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Deposit Takers Act 2023

Crisis management and resolution - No creditor or shareholder worse off

367: Interpretation in this subpart

You could also call this:

"What special words mean in this part of the law"

Illustration for Deposit Takers Act 2023

In this part of the law, you need to know what some words mean. An affected entity is a licensed deposit taker, or someone connected to one, that is or has been in resolution, but it does not include overseas licensed deposit takers or associated people who are overseas. A creditor is someone who is owed money, as explained in section 227 of the Companies Act 1993.

You also need to know what a pre-resolution creditor and pre-resolution shareholder are. A pre-resolution creditor is someone who was owed money by an affected entity before it entered into resolution. A pre-resolution shareholder is someone who owned shares in an affected entity before it entered into resolution, and what that means can be different depending on what type of entity it is, such as a company, building society, or credit union, as explained in the Companies Act 1993, Building Societies Act 1965, or Friendly Societies and Credit Unions Act 1982.

A valuer is the person or people appointed under section 369 to value an affected entity. These words are important to understand how this part of the law works.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS547231.

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Money and consumer rights > Banking and loansBusiness > Industry rules
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366: Licensed deposit taker continues to be in resolution, or

"A licensed deposit taker stays in resolution even if the person in charge of fixing its problems stops working."

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Part 7Crisis management and resolution
No creditor or shareholder worse off

367Interpretation in this subpart

  1. In this subpart,—

    affected entity—

    1. means a licensed deposit taker, or an associated person of a licensed deposit taker, that is or has been in resolution; but
      1. does not include—
        1. an overseas licensed deposit taker; or
          1. an associated person of a licensed deposit taker that is an overseas person

          creditor has the same meaning as in section 227 of the Companies Act 1993

            pre-resolution creditor, in relation to an affected entity, means a person who was a creditor of the entity immediately before it entered into resolution

              pre-resolution shareholder,—

              1. in relation to an affected entity that is a company within the meaning of the Companies Act 1993, means a person who was a shareholder of the affected entity (within the meaning of section 96 of that Act) immediately before it entered into resolution:
                1. in relation to an affected entity that is a building society, means a person who was a member of the affected entity (within the meaning of section 2 of the Building Societies Act 1965) immediately before it entered into resolution:
                  1. in relation to an affected entity that is a credit union, means a person who was a member of the affected entity (within the meaning of the Friendly Societies and Credit Unions Act 1982) immediately before it entered into resolution:
                    1. in relation to an affected entity that is not a company, a building society, or a credit union, means a person who was of a kind prescribed by the regulations immediately before the affected entity entered into resolution

                      valuer, in relation to an affected entity, means the person or persons appointed under section 369.