Plain language law

New Zealand law explained for everyone

Deposit Takers Act 2023

Crisis management and resolution - No creditor or shareholder worse off - Valuer’s report

377: Valuer’s draft report

You could also call this:

"A valuer's draft report: explaining who gets compensation and how it's calculated"

Illustration for Deposit Takers Act 2023

When a valuer acts under sections 371 to 376, they must prepare a draft report. You will see the valuer's decision on who gets compensation and how much they get in the report. The report also explains how the valuer made their decision.

The valuer's draft report must include a description of the methods they used to make their decision. This helps the Minister and the Bank understand the report and the valuer's decision. The report may also include other information required by regulations.

The valuer can explain how to calculate the compensation amount in the report. They do this by saying how the amount must be calculated, rather than giving a specific amount.

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 It might be out of date or be missing some parts.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=LMS550893.

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

376: Discount rate, or

"How to work out compensation using a discount rate"

Next

378: Valuer must give draft report to Minister and Bank, or

"Valuer must share draft report with Minister and Bank quickly."

Part 7Crisis management and resolution
No creditor or shareholder worse off: Valuer’s report

377Valuer’s draft report

  1. After acting under sections 371 to 376, the valuer must prepare a draft report setting out—

  2. the valuer’s decision on—
    1. whether each pre-resolution creditor or pre-resolution shareholder of the affected entity (or each class of those persons) is eligible for compensation under this subpart; and
      1. the amount of compensation to be paid to each pre-resolution creditor or pre-resolution shareholder (or each class of those persons); and
      2. a description of the methods, principles, and assumptions that the valuer has applied, and how they have been applied, in sufficient detail to enable the Minister and the Bank to make an informed assessment of the draft report and the valuer’s decision; and
        1. the information (if any) that is prescribed by the regulations.

          1. The valuer may set out an amount of compensation by specifying the manner in which the amount must be calculated.