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Deposit Takers Act 2023

Depositor compensation scheme - Entitlement to compensation - Payment of entitlements

221: Bank may establish account on behalf of eligible depositor

You could also call this:

"The bank can open an account for you to help pay your compensation."

Illustration for Deposit Takers Act 2023

The Bank can open an account with a licensed deposit taker for you if you are an eligible depositor. This is to help pay you the compensation you are entitled to. The Bank can do this even if you do not agree to it.

The Bank's action to open an account for you applies regardless of what other laws or rules say. You might be entitled to compensation and the Bank can help pay this by opening an account for you with a licensed deposit taker.

The account is used to pay you wholly or partly what you are owed as an eligible depositor.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS556818.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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220: Bank not required to pay compensation if cannot act with reasonable certainty, or

"Banks don't have to pay compensation if they can't work things out clearly"

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222: Persons may disclose information to Bank to facilitate payment of compensation, or

"Telling the Bank information to help someone get compensation"

Part 6Depositor compensation scheme
Entitlement to compensation: Payment of entitlements

221Bank may establish account on behalf of eligible depositor

  1. The Bank may establish, on behalf of an eligible depositor, an account with a licensed deposit taker (other than a deposit taker in resolution) for the purposes of wholly or partly meeting the depositor’s entitlement to compensation.

  2. This section applies—

  3. whether or not the eligible depositor consents to the Bank acting under subsection (1); and
    1. despite anything to the contrary in any other legislation or rule of law.