Plain language law

New Zealand law explained for everyone

Deposit Takers Act 2023

Depositor compensation scheme - Entitlement to compensation - Entitlements subject to regulations

214: Regulations may take into account funds that are withdrawn or available to eligible depositors during resolution

You could also call this:

"Rules consider money you withdraw when a bank has problems and you need compensation"

Illustration for Deposit Takers Act 2023

When a bank has problems, the government might step in to help. You might be able to take out some of your money from the bank during this time. The rules can consider the money you took out when deciding how much compensation you should get. The government can make regulations that decide how to calculate the compensation. These regulations can say how to take into account the money you withdrew or had access to during the relevant period, which is the time from when the bank's problems were measured until the compensation is paid.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS721494.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
Previous

213: Regulations may take into account transactions that have not been processed at quantification time, or

"Rules can consider transactions that haven't been processed yet when working out your protected deposits."

Next

215: Regulations may impose conditions, or

"Rules can set conditions for getting compensation"

Part 6Depositor compensation scheme
Entitlement to compensation: Entitlements subject to regulations

214Regulations may take into account funds that are withdrawn or available to eligible depositors during resolution

  1. This section applies if—

  2. the Bank issues a specified event notice in relation to a licensed deposit taker that has entered resolution; and
    1. during the whole or any part of the relevant period, all or any part of the principal or accrued interest to be repaid or paid under a protected deposit that is placed with the deposit taker is withdrawn, or is available to be withdrawn, by or on behalf of an eligible depositor; and
      1. the circumstances specified in the regulations (if any) apply.

        1. For the purposes of this subpart, the regulations may provide for the calculation of the amount of compensation that a person is entitled to under this Part to take into account the matter referred to in subsection (1)(b).

        2. The regulations may provide for the matter to be taken into account in the prescribed manner.

        3. The relevant period is the period that—

        4. is on and after the quantification time; but
          1. ends immediately before the time at which compensation is paid under this Part.