Deposit Takers Act 2023

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

385: Crown must provide money necessary to pay compensation

You could also call this:

"The government must pay you if you're owed compensation and there's not enough money in the fund."

Illustration for Deposit Takers Act 2023

If you are owed compensation, the government must make sure you get paid. The government checks if there is enough money in a special fund to pay everyone who is owed compensation. If there is not enough money, the Minister must give the Bank the extra money it needs from public money.

The Minister does this so the Bank can pay you the compensation you are owed under subpart 5 of Part 6, which is about using a fund to support resolution. You can find more information about this in subpart 5 of Part 6. The government does not need to approve this extra payment again, it just happens as needed.

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This page was last updated on 6 August 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS559578.

Topics:

Money and consumer rights > Banking and loansBusiness > Industry rules

384: Bank must pay in accordance with regulations, or

"Banks must pay you money they owe you in a way that follows the rules."

386: Transfer of entitlement by assignment or operation of law, or

"When someone else takes over your debt or shares, they get your compensation instead"

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

385Crown must provide money necessary to pay compensation

This section applies if the maximum amount payable under subpart 5 of Part 6 (use of fund to support resolution) is not sufficient to pay the entitlements to compensation under this subpart.
The Minister must provide to the Bank out of public money, without further appropriation than this section, the money that is necessary to meet the deficiency.