Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698846126349.pdf (New Zealand)
2011/272 Deposit Takers (Classification of Loans Made Against More Than One Form of Security) Exemption Notice 2011 Pursuant to section 157G of the Reserve Bank of New Zealand Act 1989, the Reserve Bank of New Zealand gives the following notice (to which is appended a statement of reasons of the Bank).
Contents Title Commencement Expiry Interpretation Exemption in respect of capital ratio requirements Condition of exemption Schedule Specified deposit takers Page 1 1 2 2 2 2 2 Notice Title This notice is the Deposit Takers (Classification of Loans Made Against More Than One Form of Security) Exemption Notice 2011.

Commencement This notice comes into force on the day after the date of its notification in the Gazette.
1 cl 3 3 4 (1) Deposit Takers (Classification of Loans Made Against More Than One Form of Security) Exemption Notice 2011 2011/272 Expiry This notice expires on the close of 30 June 2013.
Interpretation In this notice, unless the context otherwise requires,— Act means the Reserve Bank of New Zealand Act 1989 exempt loan means a loan— (a) that is made by a specified deposit taker, or by a member of a specified deposit taker’s borrowing group, against more than one form of security; and that would be classified into either class 25 or class 26 of table 1 of the Schedule of the Regulations but for the operation of regulation 13(2) of the Regulations Regulations means the Deposit Takers (Credit Ratings, Cap- ital Ratios, and Related Party Exposures) Regulations 2010. specified deposit taker means a deposit taker whose name is specified in the Schedule.
(b) (2) Any term or expression that is defined in the Act and used, but not defined, in this notice has the same meaning as in the Act.

5 6 Exemption in respect of capital ratio requirements A specified deposit taker is exempted from regulation 13(2) of the Regulations in respect of an exempt loan.

Condition of exemption The exemption in clause 5 is subject to the condition that the exempt loan must be classified into class 25 or class 26 of table 1 of the Schedule of the Regulations, as applicable.
Schedule Specified deposit takers cl 4(1) Heartland Building Society PGG Wrightson Finance Limited 2 2011/272 Deposit Takers (Classification of Loans Made Against More Than One Form of Security) Exemption Notice 2011 Statement of reasons Dated at Wellington this 8th day of August 2011.

Grant Spencer, Deputy Governor.

Statement of reasons This notice comes into force on the day after the date of its notifica- tion in the Gazette and expires on 30 June 2013.
This notice allows certain deposit takers, when calculating their risk- weighted amount for credit risk, to give a different risk weighting to certain loans with 2 sorts of securities, namely a first mortgage over land or buildings (or both) and one or more secondary securities.
The Reserve Bank of New Zealand, after taking into account the prin- ciples set out in section 157F of the Reserve Bank of New Zealand Act 1989 and satisfying itself as to the matters set out in section 157G(2) of that Act, considers it is appropriate to grant the exemp- tion because— • compliance by certain deposit takers with the specific require- ments as to capital adequacy calculations that are set out in regulation 13(2) of the Deposit Takers (Credit Ratings, Cap- ital Ratios, and Related Party Exposures) Regulations 2010 would be unduly onerous or burdensome in the circumstances.
The circumstances are that these deposit takers take secondary security over the loans that they make, and that the more ap- propriate risk weight is that of the first ranking security, rather than the secondary security.
This exemption allows the capital position of these deposit takers to be more accurately reflected: exempting these deposit takers from these specific require- ments of the capital adequacy calculations is consistent with the maintenance of a sound and efficient financial system for the reasons stated above: the condition attached to this exemption ensures that the ex- emption is not broader than is reasonably necessary to address the matters that gave rise to the exemption.
• • 3 Deposit Takers (Classification of Loans Made Against More Than One Form of Security) Exemption Notice 2011 2011/272 Issued under the authority of the Acts and Regulations Publication Act 1989.

Date of notification in Gazette: 11 August 2011.

This notice is administered by the Reserve Bank of New Zealand.

12 4 Wellington, New Zealand: Published under the authority of the New Zealand Government—2011