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Deposit Takers Act 2023

Depositor compensation scheme - Deficiency in fund

249: Deficiency in fund when supporting resolution measure

You could also call this:

"What happens if a special fund doesn't have enough money to pay out"

Illustration for Deposit Takers Act 2023

If the Bank wants to pay out some money from a special fund, but the fund does not have enough money, this section applies. The Bank is using the fund as part of a plan under section 230. You need to know that the Minister will give the fund some more money from public funds to cover the amount that is missing.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS808306.

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Money and consumer rights > Banking and loansBusiness > Industry rules
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248: Deficiency in fund when specified event notice issued, or

"What happens if there's not enough money to pay people when the Bank sends a special notice"

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Part 6Depositor compensation scheme
Deficiency in fund

249Deficiency in fund when supporting resolution measure

  1. This section applies if the Bank intends to authorise an amount to be paid out of the fund under section 230 but the property of the fund is not sufficient to pay that amount.

  2. The Minister must provide to the fund out of public money, without further appropriation than this section, money by way of grant or advance as may be necessary to meet the deficiency.