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Deposit Takers Act 2023

Crisis management and resolution - Conduct of resolution - Resolution manager’s miscellaneous powers

308: Resolution manager may offer and issue deposit taker’s financial products

You could also call this:

"Someone fixing a troubled bank can sell its financial products to help fix the problem."

Illustration for Deposit Takers Act 2023

The resolution manager can offer and sell financial products that a deposit taker in trouble is responsible for. You can think of these products like shares or special kinds of loans that the deposit taker has to pay back. The resolution manager gets to decide who to sell these products to and what rules to apply to the sale. They can choose to sell to anyone they want and set any conditions they think are right.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS586262.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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307: Resolution manager may pay creditors and compromise claims, or

"The resolution manager can pay debts and make deals to settle claims with people owed money."

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309: Resolution manager may disclaim onerous property, or

"The resolution manager can get rid of property that's causing problems for a deposit taker."

Part 7Crisis management and resolution
Conduct of resolution: Resolution manager’s miscellaneous powers

308Resolution manager may offer and issue deposit taker’s financial products

  1. The resolution manager may offer and issue any financial products in respect of which a licensed deposit taker in resolution (A) is the issuer (for example, shares in A or debt securities in respect of which A is liable to repay money owing under the securities).

  2. An offer and issue of financial products may be made to any person or persons, and on any terms and conditions, that the resolution manager thinks fit.