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Deposit Takers Act 2023

Crisis management and resolution - Moratorium and restriction on resolution trigger

287: Restriction on resolution trigger

You could also call this:

"Rules to protect you when you're a deposit taker in trouble"

Illustration for Deposit Takers Act 2023

If you are a licensed deposit taker, this law applies to you when you have an agreement with someone else. You can have an agreement with someone in New Zealand or in another country. The law of either New Zealand or the other country can apply to your agreement.

When something happens to you, like you go into resolution, the other party in your agreement cannot do certain things. They cannot say they do not have to pay you or do what they agreed to do. They also cannot make you pay them sooner or end your agreement with them.

The things that might happen to you that could affect your agreement include you going into resolution or the Bank or Minister doing something to help you. They might do this under certain parts of the law, such as subpart 4, this subpart, or subparts 6 to 8. Even if a special period called a moratorium ends, this law still applies to you, as stated in section 285.

This law is also subject to what is said in section 421(1) to (3). You should look at these sections to understand how they affect you. These laws work together to help you and the other party in your agreement understand what you can and cannot do.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS606909.

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Part 7Crisis management and resolution
Moratorium and restriction on resolution trigger

287Restriction on resolution trigger

  1. This section applies if a licensed deposit taker (A) is party to an agreement, whether the proper law of the agreement is the law of New Zealand or the law of any other jurisdiction.

  2. Neither of the matters referred to in subsection (3) allows the agreement, or a party to the agreement (other than A), to do any of the following:

  3. deny any liability or obligation under the agreement:
    1. accelerate or require the payment or performance of a liability or an obligation:
      1. terminate or close out any transaction relating to the agreement:
        1. enforce any security interest under the agreement.

          1. The matters are as follows:

          2. A, or an associated person of A, entering into resolution:
            1. the Bank or the Minister performing or exercising 1 or more functions, powers, or duties under subpart 4, this subpart, or any of subparts 6 to 8 in relation to A or an associated person of A.

              1. This section continues to apply despite the end of the period of the moratorium under section 285.

              2. This section is subject to section 421(1) to (3).