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Deposit Takers Act 2023

Crisis management and resolution - No creditor or shareholder worse off - Compensation notice and payments

381: Valuer must send compensation notice

You could also call this:

"Valuer must tell you about your compensation"

Illustration for Deposit Takers Act 2023

If you are a pre-resolution creditor or shareholder, the valuer must send you a compensation notice. You will get this notice within 20 working days after the final report is published. The notice will tell you about the valuer's decision on whether you are eligible for compensation and how much you will get.

The compensation notice will also tell you how you will get your compensation, including what you need to do first. For example, you might need to give the Bank your account details. You will also get information about how to appeal the valuer's decision, including the time limit for doing so, as set out in section 391.

The notice must include all the information that the regulations say it must have. This is so you have all the details you need to know about your compensation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS550937.

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380: Valuer must finalise and publish report, or

"The valuer must finish and share the report with the Minister and the Bank."

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382: Bank must make available public information if compensation notice cannot be sent, or

"Banks must share public information if they can't send you a compensation notice."

Part 7Crisis management and resolution
No creditor or shareholder worse off: Compensation notice and payments

381Valuer must send compensation notice

  1. The valuer must, within 20 working days after the copy of the finalised report is published, send to each pre-resolution creditor and each pre-resolution shareholder a notice (a compensation notice).

  2. A compensation notice sent to a pre-resolution creditor or pre-resolution shareholder (A) must set out—

  3. the valuer’s decision on—
    1. whether A is eligible for compensation; and
      1. the amount of compensation payable to A (if any); and
      2. if compensation is payable to A, information from the Bank about how the compensation will be paid, including information about anything A must do before the compensation is paid (for example, a requirement to give to the Bank A’s account details); and
        1. a brief description of A’s appeal rights under section 391, including the period within which an appeal may be brought; and
          1. all other information that is prescribed by the regulations (if any).