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Deposit Takers Act 2023

Regulation of deposit takers - Standards - Subject matter of standards

87: Covered bonds and securitisation

You could also call this:

"Rules for special kinds of investments called covered bonds and securitisation"

Illustration for Deposit Takers Act 2023

When you look at the rules for deposit takers, you see that a standard can cover some things about covered bonds or securitisation arrangements. You can think of a standard like a set of rules that people must follow. A standard may relate to information that must be provided to the Bank for the purposes of subpart 10 of Part 7.

You might wonder what else a standard can cover. A standard can also deal with requirements for covered bonds, as mentioned in section 411(2)(g). It can also set limits on who can own property that is used to secure a covered bond.

A standard may also restrict or prohibit what property can be used for a covered bond or securitisation arrangement. It can also say who can or cannot be a party to a covered bond or securitisation arrangement. A standard can cover other requirements for the terms and conditions of covered bonds or securitisation arrangements.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS579795.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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Part 3Regulation of deposit takers
Standards: Subject matter of standards

87Covered bonds and securitisation

  1. A standard may regulate, deal with, or otherwise relate to any 1 or more of the following in connection with covered bonds or other securitisation arrangements:

  2. information that must be provided to the Bank for the purposes of subpart 10 of Part 7:
    1. requirements in relation to covered bonds for the purposes of section 411(2)(g):
      1. limits on the proportion of property that may be beneficially owned by a person (for example, a special purpose vehicle) that grants, or may grant, a security interest in its property for the benefit of a holder of a covered bond:
        1. restrictions or prohibitions on the property to which a covered bond or any other securitisation arrangement may relate:
          1. restrictions or prohibitions on who may be a party to a covered bond or other securitisation arrangement:
            1. any other requirements relating to the terms and conditions of covered bonds or other securitisation arrangements.