figuring out if something happened before or after a bank got into trouble"

Illustration for Deposit Takers Act 2023

When you are trying to figure out if something happened before or after a deposit taker got into trouble, this section applies. You need to look at what happened on the date the deposit taker entered resolution. If you are not sure, you treat the act or transaction as happening after the deposit taker got into trouble, unless you can prove it happened before.

If someone wants to know more about this, they can look at the link to legislation for similar information. This is important because it helps you understand what happens when a deposit taker enters resolution. You can use this information to make sense of what is happening with the deposit taker.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS538962.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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Part 7Crisis management and resolution
Resolution of licensed deposit takers and associated persons

278Questions about whether transactions are before or after resolution

  1. This section applies if a question arises as to whether, on the date on which a licensed deposit taker or an associated person entered resolution, an act was done or a transaction was entered into or effected before or after the deposit taker or person entered resolution.

  2. The act or transaction must, in the absence of proof to the contrary, be treated as having been done or entered into or effected after the deposit taker or person enters resolution.

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