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Deposit Takers Act 2023

Depositor compensation scheme - Miscellaneous provisions

257: Liquidator must give reasonable assistance to Bank

You could also call this:

"Liquidator must help the Bank with compensation for people who lost money."

Illustration for Deposit Takers Act 2023

If you are a liquidator of a company that takes deposits, you must help the Bank do its job under this part of the law. You have to give the Bank all the help it needs to figure out who gets compensation, calculate how much they get, and pay them. The Bank can ask you to find out who is eligible for compensation, work out how much they should get, and pay them.

You can check out section 286 of the Companies Act 1993 to see how the Bank can get a court order to make you do this. This rule does not change any other duties you have as a liquidator, like giving the Bank information it needs.

The information you have to give the Bank includes anything about the company that you have or can control, and you might have to produce documents or take action on them, as stated in subpart 1 of Part 4 and section 99(1)(a), section 99(1)(b) or (c).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS704386.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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Part 6Depositor compensation scheme
Miscellaneous provisions

257Liquidator must give reasonable assistance to Bank

  1. A liquidator of a licensed deposit taker must give all reasonable assistance to enable the Bank to perform or exercise any function, duty, or power under this Part, including 1 or more of the following:

  2. ascertaining the eligible depositors who are entitled to compensation under this Part:
    1. calculating the entitlement to compensation under this Part of 1 or more eligible depositors:
      1. paying the compensation to, or on account of, 1 or more eligible depositors.

        1. See section 286 of the Companies Act 1993, which allows the Bank to apply for a court order to enforce this duty.

        2. This section does not limit any duty that the liquidator has under subpart 1 of Part 4 (which allows the Bank to require a liquidator to supply information).

        3. For the purposes of subpart 1 of Part 4, the information that the Bank may require a liquidator to give under section 99(1)(a), and the documents that the Bank may require a liquidator to produce or to act in respect of under section 99(1)(b) or (c), include all information and documents of the licensed deposit taker that are in the possession or under the control of the liquidator.