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Deposit Takers Act 2023

Crisis management and resolution - Covered bonds - Ongoing duties of issuer

417: Bank may require corrective action

You could also call this:

"The bank can ask you to fix a problem if you don't follow the rules."

Illustration for Deposit Takers Act 2023

If you are an issuer who fails to comply with the requirements of section 416(1), the Bank can tell you to take corrective action. The Bank will send you a notice that says what you need to do. You will have to do what the Bank says in the notice to fix the problem.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS579113.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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416: Requirements relating to registered covered bond programmes, or

"Rules for companies with a registered covered bond programme"

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418: Offence to fail to take corrective action, or

"Breaking the law if you don't follow a correction notice"

Part 7Crisis management and resolution
Covered bonds: Ongoing duties of issuer

417Bank may require corrective action

  1. If an issuer fails to comply with any of the requirements of section 416(1), the Bank may, by notice to the issuer, require the issuer to take the corrective action that the Bank may specify in the notice.

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