Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698937863846.pdf (New Zealand)
Reprint as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Public Act Date of assent Commencement 1989 No 157 20 December 1989 see section 1(2) Contents Title Short Title and commencement Purpose Interpretation Interpretation of provisions relating to false or misleading information Act to bind the Crown Part 1 Constitution of Reserve Bank of New Zealand Reserve Bank of New Zealand Branches and agencies 1 1A Page 15 15 15 15 24 24 24 24 Note Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.
A general outline of these changes is set out in the notes at the end of this reprint, together with other explanatory material about this reprint.

This Act is administered by the Reserve Bank of New Zealand.
1 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 Part 2 Functions and powers of Reserve Bank Central bank 7 Bank to act as central bank Monetary policy Primary function of Bank Policy targets Formulation and implementation of monetary policy Governor to ensure policy targets followed Bank may be directed to formulate and implement monetary policy for different economic objective Bank’s primary function not affected Advice concerning effects of monetary policy Policy statements Foreign exchange Dealing in foreign exchange by Bank Power of Minister to direct Bank to deal in foreign exchange within guidelines Power of Minister to ﬁx exchange rates for foreign exchange dealing by Bank Effect of directions on policy targets Effect of directions on monetary policy Foreign exchange gains and losses Temporary suspension of foreign exchange business Bank to advise Minister on foreign exchange matters Foreign reserves Currency Issue of currency by Bank Power of Bank to call in currency Legal tender Defacing bank notes Making or issuing of other bank notes or coins Reproduction or imitation of currency Other functions and powers Bank to act as lender of last resort Bank may provide settlement account services Policy advice Government banking business Securities registry services Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 Bank may require ﬁnancial institution to supply information Failure to supply information Requirement that information be audited Powers Part 3 Management of Reserve Bank Governor and Deputy Governor Governor Duties of Governor Conditions of employment of Governor Deputy Governor Conditions of employment of Deputy Governor Removal of Deputy Governor from ofﬁce Disqualiﬁcation of Governor and Deputy Governor Incapacity of Governor and Deputy
 Chief Executive Vacancy in ofﬁce of Governor Removal of Governor from ofﬁce Removal of Deputy Governor from ofﬁce by Order in Council Delegation Board of directors 52 53 53A 54 55 56 Board of directors Duties of Board Board must prepare annual report Membership of Board Term of ofﬁce of non­executive directors Considerations affecting appointment of non­executive directors Extraordinary vacancies 57 Disqualiﬁcation of non­executive directors 58 Removal from ofﬁce of non­executive directors 59 Chairperson of Board 59A Meetings of Board 60 Teleconference meeting 60A 60B Directors to be notiﬁed of meetings 60C Who presides at meetings of Board Directors to disclose interests 61 Committees 62 Fees and expenses of non­executive directors Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 Part 4 Use of words ‘bank’, ‘banker’, and ‘banking’ Limit on use of restricted words in name or title 64 65 66 66A Limit on use of restricted words in name or title Bank may authorise use of restricted words in name or title Certain persons exempt from application of section 64 Application of Companies Act 1993 Limit on use of restricted words in advertisement 66B Limit on use of restricted words in advertisement 66C 66D 66E 66F 66G 66H 66I 66J 66K 66L Powers of Bank in relation to use of restricted words Power to obtain information Power to require change of name, etc Power to appoint person to enter and search premises Requirements on entering and searching premises Conﬁdentiality of information or documents Limits on further disclosure of information or documents published or disclosed under section 66G Procedure for obtaining warrants Effect of warrant Effect of proceedings Effect of ﬁnal decision that exercise of powers under section 66E unlawful Penalty for offences against this Part 66M Penalty for offences Part 5 Registration of banks and prudential
 supervision of registered banks Interpretation in this Part Registration and prudential supervision Exercise of powers under this Part Trans­Tasman co­operation Bank to have regard to directions about government policy objectives Registration of banks Register Application for registration Voluntary removal of name from register 67A 67 68 68A 68B 69 70 71 4 54 55 57 57 57 58 59 59 60 61 62 63 63 63 64 64 65 66 66 66 67 68 68 69 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 72 73 73A 73B 74 75 76 77 77A 77B 78 79 80 81 Offence for person who is not registered bank to hold itself out to be registered bank Determination of applications Further matters to which Bank must have regard if applicant is overseas person Further matters to which Bank must have regard if applicant is subsidiary of overseas person Conditions of registration Publication of principles Registration of certain persons Cancellation of registration Changes of ownership Effect of section 77A on contracts, etc Carrying on business in prudent manner Annual fee [Repealed] Credit rating of registered banks Financial disclosure by registered banks Public disclosure of information or data by registered banks 81AA Further matters that maybe prescribed 81AB Disclosure statement not required to include information or data about customers or clients of registered banks 81AC Duty to supply information or data to registered bank 81A 82 83 Bank to consult Disclosure statements must be signed Bank may require disclosure statement to be corrected Advertising by registered banks [Repealed] 84 85 86 87 88 Interpretation [Repealed] Content of advertisements by registered banks [Repealed] Regulations [Repealed] Offence to advertise in contravention of regulations [Repealed] Bank may prohibit advertisements by registered banks [Repealed] Provisions applying to disclosure statements 89 89A Offence to fail to publish required information in disclosure statement Offence to publish false or misleading
 disclosure statements 70 70 71 72 73 74 74 74 76 77 77 79 79 79 80 81 82 83 84 84 85 85 85 85 85 86 86 5 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 89B 89C 90 91 92 93 93A 93B 93C 94 95 95A 96 97 98 Offence to fail to make most recent disclosure statement publicly available Other offences in relation to disclosure statements Civil liability Defences Fair Trading Act 1986 not affected Supply of information Supply of information by registered banks for purposes of prudential supervision Scope of notice under section 93 Certain persons may be required to supply information to registered banks Supply of information by other persons for purposes of prudential supervision Requirement that information, data, or forecasts be audited Bank may require report relating to registered banks, etc Bank may require report under section 95 to be published Disclosure of information to Bank by auditors Auditor to inform of intention to disclose Protection of auditors Access to information by home country supervisor 98A 98B Access to information by home country supervisor Duties of person on receipt of notice under section 98A Powers to obtain information and documents Powers to obtain information and documents Requirements on entering and searching premises Investigations Investigation of affairs of registered bank Powers of person appointed to carry out investigation Offences in relation to investigations Requirements to be complied with by person carrying out investigation Miscellaneous provisions Conﬁdentiality of information Procedure for obtaining warrants Effect of warrant Effect of proceedings Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 109 110 Effect of ﬁnal decision that exercise of powers under section 99 unlawful Effect of ﬁnal decision that exercise of powers under section 101 or section 102
 unlawful Reserve Bank may give directions Bank may require registered bank to consult [Repealed] Bank may give advice and assistance [Repealed] Bank may give directions 111 112 113 113A Scope of directions 113B Power to remove, replace, or appoint directors 114 115 116 Offence to contravene directions Offence to disclose giving of direction Miscellaneous provisions with respect to directions and dispositions Statutory management of registered banks 117 118 119 120 121 Statutory management of registered banks and associated persons Grounds on which registered bank may be declared to be subject to statutory management Advisory committee Statutory manager to comply with directions of Bank Considerations affecting exercise of powers by statutory manager 121A Statutory manager to avoid actions likely to have detrimental effect 122 Moratorium 123 Statutory manager may incorporate company under Companies Act 1993 to acquire business of branch of foreign institution Vesting of property subject to security Proof of vesting Prohibition against removal of assets Statutory manager may suspend payment of money owing 124 125 126 127 128 Management of registered bank to vest in statutory manager Powers of statutory manager Statutory manager empowered to carry on business of registered bank Statutory manager may pay creditors and compromise claims Sale of registered bank Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 133 134 135 136 137 138 139 140 Consents not required under other Acts Sale of property or assets subject to a security Proof of transactions Liquidation of registered banks Provisions applying where liabilities included in sale Power to trace property improperly disposed of Application of certain provisions of Companies Act 1993 Miscellaneous provisions Application of this Part to joint statutory managers, associated
 persons, and subsidiaries Termination of appointment of statutory manager Statutory manager may apply to High Court for directions Prior winding up, liquidation, or receivership to cease 141 142 143 143A Continuation of statutory management Termination of statutory management 144 Obligations incurred by statutory manager 145 Indemnity [Repealed] 146 Registered bank not entitled to be informed about exercise 147 of powers Expenses of statutory management Advances to statutory manager and members of advisory committee Duty to deliver books and property to statutory manager Offence to destroy, alter, or conceal records Regulations relating to powers of Bank and statutory manager Application of other Acts Appointment of auditors Annual accounts Annual report by statutory manager 153 154 155 156 150 151 152 148 149 Penalties for offences against this Part 156AA Penalty for miscellaneous offences 156AB Penalty for offences relating to supply of information, etc 156AC Penalty for offences relating to registration of banks, disclosure statements, prudential supervision of registered banks, etc Part 5A Retention of documents by banks 156A Retention of documents by banks Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5B Oversight of payment systems General 156B Exercise of powers under this Part Supply of information relating to payment systems 156C Requirement to supply information relating to payment system 156D Offence to fail to supply information 156E Requirement that information be audited 156F Offence not to comply with requirement for audit Disclosure of information relating to payment systems 156G Disclosure of information 156H Limits on further disclosure of information 156I Application of other enactments to information published or disclosed under section 156G Penalties for offences against this Part 156J Penalties
 for offences Part 5C Designated payment systems General 156K Exercise of powers under this Part 156L Deﬁnitions for this Part Designation 156M Designation of payment system 156N Bank’s recommendation subject to procedure in sections 156V to 156X Effect of designation 156O Rules of designated payment system are valid and enforceable Settlements must not be reversed, etc 156P 156Q Limits on application of section 156P(1) 156R Netting is valid and enforceable 156S Certain provisions of Companies Act 1993 and of Insolvency Act 2006 not to apply to netting 156T Limits on effect of section 156O or section 156P or section 156R 154 154 155 155 155 156 157 158 158 159 159 161 162 162 163 163 164 164 164 9 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 156U Certain enactments prevail over sections 156O, 156P, and 165 156R Procedure for making designation 156V Application for designation 156W Consideration of application 156X Decision on application Further provisions relating to designation 156Y Variation of designation 156Z Revocation of designation 156ZA Settlement and netting not affected by variation or revocation of designation 156ZB Matters Bank may have regard to in recommending variation or revocation of designation 156ZC Procedure for variation or revocation of designation Supply of information 156ZD Supply of information relating to designated payment system 156ZE Contact person must be notiﬁed of insolvency Part 5D Deposit takers Preliminary provisions 157A Exercise of powers under this Part 157B Interpretation 157C Deposit taker deﬁned 157D Application of Part 157E Bank to consult before recommending making of regulations under this Part Principles to be taken into account under this Part 157F 157G Exemptions from Part 157H Effect of exemption Credit ratings Bank may approve rating agencies 157J 157K Regulations relating to credit ratings 166 166 166 167 167 168 168 168 169 170 170 171 174 175 176 176 177 178 179 179 Minimum capital
 requirement 157P Regulations may impose requirement that trust deed sets 180 out minimum capital that deposit taker is required to maintain 10 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 157Q Deposit takers and trustees must ensure trust deed sets out 181 minimum capital deposit taker is required to maintain 157R Deposit taker must maintain not less than minimum capital prescribed Capital ratio requirement 157S Regulations may impose requirement that trust deed includes capital ratio 157T Deposit takers and trustees must ensure capital ratio included in trust deed 157U Deposit taker must maintain capital ratio required to be included in trust deed Restrictions on related party exposures 157V Regulations may impose requirement that trust deed includes maximum limit on exposures to related parties 157W Regulations may incorporate by reference framework for calculation of maximum limit on exposures to related parties 157X Deposit takers and trustees must ensure maximum limit on exposures to related parties is included in trust deed 157Y Deposit taker must not exceed maximum limit on related party exposures Liquidity requirements 157Z Regulations may impose requirement that liquidity requirements be included in trust deed 157ZA Deposit takers and trustees must ensure liquidity requirements are included in trust deeds 157ZB Deposit takers must comply with liquidity requirements in trust deeds Other matters relating to trust deeds 181 181 182 182 183 184 184 184 184 185 185 157ZC Amendment to trust deed must be treated as if authorised 186 to be made 157ZD Trustee may execute amendment to trust deed Obligations of trustees to Bank 157ZE Bank may require trustee to attest as to deposit taker’s compliance with requirements 157ZF Trustee must report to Bank non­compliance or likely non­compliance by deposit taker 186 187 188 11 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 157ZG Obligation on trustees to disclose
 information to Bank in certain circumstances 157ZH Protection of trustees Investigation and enforcement powers of Bank 157ZI Bank may require report relating to deposit taker 157ZJ Power to obtain information and documents 157ZK Limitation on information to be provided 157ZL Limitations on entering and searching place 157ZM Search warrant may be issued 157ZN Privileges Conﬁdentiality of information 157ZO Conﬁdentiality of information 157ZP Person who does not comply with section 157ZO commits offence 157ZQ Application of Ofﬁcial Information Act 1982, etc Offences and penalties 157ZR Offences by deposit takers against this Part 157ZS Other offences by deposit takers against this Part 157ZT Defence for deposit takers charged with offences against this Part 157ZU Power of court to discharge deposit taker 157ZV Liability of directors 157ZW Offences by trustees against this Part 157ZX Penalties for offences Miscellaneous 157ZY Matters relating to regulation­making powers under this Part 157ZZ Bank must review and report on operation of this Part Part 6 Financial and accountability matters 157 Financial year Income and expenditure 158 Meaning of notional surplus income [Repealed] 159 160 161 Funding agreements Contents of funding agreements Funding agreements to be ratiﬁed by House of Representatives Determination of annual dividend 162 12 188 189 189 190 190 190 191 191 193 194 194 195 196 197 197 198 198 199 200 200 201 201 201 202 202 203 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Accountability documents 162AA Purpose of accountability documents 162AB Assessment of regulatory impacts of policies Statement of intent 162A Obligation to provide statement of intent 162B Content of statement of intent 162C Process for providing statement of intent to Minister 162D Amendments by Bank to statement of intent 162E Statement of intent stands referred to House of Representatives Annual reports Annual reports and accounts 163 163A Bank not Crown entity
 164 165 Management statements Contents of ﬁnancial statements Financial stability reports 165A Financial stability reports 166 167 Auditor­General to be auditor of Bank Performance audit Audits Part 7 Miscellaneous provisions Bank to be good employer Bank to exhibit sense of social responsibility Application of Banking Act 1982 to Bank [Repealed] Conﬂict with other Acts Obligations under this Act not limited Regulations Consents under regulations Offences against regulations 168 169 170 171 172 173 174 175 175A Privilege against self­incrimination no excuse 175B Admissibility of self­incriminating statements 176 177 178 179 179A Indemnity 180 Penalties for offences Time limit for prosecutions Evidence Protection from liability Amendment to Income Tax Act 1976 [Repealed] Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 181 182 183 184 185 186 187 188 189 190 191 192 Amendments to Securities Act 1978 Amendments to Superannuation Schemes Act 1989 Amendments to Trustee Banks Restructuring Act 1988 [Repealed] Amendment to Securities Amendment Act 1988 Consequential amendments Repeals and savings References to trading banks to be read as references to registered banks Savings Procedure for applying this Act to persons subject to statutory management under Reserve Bank of New Zealand Act 1964 Transitional provisions in relation to Part 5A and Part 5C of Reserve Bank of New Zealand Act 1964 Transitional provisions in relation to ofﬁce holders Transitional provision in relation to accounts of Bank Schedule 1 Enactments amended Schedule 2 Enactments repealed Schedule 3 General provisions relating to material incorporated by reference Schedule 4 General provisions relating to search warrants issued under Part 5D 219 219 220 220 220 220 220 220 221 222 222 223 224 225 228 232 14 Reprinted as at 10 September 2008 Reserve Bank of New
 Zealand Act 1989 s 2 Title [Repealed] Title: repealed, on 10 September 2008, by section 4 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
1 (1) (2) Short Title and commencement This Act may be cited as the Reserve Bank of New Zealand Act 1989.

Except as provided in section 181(5) and (9), this Act shall come into force on 1 February 1990.

Section 1(2): amended, on 24 March 1995, by section 12 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
1A Purpose (1) The purpose of this Act is to provide for the Reserve Bank of New Zealand, as the central bank, to be responsible for— (a) formulating and implementing monetary policy de­ signed to promote stability in the general level of prices, while recognising the Crown’s right to deter­ mine economic policy; and promoting the maintenance of a sound and efﬁcient ﬁ­ nancial system; and carrying out other functions, and exercising powers, speciﬁed in this Act.
(b) (c) (2) 2 (1) This section does not limit the functions or powers given to the Bank by any other enactment.

Section 1A: inserted, on 10 September 2008, by section 5 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
Interpretation In this Act, unless the context otherwise requires,— bank note or note means any negotiable instrument used or circulated, or intended for use or circulation, as currency banking group has the meaning given to it in the Orders in Council made under section 81 clearing house means a person that provides clearing or settlement services for a payment system Deputy Chief Executive means, if 1 person is appointed under this Act as the Deputy Governor of the Bank, that person, and if 2 persons are appointed under this Act as Deputy Governors 15 s 2 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 of the Bank, the Deputy Governor designated by the Board as the Deputy Chief Executive Deputy Governor means, if 1 person is appointed under this Act as the Deputy Governor of the Bank, that person, and if 2 persons are appointed under this Act as Deputy Governors, each of those persons designated payment system has the meaning set out in section 156L director, except in relation to the Bank, means— (a) a person occupying the position of director by whatever name called: in the case of an entity that does not have directors as such, any trustee, manager, or other person who acts in relation to that entity in the same or a similar fashion as a director would act were that entity a company incorporated in New Zealand under the Companies Act 1993 (b) disclosure statement means the document referred to in section 81(2)(a) document means a document in any form, whether signed or initialled or otherwise authenticated by its maker or not; and includes— (a) (b) any writing on any material: any information recorded or stored by means of any tape­recorder, computer, or other device; and any material subsequently derived from information so recorded or stored: any label, marking, or other writing that identiﬁes or describes any thing of which it forms part, or to which it is attached by any means: any book, map, plan, graph, or drawing: any photograph, ﬁlm, negative, tape, or other device in which 1
 or more visual images are embodied so as to be capable (with or without the aid of some other equipment) of being reproduced (c) (d) (e) ﬁnancial institution means any person including a body of persons whether incorporated or not, who carries on the business of borrowing and lending money, or providing 16 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 s 2 ﬁnancial services, or both, and without limiting the generality of the foregoing includes— (a) a life insurance company, being a company as deﬁned in section 2 of the Life Insurance Act 1908; and includes any branch, division, or ofﬁce of that company; and a building society as deﬁned in section 2 of the Building Societies Act 1965; and a registered bank; and a speciﬁed person or class of persons (including a body or bodies of persons, whether incorporated or not) who is or are declared by the Governor­General, by Order in Council, to be a ﬁnancial institution or institutions for the purposes of this Act (b) (c) (d) ﬁnancial year has the meaning given to it by section 157 foreign exchange means— (a) the bank notes or other currency, postal notes, or money orders of any country other than New Zealand: promissory notes and bills of exchange payable otherwise than in New Zealand currency: a right to receive payment in the currency of a country other than New Zealand: an obligation to make payment in the currency of a country other than New Zealand: a security in respect of which any amount payable is payable in a country other than New Zealand or in a foreign currency (b) (c) (d) (e) Governor means the Governor of the Bank appointed under this Act holding company means a holding company within the meaning of sections 158 and 158A of the Companies Act 1955 or sections 5 and 6 of the Companies Act 1993, as the case may be home country supervisor means any central bank, authority, or body in any country other than New Zealand that exercises functions in relation to a parent bank or an overseas
 incorporated registered bank that correspond with, or are similar to, those conferred on the Bank under Part 5 17 s 2 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 home jurisdiction means,— (a) (b) is a body the country in which that body is in the case of an overseas person that corporate, incorporated: is an in the case of an overseas person that unincorporated body, the country in which that body has its head ofﬁce or principal place of business Minister means the Treasurer, or other Minister of the Crown who, under the authority of any warrant or with the authority of the Prime Minister, is for the time being responsible for the administration of this Act or particular provisions of this Act net income, in relation to a ﬁnancial year, means the total revenue of the Bank reported in its statement of ﬁnancial performance for that year calculated after deducting all expenses incurred by the Bank in that year New Zealand chief executive ofﬁcer, overseas incorporated registered bank, means— (a) the most senior ofﬁcer of that bank who is ordinarily resident in New Zealand; or another person who may be nominated by that bank and agreed to in writing by the Bank; or if section 82(3) applies, an employee of that bank who has been speciﬁed by the Bank under that section non­voting security, in relation to any body, means a speciﬁed security that does not confer a voting right operating expenses, in relation to a ﬁnancial year,— (a) includes all expenses incurred by the Bank and reported in its statement of ﬁnancial performance for that year; but does not include— (i) in relation to an (b) (c) interest, foreign exchange losses, and losses (or provision for losses) on ﬁnancial instruments or revaluation of ﬁnancial instruments; or any payments made to the Crown under section 21; or any expenses agreed by the Minister and the Bank not to be operating expenses (ii) (iii) (b) 18 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 s 2
 operator, in relation to a payment system, means— (a) (b) (c) a clearing house; or a settlement agent; or any other person that provides clearing, settlement, or processing services to participants in that payment system overseas bank means any person that is formed, licensed, or registered as a bank in any country other than New Zealand overseas person means— (a) (b) a body corporate incorporated outside New Zealand; or an unincorporated body that has its head ofﬁce or principal place of business outside New Zealand is a holding parent bank means an overseas bank that company of a registered bank participant, in relation to a payment system,— (a) means a person that participates in the payment system in accordance with the rules of that payment system; and in the case of a designated payment system, includes an operator of the designated payment system if the designation under section 156M so provides (b) (i) payment system— (a) means a system or arrangement for— the settlement clearing obligations; or the processing of payment instructions; and (ii) includes any instruments, rules, and procedures that relate to the matters referred to in paragraph (a) payment (b) of or in relation to a speciﬁed security, qualifying interest, means— (a) the legal or beneﬁcial ownership of the speciﬁed security; or the power to exercise, or control the exercise of, any voting right attached to the speciﬁed security; or the power to acquire or dispose of the speciﬁed security; or the power to control the acquisition or disposition of the speciﬁed security by another person; or (b) (c) (d) 19 s 2 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (e) the powers referred to in paragraphs (b) to (d) under, or by virtue of, any trust, agreement, arrangement, or understanding relating to the speciﬁed security Registered bank means a person whose name is entered in the register maintained under section 69 or who continues to be a registered bank by virtue of the
 provisions of section 76 Reserve Bank or the Bank means the Reserve Bank of New Zealand constituted under this Act restricted word— (a) means the words “bank”, “banker”, and “banking”; and (b) includes— (i) (ii) any of those words as part of any other word: a translation of language (whether or not those words is part of any other word) into another the translation of those words Security has the same meaning as in section 2 of the Securities Act 1978 signiﬁcant inﬂuence, in relation to a registered bank, means— the ability to directly or indirectly appoint 25% or more (a) of the board of directors (or other persons exercising powers of management, however described) of the registered bank; or a direct or indirect qualifying interest in 10% or more of the voting securities issued or allotted by the registered bank (b) speciﬁed security has the meaning given to security in section 6(1) of the Overseas Investment Act 2005 subsidiary means a subsidiary within the meaning of section 158(1)(a)(ii) and (b) of the Companies Act 1955 or section 5(1)(a)(iii) and (b) of the Companies Act 1993, as the case may be trade mark has the meaning given to it by section 5(1) of the Trade Marks Act 2002 voting right, in relation to any body,— (a) means a currently exercisable right to cast a vote at meetings of shareholders or members of that body; but does not include a right to vote that is exercisable only in 1 or more of the following circumstances: (b) 20 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 s 2 (i) (ii) (iii) (iv) (v) during a period in which a payment or distribution (or part of a payment or distribution) in respect of the security that confers the voting right is in arrears or some other default exists: on a proposal that affects rights attached to the security that confers the voting right: on a proposal to put the body into liquidation or voluntary administration: on a proposal for the disposal of the whole, or a material part, of the property,
 business, or undertaking of the body: during the liquidation, receivership, voluntary administration, statutory bankruptcy, management of the body; and or (c) does not include a right to vote that is exercisable only for a special, immaterial, or remote matter that is inconsequential to the control of the body (2) (3) (b) voting security, in relation to any body, means a speciﬁed security that confers a voting right.
For the purposes of section 36, Parts 4 and 5, and sections 179 and 179A, a person is an associated person of a ﬁnancial institution or a registered bank, as the case may be, if— (a) that person directly or indirectly controls the manage­ ment of the ﬁnancial institution or registered bank; or that person has a direct or indirect qualifying interest in 20% or more of the voting or non­voting securities issued by the ﬁnancial institution or registered bank; or that ﬁnancial institution or registered bank directly or indirectly controls the management of that person; or that ﬁnancial institution or registered bank has a direct or indirect qualifying interest in 20% or more of the voting or non­voting securities issued by that person.
For the purposes of section 77A, transaction includes the— (a) (b) (c) sale or transfer of property or securities; and issue or allotment of securities; and entering into, or giving effect to a provision in, a con­ tract or arrangement; and arriving at, or giving effect to, an understanding.
(d) (d) (c) 21 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 For the purposes of Part 5, a holding company of a registered bank has a substantial interest in a body if— (a) that holding company directly or indirectly controls the management of that body; or that holding company has a direct or indirect qualifying interest in 20% or more of the voting securities issued by that body.
(b) Compare: 1964 No 134 s 2; 1986 No 131 s 2 Section 2(1) banking group: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 2(1) clearing house: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 2(1) designated payment system: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) director: Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

inserted, on 21 August 2003, by section 3(1) of the Section 2(1) disclosure statement: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 2(1) ﬁnancial institution paragraph (d): amended, on 1 November 2006, by section 4 of the Reserve Bank of New Zealand Amendment Act 2006 (2006 No 51).
Section 2(1) ﬁnancial year: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 2(1) holding company: inserted, on 24 March 1995, by section 2 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).

Section 2(1) home country supervisor: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) home jurisdiction: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 2(1) Minister: substituted, on 25 June 1997, by section 2 of the Treasurer (Statutory References) Act 1997 (1997 No 20).

Section 2(1) net income: inserted, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 2(1) New Zealand chief executive ofﬁcer: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 2(1) non­voting security: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 2(1) operating expenses: 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).
inserted, on 25 January 2005, by section s 2 (4) 22 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 s 2 Section 2(1) operating expenses paragraph (b)(ii): amended, on 10 September 2008, by section 6 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

Section 2(1) operating expenses paragraph (b)(iii): added, on 10 September 2008, by section 6 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
Section 2(1) operator: Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

inserted, on 21 August 2003, by section 3(1) of the Section 2(1) overseas bank: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 2(1) overseas person: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) parent bank: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 2(1) participant: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 2(1) payment system: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) qualifying interest: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 2(1) restricted word: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 2(1) signiﬁcant inﬂuence: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) speciﬁed security: substituted, on 25 August 2005, by section 75 of the Overseas Investment Act 2005 (2005 No 82).

Section 2(1) subsidiary: substituted, 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).

Section 2(1) trade mark: Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
inserted, 21 August 2003, by section 3(1) of the Section 2(1) voting right: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 2(1) voting right paragraph (b)(iii): amended, on 1 November 2007, by section 41 of the Companies Amendment Act 2006 (2006 No 56).

Section 2(1) voting right paragraph (b)(v): amended, on 1 November 2007, by section 41 of the Companies Amendment Act 2006 (2006 No 56).
Section 2(1) voting security: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 2(2): substituted, on 21 August 2003, by section 3(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 2(3): added, on 21 August 2003, by section 3(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(4): added, on 21 August 2003, by section 3(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
23 s 3 3 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 Interpretation of provisions relating to false or misleading information For the purposes of this Act, a reference to information or data that is false or misleading includes a reference to information or data that is false or misleading by reason of— (a) the form or context in which it is published or supplied; or the omission of any other information that is material in the form and context in which it is published or sup­ plied.
(b) 4 Act to bind the Crown This Act shall bind the Crown.

5 (1) (2) Part 1 Constitution of Reserve Bank of New Zealand Reserve Bank of New Zealand There shall continue to be a bank called the Reserve Bank of New Zealand.

The Bank shall be a body corporate with perpetual succession and a common seal and shall be capable of acquiring, holding and disposing of real and personal property and of suing and being sued.
(3) Without limiting any other provision of this Act, the Bank shall have the rights, powers, and privileges of a natural person.

The Bank is the same body corporate as that which was con­ tinued in existence by the Reserve Bank of New Zealand Act 1964.

Compare: 1964 No 134 s 3(1), (2) Branches and agencies The Bank may establish branches and agencies and appoint agents in New Zealand or elsewhere.
Compare: 1964 No 134 s 3(3) (4) 6 24 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 2 s 9 7 8 9 (1) (2) (3) (4) Part 2 Functions and powers of Reserve Bank Central bank Bank to act as central bank The Bank shall act as the central bank for New Zealand.
Compare: 1964 No 134 s 8(1)(a); 1973 No 16 s 5 Monetary policy Primary function of Bank The primary function of the Bank is to formulate and im­ plement monetary policy directed to the economic objective of achieving and maintaining stability in the general level of prices.
Policy targets The Minister shall, before appointing, or reappointing, any person as Governor, ﬁx, in agreement with that person, policy targets for the carrying out by the Bank of its primary function during that person’s term of ofﬁce, or next term of ofﬁce, as Governor.
In the case of a person who is deemed to have been appointed as Governor under section 191(1), policy targets for that per­ son’s term of ofﬁce shall be ﬁxed by the Minister, in agreement with the Governor, within 30 days after the commencement of this Act.

Policy targets may be ﬁxed for the term of ofﬁce of the Gov­ ernor, or for speciﬁed periods during the term of ofﬁce of the Governor, or for both.
The Minister and the Governor may, from time to time,— (a) review or alter any policy targets ﬁxed under this sec­ tion; or substitute new policy targets for targets ﬁxed under this section.
(b) (5) Where policy targets are ﬁxed under this section,— (a) the Minister shall ensure that they are recorded in writ­ ing; and 25 Part 2 s 10 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (b) (c) the Governor shall ensure that they are tabled at the ﬁrst Board meeting held after the date on which they are ﬁxed; and the Minister shall, as soon as practicable after they are ﬁxed, publish them in the Gazette and lay a copy of them before the House of Representatives.
10 11 12 (1) Formulation and implementation of monetary policy In formulating and implementing monetary policy the Bank shall— (a) have regard to the efﬁciency and soundness of the ﬁnan­ cial system: consult with, and give advice to, the Government and such persons or organisations as the Bank considers can assist it to achieve and maintain the economic objective of monetary policy.
(b) Governor to ensure policy targets followed It is the duty of the Governor to ensure that the actions of the Bank in implementing monetary policy are consistent with the policy targets ﬁxed under section 9.
Bank may be directed to formulate and implement monetary policy for different economic objective The Governor­General may, from time to time, by Order in Council, on the advice of the Minister, direct the Bank to for­ mulate and implement monetary policy for any economic ob­ jective, other than the economic objective speciﬁed in section 8, for such period not exceeding 12 months as shall be speci­ ﬁed in the order.
(2) Notwithstanding anything in section 8, the Bank shall formu­ late and implement monetary policy in accordance with any economic objective speciﬁed in an Order in Council in force under subsection (1).
The Governor­General may, by Order in Council, on the ad­ vice of the Minister, before the period speciﬁed in an Order in Council made under subsection (1) expires, extend the period speciﬁed in that order for a period, which shall be speciﬁed (3) 26 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 2 s 14 (4) in the order, not exceeding 12 months, and may in the same manner extend that period on successive occasions.
Every Order in Council made under subsection (1) shall expire with the close of the last day of the period speciﬁed in the order or any extension of that period.

(5) An Order in Council made under subsection (1) may be re­ (6) voked.

The Minister shall, as soon as practicable after the making of an Order in Council under this section, publish a copy of the order in the Gazette and lay a copy of the order before the House of Representatives.
(7) While an Order in Council made under subsection (1) remains in force,— (a) (b) the policy targets ﬁxed under section 9 shall cease to have effect; and the Minister and the Governor shall,— (i) within 30 days of the making of the order, or the making of an Order in Council under subsection (3), as the case may be, ﬁx new policy targets for the period that the order remains in force; and (8) 13 14 (ii) within 30 days of the expiry or revocation of the order, ﬁx new policy targets for the carrying out by the Bank of its primary function.
Subsections (4) and (5) of section 9 shall apply in relation to any policy targets ﬁxed under subsection (7)(b) of this section.

Bank’s primary function not affected Except as provided in sections 9 to 12, nothing in this Act or in any other Act whether passed before or after the commence­ ment of this Act limits or affects the obligation of the Bank to carry out its primary function.
Advice concerning effects of monetary policy Where the Bank gives advice to the Minister under any provi­ sion of this Act and the Governor considers that giving effect to that advice would, or would be likely to, affect the monet­ ary policy of the Bank, the Governor shall advise the Minister of— 27 Part 2 s 15 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (a) (b) the effect, or likely effects, on monetary policy; and any action that may be taken by the Bank in implement­ ing the Bank’s monetary policy if effect is given to that advice.
15 (1) Policy statements The Bank shall deliver to the Minister and publish, in accord­ ance with subsection (1A), policy statements for the period of 6 months from and after the date of publication.

(1A) The Bank shall deliver and publish a policy statement on or before 1 October 1990 and thereafter at intervals not exceed­ ing 6 months from the date of publication of each preceding statement.
(1B) The Bank shall, if directed to do so by the Minister, in addition to its obligation under subsection (1), deliver to the Minister and publish policy statements at such intervals and for such periods as may be speciﬁed in the direction.
The policy statement shall be signed by the Governor and shall— (a) (2) specify the policies and means by which the Bank in­ tends to achieve the policy targets ﬁxed under section 9: state the reasons for adopting those policies and means: contain a statement of how the Bank proposes monetary policy might be formulated and implemented during the next 5 years: contain a review and assessment of the implementation by the Bank of monetary policy during the period to which the preceding policy statement relates.
(b) (c) (d) (3) Every policy statement stands referred, by virtue of this sec­ tion, to the House of Representatives.

Section 15(1): substituted, on 8 August 1990, by section 2 of the Reserve Bank of New Zealand Amendment Act 1990 (1990 No 96).

Section 15(1A): inserted, on 8 August 1990, by section 2 of the Reserve Bank of New Zealand Amendment Act 1990 (1990 No 96).

Section 15(1B): inserted, on 8 August 1990, by section 2 of the Reserve Bank of New Zealand Amendment Act 1990 (1990 No 96).
Section 15(3): substituted, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).
28 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 2 s 18 16 17 (1) Foreign exchange Dealing in foreign exchange by Bank For the purposes of performing its functions and fulﬁlling its obligations under this Act or any other enactment, the Bank may deal in foreign exchange, on such terms and conditions as it thinks ﬁt,— with any person, including the Crown; and (a) on behalf of any person, including the Crown.
(b) Section 16: substituted, on 10 September 2008, by section 7 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

Power of Minister to direct Bank to deal in foreign exchange within guidelines The Minister may, for the purpose of inﬂuencing the exchange rate or exchange rate trends, from time to time, by notice in writing to the Bank, direct the Bank to deal in foreign exchange within guidelines prescribed by the Minister in the notice.
(2) Notwithstanding section 16, while the direction remains in force all foreign exchange dealing by the Bank shall comply with the direction.

The Minister may, from time to time, by notice in writing to the Bank, vary or revoke any direction given under subsection (1).
(3) 18 (1) Power of Minister to ﬁx exchange rates for foreign exchange dealing by Bank Subject to this section, the Minister may from time to time, by notice in writing to the Bank,— (a) direct that all foreign exchange dealing by the Bank shall be at rates of exchange, or within a range of rates of exchange, speciﬁed by the Minister in the direction: direct the Bank to deal in foreign exchange at those rates or within that range of rates with such persons or class or classes of persons as may be speciﬁed by the Minister in the direction.
(b) (2) Notwithstanding sections 16 and 17, the Bank shall, on receiv­ ing a direction under this section,— 29 Part 2 s 19 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (3) (4) (5) 19 (1) (a) (b) conduct its foreign exchange dealing at the rates, or within the range of rates, speciﬁed: deal in foreign exchange at those rates, or within that range of rates, with such of the persons or class or classes of persons speciﬁed in the direction as may re­ quire the Bank to do so.
The Minister may from time to time, by notice in writing to the Bank, vary or revoke any direction given under subsection (1).

The Minister shall not give a direction under subsection (1) unless the Minister has been authorised to do so by the Gov­ ernor­General by Order in Council within 30 days before the direction is given and a separate authorisation shall be required for each separate occasion on which a direction is given.
The Minister shall give notice in the Gazette of the fact that a direction has been given and that a direction has been revoked.
Effect of directions on policy targets If the Governor considers that the giving effect to by the Bank of a direction under either section 17 or section 18 would, while not being inconsistent with the economic objective of monetary policy, be inconsistent with achieving the policy tar­ gets ﬁxed under section 9, the Governor may, by notice in writ­ ing to the Minister, advise the Minister that the Bank will, in giving effect to the direction, be unable to achieve those policy targets and request new policy targets to be ﬁxed.
(2) Where a notice is given under this section— (a) (b) the Bank is not required to achieve the existing policy targets: the Minister and the Governor shall, within 1 month after the notice is given, substitute new policy targets in accordance with section 9(4)(b) and, in that event, the provisions of section 9(5) shall apply to those policy targets.
Effect of directions on monetary policy If the Governor considers that the giving effect to by the Bank of a direction under either section 17 or section 18 would be 20 (1) 30 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 2 s 22 inconsistent with the economic objective of monetary policy the Governor may, by notice in writing, advise the Minister that the Bank does not propose to give effect to the direction.
(2) Where a notice is given under this section the Bank shall not, unless an Order in Council is made under section 12 that re­ quires the Bank to formulate and implement monetary policy in accordance with an economic objective that is consistent with the direction, be required to comply with that direction.
21 (1) (2) 22 (1) (2) (3) Foreign exchange gains and losses The Bank shall pay into the Crown Bank Account any ex­ change gains (whether realised or unrealised) made by the Bank as a result of dealing in foreign exchange under sections 17 and 18.

The Minister shall, without further appropriation, pay to the Bank out of the Crown Bank Account the amount of any ex­ change losses (whether realised or unrealised) incurred by the Bank as a result of dealing in foreign exchange under sections 17 and 18.
Temporary suspension of foreign exchange business The Governor may, if the Governor is satisﬁed that it is neces­ sary to avoid disorder in the foreign exchange market, from time to time, by notice in writing to all registered banks, di­ rect that, subject to any exceptions speciﬁed in the notice, no registered bank shall, except with permission granted by the Bank, deal until further notice in any foreign exchange or for­ eign exchange of such kinds as are speciﬁed in the notice.
The Governor shall, as soon as practicable, give notice in writ­ ing to the Minister of the exercise of the power conferred under subsection (1).

Every notice under subsection (1) shall remain in force until it is revoked— (a) (b) by Order in Council; or by notice in writing given by the Governor to all regis­ tered banks.
(4) An obligation on a person to do a thing on a day on which that person is prevented from doing it by a notice under this 31 Part 2 s 23 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 section, or is unable to do it by reason of any such notice, shall be deemed to be complied with if that person does it as soon as practicable after the notice is revoked.
(5) Where any transaction to which a notice issued under this sec­ tion applies is subject to the Bills of Exchange Act 1908 or the Banking Act 1982, then, in relation to that transaction, every day on which the notice remains in force shall be deemed to be a non­business day for the purposes of the Bills of Exchange Act 1908.
Compare: 1964 No 134 s 26A; 1986 No 131 s 8 Bank to advise Minister on foreign exchange matters The Bank shall, from time to time, advise the Minister on— (a) (b) (c) (d) foreign exchange rate systems: the management of foreign reserves: the operation of the foreign exchange market: any other matters relating to foreign exchange.
Foreign reserves The Minister shall, from time to time, in consultation with the Bank, determine the level at which, or the levels within which, foreign reserves shall be maintained for the purpose of enabling the Bank to exercise the powers conferred by this Act.

The Bank must hold and maintain foreign reserves at that level or within those levels.

Section 24(2): substituted, on 10 September 2008, by section 8 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
Currency Issue of currency by Bank The Bank shall have the sole right to issue bank notes and coins in New Zealand.

The Bank shall determine the denominations, form, design, content, weight, and composition of its bank notes and coins.
Every bank note issued by the Bank before the commencement of this Act, and every coin issued by the Minister under the Decimal Currency Act 1964 or under the Coinage Act 1933 23 24 (1) (2) 25 (1) (2) (3) 32 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 2 s 27 by virtue of the Decimal Currency Act 1964, which is legal tender at the commencement of this Act shall be deemed for all purposes to have been made or issued under this Act.
Compare: 1964 No 27 s 10; 1964 No 134 s 20(1), (3) (4) 26 (1) Power of Bank to call in currency The Bank may, from time to time, with the prior consent of the Minister, by notice in the Gazette, call in any bank notes or coins issued or deemed to have been issued under this Act.

(2) Every notice shall take effect on a date speciﬁed in it.
(3) When the notice takes effect, all bank notes or coins to which it applies shall cease to be legal tender; but the Bank shall continue to be liable to pay any such bank note or coin on presentation at the head ofﬁce of the Bank.
The Bank shall continue to be liable to pay any bank note is­ sued before the commencement of this Act which has ceased to be legal tender before the commencement of this Act and which the Bank was, immediately before the commencement of this Act, liable to pay, on presentation at the head ofﬁce of the Bank.
The Bank shall be liable to pay any coin issued by the Minister before the commencement of this Act which has ceased to be legal tender before the commencement of this Act, on presen­ tation at the head ofﬁce of the Bank.

Compare: 1964 No 27 s 12; 1964 No 134 s 22 (5) 27 (1) Legal tender Every bank note issued, or deemed to be issued, under this Act shall be a legal tender for the amount expressed in the note.
(2) A tender of payment of money, to the extent that it is made in coins issued, or deemed to be issued, under this Act, shall be a legal tender,— (a) in the case of coins of a denomination of $10 or more, for the payment of any amount: in the case of coins of a denomination of $1 or more but less than $10, for the payment of any amount not exceeding $100: (b) 33 Part 2 s 28 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (c) (d) in the case of coins of the denomination of 5 cents or more, but less than $1, for the payment of an amount not exceeding $5: in the case of any coins of the denomination of less than 5 cents, for the payment of an amount not exceeding 20 cents.
(3) The references to coins and bank notes in subsections (1) and (2) do not include references to coins and bank notes that have been called in.

Compare: 1964 No 27 s 14; 1964 No 134 s 20(2) Defacing bank notes 28 (1) No person shall, without the prior consent of the Bank, wilfully deface, disﬁgure, or mutilate any bank note.
(2) No person who is a party to the defacement, disﬁgurement, or pay away; or part with; or put in circulation; or demand payment of; or deposit or offer to deposit in any bank,— mutilation of any bank note, shall— (a) (b) (c) (d) (e) that bank note.

Every person who contravenes subsection (1) or subsection (2) commits an offence against this Act and is liable on summary conviction to a ﬁne not exceeding $1,000.
Compare: 1964 No 134 s 23 (3) 29 Making or issuing of other bank notes or coins (1) No person shall make or issue any bank note or coin, other than a bank note or coin issued under this Act.

Every person who contravenes subsection (1) commits an of­ fence against this Act and shall be liable on conviction on in­ dictment,— (a) in the case of an individual, to imprisonment for a term not exceeding 3 years or to a ﬁne not exceeding $100,000: in the case of a body corporate, to a ﬁne not exceeding $300,000.
(b) (2) 34 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 2 s 33 use, issue, or publish— Reproduction or imitation of currency 30 (1) No person shall, without the prior consent of the Bank,— (a) make, design, engrave, print, or reproduce; or (b) any article or thing resembling a bank note or coin or so nearly resembling or having such a likeness to a bank note or coin as to be likely to be confused with or mistaken for it.
Every person who contravenes subsection (1) commits an of­ fence against this Act.

(2) (3) Where a person is convicted of an offence against subsection (2), the court may order— the article or thing: (a) any copy of it: (b) any plates, blocks, dies, and other instruments used or (c) capable of being used for printing or reproducing it— in the possession of that person to be destroyed.
Compare: 1964 No 134 s 24(2); 1973 No 16 s 6 31 32 Other functions and powers Bank to act as lender of last resort The Bank shall, if the Bank considers it necessary for the pur­ pose of maintaining the soundness of the ﬁnancial system, act as lender of last resort for the ﬁnancial system.

Bank may provide settlement account services The Bank may provide settlement account services for ﬁnan­ cial institutions on such terms and conditions as may be deter­ mined by agreement.
Policy advice 33 (1) On request by the Minister, the Bank must provide advice to the Minister on any matter speciﬁed in the request that is con­ nected with the functions of the Bank.

(2) A request may not be made under subsection (1) that may limit the Bank in exercising its primary function in section 8.

The Bank may also provide advice to the Minister, at any time, on any matters or subjects within the responsibility of the Bank.
(3) 35 Part 2 s 34 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 Section 33: substituted, on 10 September 2008, by section 9 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

34 (1) Government banking business Subject to the Public Finance Act 1989, the Bank may, in ac­ cordance with an agreement with the Minister, undertake all or part of the banking business of the Government.
(2) Any such agreement may provide for the Bank to charge for the provision of banking services.

Compare: 1964 No 134 s 12 35 (1) (2) 36 (1) Securities registry services The Bank may provide securities registry services for any per­ son including services in connection with— (a) the issue, registration, exchange, transfer, or replace­ ment of securities: the calling and acceptance of tenders for securities: the making or receiving of payment in respect of any security.
(b) (c) Securities registry services may be provided for such remuner­ ation, and on such terms and conditions, as may be agreed by the Bank and the person for whom they are provided.
Bank may require ﬁnancial institution to supply information For the purposes of enabling the Bank to carry out the func­ tions and exercise the powers conferred on it by this Part, the Bank may, from time to time, by notice in writing to any ﬁ­ nancial institution, or by notice in the Gazette applying to any speciﬁed class of ﬁnancial institutions, require the institution or, as the case may be, institutions of that class, to supply to the Bank such information and data relating to the business of the institution or institutions of that class for such periods, and in such form, as may be speciﬁed in the notice.
(2) Without limiting subsection (1), a notice may require informa­ tion and data to be supplied relating to the assets and liabilities, income and expenditure (including interest rates charged and payable), fees and charges, obligations and commitments, and risk exposures of, and classes of transactions entered into by, 36 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 2 s 38 that institution or class of institutions and any associated per­ son and, where speciﬁed, in consolidated form, in respect of business carried on in New Zealand or elsewhere and whether as principal, broker, agent, or intermediary.
(3) A notice given pursuant to this section may, by a subsequent (4) notice, be revoked, varied, or amended by the Bank.

Information and data required to be supplied pursuant to this section shall be supplied to the Bank at such place in New Zealand and at such time as are speciﬁed in the notice.

(5) A ﬁnancial institution shall not be required to supply data or information under this section relating to the affairs of a par­ ticular customer or client.
Sections 156G to 156I and 156J(2)(c) and (d) (which relate to the publication or disclosure of information or data supplied to the Bank) apply with all necessary modiﬁcations in respect of information and data supplied to the Bank under this section as if for each reference to section 156C in sections 156G(1) and (3) and 156J(2)(c) there were substituted a reference to section 36.
Compare: 1964 No 134 s 38H(1), (2), (4)–(6); 1986 No 131 s 10 (6) Section 36(6): added, on 10 September 2008, by section 10 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
37 Failure to supply information Every ﬁnancial institution commits an offence against this Act if, without lawful justiﬁcation or excuse, it— (a) fails to comply in any respect with any of the provisions of section 36 or of any requirements of the Bank under that section; or supplies any information or data which it is required to supply under section 36 which is false or misleading in any material particular.
(b) Compare: 1964 No 134 s 38H(7); 1986 No 131 s 10 Requirement that information be audited 38 (1) Where the Bank believes that any information or data supplied by a ﬁnancial institution pursuant to section 36 is, or may be, inadequate or inaccurate, it may, by notice in writing to that 37 Part 2 s 39 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 ﬁnancial institution, require that information or data to be au­ dited by an auditor approved by the Bank.
Every ﬁnancial institution commits an offence against this Act if, without lawful justiﬁcation or excuse, it fails to comply with a requirement under subsection (1).
Compare: 1964 No 134 s 38H(3); 1986 No 131 s 10 Powers Without limiting section 5 or any other provision of this Act, the Bank has power, whether in New Zealand or elsewhere, to— (a) (b) (c) carry on the business of banking: issue securities: give a ﬁxed or ﬂoating charge over all or any part of the undertaking or property of the Bank: if the Bank ceases to carry out any function, make pro­ vision, whether or not it is in the Bank’s interest to do so, for the beneﬁt of employees of the Bank, or former employees, or their dependants: enter into agreements or arrangements and obtain assur­ ances necessary or desirable for carrying out its func­ tions and exercising its powers: carry on any business or exercise any powers, not incon­ sistent with any other function of the Bank, which can be conveniently carried on, or exercised in conjunction with its functions and the exercise of its powers.
(d) (e) (f) Part 3 Management of Reserve Bank Governor and Deputy Governor Governor There shall be a Governor of the Bank who shall be appointed by the Minister on the recommendation of the Board.

The Governor shall be the Chief Executive of the Bank.

Duties of Governor It is the duty of the Governor to ensure that the Bank carries out the functions imposed on it by this Act.
(2) 39 40 (1) (2) 41 (1) 38 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 3 s 44 (2) 42 (1) (2) The Governor has the authority, in the performance of those functions, to act in relation to all matters that are not by this Act required to be dealt with by the Board.

Conditions of employment of Governor The Governor shall be appointed for a term of 5 years and may be reappointed for a further term or terms, each of up to 5 years.
The conditions of employment of the Governor, including re­ muneration, shall be— (a) determined by agreement between the Minister and the Governor after consultation with the Board; and tabled at the ﬁrst Board meeting after they are agreed.

(3) No condition of the agreement shall have effect if it is incon­ sistent with the Bank’s functions or limits or prevents the Gov­ ernor from ensuring that those functions are carried out.
(b) 43 (1) (2) (3) 44 (1) (2) Deputy Governor There shall be either 1 Deputy Governor or 2 Deputy Govern­ ors of the Bank who shall be appointed by the Board on the recommendation of the Governor.

If 2 Deputy Governors are appointed, the Board shall, on the recommendation of the Governor, designate 1 of them as the Deputy Chief Executive of the Bank.
Subject to this Act, the Deputy Governor or Deputy Govern­ ors, as the case may be, shall perform such duties and functions as are determined by the Governor.

Conditions of employment of Deputy Governor The Deputy Governor or Deputy Governors, as the case may be, shall be appointed for a term of 5 years and may be reap­ pointed for a further term or terms, each of up to 5 years.
The conditions of employment, including remuneration, of the Deputy Governor or Deputy Governors, shall be determined by the Board and shall specify the grounds on which the Gov­ ernor may recommend that the Deputy Governor may be re­ moved from ofﬁce by the Board.

39 Part 3 s 45 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 45 (1) Removal of Deputy Governor from ofﬁce The Board may, on the recommendation of the Governor, re­ move any Deputy Governor from ofﬁce.
(2) A recommendation under subsection (1) may be made only on the grounds speciﬁed for that purpose in the conditions of employment of the Deputy Governor to whom the recommen­ dation relates.
46 Disqualiﬁcation of Governor and Deputy Governor (1) No person shall be appointed or reappointed, or continue to hold ofﬁce, as Governor, Deputy Governor, or a Deputy Gov­ ernor, if that person— (a) (b) is a member of Parliament; or is an employee of a registered bank or of a deposit taker as deﬁned in section 157C; or is 70 years of age or over; or is a chief executive of a Government department or an employee of a Government department, appointed under the State Sector Act 1988; or is a bankrupt who has not obtained a ﬁnal order of dis­ charge, or whose order of discharge has been suspended for a term not yet expired, or is subject to a condition not yet fulﬁlled; or is a person who is convicted of any offence punishable by imprisonment for a term of 2 years or more; or is a person who is convicted of any offence punishable by imprisonment for a term of less than 2 years and is sentenced to imprisonment for that offence; or is a person who would, but for the repeal of section 188 or section 189 or section 189A of the Companies Act 1955, be prohibited from being a director or promoter of, or in any way whether directly or indirectly taking part in the management of, a company within the mean­ ing of that Act: [Repealed] is prohibited from being a director or promoter of, or being concerned or taking part in the management of, an incorporated or unincorporated body under the Companies Act 1993, or the Securities Act 1978, or (c) (d) (e) (f) (g) (h) (i) (j) 40 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 3 s 47 (2) 47 (1) (2) (3) the Securities Markets Act 1988, or the Takeovers Act 1993.
[Repealed] (k) The Governor, the Deputy Governor, or a Deputy Governor, as the case may be, shall be deemed to have resigned ofﬁce if that person is prohibited from continuing to hold ofﬁce under this section.

Section 46(1)(b): amended, on 10 September 2008, by section 11 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

Section 46(1)(d): amended, on 25 January 2005, by section 19(1) of the State Sector Amendment Act (No 2) 2004 (2004 No 114).
Section 46(1)(h): substituted, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).

Section 46(1)(i): repealed, on 25 October 2006, by section 25 of the Securities Amendment Act 2006 (2006 No 46).

Section 46(1)(j): substituted, on 25 October 2006, by section 25 of the Securities Amendment Act 2006 (2006 No 46).
Section 46(1)(j): amended, on 10 September 2008, by section 15(2) of the Dis­ ability (United Nations Convention on the Rights of Persons with Disabilities) Act 2008 (2008 No 64).

Section 46(1)(k): repealed, on 10 September 2008, by section 15(3) of the Dis­ ability (United Nations Convention on the Rights of Persons with Disabilities) Act 2008 (2008 No 64).
Incapacity of Governor and Deputy Chief Executive In the case of the absence or incapacity of the Governor, the Deputy Chief Executive shall have all the duties, responsibil­ ities, and functions of the Governor under this Act and may exercise all the powers of the Governor under this Act.

In the case of the absence or incapacity of the Governor and the Deputy Chief Executive, the Minister shall, on the recom­ mendation of the Board, appoint— (a) (b) to act as Governor.
If the Minister is unable to make an appointment under sub­ section (2) by reason of the fact that, in the circumstances, it is impracticable for a meeting of the Board to be held, the Min­ ister shall appoint— (a) (b) a director of the Bank; or an ofﬁcer of the Bank— a director of the Bank; or an ofﬁcer of the Bank— 41 Part 3 s 48 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (4) to act as Governor for a period not exceeding 28 days.
The person appointed to act as Governor shall, so long as the appointment continues, have all the duties, responsibilities, and functions of the Governor under this Act and may exer­ cise all the powers of the Governor under this Act.

(5) While any of the following persons is acting as Governor in accordance with this section, he or she must be taken to be a director of the Bank: (a) (b) the Deputy Chief Executive: a person appointed to act as Governor, but who is not a director of the Bank.
Compare: 1964 No 134 s 18(2), (6), (7) Section 47(5): substituted, on 21 August 2003, by section 4 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
48 (1) (2) (3) a director of the Bank; or an ofﬁcer of the Bank; or any other person— Vacancy in ofﬁce of Governor If the ofﬁce of Governor becomes vacant, the Minister shall, on the recommendation of the Board, appoint— (a) (b) (c) to act as Governor for a period not exceeding 6 months or for the remainder of the Governor’s term, whichever is less.
Pending the appointment of a person to act as Governor under subsection (1), the Deputy Chief Executive shall act as Gov­ ernor for a period of 28 days or until a person is appointed under that subsection, whichever is less.

The person appointed to act as Governor or the Deputy Chief Executive, as the case may be, shall, so long as that person acts as Governor, have all the duties, responsibilities and functions of the Governor under this Act and may exercise all the powers of the Governor under this Act.
(4) A person who is appointed to act as Governor under this sec­ tion, but who is not a director of the Bank, shall, while acting as Governor, be deemed to be a director of the Bank.

Removal of Governor from ofﬁce The Governor­General may, by Order in Council, on the ad­ vice of the Minister, remove the Governor from ofﬁce.
49 (1) 42 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 3 s 49 (2) The Minister may tender advice under subsection (1) if the Minister is satisﬁed— (a) (b) (c) (d) (e) (f) (g) (h) that the Bank is not adequately carrying out its func­ tions; or that the Governor has not adequately discharged the re­ sponsibilities of ofﬁce; or that the Governor has obstructed, hindered, or pre­ vented the Board from discharging its responsibilities under this Act; or that the performance of the Governor in ensuring that the Bank achieves the policy targets ﬁxed under section 9 or section 12(7)(b) has been inadequate; or that, in a case where section 9(2) or subparagraph (i) or subparagraph (ii) of section 12(7)(b) applies, the Min­ ister and the Governor have not been able, within the time prescribed, to agree on new policy targets; or that a policy statement made pursuant to section 15 is inconsistent in a material respect with the Bank’s pri­ mary function or any policy target ﬁxed under section 9 or section 12(7)(b); or that the resources of the Bank have not been properly or effectively managed; or that the Governor, except as provided in his or her conditions of employment, has, while holding ofﬁce as Governor,— (i) (ii) (iii) held any other ofﬁce of proﬁt; or engaged in any other occupation for reward; or had an interest in a registered bank or a deposit taker as deﬁned in section 157C; or had an interest in a bank carrying on business outside New Zealand; or (iv) (3) (i) that the Governor is unable to carry out the responsibil­ ities of ofﬁce, or has been guilty of serious neglect of duty or misconduct.
The Minister may tender advice under this section whether or not the Board has made a recommendation under section 53(3) that the Governor be removed from ofﬁce.

Section 49(2)(h)(iii): amended, on 10 September 2008, by section 12 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
43 Part 3 s 50 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 Removal of Deputy Governor from ofﬁce by Order in Council The Governor­General may, by Order in Council, on the ad­ vice of the Minister, remove the Deputy Governor or a Deputy Governor from ofﬁce.
The Minister may tender advice under subsection (1) if the Minister is satisﬁed that the Deputy Governor— (a) (b) (c) [Repealed] has been guilty of misconduct; or has obstructed, hindered, or prevented the Governor from discharging the responsibilities of the Governor under this Act; or except as provided in his or her conditions of employ­ ment, has, while holding ofﬁce as Deputy Governor,— (i) (ii) (iii) held any other ofﬁce of proﬁt; or engaged in any other occupation for reward; or had an interest in a registered bank or a deposit taker as deﬁned in section 157C; or had an interest in a bank carrying on business outside New Zealand.
(iv) (d) If a person who holds ofﬁce as the Deputy Governor or as a Deputy Governor is removed from ofﬁce under this section, that person shall, unless that person’s conditions of employ­ ment provide for that person to cease to be employed as an of­ ﬁcer of the Bank in the event of removal from ofﬁce of Deputy Governor under this section, continue to be employed by the Bank.

Section 50(2)(a): repealed, on 21 August 2003, by section 5 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 50(2)(d)(iii): amended, on 10 September 2008, by section 13 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

Delegation The Governor may, at any time, delegate to the Deputy Chief Executive any of the Governor’s functions and powers includ­ ing the power of delegation under subsection (2).
The Governor may, at any time, delegate any of the Governor’s functions and powers— 50 (1) (2) (3) 51 (1) (2) 44 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 3 s 53 (a) if there is more than 1 Deputy Governor of the Bank, to the Deputy Governor who is not the Deputy Chief Executive: to any ofﬁcer of the Bank.
(b) The fact that the Deputy Chief Executive exercises any powers or functions of the Governor shall be conclusive proof of the authority to do so, and no person shall be concerned to inquire whether the occasion for doing so has arisen or has ceased.
(3) (4) A Deputy Governor who is not the Deputy Chief Executive and any ofﬁcer of the Bank who purports to act pursuant to any delegation under this section shall, in the absence of proof to the contrary, be presumed to be acting in accordance with the terms of the delegation.
Subject to any general or special directions given or conditions attached by the Governor, any person to whom any powers or functions are delegated under this section may exercise them in the same manner and with the same effect as if they had been conferred directly by this Act and not by delegation.

(5) (6) A delegation under this section may be revoked at any time.

(7) A delegation of any power or function under this section shall not prevent the exercise of the power or function by the Gov­ ernor.
(8) Any such delegation, until it is revoked, shall continue in force according to its tenor, notwithstanding that the Governor who made it may have ceased to hold ofﬁce.

Compare: 1964 No 134 s 18(3), (4) 52 53 (1) Board of directors Board of directors There shall be a board of directors of the Bank.
Duties of Board Subject to this Act, the Board of the Bank shall— (a) keep under constant review the performance of the Bank in carrying out— (i) its primary function; and 45 Part 3 s 53 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (ii) (iii) its functions relating to promoting the mainten­ ance of a sound and efﬁcient ﬁnancial system; and its other functions under this Act or any other enactment: keep under constant review the performance of the Gov­ ernor in discharging the responsibilities of that ofﬁce: keep under constant review the performance of the Gov­ ernor in ensuring that the Bank achieves the policy tar­ gets agreed to with the Minister under section 9 or sec­ tion 12(7)(b): determine whether policy statements made pursuant to section 15 are consistent with the Bank’s primary func­ tion and the policy targets agreed to with the Minister under section 9 or section 12(7)(b): keep under constant review the use of the Bank’s re­ sources.
(b) (c) (d) (e) The Board may give advice to the Governor on any matter relating to the performance of the Bank’s functions and the exercise of its powers.
If the Board is satisﬁed— (a) (b) (c) (d) (e) (f) that the Bank is not adequately carrying out its func­ tions; or that the Governor has not adequately discharged the re­ sponsibilities of that ofﬁce; or that the performance of the Governor in ensuring that the Bank achieves the policy targets ﬁxed under section 9 or section 12(7)(b) has been inadequate; or that a policy statement made pursuant to section 15 is inconsistent in a material respect with the Bank’s pri­ mary function or any policy target ﬁxed under section 9 or section 12(7)(b); or that the resources of the Bank have not been properly or effectively managed; or that the Governor, except as provided in his or her con­ ditions of employment has, while holding ofﬁce as Gov­ ernor,— (i) (ii) held any other ofﬁce of proﬁt; or engaged in any other occupation for reward; or (2) (3) 46 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 3 s 54 (iii) (iv) had an interest in a registered bank or a deposit taker as deﬁned in section 157C; or had an interest in a bank carrying on business outside New Zealand; or that the Governor is unable to carry out the responsibil­ ities of ofﬁce, or has been guilty of serious neglect of duty, or has been guilty of misconduct,— (g) the Board shall advise the Minister in writing and may rec­ ommend to the Minister that the Governor be removed from ofﬁce.
Section 53(1)(a): substituted, on 10 September 2008, by section 14(1) of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

Section 53(3)(f)(iii): amended, on 10 September 2008, by section 14(2) of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

53A Board must prepare annual report (1) (2) (3) The Board must prepare, for each ﬁnancial year, a report set­ ting out the Board’s assessment of the matters referred to in section 53(1).
The report must— (a) be signed by the chairperson and 1 other non­executive director; and be delivered to the Minister within 3 months after the end of the ﬁnancial year.

(b) The report stands referred, by virtue of this section, to the House of Representatives.

Section 53A: inserted, on 21 August 2003, by section 6 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 53A(3): substituted, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).
54 Membership of Board (1) The Board must consist of— (a) not less than 5, and not more than 7, non­executive dir­ ectors appointed by the Minister; and the Governor.

(b) The appointment of every non­executive director must be no­ tiﬁed in the Gazette.

(2) 47 Part 3 s 55 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (3) (4) (5) 55 (1) (2) The Governor is the only person employed in the service of the Bank who may be a director of the Bank.
The validity of any act of the Board is not affected by— (a) (b) (c) any vacancy in its membership; or any defect in the appointment of a director; or the fact that any non­executive director is disqualiﬁed from appointment under section 58.

Subsection (3) is subject to sections 47 and 48.

Section 54: substituted, on 21 August 2003, by section 7 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Term of ofﬁce of non­executive directors Except as provided in subsection (2) and in sections 57 to 59, every non­executive director shall hold ofﬁce for a term of 5 years.

The ﬁrst non­executive directors of the Bank appointed under this Act shall be appointed for terms, not exceeding 5 years, which ensure that not more than 2 of those directors retire in the same year.

(3) A non­executive director may from time to time be reap­ pointed.
(4) A non­executive director may at any time resign ofﬁce by no­ tice in writing to the Minister.
Considerations affecting appointment of non­executive directors In considering the appointment or reappointment of a person to the ofﬁce of non­executive director of the Bank, the Minister shall have regard, in relation to that ofﬁce, to— (a) (b) that person’s knowledge, skill, and experience; and the likelihood of any conﬂict between the interests of the Bank and any interests which that person has or rep­ resents.
Extraordinary vacancies If a non­executive director dies, or resigns or is removed from ofﬁce, that ofﬁce shall become vacant and the vacancy shall be deemed to be an extraordinary vacancy.
56 57 (1) 48 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 3 s 58 (2) A non­executive director shall be deemed to have resigned ofﬁce if that director— (a) is prohibited by section 58 from holding ofﬁce as a dir­ ector; or fails, without the Board’s consent, to attend 3 consecu­ tive meetings of the Board.

(b) (3) The manner of ﬁlling an extraordinary vacancy shall be the manner prescribed by section 54.
(4) A person who is appointed to ﬁll an extraordinary vacancy shall be appointed for the residue of the term of the vacating director.
58 Disqualiﬁcation of non­executive directors No person shall be appointed, or reappointed, to the ofﬁce of non­executive director of the Bank, or hold that ofﬁce, if that person— (a) (b) (c) is a member of Parliament; or is an employee of a registered bank; or is a bankrupt who has not obtained a ﬁnal order of dis­ charge, or whose order of discharge has been suspended for a term not yet expired, or is subject to a condition not yet fulﬁlled; or is a person who is convicted of any offence punishable by imprisonment for a term of 2 years or more; or is a person who is convicted of any offence punishable by imprisonment for a term of less than 2 years and is sentenced to imprisonment for that offence; or is a person who would, but for the repeal of section 188 or section 189 or section 189A of the Companies Act 1955, be prohibited from being a director or promoter of, or in any way whether directly or indirectly taking part in the management of, a company within the mean­ ing of that Act: [Repealed] is prohibited from being a director or promoter of, or being concerned or taking part in the management of, an incorporated or unincorporated body under the Companies Act 1993, or the Securities Act 1978, or (d) (e) (f) (g) (h) 49 Part 3 s 59 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 the Securities Markets Act 1988, or the Takeovers Act 1993.
[Repealed] (i) Compare: 1964 No 134 s 5; 1986 No 131 s 5 Section 58(f): substituted, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).

Section 58(g): repealed, on 25 October 2006, by section 25 of the Securities Amendment Act 2006 (2006 No 46).

Section 58(h): substituted, on 25 October 2006, by section 25 of the Securities Amendment Act 2006 (2006 No 46).
Section 58(i): repealed, on 10 September 2008, by section 15(4) of the Disabil­ ity (United Nations Convention on the Rights of Persons with Disabilities) Act 2008 (2008 No 64).

59 (1) (2) Removal from ofﬁce of non­executive directors The Governor­General may, by Order in Council, on the ad­ vice of the Minister, remove a non­executive director of the Bank from ofﬁce.
The Minister may tender advice under subsection (1) if the Minister is satisﬁed that the director— (a) is unable, or has failed, to perform the duties of a dir­ ector of the Bank under this Act; or has been guilty of misconduct; or has obstructed, hindered, or prevented the Governor from discharging the responsibilities of the Governor under this Act.
(b) (c) 59A Chairperson of Board (1) The non­executive directors of the Bank must appoint 1 of their number, by majority vote, to be chairperson of the Board.

(2) A chairperson holds that ofﬁce for a term of 12 months unless he or she— (a) resigns from that ofﬁce; or (b) is removed from that ofﬁce, at any time, by a majority vote of the non­executive directors; or ceases to be a non­executive director.
(3) A chairperson whose term of ofﬁce has expired— (c) (a) is eligible for reappointment so long as he or she con­ tinues to be a non­executive director; and 50 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 3 s 60A (b) continues to hold that ofﬁce until a successor is ap­ pointed.

(4) A vacancy in the ofﬁce of chairperson must be ﬁlled as soon as practicable in the manner set out in subsection (1).
Section 59A: inserted, on 21 August 2003, by section 8 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

60 Meetings of Board (1) The Board may meet as often as necessary, but must meet at least 6 times each ﬁnancial year.

The chairperson, or any 2 directors, may, at any time, call a meeting of the Board.

(2) (3) At any meeting of the Board, the quorum necessary for the transaction of business is 4 directors.
(5) (4) All questions arising at any meeting of the Board that cannot be resolved by consensus must be decided by a majority of the votes cast by the directors present.

If a vote is tied, the chairperson or, if the chairperson is not pre­ sent, the director presiding at the meeting has a casting vote.

Subject to this Act, the Board may regulate its own procedure.

Section 60: substituted, on 21 August 2003, by section 9 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(6) 60A Teleconference meeting A resolution is as valid and effectual as if it had been passed at a meeting of the Board duly called and constituted if— (a) a telephone or video conference of at least 4 directors is held; and notice of the conference has been given under section 60B and all reasonable efforts have been made to enable every director to participate in the conference; and each director who participates in the conference is able to individually express his or her views, and vote, on any question arising during the meeting; and the resolution is assented to by a majority of the direct­ ors participating in the conference.
(b) (c) (d) Section 60A: inserted, on 21 August 2003, by section 9 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

51 Part 3 s 60B Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 60B Directors to be notiﬁed of meetings (1) The person or persons calling a meeting must ensure that each director is given— (a) (b) at least 2 days’ notice of a meeting; or if a meeting is to be convened as a matter of urgency, reasonable notice of the meeting.
(2) The notice must— (a) (b) indicate the business to be transacted at the meeting; and be given in writing or, if the director to whom the notice is to be given agrees, orally.

(3) A notice in writing may be given by personal delivery, by post, or by electronic transmission (for example, by fax or email).
(4) At a meeting of the Board, any director may, with the leave of the chairperson or the majority of the directors present, raise any matter for the consideration of the Board, even though that matter has not been included in the notice of meeting under subsection (2)(a).

For the purposes of subsection (1), it is enough if the person or persons calling a meeting made all reasonable efforts to ensure each director was given the notice by the time required under that subsection.
Section 60B: inserted, on 21 August 2003, by section 9 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

(5) 60C Who presides at meetings of Board (1) At all meetings of the Board, the chairperson presides if he or she is present and willing to do so.
The non­executive directors present must appoint 1 of their number to be the chairperson for the meeting if— (a) (b) (c) the chairperson is not present; or there is no chairperson; or the chairperson is present, but is unwilling or unable to preside.

The person appointed under subsection (2) has and may exer­ cise all the powers, duties, and functions of the chairperson for the purposes of that meeting.
Section 60C: inserted, on 21 August 2003, by section 9 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(2) (3) 52 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 3 s 62 Directors to disclose interests 61 (1) A director who is interested in a contract or proposed contract with the Bank, or in the exercise or proposed exercise by the Bank of a power, shall declare that interest at every meeting of the Board at which that contract or proposed contract, or the exercise or proposed exercise of the power, is considered by the Board.
(2) A director who is interested in a contract or proposed contract (b) or in the exercise or proposed exercise of a power— (a) is not entitled to vote on a resolution that relates to the contract or proposed contract or the exercise or pro­ posed exercise of the power: shall not be counted for the purpose of determining whether a quorum is present when— (i) the contract or proposed contract or the exercise or proposed exercise of the power is considered by the Board; or a resolution relating to the contract or proposed contract or the exercise or proposed exercise of the power is voted on.
(ii) Section 61(2): substituted, on 8 August 1990, by section 3 of the Reserve Bank of New Zealand Amendment Act 1990 (1990 No 96).

62 (1) (2) (3) Committees The Board may, from time to time, appoint committees of 1 or more directors and may delegate any of its functions and powers, except this power of delegation, to such committees.
The Board may from time to time— (a) (b) discharge, alter, or reconstitute a committee; or discharge a member of a committee and appoint another member in that member’s place.

Subject to any direction given by the Board, the functions and powers delegated to a committee may be performed or exer­ cised with the same effect as if they had been conferred by this Act and not by delegation.
(4) A committee purporting to act under delegation shall, in the absence of proof to the contrary, be presumed to be acting in accordance with the delegation.

(5) A delegation may be revoked by the Board at any time.

53 Part 3 s 63 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (6) A delegation does not prevent the Board from performing or exercising its functions and powers.
(7) A delegation to a committee shall continue in force even though the membership of the Board or the committee changes.

Subject to this Act and to any directions given by the Board, a committee may regulate its own procedure.

(8) 63 (1) (2) Fees and expenses of non­executive directors The Bank shall pay the non­executive directors such fees as the Minister, after considering any recommendation by the Board, determines.
The Bank shall pay the non­executive directors travelling and other expenses incurred in carrying out their duties.

Compare: 1964 No 134 s 15; 1980 No 138 s 2(1) Part 4 Use of words ‘bank’, ‘banker’, and ‘banking’ Part 4: substituted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Limit on use of restricted words in name or title Heading: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Limit on use of restricted words in name or title 64 (1) No person may— (a) (b) (c) be formed, incorporated, or registered using a name or title that includes a restricted word; or change a person’s name or title to a name or title that includes a restricted word; or carry on any activity directly or indirectly in New Zealand (whether through an agent or otherwise) using a name or title that includes a restricted word.
Subsection (1) does not apply to— (a) (b) the Bank; or a registered bank; or (2) 54 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 4 s 65 (c) (d) any person who is authorised by the Bank under section 65 to use a name or title that includes a restricted word but only to the extent that the person is acting within the scope of that authorisation; or any person who is exempted under section 66 but only to the extent that the person is acting within the scope of that exemption.
(3) Despite subsection (2)(b), a registered bank must not use, without an authorisation from the Bank under section 65(1)(e), a name or title that includes a restricted word in respect of a unit trust of which the registered bank is a trustee or a manager within the meaning of the Unit Trusts Act 1960.

Subsection (2)(b) does not extend to a person carrying on any activity by means of, or through the agency of, a registered bank.
(4) (5) A person commits an offence if the person contravenes this (6) (7) 65 (1) section.

The penalty for an offence against this section is set out in section 66M.

In this section (except subsection (1)(a) to (c)) and sections 65 and 66, use, in relation to a restricted word, means act in a manner prohibited by subsection (1)(a) to (c) (as the context requires).

Section 64: substituted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Bank may authorise use of restricted words in name or title The Bank may authorise any of the following persons to use a name or title that includes a restricted word: (a) a person licensed or registered as a bank in a country other than New Zealand: a class of persons licensed or registered as banks in a country other than New Zealand: a person that is formed, incorporated, or registered to represent the interests of— (i) (ii) an associated person of a registered bank: any registered bank; or any person connected with a registered bank: (b) (c) (d) 55 Part 4 s 65 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (e) a registered bank or an associated person of a registered bank that intends to use a name or title that includes a restricted word in respect of a unit trust of which the reg­ istered bank or the associated person is a trustee or man­ ager within the meaning of the Unit Trusts Act 1960: a person that is not a ﬁnancial institution.
(f) In the case of an authorisation under subsection (1)(a), the Bank must— (a) give the authorisation by notice in writing to the person; and impose both of the following conditions: (i) (b) the condition that the person use a particular name or title approved by the Bank; and the condition that the person carry on in New Zealand only those activities speciﬁed by the Bank in the notice.
(ii) In the case of an authorisation under subsection (1)(b), the Bank must— (a) (b) give the authorisation by notice in the Gazette ; and impose the condition that each member of the class of persons carries on in New Zealand only those activities speciﬁed by the Bank in the notice in the Gazette in respect of the class to which that member belongs.
In the case of an authorisation under subsection (1)(c) to (f), the Bank must— (a) give the authorisation by notice in writing to the person; and impose the condition that the person uses a particular name or title approved by the Bank.

(b) (2) (3) (4) (6) (5) Nothing in subsections (2) to (4) prevents the Bank from im­ posing any other conditions to the authorisation that it thinks ﬁt.
The Bank may, at any time, revoke an authorisation, or vary or remove a condition of an authorisation, or add a condition of an authorisation, by,— (a) in the case of an authorisation that relates to a person, notice in writing to the person; or in the case of an authorisation that relates to a class of persons, notice in the Gazette.
(b) 56 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 4 s 66B (7) Any authorisation given under this section applies to any other person (for example, the Registrar of Companies), but only to the extent that the acts of that person are necessary to allow the person to whom the authorisation is given to have the beneﬁt of that authorisation.

Section 65: substituted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
66 Certain persons exempt from application of section 64 Nothing in section 64(1) applies to a person using a name or title that includes a restricted word if— (a) the restricted word signiﬁes a geographic place name or the name of a natural person; and the name or title is not used in respect of a ﬁnancial institution, or could not reasonably be mistaken for the name or title of a ﬁnancial institution.
(b) Section 66: substituted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

66A Application of Companies Act 1993 Nothing in sections 65 and 66 affects or limits the following sections of the Companies Act 1993: (a) (b) sections 20 to 24 (which relate to company names): section 333 (which relates to the reservation of the name of an overseas company).
Section 66A: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Limit on use of restricted words in advertisement Heading: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

66B Limit on use of restricted words in advertisement (1) No speciﬁed person may use a restricted word in any advertise­ ment unless the advertisement contains a statement that com­ plies with subsection (2).
The statement must— (a) state that the speciﬁed person is not a registered bank; and (2) 57 Part 4 s 66C Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (b) be communicated in a manner that ensures, as far as is reasonably practicable, that the statement attracts the attention of the persons to whom the advertisement is directed.

(3) A speciﬁed person commits an offence if the speciﬁed person (4) (5) contravenes this section.
The penalty for an offence against this section is set out in section 66M.

In this section and sections 66D and 66M,— advertisement — (a) means any thing used to promote— the interests of a speciﬁed person; or the services or products of that person; and (i) (ii) includes a trade mark of a speciﬁed person; but does not include the name or title of a speciﬁed person (b) (c) speciﬁed person means a person that— is a ﬁnancial institution; and (a) (b) is not a registered bank.
Section 66B: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Powers of Bank in relation to use of restricted words Heading: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
66C Power to obtain information (1) If the Bank believes or has reasonable grounds for believing that there has been a contravention of section 64 or section 66B, the Bank, for the purpose of determining whether there has been a contravention of either of those sections, may, by notice in writing, require any person to— (a) produce to the Bank a document in the person’s posses­ sion, custody, or control: supply the Bank with information or an explanation about any information.
(b) The Bank may exercise the power in subsection (1) only if the Bank has reasonable cause to believe that the person may (2) 58 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 4 s 66E have information or documents relevant to the purpose of that subsection.

(3) A person to whom a notice is given must comply with the notice within the period of time speciﬁed by the Bank (which period must be reasonable in the circumstances).
(4) A person commits an offence if, without lawful justiﬁcation or (5) excuse, the person fails to comply with this section.

The penalty for an offence against this section is set out in section 66M.

Section 66C: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
66D Power to require change of name, etc (1) If the Bank is satisﬁed on reasonable grounds that a person has contravened, or is contravening, section 64 or section 66B, it may, by notice in writing, require that person to— (a) change that person’s name or title to a name or title that does not include a restricted word: cease using a restricted word in an advertisement: cease carrying on any activity using a name or title that includes a restricted word.
(b) (c) (2) The Bank may require any person to whom a notice is given to supply the Bank with information or documents that may be necessary for the Bank to verify that the notice has been complied with.

(3) A person must comply with a requirement of the Bank under this section within the period of time speciﬁed by the Bank (which period must be reasonable in the circumstances).

(4) A person commits an offence if the person fails to comply with (5) this section.
The penalty for an offence against this section is set out in section 66M.

Section 66D: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
66E Power to appoint person to enter and search premises (1) This section applies if the Bank has reasonable cause to be­ lieve— 59 Part 4 s 66F Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (a) (b) that any information or documents supplied to the Bank under section 66C or section 66D(2) are false or mis­ leading in a material particular; or that a person has failed to comply with any require­ ment to supply information or documents under section 66C or section 66D(2).
(2) If this section applies, the Bank may appoint, in writing, any suitably qualiﬁed person to enter and search any premises.

(3) A person appointed under subsection (2) may— (a) (b) inspect, remove, and take copies of any documents re­ lating to the use of a restricted word that may be in the possession, custody, or control of any person; and if necessary, require the reproduction in usable form of any information recorded or stored in those documents.
(4) A person commits an offence if, without lawful justiﬁcation or excuse, the person hinders, obstructs, or delays the conduct of any search by a person appointed under subsection (2).

The penalty for an offence against this section is set out in section 66M.

Section 66E: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(5) 66F Requirements on entering and searching premises (1) A person appointed under section 66E(2) must not enter and search any premises, or inspect, remove, or take copies of any documents in the possession, custody, or control of any person, or require the reproduction in usable form of any information recorded or stored in any documents, unless— (a) the occupier of the premises, or the person who has pos­ session, custody, or control of the documents, agrees; or the person appointed under section 66E(2) obtains a warrant under section 66I.
(b) (2) A person authorised to enter and search any premises under a warrant must, on ﬁrst entering those premises and, if re­ quested, at any subsequent time, produce— (a) that person’s authority to enter the evidence of premises; and evidence of that person’s identity.

(b) 60 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 4 s 66G Section 66F: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
66G Conﬁdentiality of information or documents (1) This section applies to information or documents supplied or disclosed to, or obtained by, the Bank for the purposes of, or in connection with, the exercise of powers conferred by this Part.
The Bank, any ofﬁcer or employee of the Bank, or a person appointed under section 66E(2) must not publish or disclose any information or documents to which this section applies except— (a) (2) with the consent of the person to whom the information relates or of the person to whom the information is con­ ﬁdential; or to the extent that the information is available to the pub­ lic under any Act, including the Ofﬁcial Information Act 1982, or is otherwise publicly available; or for the purposes of, or in connection with, the exercise of powers conferred by this Part; or in connection with any investigation or inquiry (whether or not preliminary to any proceedings) in respect of, or any proceedings for, an offence against this Act or any other Act; or to any central bank, authority, or body in any other country that exercises functions that correspond with, or are similar to, those conferred on the Bank under this Act for the purposes of the exercise by that central bank, authority, or body of those functions; or to any person who the Bank is satisﬁed has a proper interest in receiving the information.
(b) (c) (d) (e) (f) (3) The Bank, any ofﬁcer or employee of the Bank, or a person appointed under section 66E(2) must not publish or disclose any information or documents under subsection (2)(e) or (f) unless the Bank is satisﬁed that satisfactory provision exists to protect the conﬁdentiality of that information or those docu­ ments.

(4) A person referred to in subsection (5) commits an offence if the person contravenes this section.
61 Part 4 s 66H Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (5) (6) any ofﬁcer or employee of the Bank; or a person appointed under section 66E(2).

The persons are— (a) (b) The penalty for an offence against this section is set out in section 66M.

Section 66G: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
66H Limits on further disclosure of information or documents published or disclosed under section 66G (1) A person to whom any information or documents are pub­ lished or disclosed under section 66G must not publish, dis­ close, or use that information or those documents unless the publication, disclosure, or use is,— (a) (b) (c) in the case of a publication or disclosure under section 66G(2)(a), in accordance with the terms and conditions of the consent referred to in that paragraph: in the case of a publication or disclosure under section 66G(2)(c),— (i) for the purposes of, or in connection with, the exercise of powers conferred by this Part; and in accordance with any conditions that the Bank may have imposed: (ii) in the case of a publication or disclosure under section 66G(2)(f),— (i) authorised by the Bank and in accordance with any conditions that the Bank may have imposed; or necessary or desirable for the performance of any function or exercise of any power conferred by any enactment.
(ii) (2) A person commits an offence if the person contravenes this section.

The penalty for an offence against this section is set out in section 66M.

Section 66H: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(3) 62 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 4 s 66K 66I Procedure for obtaining warrants A Judge of the High Court may issue a warrant to a person appointed under section 66E(2) if the Judge is satisﬁed, on application in writing made on oath, that there are reasonable grounds for believing — (a) that any information or documents supplied to the Bank under section 66C or section 66D(2) are false or mis­ leading in a material particular; or that a person has failed to comply with any require­ ment to supply information or documents under section 66C or section 66D(2).
(b) Section 66I: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
66J Effect of warrant (1) A warrant authorises the person named in it, at any time and, if necessary, by force, to— (a) (b) enter and search the premises speciﬁed in the warrant: inspect, remove, and take copies of documents that the person executing the warrant believes on reasonable grounds may be relevant: if necessary, require any information recorded or stored in those documents to be reproduced in usable form.
(c) (2) (3) The warrant continues in force for a period of 1 month or until the purpose for which it was granted has been satisﬁed, whichever is the lesser.

Every person named in the warrant must, as soon as practicable after removing any documents from any premises, supply a copy of the documents to the person from whose possession, custody, or control the documents were removed.

Section 66J: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
66K Effect of proceedings (1) If any person commences any proceedings in any court in re­ spect of the exercise of any powers conferred by section 66E, until a ﬁnal decision in relation to those proceedings is given, the powers may be, or may continue to be, exercised as if the proceedings had not been commenced, and no person is ex­ 63 Part 4 s 66L Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (2) cused from fulﬁlling any obligation under that section by rea­ son of those proceedings.
This section applies despite the provisions of any other Act or any rule of law.

Section 66K: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
66L Effect of ﬁnal decision that exercise of powers under (1) (2) section 66E unlawful This section applies if— (a) (b) any power conferred by section 66E has been exercised; and that exercise has been declared to be unlawful in a ﬁnal decision given in proceedings in respect of the exercise of that power.
The Bank must ensure that, as soon as practicable after the decision is given,— (a) any information supplied by a person and any docu­ ments or records obtained as a result of the unlawful exercise of the power are returned to the person pre­ viously having possession, custody, or control of those documents or records, and any copies of those docu­ ments or records are destroyed: any documents or records derived from, or based on, the documents or records are destroyed.
(b) (3) No information, documents, or records obtained as a result of the unlawful exercise of the power are admissible in evidence in any proceedings.

Section 66L: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Penalty for offences against this Part Heading: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
66M Penalty for offences (1) A person who commits an offence against any of the provi­ sions listed in subsection (2) is liable, on summary convic­ tion,— 64 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 67A (a) (b) in the case of an individual, to imprisonment for a term not exceeding 12 months or to a ﬁne not exceeding $100,000; and in the case of a body corporate, to a ﬁne not exceeding $1,000,000.
(2) The provisions are— (a) section 64 (which relates to the use of restricted words in a name or title): section 66B (which relates to the use of restricted words in an advertisement): section 66C (which relates to failing to produce a docu­ ment or supply information to the Bank after being re­ quired to do so): section 66D (which relates to failing to change a per­ son’s name or title or cease using a restricted word in an advertisement or cease carrying on any activity after being required to do so): section 66E (which relates to obstructing a person ap­ pointed to conduct a search): section 66G (which relates to breaches of conﬁdential­ ity provisions): section 66H (which relates to further disclosures of in­ formation).
(b) (c) (d) (e) (f) (g) Section 66M: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Part 5 Registration of banks and prudential supervision of registered banks 67A Interpretation in this Part In this Part, unless the context otherwise requires,— action that is likely to have a detrimental effect on ﬁnancial system stability in Australia includes an action that prevents or interferes with any outsourcing arrangement authorised deposit­taking institution has the same meaning as in section 5(1) of the Banking Act 1959 of the Parliament of the Commonwealth of Australia 65 Part 5 s 67 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 outsourcing arrangement means an arrangement for busi­ ness, or functions relating to any business, of an authorised deposit­taking institution to be carried on by a person other than that authorised deposit­taking institution prescribed Australian ﬁnancial authority means an Aus­ tralian public authority prescribed by regulations made under section 68A.
Section 67A: inserted, on 15 December 2006, by section 5 of the Reserve Bank of New Zealand Amendment Act 2006 (2006 No 51).

Registration and prudential supervision The Bank shall in accordance with this Part— (a) (b) Compare: 1964 No 134 s 38I; 1986 No 131 s 10 register banks; and undertake prudential supervision of registered banks.
Exercise of powers under this Part The powers conferred on the Governor­General, the Minister, and the Bank by this Part shall be exercised for the purposes of— (a) promoting the maintenance of a sound and efﬁcient ﬁ­ nancial system; or avoiding signiﬁcant damage to the ﬁnancial system that could result from the failure of a registered bank.
(b) 67 68 Compare: 1964 No 134 s 38J; 1986 No 131 s 10 68A Trans­Tasman co­operation (1) When performing functions or duties or exercising powers under this Part, the Bank must— (a) support prescribed Australian ﬁnancial authorities in meeting their statutory responsibilities relating to pru­ dential regulation and ﬁnancial system stability in Aus­ tralia; and to the extent reasonably practicable, avoid any action that is likely to have detrimental effect on ﬁnancial sys­ tem stability in Australia.
(b) (2) Subsection (3) applies where the Bank has reasonable cause to believe that an action it proposes to take is an action that is 66 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 68B (3) likely to have a detrimental effect on ﬁnancial system stability in Australia.
The Bank must, to the extent it considers reasonably practic­ able in the circumstances having regard to urgency or other similar constraint, consult with and consider the advice of every prescribed Australian ﬁnancial authority it considers to be relevant in the circumstances before taking the proposed action.

(5) (4) No performance of a function or duty or exercise of a power is invalid by reason only of a failure to comply with the pro­ visions of this section.
The Governor­General may, by Order in Council, on the ad­ vice of the Minister given in accordance with a recommen­ dation of the Bank, make regulations prescribing Australian ﬁnancial authorities for the purposes of this section and sec­ tion 121A.

Section 68A: inserted, on 15 December 2006, by section 6 of the Reserve Bank of New Zealand Amendment Act 2006 (2006 No 51).
68B Bank to have regard to directions about government (1) (2) (3) policy objectives The Minister may direct the Bank to have regard to a govern­ ment policy that relates to the Bank’s functions under this Part and Parts 5B to 5D.

The Bank must have regard to every direction given by the Minister under this section.

The Minister must consult with the Bank before giving a di­ rection.
(4) A direction must— (a) (b) be set out in a written statement signed by the Minister; and as soon as practicable after it is given, be— (i) presented to the House of Representatives by the Minister; and published in the Gazette.
(ii) (5) The Minister may not give a direction that requires the per­ formance or non­performance of a particular act by the Bank, 67 Part 5 s 69 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 or any employee or ofﬁce holder of the Bank, or the bringing about of a particular result, in respect of a particular person.

(6) A direction may be amended, revoked, or replaced in the same way as it may be given.
Compare: 2004 No 115 ss 104(1), 113(1)(b), 114, 115(2) Section 68B: inserted, on 10 September 2008, by section 15 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

Registration of banks 69 (1) (2) (3) Register The Bank must keep a public register of persons known as registered banks.

The Bank must determine the form of the register and may amend the form from time to time as it considers necessary.
The Bank must take all reasonable steps to ensure that the in­ formation contained in the public register is available to mem­ bers of the public at all reasonable times.

Section 69: substituted, on 1 November 2006, by section 7 of the Reserve Bank of New Zealand Amendment Act 2006 (2006 No 51).

Application for registration 70 (1) Any person may apply to the Bank to be registered as a regis­ tered bank.
(2) Applications to be registered as a registered bank shall be— (a) made in such manner as may be speciﬁed by the Bank; (b) and accompanied by payment of such fee as may be deter­ mined by the Bank from time to time and approved by the Minister by notice in the Gazette.

(3) Every person who makes an application under this section shall furnish to the Bank such information as may be required by the Bank to assist it in determining the application.
(4) A person commits an offence if the person provides false or misleading information to the Bank for the purposes of an ap­ plication.

The penalty for an offence against this section is set out in section 156AC.

Compare: 1964 No 134 s 38C(3), (4), (5); 1986 No 131 s 10 (5) 68 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 71 Section 70(4): added, on 21 August 2003, by section 11 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 70(5): added, on 21 August 2003, by section 11 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Voluntary removal of name from register 71 (1) A registered bank may, by notice in writing, require the Bank to remove the name of that registered bank from the register on a date speciﬁed in the notice, not being a date earlier than 28 days, or such shorter period as the Bank may agree to, after the date the notice is given.
The registered bank shall, within 7 days of giving that notice, give public notice of the fact that it had given the notice to the Bank.

The Bank must— (a) remove the name of the registered bank from the regis­ ter on the date speciﬁed in the notice; and (2) (3) (b) within 7 days after that date, arrange for the publication in the Gazette of a notice that indicates the removal of that name.
(4) (5) (c) (b) Except with the consent of the Bank, a registered bank shall not give a notice under subsection (1) if— (a) a notice has been given to that registered bank under section 99(2)(a); or a person has been appointed under section 99(2)(b) to exercise, in relation to that registered bank, the powers conferred by that paragraph; or a person has been appointed under section 101 to carry out an investigation of the affairs of that registered bank; or a direction is in force under section 113 in relation to that registered bank; or (e) the registered bank is subject to statutory management.
The Bank may refuse to remove the name of a registered bank from the register if— (a) a notice has been given to the registered bank under section 99(2)(a); or (d) 69 Part 5 s 72 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (c) (b) a person has been appointed under section 99(2)(b) to exercise, in relation to that registered bank, the powers conferred by that paragraph; or a person has been appointed under section 101 to carry out an investigation into the affairs of that registered bank; or a direction is in force under section 113 in relation to that registered bank; or (e) the registered bank is subject to statutory management.
Section 71(3): substituted, on 21 August 2003, by section 12 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

(d) Section 71(4)(a): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 71(4)(b): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 71(4)(d): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 71(5)(a): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 71(5)(b): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 71(5)(d): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

72 Offence for person who is not registered bank to hold itself out to be registered bank (1) A person commits an offence if the person— (a) (b) is not a registered bank; and uses any name, title, trade mark, style, designation, or description that represents or implies that the person is a registered bank.
The penalty for an offence against this section is set out in section 156AC.

Section 72: substituted, on 21 August 2003, by section 13 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Determination of applications The Bank shall not register any person as a registered bank unless it is satisﬁed that the business carried on, or proposed to be carried on, by the applicant consists of, or to a substantial extent consists of, or will, or will to a substantial extent, consist (2) 73 (1) 70 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 73A (2) (3) (4) (e) (c) (d) (b) of, the borrowing and lending of money, or the provision of other ﬁnancial services, or both.
In determining an application under section 70, the Bank must have regard to all of the following: (a) the incorporation and ownership structure of the appli­ cant; and the size and nature of the applicant’s business or pro­ posed business, or any part of the applicant’s business or proposed business; and the ability of the applicant to carry on its business or proposed business in a prudent manner; and the standing of the applicant in the ﬁnancial markets; and the suitability for their positions of the directors and senior managers of the applicant; and the standing of the owner of the applicant in the ﬁnan­ cial markets; and (g) any other matters that may be prescribed in regulations.
For the purposes of subsection (2)(g), the Governor­General may, from time to time, by Order in Council, on the advice of the Minister given in accordance with a recommendation of the Bank, make regulations prescribing additional matters to which the Bank shall have regard in considering applications for registration.

The Bank shall give notice in the Gazette of the registration of any person as a registered bank under this section.
Compare: 1964 No 134 s 38D(1), (2), (4); 1986 No 131 s 10 (f) Section 73(2): substituted, on 21 August 2003, by section 14 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
73A Further matters to which Bank must have regard if applicant is overseas person In determining an application from an overseas person, the Bank must, in addition to the matters set out in section 73(2), have regard to all of the following: (a) the law and regulatory requirements of the applicant’s home jurisdiction that relate to— 71 Part 5 s 73B Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (i) (ii) (iii) (iv) (v) the recognition and priorities of claims of credit­ ors or classes of creditors in the event of the in­ solvency of the applicant; and the disclosure by the applicant of ﬁnancial and other information of the kind that a registered bank must disclose under section 81; and the accounting and auditing standards applicable to the applicant; and the duties and powers of directors of the appli­ cant; and the licensing, supervision of the applicant; and registration, authorisation, and (b) the nature and extent of the ﬁnancial and other informa­ tion disclosed to the public by the applicant.
Section 73A: inserted, on 21 August 2003, by section 15 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
73B Further matters to which Bank must have regard if applicant is subsidiary of overseas person In determining an application from a subsidiary of an overseas person, the Bank must, in addition to the matters set out in section 73(2), have regard to all of the following: (a) (ii) the law and regulatory requirements of the home juris­ diction of the overseas person that relate to— (i) the disclosure by the overseas person of ﬁnancial and other information of the kind that a registered bank must disclose under section 81; and the accounting and auditing standards applicable to the overseas person; and the duties and powers of the directors of the over­ seas person; and the licensing, supervision of the overseas person; and the nature and extent of the ﬁnancial and other informa­ tion disclosed to the public by the overseas person.
registration, authorisation, and (iii) (iv) (b) Section 73B: inserted, on 21 August 2003, by section 15 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

72 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 74 Conditions of registration 74 (1) A person may be registered as a registered bank uncondition­ (2) (3) (4) ally or subject to any conditions that the Bank may impose.
The Bank may, by notice in writing to a registered bank,— (a) impose conditions of registration (whether or not the registration of the bank is subject to conditions); or vary, remove, add to, or substitute any conditions of registration.
(b) (b) (c) The Bank must not exercise a power referred to in subsection (2) unless— (a) the Bank gives the registered bank not less than 7 days’ notice in writing of the Bank’s intention to do so; and the notice contains, or is accompanied by, a statement of the Bank’s reasons; and the registered bank has a reasonable opportunity to make submissions to the Bank; and the Bank has regard to those submissions.
(d) The Bank may impose conditions that relate to any of the fol­ lowing matters: (a) the matters to which the Bank must have regard under sections 73 to 73B in determining an application for registration, including any matters prescribed by regu­ lations made under section 73(2)(g); and the matters referred to in section 78, including any mat­ ters prescribed by regulations made under that section; and the matters referred to in section 81, including any mat­ ters prescribed by an Order in Council made under that section.
(b) (c) (5) A registered bank commits an offence if the registered bank fails to comply with a condition of registration imposed by the Bank under this section.

The penalty for an offence against this section is set out in section 156AB.

Section 74: substituted, on 21 August 2003, by section 16 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(6) 73 Part 5 s 75 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 75 76 (1) (2) Publication of principles The Bank shall publish the principles on which it acts, or pro­ poses to act,— (a) (b) in determining applications for registration; and in imposing, varying, removing, or adding to conditions of registration.
Registration of certain persons Every person, that immediately before the commencement of this Act, was a registered bank, or deemed to be a registered bank, pursuant to Part 5A of the Reserve Bank of New Zealand Act 1964, shall continue to be a registered bank as if that per­ son had been registered under this Act.
If that person was registered, or deemed to have been regis­ tered, under that Act subject to any conditions, those condi­ tions shall continue to apply as if they had been imposed under section 74 of this Act.

(3) Nothing in subsection (1) or subsection (2) limits any other provisions of this Part.

Cancellation of registration The Minister may, by notice in writing to the Bank given in ac­ cordance with a recommendation of the Bank, direct the Bank to cancel the registration of a registered bank.
The Bank shall not make a recommendation under subsection (1) unless it is satisﬁed— (a) that the registered bank was registered on information that was false or misleading in a material particular; or that, in relation to a registered bank,— (i) (b) there has been a change in any of the matters to which the Bank must have regard under sec­ tion 73 (including a change in any of the mat­ ters prescribed by regulations made under section 73(2)(g)); and the Bank considers the change to be materially adverse to the registered bank’s standing or ﬁnan­ cial position; or (ii) (ba) that, in relation to a registered bank,— 77 (1) (2) 74 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 77 (i) (ii) there has been a transfer of direct or indirect con­ trol of the registered bank; and the Bank considers the transfer to be materially adverse to the registered bank’s standing or ﬁnan­ cial position; or (bb) (c) (d) (e) (f) (g) that, in relation to a registered bank,— (i) there has been a change in any of the matters to which the Bank must have regard under section 73A or section 73B; and the Bank considers the change to be materially adverse; or (ii) if the registered bank is a body corporate— (i) that an order has been made for the winding up of that body corporate; or that a resolution has been passed for the volun­ tary winding up of that body corporate; or that a receiver has been appointed in respect of that body corporate; or (ii) (iii) [Repealed] that a condition of registration has not been complied with; or that the registered bank has not carried on its business in a prudent manner; or that the registered bank has failed to comply with an obligation imposed under this Act or imposed by regu­ lations made under this Act.
(3) (b) The Bank shall not make a recommendation under subsection (1) unless— (a) the Bank gives the registered bank not less than 7 days’ notice in writing of the Bank’s intention to consider making the recommendation; and the notice contains or is accompanied by a statement of the Bank’s reasons; and the registered bank has a reasonable opportunity to make submissions to the Bank; and the Bank has regard to those submissions.
(4) A copy of any written submission made by the registered bank shall be sent to the Minister together with any recommendation by the Bank.
(d) (c) 75 Part 5 s 77A Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (5) The Bank must, as soon as practicable after receiving a notice from the Minister under subsection (1),— (a) inform the registered bank in writing of— (i) the fact that the Minister has directed the Bank to cancel the registration of the registered bank; and the grounds on which the Bank’s recommenda­ tion to cancel the registration of the registered bank was made; and the date of cancellation of the registration of the registered bank; and (ii) (iii) (b) publish a notice of the cancellation in the Gazette.
Compare: 1964 No 134 s 38F(1), (2), (3)(a)–(e), (g), (4), (5); 1986 No 131 s 10 Section 77(1): substituted, on 21 August 2003, by section 17(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 77(2)(b): substituted, on 21 August 2003, by section 17(2) of the Re­ serve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 77(2)(ba): inserted, on 21 August 2003, by section 17(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 77(2)(bb): inserted, on 21 August 2003, by section 17(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 77(2)(d): repealed, on 21 August 2003, by section 17(3)(a) of the Re­ serve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 77(2)(g): amended, on 21 August 2003, by section 17(3)(b) of the Re­ serve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 77(3): substituted, on 24 March 1995, by section 4 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).

Section 77(5): substituted, on 21 August 2003, by section 17(4) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
77A Changes of ownership (1) A person must obtain the written consent of the Bank before giving effect to a transaction if,— (a) in the case of a person who does not have a signiﬁcant inﬂuence over a registered bank, the transaction would result in that person acquiring a signiﬁcant inﬂuence over that registered bank; or in the case of a person who has, with the consent of the Bank, acquired a signiﬁcant inﬂuence over a regis­ tered bank, the transaction would result in that person increasing the level of the person’s signiﬁcant inﬂuence (b) 76 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 78 (c) over that registered bank beyond the level permitted in the existing consent; or in the case of a person who acquired a signiﬁcant in­ ﬂuence over a registered bank before the commence­ ment of the Reserve Bank of New Zealand Amendment Act 2003, the transaction would result in that person in­ creasing the person’s signiﬁcant inﬂuence over that reg­ istered bank beyond the existing level.
(2) (3) The Bank may, in giving its consent,— (a) specify the level of signiﬁcant inﬂuence that a person may have or acquire over any registered bank without the need for a further consent; and impose any terms and conditions the Bank thinks ﬁt.

(b) The Bank may, at any time, by notice in writing, vary or re­ voke— (a) (b) a consent given under this section; or any term or condition of a consent.

(4) A person commits an offence if the person fails to comply with (5) (6) subsection (1).
The penalty for an offence against this section is set out in section 156AA.

For the purposes of this section, a reference to a registered bank is a reference to a registered bank that is not an overseas person.

Section 77A: inserted, on 21 August 2003, by section 18 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

77B Effect of section 77A on contracts, etc Nothing in section 77A invalidates any contract, or transfer of ownership, made without the written consent of the Bank.
Section 77B: inserted, on 21 August 2003, by section 18 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
78 (1) Carrying on business in prudent manner In— (a) having regard, under section 73(2)(c), to the ability of an applicant for registration as a registered bank to carry on its business or proposed business in a prudent man­ ner; or 77 Part 5 s 78 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (b) under section section determining 113(1)(e) that a registered bank has not carried on its business in a prudent manner,— 77(2)(f) or the Bank shall conﬁne its consideration to the following mat­ ters: (c) capital in relation to the size and nature of the business or proposed business: loan concentration or proposed loan concentration and risk exposures or proposed risk exposures: separation of the business or proposed business from other business and from other interests of any person owning or controlling the applicant or registered bank: internal controls and accounting systems or proposed internal controls and accounting systems: risk management systems and policies or proposed risk management systems and policies: arrangements for any business, or functions relating to any business, of the applicant or registered bank to be carried on by any person other than the applicant or the registered bank: such other matters as may from time to time be pre­ scribed in regulations.
(d) (e) (f) (fa) (fb) (g) The Governor­General may, from time to time, by Order in Council, on the advice of the Minister given in accordance with a recommendation of the Bank, make regulations pre­ scribing additional matters for the purposes of subsection (1)(g).

The Governor may, from time to time, issue, in such manner as the Governor may determine, guidelines for the purpose of interpreting any of the matters referred to in paragraphs (c) to (g) of subsection (1).
Section 78(1)(b): amended, on 21 August 2003, by section 19(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 78(1)(fa): inserted, on 21 August 2003, by section 19(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 78(1)(fb): inserted, on 21 August 2003, by section 19(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 78(3): amended, on 24 March 1995, by section 5 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).

(2) (3) 78 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 81 79 80 (1) (2) Annual fee [Repealed] Section 79: repealed, on 1 January 1996, by section 6(1) of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
Credit rating of registered banks The Bank may, by notice in writing to any registered bank or to all registered banks or to all members of any class of registered banks, require each of those banks to— (a) obtain a rating of its creditworthiness or ﬁnancial condi­ tion by a person or organisation nominated or approved by the Bank; and (b) maintain a current rating of the type referred to in para­ graph (a).
The Bank may require a registered bank to publish the reg­ istered bank’s current rating, and all the qualiﬁcations to that rating, in the manner and with the frequency that the Bank di­ rects.

(3) A person commits an offence if the person fails to comply with (4) 81 (1) this section.

The penalty for an offence against this section is set out in section 156AC.

Section 80: substituted, on 21 August 2003, by section 20 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Financial disclosure by registered banks Public disclosure of information or data by registered banks The Governor­General may, by Order in Council made on the advice of the Minister that is given in accordance with a rec­ ommendation of the Bank, prescribe information or data that must be published by— (a) (b) all registered banks; or any class of registered banks speciﬁed in the order.
(2) A registered bank to which an Order in Council applies must publish the information or data speciﬁed in the order— (a) in a document to be known as a disclosure statement; and 79 Part 5 s 81AA Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (3) (4) (5) (b) in the manner and with the frequency speciﬁed in the order.
The information or data that may be prescribed in an Order in Council includes, without limitation, information or data about— (a) (b) (c) (d) the corporate matters of a registered bank; and the ﬁnancial matters of a registered bank; and the prudential matters of a registered bank; and any other matters relating to the business, operation, and management of a registered bank.

The Order in Council must be published in the Gazette.
The Regulations (Disallowance) Act 1989 applies to the Order in Council as if the order were a regulation within the meaning of section 2 of that Act.

Section 81: substituted, on 21 August 2003, by section 21 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
81AA Further matters that maybe prescribed (1) An Order in Council made under section 81 may, in addition to the matters referred to in section 81(3), require a registered bank to disclose information or data— (a) (b) (c) (d) about an associated person of the registered bank if the associated person is incorporated, domiciled, or resi­ dent in New Zealand: about an associated person of the registered bank if the information or data is publicly available in the country in which the associated person is incorporated, domi­ ciled, or resident and if that country is not New Zealand: about any individual member of its banking group, whether or not the member is incorporated, domiciled, or resident in New Zealand: about a body incorporated in New Zealand, or an over­ seas company registered under section 337 of the Com­ panies Act 1993, in which a holding company of the registered bank has a substantial interest.
(2) An Order in Council made under section 81 may also— (a) prescribe the information that is required to be con­ tained in accordance with generally accepted account­ 80 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 81AB (b) (c) (d) (e) (f) (g) ing practice (within the meaning of section 3 of the Fi­ nancial Reporting Act 1993) in ﬁnancial statements: require the publication of ﬁnancial statements and notes to those statements for any period or periods speciﬁed in the order: require the information to be published in consolidated form: require ﬁnancial information that is required to be pub­ lished to be taken from audited ﬁnancial statements: require the information that is required to be published to be audited and to be accompanied by an auditor’s report: require a disclosure statement to contain any statements speciﬁed in the order that are made by— (i) the directors of the registered bank or persons authorised in writing by the directors of the bank; and in the case of an overseas incorporated registered bank, its New Zealand chief executive ofﬁcer: (ii) incorporate by reference a framework, standard, speciﬁ­ cation, or requirement that is published by, or on behalf of, any body or person in any country— (i) (ii) with any modiﬁcations, additions, or variations in whole or in part; and (3) speciﬁed in the Order in Council.
Schedule 3 applies to any material incorporated by reference in an Order in Council made under section 81.

Section 81AA: inserted, on 21 August 2003, by section 21 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 81AA(2)(g): added, on 10 September 2008, by section 16(1) of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

Section 81AA(3): added, on 10 September 2008, by section 16(2) of the Re­ serve Bank of New Zealand Amendment Act 2008 (2008 No 59).
81AB Disclosure statement not required to include information or data about customers or clients of registered banks (1) Despite sections 81 and 81AA, a registered bank is not re­ quired to publish in a disclosure statement any information or data about the affairs of a particular customer or client of— (a) the registered bank; or 81 Part 5 s 81AC Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (b) (c) an associated person of the registered bank; or a company in which a holding company of the regis­ tered bank has a substantial interest.
(2) Nothing in subsection (1) applies to the publication by a reg­ istered bank of information or data about transactions with re­ lated parties of— (a) (b) (c) the registered bank; or an associated person of the registered bank; or a company in which a holding company of the regis­ tered bank has a substantial interest.
(3) Subsection (1) does not extend to the publication of the fol­ lowing matters: (a) (b) (c) the amount of any loan or risk exposure (without dis­ closing the identity of the particular customer or client to whom it relates); or the number of loans or risk exposures that fall within a speciﬁed range of amounts and the actual amounts of those loans or risk exposures; or the number of loans or risk exposures that fall within a speciﬁed range of percentages or are above a speciﬁed percentage, as the case may be, of the capital or equity of the registered bank, or an associated person of the registered bank, or the banking group or a company in which a holding company of a registered bank has a substantial interest, and the actual amounts involved.
Section 81AB: inserted, on 21 August 2003, by section 21 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

81AC Duty to supply information or data to registered bank (1) This section applies to— (a) (b) an associated person of a registered bank; and a body incorporated in New Zealand, or an overseas company registered under section 337 of the Companies Act 1993, in which a holding company of a registered bank has a substantial interest.
(2) A person to whom this section applies must, on being required by a registered bank to do so for the purpose of enabling the registered bank to comply with an Order in Council made under section 81, supply the registered bank with any infor­ 82 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 81A mation or data that the registered bank may be required to dis­ close under section 81AA if that information or data— (a) is in the possession, custody, or control of that person; and is not in the possession, custody, or control of the reg­ istered bank.
(b) (3) A person to whom this section applies commits an offence if, without lawful justiﬁcation or excuse, the person fails to com­ ply with a requirement of a registered bank under this section.

The penalty for an offence against this section is set out in section 156AC.

Section 81AC: inserted, on 21 August 2003, by section 21 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(4) 81A Bank to consult (1) Before making a recommendation under section 81(1) (includ­ ing a recommendation to amend any Order in Council made under that subsection) the Bank must— (a) consult with— (i) (ii) (iii) the Securities Commission; and registered banks that will be affected by any Order in Council made under that subsection; and such other persons as the Bank considers will be substantially affected by any Order in Council made under that subsection or organisations rep­ resenting those persons; and (b) ensure that the persons referred to in paragraph (a) have a reasonable opportunity to make submissions to the Bank; and have regard to those submissions.
(c) Failure to comply with subsection (1) does not affect the val­ idity of any Order in Council under section 81(1).

(2) (3) Any action taken by the Bank before the coming into force of the Reserve Bank of New Zealand Amendment Act 1995 that would, if this section had then been in force, have constituted action taken under this section, shall be treated as having been taken under this section.
83 Part 5 s 82 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 Section 81A: inserted, on 24 March 1995, by section 7 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
Disclosure statements must be signed Every disclosure statement that a registered bank is required to publish under section 81 must be dated and signed,— (a) in the case of a body corporate, by every director of the body corporate or by each director’s agent authorised in writing to do so; and in the case of an overseas incorporated registered bank, by its New Zealand chief executive ofﬁcer or that per­ son’s agent authorised in writing to do so.
(b) Every overseas incorporated registered bank must notify the Bank in writing of the name and address of its New Zealand chief executive ofﬁcer and any subsequent changes to those details.

If an overseas incorporated registered bank fails to comply with subsection (2), the Bank may, after giving the registered bank 14 days’ notice in writing of its intention to do so, specify a particular employee of that registered bank to be its New Zealand chief executive ofﬁcer for the purposes of this Act.
If the Bank exercises the power conferred by subsection (3), it must give notice in writing to the registered bank as soon as practicable.

Section 82: substituted, on 21 August 2003, by section 22 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Bank may require disclosure statement to be corrected Where the Bank considers that a disclosure statement pub­ lished by a registered bank— (a) (b) contains information that is false or misleading; or does not contain information which it is required to con­ tain, whether or not the information contained in the dis­ closure statement is false or misleading as a result of the omission,— the Bank may, by notice in writing to the registered bank, re­ quire the registered bank to— (c) publish a disclosure statement that does not contain false or misleading information; or 82 (1) (2) (3) (4) 83 84 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 88 (d) (e) publish a disclosure statement that contains the infor­ mation that was previously omitted; or take such other corrective action as the Bank may spe­ cify in the notice.
Section 83(d): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Advertising by registered banks [Repealed] Heading: repealed, on 24 March 1995, by section 8 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).

Interpretation [Repealed] Section 84: repealed, on 24 March 1995, by section 8 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
Content of advertisements by registered banks [Repealed] Section 85: repealed, on 24 March 1995, by section 8 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).

Regulations [Repealed] Section 86: repealed, on 24 March 1995, by section 8 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).

Offence to advertise in contravention of regulations [Repealed] Section 87: repealed, on 24 March 1995, by section 8 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
Bank may prohibit advertisements by registered banks [Repealed] Section 88: repealed, on 24 March 1995, by section 8 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).

Provisions applying to disclosure statements Heading: substituted, on 24 March 1995, by section 9 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
85 84 85 86 87 88 Part 5 s 89 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 89 Offence to fail to publish required information in disclosure statement (1) A registered bank commits an offence if, without lawful jus­ tiﬁcation or excuse, the registered bank fails to publish infor­ mation that it is required to publish in a disclosure statement under section 81.

The penalty for an offence against this section is set out in section 156AC.
Section 89: substituted, on 21 August 2003, by section 23 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(2) 89A Offence to publish false or misleading disclosure statements If a disclosure statement that includes information that is false or misleading is published by a registered bank, all of the fol­ lowing persons commit an offence: the registered bank; and (a) every director of the registered bank who signed the (b) disclosure statement or on whose behalf the disclosure statement was signed; and in the case of an overseas incorporated registered bank, the New Zealand chief executive ofﬁcer who signed the disclosure statement or on whose behalf the disclosure statement was signed.
(c) (b) It is a defence to a prosecution for an offence against this sec­ tion if— (a) the defendant proves that the information was immate­ rial; or in the case of a defendant who is director of a regis­ tered bank or a New Zealand chief executive ofﬁcer of an overseas incorporated registered bank, that defen­ dant proves that he or she had reasonable grounds to believe, and believed, up to the publication of the dis­ closure statement, that the information was true.
The penalty for an offence against this section is set out in section 156AC.

Section 89A: inserted, on 21 August 2003, by section 23 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(1) (2) (3) 86 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 90 89B Offence to fail to make most recent disclosure statement publicly available (1) A registered bank commits an offence if, without lawful jus­ tiﬁcation or excuse, the registered bank fails to make its most recent disclosure statement publicly available in the manner set out in an Order in Council made under section 81.

The penalty for an offence against this section is set out in section 156AB.
Section 89B: inserted, on 21 August 2003, by section 23 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(2) 89C Other offences in relation to disclosure statements (1) A registered bank commits an offence if the registered bank fails to comply with a requirement of the Bank under section 83 for the registered bank to— (a) publish a disclosure statement that does not contain false or misleading information; or publish a disclosure statement that contains information that was previously omitted; or take the corrective action speciﬁed by the Bank in a notice given under that section.
(b) (c) (2) 90 The penalty for an offence against this section is set out in section 156AC.

Section 89C: inserted, on 21 August 2003, by section 23 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Civil liability Subject to section 91, the following persons are liable to pay compensation to any person who sustains a loss by reason of subscribing for any debt security issued by a registered bank in reliance on false or misleading information contained in a disclosure statement, namely,— (a) (b) the registered bank; and every person holding ofﬁce as a director of the regis­ tered bank at the time of the publication of the disclos­ ure statement; and the New Zealand chief executive ofﬁcer of an overseas incorporated registered bank at the time of the publica­ tion of the disclosure statement.
(c) 87 Part 5 s 91 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 Section 90: substituted, on 24 March 1995, by section 9 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).

Section 90(a): substituted, on 21 August 2003, by section 24 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 90(b): substituted, on 21 August 2003, by section 24 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 90(c): added, on 21 August 2003, by section 24 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Defences A person is not liable under section 90 in relation to false or misleading information that is included in a disclosure state­ ment if that person proves that— (a) the disclosure statement was published without his or her knowledge or consent and, on becoming aware of the publication, he or she forthwith gave notice to the Bank that it was published without his or her knowledge or consent and, as soon as practicable, also gave reason­ able public notice that it was published without his or her knowledge or consent; or after publication of the disclosure statement and before the securities were subscribed for, he or she, on be­ coming aware of the false or misleading information, withdrew his or her consent to the disclosure statement, forthwith gave notice to the Bank of the withdrawal of that consent and, as soon as practicable, also gave rea­ sonable public notice of the withdrawal of that consent; or he or she had reasonable grounds to believe and did, up to the time of the subscription for the securities, believe that the statement was true.
(b) (c) Section 91: substituted, on 24 March 1995, by section 9 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).

Fair Trading Act 1986 not affected Nothing in sections 89 to 91 limits or affects the Fair Trading Act 1986.

Section 92: substituted, on 24 March 1995, by section 9 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
91 92 88 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 93 93 (1) Supply of information Supply of information by registered banks for purposes of prudential supervision For the purposes of this Part, the Bank may, by notice in writ­ ing to any registered bank or by notice in the Gazette that ap­ plies to any speciﬁed class of registered banks, require the reg­ istered bank or, as the case may be, registered banks of that class to supply to the Bank any information, data, or forecasts about— (a) (b) (c) (d) the corporate matters of the registered bank: the ﬁnancial matters of the registered bank: the prudential matters of the registered bank: any other matters relating to the business, operation, or management of the registered bank.
(2) A registered bank may be required to supply information, data, or forecasts— (a) relating to business carried on by the registered bank in New Zealand or elsewhere (whether that business is carried on as principal, broker, agent, or intermediary); and in a consolidated form (if speciﬁed by the Bank).
(b) (3) A notice may specify— (a) (b) the periods for which, and the form in which, the infor­ mation, data, or forecasts must be supplied; and the time by which, and the place in New Zealand at which, the information, data, or forecasts must be sup­ plied.

(4) The Bank may, by a subsequent notice, vary, revoke, or amend a notice.
(5) A registered bank commits an offence if, without lawful justi­ ﬁcation or excuse, the registered bank— (a) fails to comply in any respect with any requirements of the Bank under this section; or supplies information or data that the registered bank is required to supply under this section that is false or mis­ leading in a material particular.

(b) (6) The penalty for an offence against this section is set out in section 156AB.
89 Part 5 s 93A Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 Section 93: substituted, on 21 August 2003, by section 25 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
93A Scope of notice under section 93 The Bank may, by notice under section 93, require a registered bank or a speciﬁed class of registered banks to supply, without limitation, information, data, or forecasts in relation to— any associated person of a registered bank; or (a) a body incorporated in New Zealand, or an overseas (b) company registered under section 337 of the Companies Act 1993, in which a holding company of a registered bank has a substantial interest.
Section 93A: inserted, on 21 August 2003, by section 25 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

93B Certain persons may be required to supply information to registered banks (1) A person referred to in section 93A(a) or (b) must, on being required by a registered bank to do so, supply the registered bank with information, data, or forecasts relating to that person in order to enable the registered bank to comply with a notice under section 93.
(2) A person commits an offence if, without lawful justiﬁcation or (3) excuse, the person fails to comply with this section.

The penalty for an offence against this section is set out in section 156AB.

Section 93B: inserted, on 21 August 2003, by section 25 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
93C Supply of information by other persons for purposes of (1) prudential supervision If the Bank has reasonable grounds to believe that a person has information, data, or forecasts that the Bank could require a registered bank or a class of registered banks to supply under section 93, it may, by notice in writing to that person, require that person to supply the information, data, or forecasts to the Bank.
(2) A notice may specify— 90 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 95 (a) (b) the periods for which, and the form in which, the infor­ mation, data, or forecasts must be supplied; and the time by which, and the place in New Zealand at which, the information, data, or forecasts must be sup­ plied.

(3) The Bank may, by a subsequent notice, vary, revoke, or amend a notice.
(4) A person commits an offence if, without lawful justiﬁcation or excuse, the person— (a) (b) fails to comply with any requirements of the Bank under this section; or supplies information or data that the person is required to supply under this section that is false or misleading in a material particular.

(5) 94 (1) The penalty for an offence against this section is set out in section 156AB.
Section 93C: inserted, on 21 August 2003, by section 25 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Requirement that information, data, or forecasts be audited The Bank may, by notice in writing, require a registered bank or other person to obtain an audit, by an auditor approved by the Bank, of any information, data, or forecasts that the regis­ tered bank or other person, as the case may be, is required to supply under section 93 or section 93C.
(2) A person commits an offence if, without lawful justiﬁcation or (3) 95 (1) excuse, the person fails to comply with this section.

The penalty for an offence against this section is set out in section 156AA.

Section 94: substituted, on 21 August 2003, by section 25 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Bank may require report relating to registered banks, etc The Bank may, by notice in writing to a registered bank, re­ quire that registered bank to supply the Bank with a report or series of reports, prepared by a person approved by the Bank, on— (a) the corporate matters of the registered bank: 91 Part 5 s 95A Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (b) (c) (d) (e) the ﬁnancial matters of the registered bank: the prudential matters of the registered bank: any other matters relating to the business, operation, or management of the registered bank: any of the matters referred to in paragraphs (a) to (d) in relation to— (i) (ii) any associated person of the registered bank: a body incorporated in New Zealand, or an over­ seas company registered under section 337 of the Companies Act 1993, in which a holding com­ pany of the registered bank has a substantial in­ terest.
(2) A person referred to in subsection (1)(e)(i) or (e)(ii) must, if required to do so by a registered bank, supply information re­ lating to that person in order to enable the registered bank to comply with a notice under this section.

(3) A person commits an offence if, without lawful justiﬁcation or (4) excuse, the person fails to comply with this section.

The penalty for an offence against this section is set out in section 156AC.
Section 95: substituted, on 21 August 2003, by section 25 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

95A Bank may require report under section 95 to be published The Bank may, by notice in writing to a registered bank, re­ (1) quire that the report or series of reports, as the case may be, that has been prepared under section 95 in relation to the reg­ istered bank be published by that registered bank in the form speciﬁed in the notice.
(2) A registered bank commits an offence if, without lawful jus­ tiﬁcation or excuse, the registered bank fails to comply with this section.

The penalty for an offence against this section is set out in section 156AC.

Section 95A: inserted, on 21 August 2003, by section 25 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(3) 92 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 98 96 97 Disclosure of information to Bank by auditors Every person who holds, or at any time has held, ofﬁce as required by any enactment, as an auditor of a registered bank or an associated person of a registered bank, shall disclose to the Bank information relating to the affairs of that registered bank or associated person obtained in the course of holding that ofﬁce if, in the opinion of that person,— (a) the registered bank or associated person is insolvent or is likely to become insolvent or is in serious ﬁnancial difﬁculties; and the disclosure of that information is likely to assist, or be relevant to, the exercise by the Bank of its powers under this Part.
(b) Compare: 1964 No 134 s 38M(1); 1986 No 131 s 10; 1989 No 11 s 13 Section 96: amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 96(a): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Auditor to inform of intention to disclose Every auditor shall, before disclosing any information to the Bank under section 96, take reasonable steps to inform the reg­ istered bank or associated person of the intention to disclose the information and the nature of the information.

Compare: 1964 No 134 s 38M(5); 1986 No 131 s 10 Section 97 heading: amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 97: amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Protection of auditors 98 (1) No civil, criminal, or disciplinary proceedings shall lie against any auditor arising from the disclosure in good faith of infor­ mation to the Bank pursuant to section 96.
(2) No tribunal, body, or authority, having jurisdiction in respect of the professional conduct of any auditor shall make any order against, or do any act in relation to, that person in respect of such disclosure.

93 Part 5 s 98A Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (3) No information received by the Bank pursuant to section 96 shall be admissible in evidence in any proceedings against the auditor concerned.
(4) Nothing in subsection (3) of this section shall limit the admis­ sibility of any information obtained in any other way.

Compare: 1964 No 134 s 38M(2); 1986 No 131 s 10; 1989 No 11 s 15 Access to information by home country supervisor Heading: inserted, on 21 August 2003, by section 26 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
98A Access to information by home country supervisor (1) This section applies to— (a) (b) a registered bank; and any member of the registered bank’s banking group (being a member that has a physical presence in New Zealand).
(2) (3) (4) For the purpose of the exercise by a home country supervisor of its supervisory functions, the Bank may authorise a home country supervisor to— (a) conduct an inspection of any person to whom this sec­ tion applies; or require any person to whom this section applies to sup­ ply to the home country supervisor any information, data, or forecasts relating to that person.
(b) The information, data, or forecasts that a home country super­ visor may be authorised to obtain may include, without limita­ tion, information about the affairs of a particular customer or client of a person to whom this section applies.

The Bank may grant an authorisation only if it is satisﬁed that sufﬁcient provision exists to protect the conﬁdentiality of the information, data, or forecasts obtained or required by the home country supervisor.
(5) An authorisation may be— (a) (b) granted for the period or periods that the Bank thinks ﬁt; and varied, revoked, or amended by the Bank at any time.

94 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 98B (6) (7) (8) grants an authorisation in relation to that person; or varies, revokes, or amends that authorisation.
The Bank must give notice in writing to a person to whom this section applies if the Bank— (a) (b) This section has effect despite anything to the contrary in any other enactment or rule of law.

For the purposes of this section, a member of a registered bank’s banking group has a physical presence in New Zealand if that member— (a) (b) Section 98A: inserted, on 21 August 2003, by section 26 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
has an ofﬁce in New Zealand; or has an agent in New Zealand.

98B Duties of person on receipt of notice under section 98A (1) A person to whom section 98A applies must, on receipt of a notice from the Bank under that section, comply with that notice by, as the case may be,— (a) permitting the home country supervisor to conduct an inspection of that person; or supplying the home country supervisor with the re­ quired information, data, or forecasts within the time, and at the place, speciﬁed in the notice.
(2) A person commits an offence if, without lawful justiﬁcation or (b) excuse, the person— (a) (b) fails to comply in any respect with any requirements notiﬁed by the Bank under this section; or supplies any information or data that the person is re­ quired to supply under this section that is false or mis­ leading in a material particular.

(3) The penalty for an offence against this section is set out in section 156AA.
Section 98B: inserted, on 21 August 2003, by section 26 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
95 Part 5 s 99 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 Powers to obtain information and documents Powers to obtain information and documents This section applies if the Bank has reasonable cause to be­ lieve— (a) that any information or data published in a disclosure statement by a registered bank under section 81 or sec­ tion 83 is false or misleading in a material particular; or that a registered bank has failed to publish information or data that it is required to publish in a disclosure state­ ment under section 81 or section 83; or that any information or data supplied to the Bank by a registered bank under section 93 is false or misleading in a material particular; or that any information or data supplied by a person to a registered bank under section 93B or to the Bank under section 93C, as the case may be, is false or misleading in a material particular; or that a registered bank or a person, as the case may be, has failed to comply with any requirement to supply in­ formation, data, or forecasts under section 93 or section 93B or section 93C; or that a registered bank has failed to comply with section 95.
(b) (c) (d) (e) (f) (b) If this section applies, the Bank may,— (a) by notice in writing to the registered bank or person, require that registered bank or person to supply to the Bank, within the time speciﬁed in the notice, the infor­ mation or data speciﬁed in the notice; or appoint, in writing, any suitably qualiﬁed person to en­ ter and search any premises and inspect, remove, and take copies of any documents in the possession, cus­ tody, or control of any person and, if necessary, re­ quire the reproduction in usable form of any informa­ tion recorded or stored in those documents.
(3) A person commits an offence if, without lawful justiﬁcation or excuse, the person hinders, obstructs, or delays, in the conduct of an inspection under this section, any person duly authorised to make that inspection.
99 (1) (2) 96 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 100 (4) A registered bank or person commits an offence if, without lawful justiﬁcation or excuse, the registered bank or person— fails to comply with any requirement of the Bank under (a) subsection (2)(a); or supplies any information or data that is required to be supplied under subsection (2)(a) that is false or mislead­ ing in a material particular.
(b) (5) The penalty for an offence against this section is set out,— (a) in the case of an offence against subsection (3), in sec­ tion 156AB; and in the case of an offence against subsection (4), in sec­ tion 156AC.

(b) Section 99: substituted, on 21 August 2003, by section 27 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
100 Requirements on entering and searching premises (1) No person appointed pursuant to section 99(2)(b) shall enter and search any premises, or inspect, remove, or take copies of any documents, or extracts from documents, in the possession of, or under the control of, any person, or require the repro­ duction in usable form of any information recorded or stored in any documents, unless— (a) the occupier of the premises, or the person who has possession of the documents, agrees; or (b) that person obtains a warrant under section 106.
Every person authorised to enter and search any premises pur­ suant to a warrant obtained under section 106 shall, on ﬁrst entering those premises, and, if requested, at any subsequent time, produce— (a) that person’s authority to enter the (2) evidence of premises; and evidence of that person’s identity.

(b) Compare: 1964 No 134 s 38N(2), (7); 1986 No 131 s 10; 1989 No 11 s 18 Section 100(1): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
97 Part 5 s 101 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 101 Investigations Investigation of affairs of registered bank Where the Bank is satisﬁed that it is necessary or desirable for the purpose of determining whether or not to exercise the powers conferred under section 113 or section 117 that an in­ vestigation of the affairs of any registered bank or associated person of a registered bank should be carried out, the Bank may appoint, in writing, any person to carry out an investiga­ tion of the affairs of that registered bank or associated person of that registered bank.
Compare: 1964 No 134 s 38O(1); 1986 No 131 s 10; 1989 No 11 s 19 Section 101: amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
102 Powers of person appointed to carry out investigation (1) Any person appointed under section 101 may, for the purposes of carrying out an investigation of the affairs of a registered bank or associated person of a registered bank,— (a) by notice in writing, require that registered bank or as­ sociated person, or any ofﬁcer or employee of that reg­ istered bank or associated person, or any other person, to— (i) (ii) supply any information or data relating to the business, operation, and management of the reg­ istered bank or associated person: produce for inspection any documents of, or re­ lating to, the business, operation, and manage­ ment of that registered bank or associated per­ son in the custody, or under the control, of that registered bank or associated person, ofﬁcer, em­ ployee, or person: (iii) where necessary, reproduce in usable form any information recorded or stored in such docu­ ments: take copies of any documents produced for inspection under paragraph (a): require any ofﬁcer or employee of that registered bank or associated person, or any other person, to answer any (b) (c) 98 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 102 question relating to the business, operation, and man­ agement of that registered bank or associated person.
(2) (1A) Any questioning under subsection (1)(c) may be carried out by any person appointed under section 101, or a barrister or solicitor acting on behalf of that person, who may require the person who is subject to the questioning to take an oath or make an afﬁrmation.
Subject to section 104, any person appointed under section 101 may, for the purposes of carrying out an investigation of the affairs of the registered bank or associated person, at any time,— (a) (b) enter and search any premises: inspect, remove, and take copies of any documents, or extracts from documents, relating to the business, oper­ ation, and management of that registered bank or asso­ ciated person in the possession, or under the control, of any person: if necessary, require any person to reproduce in usable form any information recorded or stored in those docu­ ments.
(c) Compare: 1964 No 134 s 38O(2), (4); 1986 No 131 s 10; 1989 No 11 s 21 Section 102(1): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 102(1)(a): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 102(1)(a)(i): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 102(1)(a)(ii): amended, on 21 August 2003, by section 41 of the Re­ serve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 102(1)(b): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 102(1)(c): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 102(1A): inserted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 102(2): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 102(2)(b): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
99 Part 5 s 103 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 103 Offences in relation to investigations (1) Every person commits an offence against this Act who, with­ out lawful justiﬁcation or excuse,— (a) (b) (c) hinders, obstructs, or delays any person appointed to carry out an investigation under section 101 in carrying out that investigation; or refuses to answer any question put to him or her under section 102; or supplies any information, or provides an answer to any question, required to be supplied or provided pursuant to section 102 which is false or misleading in a material particular.
(2) Every registered bank or associated person of the registered bank commits an offence against this Act if, without lawful justiﬁcation or excuse,— (a) it fails to comply with any requirement of a person ap­ pointed to carry out an investigation under section 101; or it supplies any information or data, or provides an an­ swer to any question, required to be supplied or pro­ vided pursuant to section 102(1) which is false or mis­ leading in a material particular.
(b) (3) The penalty for an offence against this section is set out in section 156AC.

Compare: 1964 No 134 s 38O(11), (12), (13); 1986 No 131 s 10; 1989 No 11 s 20 Section 103(1)(b): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 103(1)(c): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 103(2): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 103(2)(b): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 103(3): substituted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
100 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 105 104 Requirements to be complied with by person carrying out investigation (1) Any person who exercises any powers conferred by section 102(1) shall, if requested, produce the instrument of that per­ son’s appointment under section 101.
(2) No person who exercises any powers conferred by section 102(2) shall enter and search any premises, or inspect, remove, and take copies of any documents or extracts from documents, or require the reproduction in usable form of any information recorded or stored in documents, unless— (a) the occupier of the premises, or the person who has possession of the documents, agrees; or (b) that person obtains a warrant under section 106.
Every person authorised to enter and search any premises pur­ suant to a warrant obtained under section 106 shall, on ﬁrst entering those premises and, if requested, at any subsequent time, produce— (a) that person’s authority to enter the (3) evidence of premises; and evidence of that person’s identity.
(b) Compare: 1964 No 134 s 38O(3), (5), (9); 1986 No 131 s 10; 1989 No 11 s 22 Miscellaneous provisions 105 Conﬁdentiality of information This section applies to— (1) (a) information, data, and forecasts supplied or disclosed to, or obtained by,— the Bank: (i) a person appointed under section 99(2)(b), sec­ (ii) tion 101, or section 119— under, or for the purposes of, or in connection with the exercise of powers conferred by, this Part: information and data derived from or based upon infor­ mation, data, and forecasts referred to in paragraph (a): information relating to the exercise, or possible exer­ cise, of the powers conferred by this Part.
(b) (c) (2) Information, data, and forecasts to which this section applies shall not be published or disclosed by the Bank, any ofﬁcer 101 Part 5 s 105 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 or employee of the Bank, or a person appointed under section 99(2)(b), section 101, or section 119, except— (a) with the consent of the person to whom the information relates: to the extent that the information is available to the pub­ lic under any Act, other than the Ofﬁcial Information Act 1982, or is otherwise publicly available informa­ tion: in statistical or summary form arranged in such a man­ ner as to prevent any information published or disclosed from being identiﬁed by any person as relating to any particular person: for the purposes of, or in connection with, the exercise of powers conferred by this Part: in connection with any proceedings for an offence against this Act: to any central bank, authority, or body in any other country which exercises functions corresponding to or similar to those conferred on the Bank under this Part for the purposes of the exercise by that central bank, authority, or body of those functions: to any person whom the Bank is satisﬁed has a proper interest in receiving such information.
(b) (c) (d) (e) (f) (g) (3) No information, data, or forecasts shall be published or dis­ closed pursuant to paragraph (f) or paragraph (g) of subsec­ tion (2) unless the Bank is satisﬁed that satisfactory provision exists to protect the conﬁdentiality of the information, data, or forecasts published or disclosed.
(4) No ofﬁcer or employee of the Bank and no person appointed under section 99(2)(b), section 101, or section 119 shall use any information, data, or forecasts to which this section ap­ plies for a purpose not connected with the purpose for which such information, data, or forecasts was, or were, supplied, disclosed, or obtained.
(5) No person to whom any information, data, or forecasts to which this section applies is or are published or disclosed pur­ suant to subsection (2)(d) shall publish, disclose, or use such information, data, or forecasts except— 102 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 105 (a) (b) for the purposes of, or in connection with the exercise of powers conferred by, this Part; and in accordance with such conditions as may be speciﬁed by the Bank.
(6) No person to whom any information, data, or forecasts to which this section applies is or are published or disclosed pur­ suant to subsection (2)(a) or subsection (2)(g), shall publish, disclose, or use such information, data, or forecasts unless the publication, disclosure, or use is— (a) (b) authorised by the Bank; or necessary or desirable in connection with the exercise of any function or power conferred by any enactment.
(7) A person referred to in subsection (7A) commits an offence if the person contravenes this section.

(7A) The persons are— (a) (b) any ofﬁcer or employee of the Bank; or a person appointed under section 99(2)(b), section 101, or section 119.

(7B) The penalty for an offence against this section is set out in section 156AA.
(8) Nothing in the Ofﬁcial Information Act 1982 or any other Act, other than this Act, applies to information, data, and forecasts to which this section applies whether or not such information, data, and forecasts has or have been published or disclosed to any person pursuant to this section.

Compare: 1964 No 134 s 38P; 1986 No 131 s 10; 1989 No 11 s 23 Section 105(1)(a)(ii): amended, on 21 August 2003, by section 41 of the Re­ serve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 105(2): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 105(2)(b): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 105(4): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 105(7): substituted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 105(7A): inserted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 105(7B): inserted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
103 Part 5 s 106 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (a) (aa) 106 Procedure for obtaining warrants (1) A Judge of the High Court who is satisﬁed, on application in writing made on oath, that there are reasonable grounds for believing— (aaa) that any information or data published in a disclosure statement by a registered bank under section 81 or sec­ tion 83 is false or misleading in a material particular; or that a registered bank has failed to publish information that it is required to publish in a disclosure statement under section 81 or section 83; or that any information or data supplied to the Bank by a registered bank pursuant to section 93 is false or mis­ leading in a material particular; or that a registered bank has failed to comply with any requirement to supply information, data, or forecasts pursuant to section 93; or that any information or data supplied by a person to a registered bank under section 93B or to the Bank under section 93C, as the case may be, is false or misleading in a material particular; or that a person has failed to comply with any requirement to supply information, data, or forecasts to a registered bank under section 93B, or to the Bank under section 93C as the case may be; or that a registered bank has failed to comply with section 95— (bb) (ba) (b) (c) may issue a warrant, in terms of section 107, to a person ap­ pointed pursuant to section 99(2)(b).
(2) A Judge of the High Court who is satisﬁed, on application in writing made on oath, that there are reasonable grounds for believing that it is necessary for the purpose of determining whether to exercise the powers conferred under section 113 or section 117 that an investigation of the affairs of a registered bank should be carried out, may issue a warrant, in terms of section 107, to a person appointed under section 101.
(3) A warrant issued under subsection (1) must identify the para­ graph in that subsection under which it has been issued.

Compare: 1964 No 134 ss 38N(3), (5), 38O(6); 1986 No 131 s 10; 1989 No 11 s 24 104 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 108 Section 106(1): amended, on 21 August 2003, by section 28(3) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 106(1)(aaa): inserted, on 21 August 2003, by section 28(1) of the Re­ serve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 106(1)(aa): inserted, on 21 August 2003, by section 28(1) of the Re­ serve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 106(1)(ba): inserted, on 21 August 2003, by section 28(2) of the Re­ serve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 106(1)(bb): inserted, on 21 August 2003, by section 28(2) of the Re­ serve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 106(2): amended, on 21 August 2003, by section 28(4) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 106(3): substituted, on 21 August 2003, by section 28(5) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
107 Effect of warrant (1) Every warrant issued under section 106 authorises the person named in it, at any time and, if necessary, by force, to— enter and search the premises named in it: (a) inspect, remove, and take copies of documents or ex­ (b) tracts from documents relating to the business, oper­ ation and management of the registered bank in the pos­ session, or under the control, of any person: where necessary, require any information recorded or stored in those documents to be reproduced in usable form.
(c) (2) (3) The warrant shall continue in force for a period of 1 month or until the purpose for which it was granted has been satisﬁed, whichever is the lesser.

Every person named in the warrant shall, as soon as prac­ ticable after removing any documents or extracts from docu­ ments from any premises, supply a copy of the documents or extracts to the person from whom the documents or extracts were removed.
Compare: 1964 No 134 ss 38N(4), (6), (8), 38O(7), (8), (10) 108 Effect of proceedings (1) Where any person commences any proceedings in any court in respect of the exercise of any powers conferred by section 99 or section 101 or section 102, until a ﬁnal decision in re­ 105 Part 5 s 109 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 lation to those proceedings is given, the powers may be, or may continue to be, exercised as if no such proceedings had been commenced, and no person shall be excused from ful­ ﬁlling any obligation under those sections by reason of those proceedings.
This section shall apply notwithstanding the provisions of any other Act or any rule of law.
Compare: 1964 No 134 ss 38N(11), 38O(14); 1986 No 131 s 10; 1989 No 11 s 26 (2) 109 Effect of ﬁnal decision that exercise of powers under section 99 unlawful In any case where it is declared in a ﬁnal decision given in any proceedings in respect of the exercise of powers conferred by section 99 that the exercise of any powers conferred by that section is unlawful, to the extent to which the exercise of those powers is declared unlawful,— (a) the Bank shall ensure that forthwith after the decision of the court is given— (i) any information and data supplied by the regis­ tered bank pursuant to subsection (2)(a) of that section is destroyed: any documents or extracts from documents ob­ tained pursuant to an inspection made under subsection (2)(b) of that section are returned to the person previously having possession of those documents or previously having them under his or her control and any copies of such documents or extracts are destroyed: any information derived from or based upon any such information and data or documents or ex­ tracts is destroyed: (ii) (iii) (b) no information and data supplied by the registered bank pursuant to subsection (2)(a) of that section, and no documents or extracts from documents obtained pur­ suant to an inspection made under subsection (2)(b) of that section, shall be— (i) admissible in evidence in any proceedings: 106 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 110 (ii) used in connection with the exercise of any power conferred by section 113 or section 117.
Compare: 1964 No 134 s 38N(12); 1986 No 131 s 10; 1989 No 11 s 27 Section 109(a)(i): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 109(a)(ii): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 109(b): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 109(b)(ii): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
110 Effect of ﬁnal decision that exercise of powers under section 101 or section 102 unlawful In any case where it is declared in a ﬁnal decision given in any proceedings in respect of the exercise of powers conferred by section 101 or section 102 that the exercise of any powers conferred by those sections is unlawful, to the extent to which the exercise of those powers is declared unlawful,— (a) the Bank shall ensure that forthwith after the decision of the court is given— (i) (ii) (iii) (iv) any information or data obtained pursuant to sec­ tion 102(1)(a) is destroyed: any documents produced for inspection pursuant to section 102(1)(a) are returned to the person previously having possession of the documents or previously having the documents under his or her control and any copies of such documents or extracts from documents are destroyed: any documents or extracts from documents ob­ tained pursuant to an inspection made under sec­ tion 102(2) are returned to the person previously having possession of those documents or previ­ ously having them under his or her control and any copies of such documents or extracts from documents are destroyed: any information derived from or based upon any such information, documents, or extracts is de­ stroyed: 107 Part 5 s 111 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (b) no information or data obtained or documents pro­ duced for inspection pursuant to section 102(1)(a) and no documents or extracts from documents obtained pursuant to an inspection made under section 102(2) shall be— (i) (ii) admissible in evidence in any proceedings: used in connection with the exercise of any power conferred by section 113 or section 117.
Compare: 1964 No 134 s 38O(15); 1986 No 131 s 10; 1989 No 11 s 28 Section 110(b)(ii): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Reserve Bank may give directions Heading: substituted, on 21 August 2003, by section 29 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
111 Bank may require registered bank to consult [Repealed] Section 111: repealed, on 21 August 2003, by section 29 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

112 Bank may give advice and assistance [Repealed] Section 112: repealed, on 21 August 2003, by section 29 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
113 Bank may give directions (1) The Bank may give a registered bank or an associated person of a registered bank a direction, in writing, if it has reasonable grounds to believe that— (a) the registered bank or associated person is insolvent or is likely to become insolvent; or the registered bank or associated person is about to sus­ pend payment or is unable to meet its obligations as and when they fall due; or the affairs of the registered bank or associated person are being conducted in a manner prejudicial to the soundness of the ﬁnancial system; or (b) (c) 108 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 113A (d) (e) (f) (g) (h) the circumstances of the registered bank or associated person are such as to be prejudicial to the soundness of the ﬁnancial system; or the business of the registered bank has not been, or is not being, conducted in a prudent manner; or any of the following persons has failed to comply with any requirement imposed by or under this Act or regu­ lations made under this Act: (i) (ii) (iii) the registered bank: a director of the registered bank: in the case of an overseas incorporated registered bank, its New Zealand chief executive ofﬁcer; or any of the following persons has been convicted of an offence against this Act: (i) (ii) (iii) the registered bank: a director of the registered bank: in the case of an overseas incorporated registered bank, its New Zealand chief executive ofﬁcer; or the registered bank has failed to comply with a condi­ tion of its registration.
(2) The Bank must obtain the consent of the Minister before giv­ ing a direction under this section.

(3) A direction given under this section must state the grounds on (4) (5) amend or modify a direction; or replace a direction with another direction; or revoke a direction.

which it is given.
which it is given.

The Bank may, with the consent of the Minister,— (a) (b) (c) To avoid doubt, the Bank may exercise the power conferred by subsection (1) by giving a direction to a registered bank in respect of an associated person of that registered bank, and vice versa.

Section 113: substituted, on 21 August 2003, by section 30 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
113A Scope of directions A direction given under section 113 may require a registered bank or an associated person of a registered bank to— 109 Part 5 s 113B Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (a) (b) (c) (d) (e) (f) (g) (h) (i) consult with the Bank immediately, and from time to time, about the circumstances of the registered bank or of an associated person of the registered bank and the methods of resolving any difﬁculties facing the regis­ tered bank or the associated person; or carry on business, or any part of its business, in accord­ ance with the direction; or cease to carry on its business, or any part of its business, in accordance with the direction; or ensure that any ofﬁcer or employee of the registered bank or associated person ceases to take part in the man­ agement or conduct of its business except with the per­ mission of the Bank and so far as that permission ex­ tends; or remove or replace any of the directors of an associated person of the registered bank; or remove or replace its auditor or appoint an auditor ap­ proved by the Bank; or take the action that is speciﬁed in the direction to ad­ dress a breach of any condition of its registration; or take the action that is speciﬁed in the direction to ad­ dress any circumstances of ﬁnancial difﬁculties; or take any other action that may be speciﬁed in the direc­ tion.
Section 113A: inserted, on 21 August 2003, by section 30 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

113B Power to remove, replace, or appoint directors (1) This section applies if the Bank has reasonable grounds to be­ lieve that— (a) the circumstances referred to in section any of 113(1) exists; and it is necessary to remove, replace, or appoint a director of a registered bank or of an associated person of a reg­ istered bank.
(b) If this section applies, the Bank may— (a) remove or replace a director of any registered bank or of an associated person of any registered bank; or (2) 110 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 115 (b) appoint any person as a director of any registered bank or of an associated person of any registered bank.
(3) The Bank must— (a) (b) obtain the consent of the Minister before exercising the power conferred by subsection (2); and exercise that power by giving notice in writing to— the director or the person concerned; and (i) if applicable, the Registrar of Companies.

(ii) (5) (4) A notice given under subsection (3)(b)(ii) is sufﬁcient compli­ ance with section 159 of the Companies Act 1993 as long as the notice is accompanied by the form of consent and certiﬁ­ cate required under section 152 of that Act.
This section has effect despite any enactment, rule of law, or the terms of the constitution of, or the instrument or contract creating, a registered bank or an associated person of a regis­ tered bank.

Section 113B: inserted, on 21 August 2003, by section 30 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
114 Offence to contravene directions (1) Every person commits an offence against this Act who, being a registered bank or associated person, without lawful justiﬁca­ tion or excuse, contravenes, or fails to comply with, a direction under section 113.
Every person commits an offence against this Act who, being an ofﬁcer or employee of a registered bank or of an associ­ ated person, without lawful justiﬁcation or excuse, obstructs, hinders or prevents that registered bank or associated person giving effect to any direction given under section 113.

The penalty for an offence against this section is set out in section 156AC.
Compare: 1964 No 134 s 38Q(11), (12); 1986 No 134 s 10; 1989 No 11 s 35 (2) (3) Section 114(3): added, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
115 Offence to disclose giving of direction (1) Subject to subsections (2) and (3), every person commits an offence against this Act who discloses that a direction has been 111 Part 5 s 115 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 given under section 113 or that a notice has been given under section 113B.
(2) Nothing in subsection (1) applies to the disclosure or publica­ tion of the fact that a direction or notice has been given where the disclosure or publication is made— (a) to any professional or ﬁnancial adviser of the registered bank or associated person to which the direction or no­ tice relates: (b) with the written consent of the Bank, for the purposes of the sale or other disposition, or the possible sale or other disposition, of the whole or any part of the cap­ ital, or business undertaking, of the registered bank or associated person: by the Bank or with the written consent of the Bank,— (i) (ii) to the public; or to any person who has a proper interest in know­ ing that the direction or notice has been given.
(c) (3) Nothing in subsection (1) applies to the disclosure or publica­ tion of the fact that a direction has been given requiring the actions set out in section 113A(d) or section 113A(e) or sec­ tion 113A(f) for the purpose of giving effect to that direction.

The penalty for an offence against this section is set out in section 156AA.
Compare: 1964 No 134 s 38Q(14), (15); 1986 No 131 s 10; 1989 No 11 s 36 (4) Section 115 heading: amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 115(1): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 115(2): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 115(2)(a): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 115(2)(c)(ii): amended, on 21 August 2003, by section 41 of the Re­ serve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 115(3): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 115(4): added, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
112 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 117 116 Miscellaneous provisions with respect to directions and dispositions (2) (1) A direction given under section 113 is taken to have been given on delivery to the head ofﬁce, registered ofﬁce, principal place of business in New Zealand, or address for service of the reg­ istered bank or associated person of the registered bank.
If the Bank has reasonable grounds to believe that 1 or more of the circumstances listed in section 113(1) exist, it may, with the consent of the Minister, by notice in writing to the parties, approve any sale or other disposition of the whole or part of the capital or business undertaking of the registered bank or associated person of the registered bank speciﬁed in the notice.
If the Bank grants an approval under subsection (2), the provi­ sions of any enactment requiring any consent, licence, permis­ sion, or clearance or other authority do not apply as a condition of the legality or validity of the sale or other disposition.

For the purposes of this section, address for service, in rela­ tion to a registered bank, means the address for service spe­ ciﬁed in a disclosure statement published in accordance with section 81.
Section 116: substituted, on 21 August 2003, by section 31 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(4) (3) 117 (1) Statutory management of registered banks Statutory management of registered banks and associated persons The Governor­General may, from time to time, by Order in Council, on the advice of the Minister given in accordance with a recommendation of the Bank,— (a) any registered bank: any associated person of a registered bank— declare that— (i) (ii) is subject to statutory management; and appoint 1 or more persons as statutory manager or statu­ tory managers of that registered bank or associated per­ son for a speciﬁed period.
(b) (1A) If any question arises as to whether, on the date on which a statutory manager was appointed, an act was done or a trans­ 113 Part 5 s 117 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 action was entered into or effected before or after the appoint­ ment, that act or transaction must, in the absence of proof to the contrary, be treated as having been done or entered into or effected, as the case may be, after the appointment of the statutory manager.
If an Order in Council is made under subsection (1), every sub­ sidiary of a registered bank declared to be subject to statutory management, except any subsidiary declared to be a subsidiary to which the order does not apply, is subject to statutory man­ agement and the appointment of a statutory manager for the speciﬁed period in respect of that registered bank also applies to those subsidiaries.
If a registered bank acquires a subsidiary after it has been de­ clared to be subject to statutory management under subsec­ tion (1), that subsidiary is not subject to statutory management unless a further Order in Council is made declaring that sub­ sidiary to be subject to statutory management.
(2) (2A) (4) (3) Where a registered bank or an associated person of a registered bank that is declared to be subject to statutory management or a subsidiary of a registered bank that becomes subject to statu­ tory management under subsection (2), is incorporated outside New Zealand or is an unincorporated body having its head of­ ﬁce or principal place of business outside New Zealand, the provisions of this Part relating to statutory management shall apply to the property, rights, assets and liabilities relating to its New Zealand business.
Every Order in Council made under subsection (1) must spe­ cify the date on which, and the time at which, the Order in Council comes into force.

The date and time as speciﬁed must not be earlier than the date on which, and the time at which, the Order in Council is made.
(6) A person appointed under subsection (1)(b) has all the rights and powers conferred, and all the duties imposed, on a person appointed under section 101 and, without limitation, the fol­ lowing provisions apply, with any necessary modiﬁcations, as if that person were appointed under section 101: (a) section 102 (which relates to powers to carry out an investigation of the affairs of a registered bank); and (5) 114 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 118 (b) (c) section 103 (which sets out offences in relation to in­ vestigations); and section 104 (which sets out the requirements that must be complied with by a person carrying out an investiga­ tion).
Compare: 1964 No 134 s 38R(2), (3); 1986 No 131 s 10; 1989 No 11 s 38 Section 117(1)(b): amended, on 21 August 2003, by section 32(2) of the Re­ serve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 117(1A): inserted, on 21 August 2003, by section 32(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 117(2): substituted, on 21 August 2003, by section 32(3) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 117(2A): inserted, on 21 August 2003, by section 32(3) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 117(4): added, on 26 April 1999, by section 2 of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).

Section 117(5): added, on 26 April 1999, by section 2 of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).

Section 117(6): added, on 21 August 2003, by section 32(4) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
118 Grounds on which registered bank may be declared to be (1) (2) subject to statutory management The Bank must not make a recommendation under section 117 unless— (a) it is satisﬁed on reasonable grounds that 1 or more of the circumstances listed in section 113(1)(a) to (e) exist; or a registered bank or an associated person of a registered bank has failed to comply with a direction given under section 113.
(b) The Bank shall, as soon as practicable after the making of an Order in Council declaring a registered bank or associated per­ son to be subject to statutory management, give written notice to the registered bank or associated person stating the grounds on which the recommendation made by the Bank was made.

Compare: 1964 No 134 s 38R(4), (6); 1986 No 131 s 10; 1989 No 11 s 39 Section 118(1): substituted, on 21 August 2003, by section 33 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
115 Part 5 s 119 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 119 Advisory committee (1) Where an Order in Council is made under section 117 declar­ ing a registered bank or an associated person to be subject to statutory management, the Minister may, by notice in writing to the statutory manager of that registered bank or associated person, on the recommendation of the Bank, appoint the per­ sons speciﬁed in the recommendation as an advisory commit­ tee.
The functions of an advisory committee shall be— (a) (2) (b) to advise the statutory manager on the conduct of the statutory management, including the exercise of the powers conferred by this Part: to do such other things as may be speciﬁed by the Min­ ister, from time to time, by notice in the Gazette.

The members of an advisory committee shall be appointed for such period as is speciﬁed in the notice of appointment.
The Minister may, by notice in writing, on the recommenda­ tion of the Bank, extend the term of appointment of a member of an advisory committee.

The Minister may, by notice in writing, on the recommenda­ tion of the Bank, appoint a person to be an additional member of an advisory committee.
The Minister may terminate the appointment of a member of an advisory committee for inability to perform the functions of the ofﬁce, bankruptcy, neglect of duty, or misconduct proved to the satisfaction of the Minister.

(3) (4) (5) (6) (7) A member of an advisory committee may resign ofﬁce by no­ tice in writing to the Minister.
(8) A notice under subsection (1) or subsection (5) must specify the date on which it comes into force (which date must not be earlier than the date on which the Minister signed the notice).

Every notice given under this section must be published in the Gazette as soon as practicable.

Compare: 1964 No 134 s 38S(1)–(8); 1986 No 131 s 10; 1989 No 11 s 60 (9) Section 119(1): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 119(4): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

116 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 121 Section 119(5): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 119(6): amended, on 1 January 2002, by section 70(1) of the Human Rights Amendment Act 2001 (2001 No 96).
Section 119(8): added, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 119(9): added, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
120 Statutory manager to comply with directions of Bank Subject to section 142, every statutory manager of a registered bank shall comply with any directions given in writing by the Bank relating to the exercise of the powers of that statutory manager under this Part.
Compare: 1964 No 134 s 38U; 1986 No 131 s 10 121 Considerations affecting exercise of powers by statutory (1) (2) manager In exercising the powers conferred by this Part a statutory manager of a registered bank shall have regard to— (a) the need to maintain public conﬁdence in the operation and soundness of the ﬁnancial system: the need to avoid signiﬁcant damage to the ﬁnancial system: to the extent not inconsistent with the considerations referred to in paragraphs (a) and (b), the need to resolve as quickly as possible the difﬁculties of that registered bank: to the extent not inconsistent with the considerations referred to in paragraphs (a), (b) and (c), preserving the position of creditors and maintaining the ranking of claims of creditors: the advice of the Bank.
(e) Every statutory manager shall— (a) consult with the Bank, to the extent required by the Bank, as to the exercise of those powers: provide the reports that the Bank may require as to the state of the affairs, business, and statutory management of the registered bank to persons speciﬁed by the Bank (b) (c) (d) (b) 117 Part 5 s 121A Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (c) (including, but not limited to, the Bank) in the form and with the frequency that the Bank may require: provide the information that an advisory committee ap­ pointed under section 119 may reasonably require as to the affairs, business, and statutory management of the registered bank.
(3) A statutory manager may refuse to supply information to an advisory committee under subsection (2)(c) if the Bank con­ siders that the refusal is appropriate and gives its written ap­ proval to the statutory manager accordingly.

Compare: 1964 No 134 s 38T; 1986 No 131 s 10; 1989 No 11 s 41 Section 121(2)(b): substituted, on 21 August 2003, by section 34(1) of the Re­ serve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 121(2)(c): added, on 21 August 2003, by section 34(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 121(3): added, on 21 August 2003, by section 34(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
121A Statutory manager to avoid actions likely to have detrimental effect (1) A statutory manager who has reasonable cause to believe that an action he or she proposes to take is an action that is likely to have a detrimental effect on ﬁnancial system stability in Australia must— (a) (b) notify the Bank as soon as practicable; and obtain the Bank’s written consent before taking that ac­ tion.
(2) The statutory manager is not required to comply with subsec­ tion (1) if the statutory manager is satisﬁed that it is not reason­ ably practicable to do so in the circumstances, having regard to urgency or other similar constraint.

(3) Where the Bank receives a notiﬁcation under subsection (1), it must provide details of the notiﬁcation to every prescribed Australian ﬁnancial authority it considers to be relevant in the circumstances before granting written consent to the statutory manager.
The Bank is not required to comply with subsection (3) if the Bank is satisﬁed that it is not reasonably practicable to do so (4) 118 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 122 in the circumstances, having regard to urgency or other similar constraint.

(5) No performance of a function or duty or exercise of a power is invalid by reason only of a failure to comply with the pro­ visions of this section.
(6) A statutory manager may consult a prescribed Australian ﬁ­ nancial authority about whether an action the statutory man­ ager proposes to take is likely to have a detrimental effect on ﬁnancial system stability in Australia.

Section 121A: inserted, on 15 December 2006, by section 8 of the Reserve Bank of New Zealand Amendment Act 2006 (2006 No 51).
122 Moratorium (1) Where a registered bank is declared under section 117 to be subject to statutory management, no person shall— (a) commence or continue any action or other proceedings, including proceedings by way of counterclaim, against that registered bank: issue any execution, attach any debt, or otherwise en­ force or seek to enforce any judgment or order obtained in respect of that registered bank: take any steps to put that registered bank into liquidation or voluntary administration: enter into possession, sell, or appoint a receiver of the property of that registered bank or property in respect of which the registered bank has an equity of redemption: exercise or continue any power or rights under, or in pursuance of, any mortgage, charge, debenture, instru­ ment, or other security over the property of that regis­ tered bank: claim or recover, pursuant to any retention of title clause, hire purchase agreement, mortgage, lease, or security, any property in the possession of the registered bank: determine or forfeit any tenancy, retake or re­enter any premises, or exercise or continue any power or rights under or in pursuance of any lease, against that regis­ tered bank: exercise any right of set­off against that registered bank.
(b) (c) (d) (e) (f) (g) (h) 119 Part 5 s 122 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (2) Notwithstanding subsection (1), an action or proceeding may be commenced or continued against a registered bank for the purpose of determining whether any right or liability exists if the leave of the statutory manager or the High Court is ﬁrst obtained.
(3) Notwithstanding subsection (1), a statutory manager may waive the application in whole or in part of that subsection (except paragraph (c)) to any creditor or class of creditors in respect of the whole or part of any claim of, or security held by, that creditor or class of creditors.

Subject to this Act, nothing in subsection (1) affects the exis­ tence of any security over the property of any registered bank or its priority over other debts.
(4) (5) Nothing in subsection (1)(a), (b), and (d) to (h) limits or pre­ vents any person from taking any of the actions speciﬁed in those paragraphs in relation to an obligation incurred or a right granted under a deed, instrument, trust, or contract entered into by a registered bank after the date on which, and the time at which, that registered bank was declared to be subject to statu­ tory management.
[Repealed] In the case of a netting agreement to which sections 310A to 310O of the Companies Act 1993 or sections 255 to 263 of the Insolvency Act 2006 apply,— (a) (6) (7) (b) nothing in subsection (1)(h) applies to any right of set­ off provided for in the netting agreement; and nothing in subsection (1) limits or prevents the exercise of any of the following rights under the netting agree­ ment: (i) the termination, in accordance with the netting agreement, of all or any transactions that are subject to the netting agreement by reason of the occurrence of an event speciﬁed in the net­ ting agreement, being an event (including the ap­ pointment of a statutory manager) occurring not later than the commencement of statutory man­ agement; or the taking of an account, in accordance with the netting agreement, of all money due between (ii) 120 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 122 (c) the parties to the netting agreement in respect of transactions affected by the termination; and nothing in subsection (1) limits or prevents the exer­ cise of any right referred to in paragraphs (d) to (f) of that subsection in respect of any property of that regis­ tered bank to the extent that the right is exercised to en­ force, or to assist in enforcing, the due performance, by that registered bank, of obligations entered into by that registered bank under a recognised multilateral netting agreement (within the meaning of section 310A of the Companies Act 1993).
(8) In the case of netting under the rules of a designated payment system,— (a) (b) nothing in subsection (1) limits or prevents the exercise of any rights relating to the calculation of a netted bal­ ance under those rules; and nothing in subsection (1) limits or prevents the exercise of any right referred to in paragraphs (d) to (f) of that subsection in respect of any property of that registered bank if the right that is exercised— (i) is provided under the rules of the designated pay­ ment system; and has been granted to secure, or to assist in secur­ ing, the due performance, by that registered bank, of obligations entered into by that registered bank under those rules.
(ii) (9) For the purpose of subsection (8), netted balance and netting have the meanings set out in section 156L.

Compare: 1964 No 134 s 38V; 1986 No 131 s 10; 1989 No 11 s 42 Section 122(1)(c): substituted, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).

Section 122(1)(c): amended, on 1 November 2007, by section 41 of the Com­ panies Amendment Act 2006 (2006 No 56).
Section 122(1)(d): amended, on 1 January 2008, by section 364(1) of the Prop­ erty Law Act 2007 (2007 No 91).

Section 122(1)(g): amended, on 1 January 2008, by section 364(1) of the Prop­ erty Law Act 2007 (2007 No 91).

Section 122(5): substituted, on 21 August 2003, by section 35(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
121 Part 5 s 123 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 Section 122(6): repealed, on 21 August 2003, by section 35(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 122(7): added, on 26 April 1999, by section 3(2) of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).

Section 122(7): amended, on 3 December 2007, by section 445 of the Insol­ vency Act 2006 (2006 No 55).
Section 122(7)(c): substituted, on 21 August 2003, by section 35(2) of the Re­ serve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 122(8): added, on 21 August 2003, by section 35(3) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 122(9): added, on 21 August 2003, by section 35(3) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
123 Statutory manager may incorporate company under Companies Act 1993 to acquire business of branch of foreign institution (1) Where a registered bank, which is a branch of a body corporate incorporated outside New Zealand or, as the case may be, any unincorporated body having its head ofﬁce or principal place of business outside New Zealand, is declared to be subject to statutory management, the statutory manager may— (a) (b) (c) form and register a body corporate under the Companies Act 1993 or any other Act: subscribe for or acquire, as trustee for that body corpo­ rate or unincorporated body, as the case may be, all or any of the shares of the body corporate: allot or issue all or any of the shares in that body cor­ porate as fully or partly paid, as the case may be, up to the value, after deducting the value of any liabilities vested, of any property, rights, and assets vested in that body corporate pursuant to subsection (2).
The Governor­General may, by Order in Council, on the ad­ vice of the Minister, given in accordance with a recommen­ dation of the Bank, declare that the whole or any part of any property, rights, assets, and liabilities of any such branch re­ lating to the business carried on by that branch shall vest in that body corporate on a date speciﬁed in the order and the property, rights, assets, and liabilities shall vest in that body corporate on the date speciﬁed.
(2) 122 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 124 (4) (3) Nothing in subsection (2) shall reduce, extinguish, or affect any obligation or liability of a body corporate incorporated outside New Zealand or, as the case may be, an unincorpor­ ated body having its head ofﬁce or principal place of business outside New Zealand.
Every body corporate formed and registered under subsection (1) shall, for the purposes of this Part, be deemed to be a reg­ istered bank subject to statutory management as if that body corporate had been declared to be subject to statutory man­ agement pursuant to section 117, and the statutory manager of it, in its capacity as a branch, shall be the statutory manager of that body corporate as if that statutory manager had been ap­ pointed pursuant to that section and the provisions of this Part shall apply accordingly.
Compare: 1964 No 134 s 38W(1), (3)–(5); 1986 No 131 s 10 Section 123 heading: amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 123(1)(a): amended, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).

Section 123(1)(b): substituted, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).
Section 123(1)(c): amended, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).

124 Vesting of property subject to security (1) An order may be made under section 123 vesting any prop­ erty, rights, and assets of a branch in a body corporate formed and registered pursuant to that section notwithstanding the ex­ istence, or the terms and conditions, of any security over that property, or those rights or assets, in favour of any other per­ son.
(2) Any property, rights or assets which are declared to vest pur­ suant to an order made under that section in the body corporate, being property, rights or assets subject to a security in favour of any other person, shall continue to be subject to that secur­ ity.
Compare: 1964 No 134 s 38W(6), (7); 1986 No 131 s 10 123 Part 5 s 125 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 125 Proof of vesting (1) No Registrar of Deeds, or District Land Registrar, or any other person charged with the keeping of any books or registers, shall be obliged solely by reason of section 123 to change the name of any body corporate or unincorporated body referred to in that section to that of any company formed and registered pursuant to that section in those books or registers or in any document.
The presentation to any Registrar or other person of any in­ strument, whether or not comprising an instrument of transfer, by the company— (a) (2) (b) (c) executed or purporting to be executed by the company; and relating to any property held before the date speciﬁed in an Order in Council made pursuant to that section by that body corporate or unincorporated body; and containing a recital that the property has become vested in the company, by virtue of the provisions of that sec­ tion— shall, in the absence of evidence to the contrary, be sufﬁcient proof that the property is vested in the company.
Compare: 1964 No 134 s 38W(8), (9); 1986 No 131 s 10 126 Prohibition against removal of assets (1) Except with the consent of the statutory manager, no person shall transfer or remove from New Zealand any property or assets of a registered bank which is declared to be subject to statutory management.

(2) A person commits an offence if the person contravenes sub­ section (1).

(2A) The penalty for an offence against this section is set out in section 156AC.
(3) Nothing in subsection (2) shall prevent the issue of an injunc­ tion or the making of any order to prevent any property or as­ sets being removed from New Zealand.

Compare: 1964 No 134 s 38X; 1986 No 131 s 10; 1989 No 11 s 43 Section 126(2): substituted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
124 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 127 Section 126(2A): inserted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
127 Statutory manager may suspend payment of money owing The statutory manager of a registered bank may, despite the (1) terms of any contract,— (a) suspend in whole or in part the repayment of any de­ posit, or the payment of any debt, or the discharge of any obligation, to any person; and cancel the obligation to provide funding to any person.
(2) A suspension or cancellation by a statutory manager under subsection (1) does not constitute a breach or repudiation of any contract entered into by the registered bank with any per­ son.
(b) (3) Nothing in subsection (1) shall authorise the suspension by the statutory manager of the repayment of any deposit, or the payment of any debt, or the discharge of any obligation, or the cancellation by the statutory manager of any obligation to provide funding, to any person where the obligation to repay the deposit, or to pay the debt, or the obligation, was incurred by the registered bank, or by the statutory manager, after the date upon which, and the time at which, the registered bank became subject to statutory management.
(4) Nothing in subsection (1) authorises the suspension by the statutory manager of the payment of any amount that would be included in the calculation of a netted balance in accord­ ance with section 310C of the Companies Act 1993 or section 257 of the Insolvency Act 2006 or section 156R, as the case may be.

However, subsection (1) applies to the payment of the netted balance.
Compare: 1964 No 134 s 38Y; 1986 No 131 s 10; 1989 No 11 s 44 Section 127(1): substituted, on 21 August 2003, by section 36(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 127(2): substituted, on 21 August 2003, by section 36(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 127(3): amended, on 21 August 2003, by section 36(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 127(3): amended, on 26 April 1999, by section 4(1) of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).

125 Part 5 s 128 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 Section 127(4): added, on 26 April 1999, by section 4(2) of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).

Section 127(4): amended, on 3 December 2007, by section 445 of the Insol­ vency Act 2006 (2006 No 55).
Section 127(4): amended, on 21 August 2003, by section 36(3) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

128 Management of registered bank to vest in statutory (1) manager Subject to this Part, where a registered bank is declared to be subject to statutory management, the management of that registered bank shall, on and after the date, and at and from the time, speciﬁed in the order, vest in the statutory manager.
(2) Where a registered bank is declared to be subject to statutory management, it shall not be lawful or competent for any dir­ ector, manager, or other person to be engaged in the manage­ ment or conduct of its business, or to act as an ofﬁcer or as the agent, or servant, of the registered bank, except with the per­ mission of the statutory manager and so far as that permission extends.
Compare: 1964 No 134 s 38Z; 1986 No 131 s 10; 1989 No 11 s 45 Section 128(1): amended, on 26 April 1999, by section 5 of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).

129 Powers of statutory manager (1) Subject to this Part, a statutory manager shall have all such powers, rights, and authorities as may be necessary for the purposes of this Part.
(2) Without limiting subsection (1), a statutory manager has, and may exercise,— (a) all the powers, rights, and privileges that the registered bank has under any contract or otherwise: in the case of a body corporate, all the powers of the members in general meeting and the board of directors of that body corporate: in the case of a partnership, all the powers exercisable by a partner or partners.
(b) (c) (3) Without limiting subsection (1), a statutory manager has, and may exercise, all of the powers conferred on a liquidator of a company by section 269 of the Companies Act 1993 in the 126 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 132 same manner as if the statutory manager was the liquidator of a company in liquidation under that Act, and all the provisions of that section shall apply in respect of the disclaimer of any property of the registered bank as if that property was property of a company to which that section applied.
Compare: 1964 No 134 s 38AB; 1986 No 131 s 10; 1989 No 11 s 46 Section 129(3): substituted, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).
130 Statutory manager empowered to carry on business of registered bank Subject to this Part, a statutory manager of a registered bank may carry on all or any part of the business of the registered bank and has, and may exercise, in relation to the registered bank, all such powers, rights, and authorities as may be neces­ sary to carry on that business.
Compare: 1964 No 134 s 38AC; 1986 No 131 s 10; 1989 No 11 s 47 131 Statutory manager may pay creditors and compromise claims Subject to this Part, a statutory manager of a registered bank shall, for the purposes of carrying on the business of the reg­ istered bank, have power to— (a) pay, in whole or in part, any creditor or class of creditors of the registered bank: (c) (b) make any compromise or arrangement with any cred­ itor, or person claiming to be a creditor, of the registered bank: compromise all calls, debts and claims subsisting, or supposed to subsist, between the registered bank and any other person, and all questions relating to the assets of the registered bank, and give a complete or partial discharge.
Compare: 1964 No 134 s 38AD; 1986 No 131 s 10; 1989 No 11 s 48 132 Sale of registered bank (1) Subject to this Part, the statutory manager of a registered bank may sell or otherwise dispose of the whole or any part of the business undertaking of the registered bank to such person 127 Part 5 s 132 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 and upon such terms and conditions as the statutory manager thinks ﬁt.
(2) Without limiting any other powers of the statutory manager, for the purposes of subsection (1), the statutory manager shall have power to— (a) (b) (c) (d) (e) form and register a body corporate under the Companies Act 1993 or any other Act: subscribe for or acquire all or any of the shares of that body corporate: transfer to that body corporate the whole or any part of the business undertaking of the registered bank: allot or issue all or any of the shares in that body cor­ porate to any person, credited as fully or partly paid, as the case may be, up to the value of the business under­ taking transferred to that body corporate: sell all or any of the shares, or the whole or any part of the business undertaking, of that body corporate to such person and upon such terms and conditions as the statutory manager thinks ﬁt.
(b) The statutory manager shall not sell or otherwise dispose of— the whole or any substantial part of the business under­ (a) taking of a registered bank pursuant to subsection (1): any of the shares of any body corporate formed and registered pursuant to subsection (2)(a): the whole or any substantial part of the business under­ taking of any body corporate formed and registered pur­ suant to subsection (2)(a),— (c) unless the statutory manager has consulted with the Bank and the Bank, with the consent of the Minister, has given approval in writing to the sale or other disposition and the terms and conditions of it.
Compare: 1964 No 134 s 38AE(1)–(3); 1986 No 131 s 10; 1989 No 11 s 50(1), (2) Section 132(2)(a): amended, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).

Section 132(2)(b): amended, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).

Section 132(2)(d): amended, on 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).
(3) 128 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 134 133 Consents not required under other Acts The provisions of any enactment or agreement requiring any consent, licence, permission, clearance or other authority shall not have any application in respect of— (a) the sale or other disposition of the whole or any part of the business undertaking of a registered bank pursuant to section 132(1): to section the sale or other disposition pursuant 132(2)(e) of any of the shares of any body corpo­ rate formed and registered pursuant to subsection (2)(a) of that section: to section the sale or other disposition pursuant 132(2)(e) of the whole or any part of the business undertaking of that body corporate— (b) (c) being a sale or disposition to which the Bank has, with the con­ sent of the Minister, given its approval under section 132(3).
Compare: 1964 No 134 s 38AE(4); 1986 No 131 s 10; 1989 No 11 s 50(3) 134 Sale of property or assets subject to a security (1) A statutory manager may— (a) (b) (c) sell or otherwise dispose of any property or assets of a registered bank pursuant to section 132(1); or sell or otherwise dispose of any property or assets of a registered bank to any body corporate formed and reg­ istered pursuant to section 132(2)(a); or sell or otherwise dispose of any shares, or property or assets, of a body corporate formed and registered pur­ suant to section 132(2)(a)— notwithstanding the existence, or the terms and conditions, of any security over the property or those assets in favour of any other person.
If the statutory manager of a registered bank sells or otherwise disposes of any property or assets of that bank under section 132(1), being property or assets subject to a security interest, other than a security interest of the kind described in subsec­ tion (6), the person entitled to the security interest must be paid out of the proceeds of sale or other disposition in priority to all other claims other than the costs of the statutory manager in selling or disposing of the property or assets.
(2) 129 Part 5 s 134 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (4) (3) Where a statutory manager of a registered bank sells or other­ wise disposes of any property or assets of that registered bank to any body corporate formed and registered pursuant to sec­ tion 132(2)(a), being property or assets subject to a security in favour of any other person, the property or those assets shall continue to be subject to that security.
If a statutory manager of a registered bank sells or otherwise disposes of any shares in a body corporate formed and regis­ tered under section 132(2)(a), any property or assets of which are subject to a security interest, other than a security interest of the kind described in subsection (6), the person entitled to the security interest must be paid out of the proceeds of sale or other disposition in priority to all other claims other than the costs of the statutory manager in selling or disposing of the shares.
If a statutory manager of a registered bank sells or otherwise disposes of any property or assets of a body corporate formed and registered under section 132(2)(a), being property or as­ sets subject to security interest, other than a security interest of the kind described in subsection (6), the person entitled to the security interest must be paid out of the proceeds of sale or other disposition in priority to all other claims other than the costs of the statutory manager in selling or disposing of the property or assets.
The kind of security interest referred to in this section is a security interest that— (a) (6) (5) is over all or any part of the bank’s or body corporate’s (as the case may be) accounts receivable and inventory or all or any part of either of them; and is not a purchase money security interest that has been perfected at the time speciﬁed in section 74 of the Per­ sonal Property Securities Act 1999; and is not a security interest that has been perfected under the Personal Property Securities Act 1999 at the time the registered bank was declared to be subject to statutory management and that arises from the transfer of an ac­ count receivable for which new value is provided by the transferee for the acquisition of that account receivable (b) (c) 130 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 135 (7) (whether or not the transfer of the account receivable secures payment or performance of an obligation).
In this section, account receivable, inventory, new value, purchase money security interest, proceeds, and security interest have the same meanings as in the Personal Property Securities Act 1999.

Compare: 1964 No 134 s 38AE(5)–(9); 1986 No 131 s 10; 1989 No 11 s 51 Section 134(2): substituted, on 1 May 2002, by section 191(1) of the Personal Property Securities Act 1999 (1999 No 126).

Section 134(4): substituted, on 1 May 2002, by section 191(1) of the Personal Property Securities Act 1999 (1999 No 126).
Section 134(5): substituted, on 1 May 2002, by section 191(1) of the Personal Property Securities Act 1999 (1999 No 126).

Section 134(6): added, on 1 May 2002, by section 191(1) of the Personal Prop­ erty Securities Act 1999 (1999 No 126).

Section 134(6)(b): amended, on 3 December 2007, by section 445 of the Insol­ vency Act 2006 (2006 No 55).

Section 134(6)(c): amended, on 3 December 2007, by section 445 of the Insol­ vency Act 2006 (2006 No 55).
Section 134(7): added, on 1 May 2002, by section 191(1) of the Personal Prop­ erty Securities Act 1999 (1999 No 126).
135 Proof of transactions (1) The presentation to any Registrar of Deeds, or District Land Registrar, or any other person charged with the keeping of any books or registers, of any instrument transferring or otherwise disposing of any property or assets of a registered bank or any shares in, or property or assets of, any company incorporated pursuant to section 132(2)(a)— (a) executed or purporting to be executed by or on behalf of the registered bank or company; and containing a recital that the transfer or other disposition of the property or assets of the registered bank, or the shares in, or property or assets of, the company, is made pursuant to section 132— (b) shall, in the absence of evidence to the contrary, be sufﬁcient proof that the transfer or other disposition is made under the authority of that section.
The presentation to any Registrar of Deeds, or District Land Registrar, or any other person charged with the keeping of any (2) 131 Part 5 s 136 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 books or registers of a certiﬁcate signed by the statutory man­ ager that the amount secured by a charge over any property or assets of a registered bank or any company formed and regis­ tered pursuant to section 132(2)(a) has been paid shall, in the absence of evidence to the contrary, be sufﬁcient proof that the amount secured by the charge has been repaid.
Compare: 1964 No 134 s 38AE(10), (11); 1986 No 131 s 10; 1989 No 11 s 72 136 Liquidation of registered banks (1) Subject to this Part, a statutory manager of a registered bank may, with the prior approval of the Bank,— (a) in the case of a registered bank which may be put into liquidation under the Companies Act 1993, apply under that Act to put the registered bank into liquidation: in the case of a registered bank which is an individual, petition under the Insolvency Act 2006 to have that reg­ istered bank declared bankrupt: in the case of a registered bank constituted under any other Act, take such steps as are provided for in that Act for the winding up, liquidation, or dissolution of that registered bank.
(b) (c) (2) The Governor­General may, by Order in Council, on the ad­ vice of the Minister given in accordance with a recommen­ dation of a statutory manager of a registered bank, not being a registered bank referred to in subsection (1), order that the registered bank to which the recommendation relates shall be wound up in such manner as may be speciﬁed in the order and, in any such case, the registered bank shall be wound up in the manner speciﬁed.
(3) A statutory manager shall not make a recommendation under subsection (2) without the prior approval of the Bank.

(4) Nothing in this section limits or affects any other enactment which provides for the winding up, liquidation, or dissolution of any body corporate or any class of body corporate.

Section 136: substituted, on 1 July 1994, by section 2 of the Reserve Bank of New Zealand Amendment Act 1993 (1993 No 118).
Section 136(1)(a): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

132 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 138 Section 136(1)(b): amended, on 3 December 2007, by section 445 of the Insol­ vency Act 2006 (2006 No 55).
137 Provisions applying where liabilities included in sale (1) Where all or any part of any liability of a registered bank is included in the sale or other disposition of the business under­ taking of that registered bank, or any part of it, pursuant to section 132— (a) (b) (c) the registered bank shall, as from the date of such sale or other disposition, be relieved from all its obligations in respect of that liability, or part of it; and the person entitled to performance in respect of that li­ ability shall be entitled to enforce performance of that liability or part of it against the person to whom the busi­ ness undertaking is sold or otherwise disposed of in the same manner and to the same extent as that person was entitled to enforce performance against the registered bank; and the inclusion of part of a liability shall not relieve the registered bank from any obligation in respect of any part of the liability not included in the sale or other dis­ position.
(2) Where all or any part of any liability of a body corporate formed and registered under section 123(1), or all or any part of any liability relating to the business carried on by a branch of any body corporate incorporated outside New Zealand or, as the case may be, any unincorporated body having its head ofﬁce or principal place of business outside New Zealand, is included in such a sale or other disposition, nothing in sub­ section (1)(a) shall relieve any body corporate incorporated outside New Zealand or, as the case may be, any unincorpor­ ated body having its head ofﬁce or principal place of business outside New Zealand from any obligation in respect of that li­ ability.
Compare: 1964 No 134 s 38AG; 1986 No 131 s 10; 1989 No 11 s 53 138 Power to trace property improperly disposed of (1) In any case where, whether before or after the passing of this Act,— 133 Part 5 s 139 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (a) (b) any property has been acquired by a person in circum­ stances which cause it to be just and equitable that that person should hold it upon trust for any registered bank that has been declared to be subject to statutory man­ agement; or any property has been improperly disposed of, whether or not the property has become subject to a trust,— (d) the court may, if it thinks ﬁt, make an order— (c) that the property be transferred or delivered to the statu­ tory manager: that any person who acquired or received the property, or his or her administrator, shall pay to the statutory manager a sum not exceeding the value of that property.
For the purpose of giving effect to any such order, the court may make such further order as it thinks ﬁt.

(2) (3) No order made pursuant to this section shall deprive any other person of any estate or interest in the property if the estate or interest was acquired in good faith and for valuable consider­ ation.

(4) Nothing in this section restricts the operation of the Companies Act 1993.
Compare: 1989 No 11 s 54 Section 138(4): substituted, on 1 July 1994, by section 3 of the Reserve Bank of New Zealand Amendment Act 1993 (1993 No 118).

Section 138(4): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
139 Application of certain provisions of Companies Act 1993 (1) Sections 275, 292 to 301, 310G, 310I, and 312 of the Compan­ ies Act 1993 shall apply to a registered bank that is subject to statutory management under this Act in all respects, and with such modiﬁcations as may be necessary, as if— (a) the registered bank was a company in liquidation under that Act; and the statutory manager of the registered bank was the liquidator of the company; and the date on which, and the time at which, the registered bank became subject to statutory management was the (b) (c) 134 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 140 date on which, and the time at which, the liquidation commenced.
(3) (2) Nothing in section 263 of the Companies Act 1993 shall ap­ ply to a registered bank by virtue of the application of section 312 of that Act.

To avoid doubt, the reference in section 275(4) of the Compan­ ies Act 1993 to clause 1(a) of Schedule 7 of the Companies Act 1993 must be read as a reference to section 148(1) of this Act.

Section 139: substituted, on 1 July 1994, by section 4 of the Reserve Bank of New Zealand Amendment Act 1993 (1993 No 118).
Section 139(1): amended, on 20 September 2007, by section 4(1) of the Reserve Bank of New Zealand Amendment Act 2007 (2007 No 76).

Section 139(1): amended, on 26 April 1999, by section 6(1) of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).

Section 139(1)(c): substituted, on 26 April 1999, by section 6(2) of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).
Section 139(3): added, on 20 September 2007, by section 4(2) of the Reserve Bank of New Zealand Amendment Act 2007 (2007 No 76).
Miscellaneous provisions 140 Application of this Part to joint statutory managers, associated persons, and subsidiaries (1) Where an Order in Council is made under section 117 appoint­ ing 2 or more persons as statutory managers of a registered bank, the order shall state whether the powers conferred by this Part shall be exercised by those persons acting together or may be exercised individually.
For the purposes of this Part, unless the context otherwise re­ quires,— (a) references to a statutory manager shall, where 2 or more persons are appointed as statutory managers include ref­ erences to those statutory managers: (2) (b) where an associated person of a registered bank is de­ clared to be subject to statutory management, or a sub­ sidiary of a registered bank becomes subject to statu­ tory management under section 117(2), references in sections 119 to 139 and in sections 141 to 156 to a regis­ 135 Part 5 s 141 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 tered bank shall be read as references to that associated person or subsidiary, as the case may be.
Compare: 1964 No 134 s 38R(11), (12); 1986 No 131 s 10; 1989 No 11 s 56 141 Termination of appointment of statutory manager (1) The Minister may, by notice in writing to the statutory man­ ager of a registered bank that is given in accordance with the recommendation of the Bank, terminate the appointment of that statutory manager for inability to perform the functions of the ofﬁce or for bankruptcy or if the Minister is of the opinion that the statutory manager has failed to perform the statutory manager’s duties satisfactorily.
(2) A statutory manager of a registered bank may resign ofﬁce by notice in writing to the Minister.

(3) Where the appointment of a statutory manager is terminated under subsection (1) or a statutory manager resigns ofﬁce, or dies, the Minister may, by notice published in the Gazette, ap­ point a person to replace that statutory manager for a speciﬁed period.
(3A) Where a notice is published in the Gazette under subsection (3) appointing 2 or more persons as statutory managers, the notice shall state whether the powers conferred by this Part shall be exercised by those persons acting together or may be exercised individually.

(4) A statutory manager continues in ofﬁce until his or her succes­ sor is appointed despite— (a) (b) his or her resignation; or his or her period of appointment having expired.
(5) A registered bank continues to be subject to statutory manage­ ment under section 117 even though its statutory manager— has had his or her appointment terminated, or (a) has resigned from ofﬁce; or (b) has died, or (c) has ceased to hold ofﬁce because of the expiry of his or (d) her period of appointment.

The Bank must publish a notice given by the Minister under this section in the Gazette as soon as practicable.
Compare: 1964 No 134 s 38AH; 1986 No 131 s 10; 1989 No 11 s 57 (6) 136 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 143 Section 141(1): substituted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 141(3): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 141(3A): inserted, on 8 April 1992, by section 2 of the Reserve Bank of New Zealand Amendment Act 1992 (1992 No 32).

Section 141(3A): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 141(4): substituted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 141(5): added, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 141(6): added, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

142 Statutory manager may apply to High Court for directions (1) A statutory manager of a registered bank may apply to the High Court for directions concerning the business or property of the registered bank or the management or administration of that business or property, or the exercise of any powers under this Part.
(2) On any application under subsection (1) the High Court may give directions concerning the business or property of the reg­ istered bank, or the management or administration of that busi­ ness or property, or the exercise of any powers under this Part and every person shall be bound by any such directions.
Compare: 1964 No 134 s 38AI; 1986 No 131 s 10; 1989 No 11 s 58 143 Prior winding up, liquidation, or receivership to cease (1) Where a registered bank, or any subsidiary or associated per­ son of a registered bank, becomes subject to statutory man­ agement, and that registered bank, subsidiary, or associated person is already being wound up or is already in liquidation, receivership, or voluntary administration,— (a) the winding up, liquidation, receivership, or voluntary administration of that registered bank, subsidiary, or as­ sociated person must, for so long as it continues to be subject to statutory management, cease; and 137 Part 5 s 143A Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (b) the person appointed as liquidator, receiver, or admin­ istrator must be discharged.
(2) Where the statutory management of any registered bank, sub­ sidiary, or associated person referred to in subsection (1) is terminated by, or as the result of the making of, an Order in Council under section 144(1), the liquidation or receivership or voluntary administration of that registered bank, subsidiary, or associated person shall, unless the Order in Council termin­ ating the statutory management otherwise provides, and sub­ ject to such terms and conditions as the order may specify, re­ vive as if it had not ceased by reason of this section.
(3) Where any liquidation, receivership, or voluntary administra­ tion revives under subsection (2), the person speciﬁed in the order as such must be the liquidator, receiver, or administrator of that registered bank, subsidiary, or associated person for the time being.

Compare: 1989 No 11 s 61 Section 143 heading: amended, on 1 July 1994, pursuant to section 6 of the Reserve Bank of New Zealand Amendment Act 1993 (1993 No 118).
Section 143(1): substituted, on 1 November 2007, by section 41 of the Com­ panies Amendment Act 2006 (2006 No 56).

Section 143(2): amended, on 1 November 2007, by section 41 of the Companies Amendment Act 2006 (2006 No 56).

Section 143(3): substituted, on 1 November 2007, by section 41 of the Com­ panies Amendment Act 2006 (2006 No 56).
143A Continuation of statutory management (1) This section applies to a registered bank, an associated person of a registered bank, or a subsidiary of a registered bank, that has been removed from the New Zealand register under sec­ tion 317 of the Companies Act 1993 while subject to statutory management under this Act.
If a person to whom this section applies is restored to the New Zealand register under section 328 of the Companies Act 1993, the person continues to be subject to statutory management from the date that person is so restored.

Section 143A: inserted, on 21 August 2003, by section 37 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(2) 138 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 144 144 Termination of statutory management (1) The Governor­General may, by Order in Council, on the ad­ vice of the Minister given in accordance with a recommenda­ tion of the Bank, declare that— any registered bank: (a) any associated person of a registered bank: (b) (c) any subsidiary of a registered bank,— subject to statutory management, shall cease to be subject to statutory management.
(2) Any registered bank, or associated person of a registered bank, or subsidiary of a registered bank shall cease to be subject to statutory management if that registered bank, or associated person, or subsidiary, as the case may be, is put into liquidation on the application of the statutory manager.

(3) Any person who is affected by the making of an Order in Coun­ cil under section 117 may, at any time, request the Bank to make a recommendation under subsection (1).
(4) Where an Order in Council is made under subsection (1) or, a registered bank, associated person, or subsidiary is put into liquidation— (a) (b) (c) that person shall cease to be subject to statutory man­ agement at the speciﬁed time; and the appointment of any statutory manager appointed in respect of that person shall terminate at the speciﬁed time; and the appointment of any person as a member of an ad­ visory committee under section 119 in relation to the statutory management of that person shall terminate at the speciﬁed time.
(5) For the purposes of subsection (4) speciﬁed time means,— (a) in any case where an Order in Council is made pur­ suant to subsection (1), the date and time speciﬁed in the order: in any case where a liquidator is appointed, the date and time of the liquidator’s appointment.
(b) (6) Where an Order in Council is made under subsection (1) declaring that a registered bank shall cease to be subject to statutory management,— 139 Part 5 s 144 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (a) (b) (c) every subsidiary of that registered bank, except any sub­ sidiary speciﬁed in the order, shall cease to be subject to statutory management on the same date as that spe­ ciﬁed as the date upon which, and at the same time as that speciﬁed as the time at which, the registered bank ceases to be subject to statutory management: the appointment of any person appointed as a statutory manager of every such subsidiary shall terminate on the date and at the time referred to in paragraph (a): the appointment of any person appointed as a member of an advisory committee under section 119 in relation to the statutory management of that subsidiary shall ter­ minate on the date and at the time referred to in para­ graph (a).
Compare: 1964 No 134 s 38AJ; 1986 No 131 s 10; 1989 No 11 s 62 Section 144(2): substituted, on 1 July 1994, by section 7(1) of the Reserve Bank of New Zealand Amendment Act 1993 (1993 No 118).

Section 144(4): amended, on 1 July 1994, by section 7(2) of the Reserve Bank of New Zealand Amendment Act 1993 (1993 No 118).

Section 144(4)(a): amended, on 26 April 1999, by section 7(a) of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).
Section 144(4)(b): amended, on 26 April 1999, by section 7(a) of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).

Section 144(4)(c): amended, on 26 April 1999, by section 7(a) of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).

Section 144(5): amended, on 26 April 1999, by section 7(b) of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).
Section 144(5)(a): amended, on 26 April 1999, by section 7(c) of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).

Section 144(5)(b): substituted, on 1 July 1994, by section 7(3) of the Reserve Bank of New Zealand Amendment Act 1993 (1993 No 118).

Section 144(5)(b): amended, on 26 April 1999, by section 7(c) of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).
Section 144(6)(a): amended, on 26 April 1999, by section 7(d) of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).

Section 144(6)(b): amended, on 26 April 1999, by section 7(e) of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).

Section 144(6)(c): amended, on 26 April 1999, by section 7(e) of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).
140 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 148 (2) 145 Obligations incurred by statutory manager (1) Any obligations incurred by a statutory manager of a regis­ tered bank in the course of his or her duties as statutory man­ ager are incurred by that statutory manager on behalf of the registered bank, and the statutory manager does not incur per­ sonal liability for those obligations.
In the winding up or liquidation of a registered bank or an as­ sociated person of a registered bank or a subsidiary of a regis­ tered bank, all amounts required to satisfy obligations incurred by the statutory manager on behalf of the registered bank, as­ sociated person, or subsidiary must be paid in priority to all other debts.

Section 145: substituted, on 21 August 2003, by section 38 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
146 Indemnity [Repealed] Section 146: repealed, on 21 August 2003, by section 39 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
147 Registered bank not entitled to be informed about exercise of powers Except as otherwise provided in this Part, no registered bank, associated person, or subsidiary, and no director, ofﬁcer, or employee of a registered bank, associated person, or sub­ sidiary, has a right to be consulted or informed as to the exercise, or possible exercise, of any powers conferred by this Part or to make representations to any person as to the exercise, or possible exercise, of those powers.
Compare: 1989 No 11 s 64 148 Expenses of statutory management (1) All costs, charges, and expenses properly incurred by a statu­ tory manager or a member of an advisory committee in the ex­ ercise of the manager’s or the member’s functions and powers under this Part (including such remuneration as may be ap­ proved by the Bank) shall be payable out of the property of the registered bank or associated person of the registered bank or a subsidiary of the registered bank in respect of which the statu­ 141 Part 5 s 149 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (2) (3) tory manager or member is appointed in priority to all other claims.
The statutory manager may, with the approval of the Bank, ap­ portion the costs, charges, and expenses referred to in subsec­ tion (1) between the registered bank and any associated per­ son or subsidiary of the registered bank that is also subject to statutory management in the amounts that the statutory man­ ager considers just and equitable.

This section prevails over section 145.


Compare: 1964 No 134 s 38AL; 1986 No 131 s 10; 1989 No 11 s 65 Section 148(1): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 148(2): added, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 148(3): added, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
149 Advances to statutory manager and members of advisory committee (1) With the consent of the Minister, there may be advanced out of the Crown Bank Account, without further appropriation than this section, to a statutory manager of a registered bank or a member of an advisory committee, such amounts as the Min­ ister may approve in respect of costs, charges, and expenses (including remuneration) due to, or incurred by, that person.
(2) All money so advanced to that person shall be refunded to the Crown out of money payable to that person, and the Crown shall have all the rights of the person to whom the advance was made to receive and recover that money.

Money refunded to the Crown shall be credited upon receipt to the Crown Bank Account.
Compare: 1989 No 11 s 66 150 Duty to deliver books and property to statutory manager Every person having possession, custody, or control of any (1) books, or records, or documents, or other property belonging to any registered bank subject to statutory management, shall forthwith after it becomes subject to statutory management, 142 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 151 (2) (3) (4) (5) deliver or give possession of those books, records, documents, or other property to the statutory manager.
If any person fails for 7 days to comply with the requirements of subsection (1), that person commits an offence against this Act.
If any person fails to comply with subsection (1), the statu­ tory manager may, at any time, certify the failure to the court (whether or not an offence has been committed under subsec­ tion (2)), and the court may inquire into the matter and, after hearing any witnesses who may be produced against, or by, or on behalf of the alleged offender, and after hearing any state­ ment which may be offered in defence, may punish the of­ fender as if the offender had been guilty of contempt of court.
It shall not be a defence to any proceedings under this section that the person in possession or control of any property is, or was, a trustee of the property for the registered bank, or entitled to a lien or other charge over the property, or was a receiver or manager of the property.

The penalty for an offence against this section is set out in section 156AC.
Compare: 1989 No 11 s 67 Section 150(1): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 150(2): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 150(5): added, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
151 Offence to destroy, alter, or conceal records (1) Every person commits an offence against this Act who— (a) with intent to defeat the purposes of this Part, destroys, alters, or conceals any book, document, or record of, or relating to, a registered bank that is subject to statutory management or sends or attempts to send out of New Zealand any such book, document, or record; or fails or refuses to answer, to the best of that person’s knowledge and ability, any question which that person may be asked by the statutory manager in relation to any such book, or document, or record, or any property, (b) 143 Part 5 s 152 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 or wilfully gives a false or misleading answer to that question.
(1A) The penalty for an offence against this section is set out in (2) section 156AC.
If, in any prosecution for an offence alleged to have been com­ mitted against this section, it is proved that the person charged with the offence has destroyed, altered, or concealed any book, document, or record, or has sent, or attempted to send, out of New Zealand, any such book, document, or record, the onus of proving that in so doing that person had not acted in contra­ vention of this section shall lie on that person.
Compare: 1989 No 11 s 68 Section 151(1): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 151(1)(b): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 151(1A): inserted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
152 Regulations relating to powers of Bank and statutory manager The Governor­General may, from time to time, by Order in Council, make regulations under section 173 conferring on the Bank, or a statutory manager of a registered bank, ancillary or additional powers necessary or desirable for the purposes of this Part.
The regulations shall be laid before the House of Representa­ tives within 12 sitting days after the date on which they are made if the House of Representatives is then in session, and, if not, shall be laid before the House of Representatives within 12 days after the commencement of the next ensuing session.
Regulations laid before the House of Representatives in any session pursuant to subsection (2) shall expire on the close of the earlier of— (a) (b) the end of the session in which the regulations are made: the end of the calendar year following the year in which the regulations were made— unless the regulations are expressly validated or conﬁrmed by an Act of Parliament passed before they expire.
(1) (2) (3) 144 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 153 (4) Unless otherwise provided, the repeal of any Act passed pur­ suant to subsection (3) shall not, of itself, affect the validity of any regulations validated or conﬁrmed by the Act repealed.
Compare: 1964 No 134 s 38AM; 1986 No 131 s 10 153 Application of other Acts (1) Subject to subsection (2), all the provisions of the Companies Act 1993 and all rules and regulations under that Act shall, so far as they are applicable, and with the necessary modiﬁca­ tions, apply to a registered bank that is a company within the meaning of section 2 of that Act and that is subject to statutory management.
[Repealed] [Repealed] (2) (3) (4) Nothing in sections 120, 196 to 209B, and 214 of the Com­ panies Act 1993 shall apply to a registered bank that is subject to statutory management.

(5) Nothing in the Receiverships Act 1993 shall apply to a com­ (6) pany that is subject to statutory management.
Subject to subsection (7), all the provisions of the Building Societies Act 1965 and all rules and regulations under that Act shall, so far as they are applicable, and with the necessary modiﬁcations, apply to a registered bank that is a building so­ ciety within the meaning of section 2 of that Act and that is subject to statutory management.

(8) (7) Nothing in sections 76 and 91 to 106 of the Building Societies Act 1965 shall apply to a building society that is subject to statutory management.
The Governor­General may, from time to time, by Order in Council, on the advice of the Minister given in accordance with the recommendation of the Bank, declare that the provi­ sions of any Act under which any other registered bank that is subject to statutory management is incorporated, constituted, or registered corresponding with the provisions referred to in subsections (4), (7), and (9) shall not apply to that registered bank.
To avoid doubt, the Bank or any other person is not a dir­ ector (within the meaning of section 126 of the Companies (9) 145 Part 5 s 154 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 Act 1993) of any registered bank or an associated person of the registered bank by reason only of the Bank or that other person exercising the powers conferred by this Part.

Section 153: substituted, on 1 July 1994, by section 9 of the Reserve Bank of New Zealand Amendment Act 1993 (1993 No 118).
Section 153(1): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 153(2): repealed, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 153(3): repealed, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 153(4): amended, on 18 June 2007, by section 17 of the Companies Amendment Act (No 2) 2006 (2006 No 62).
Section 153(8): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 153(9): added, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
154 Appointment of auditors (1) The statutory manager of a registered bank must appoint 1 or more persons (whether as individuals or as the members from time to time of any ﬁrm or ﬁrms) who are qualiﬁed for ap­ pointment as auditors of a company under the Companies Act 1993 and who have been approved by the Bank to be the audi­ tor of that registered bank.
Every such appointment shall be for a term not exceeding 2 years, but any person appointed as auditor shall continue in ofﬁce until a successor comes into ofﬁce.

(2) (3) Any person appointed as auditor shall be eligible for reap­ pointment.

(5) (4) Any auditor may be removed from ofﬁce at any time by the Minister, by notice in writing to the auditor, for inability to per­ form the functions of the ofﬁce, bankruptcy, neglect of duty, or misconduct, proved to the satisfaction of the Minister.
The auditor shall be paid such fees as are ﬁxed by the statutory manager with the approval of the Bank.

Every auditor shall have a right of access at all times to the books and papers of the registered bank, and shall be entitled to require from its ofﬁcers and employees such information (6) 146 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 155 and explanations as the auditor thinks necessary for the per­ formance of the auditor’s duties.
(7) Any person holding ofﬁce as auditor of a registered bank at the time that it is declared to be subject to statutory management shall cease to hold that ofﬁce but may be appointed under this section as auditor of the registered bank.

(8) A notice given under subsection (4) must be published in the Gazette as soon as practicable.

Section 154(1): substituted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 154(4): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 154(4): amended, on 1 January 2002, by section 70(1) of the Human Rights Amendment Act 2001 (2001 No 96).

Section 154(8): added, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
155 Annual accounts (1) Within 3 months after the end of each ﬁnancial year or such later date as may be approved by the Bank, the statutory man­ ager of a registered bank shall prepare the following state­ ments showing the ﬁnancial position of the registered bank and its subsidiaries at the end of that year and the results of their trading for that year: (a) a statement of ﬁnancial position and statement of ﬁnan­ cial performance of the registered bank; and a consolidated statement of assets and liabilities and consolidated statement of trading of the registered bank and its subsidiaries.
(b) (2) (3) The statement of ﬁnancial position, and the consolidated state­ ment of assets and liabilities, shall each be signed by the statu­ tory manager.

The accounts speciﬁed in subsection (1) shall be audited and reported on by the auditor.

Section 155(1)(a): amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

Section 155(1)(a): amended, on 1 October 1997, pursuant to section 6(2) of the Financial Reporting Amendment Act 1997 (1997 No 17).
Section 155(2): amended, on 1 October 1997, pursuant to section 6(1) of the Financial Reporting Amendment Act 1997 (1997 No 17).

147 Part 5 s 156 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (2) (3) 156 Annual report by statutory manager (1) The statutory manager of a registered bank shall, after the end of each ﬁnancial year, prepare a report on the conduct of the management and the affairs of the registered bank and its sub­ sidiaries.
The report, together with the accounts and the auditor’s report on them, shall be submitted to the Minister and the Bank within 7 days after the completion of the auditor’s report.
The report, accounts, and the auditor’s report on them shall within 14 days after submission to the Minister be ﬁled— (a) in the case of a registered bank which is a company, with the Registrar of Companies: in the case of a registered bank which is a building so­ ciety, with the Registrar of Building Societies: in the case of any other body corporate, with the per­ son exercising functions corresponding with those of the Registrar of Companies or the Registrar of Build­ ing Societies.
(b) (c) Penalties for offences against this Part Heading: inserted, on 21 August 2003, by section 40 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
156AA Penalty for miscellaneous offences (1) A person who commits an offence under any of the provisions (b) listed in subsection (2) is liable, on summary conviction,— (a) in the case of an individual, to imprisonment for a term not exceeding 3 months or to a ﬁne not exceeding $50,000: in the case of a body corporate, to a ﬁne not exceeding $500,000.
The provisions are— (a) section 77A (which relates to failing to comply with the requirement for consent to be sought from the Bank in the event of a signiﬁcant change of ownership): section 94 (which relates to failing to comply with a requirement from the Bank that information, data, or forecasts be audited): (b) (2) 148 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 156AB (c) (d) section 98B(2)(a) (which relates to failing to comply with the requirements notiﬁed by the Bank in relation to a home country supervisor): section 98B(2)(b) (which relates to supplying any infor­ mation or data to a home country supervisor that is false or misleading in a material particular): section 105 (which relates to the misuse of conﬁdential information): section 115 (which relates to the unauthorised disclos­ ure of the fact that a direction has been given).
Section 156AA: inserted, on 21 August 2003, by section 40 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(e) (f) 156AB Penalty for offences relating to supply of information, etc (1) A person who commits an offence under any of the provisions listed in subsection (2) is liable, on summary conviction,— (a) in the case of an individual, to imprisonment for a term not exceeding 12 months or to a ﬁne not exceeding $100,000: in the case of a body corporate, to a ﬁne not exceeding $1,000,000.
(b) (2) The provisions are— (a) section 74 (which relates to failing to comply with a condition of registration): section 89B (which relates to failing to make the most recent disclosure statement publicly available): section 93 (which relates to a registered bank failing to comply with provisions concerning the supply of infor­ mation for the purposes of prudential supervision and to supplying information that is false or misleading in a material particular): section 93B (which relates to a person failing, after be­ ing required by a registered bank to do so, to supply the registered bank with information, data, or forecasts relating to that person in order to enable the registered bank to comply with a notice under section 93): section 93C (which relates to a person failing to com­ ply with provisions concerning the supply of informa­ (b) (c) (d) (e) 149 Part 5 s 156AC Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 tion for the purposes of prudential supervision and to supplying information that is false or misleading in a material particular): section 99(3) (which relates to hindering, obstructing, or delaying the conduct of an inspection).
(f) Section 156AB: inserted, on 21 August 2003, by section 40 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
156AC Penalty for offences relating to registration of banks, disclosure statements, prudential supervision of registered banks, etc (1) A person who commits an offence under any of the provisions listed in subsection (2) is liable, on summary conviction,— (a) in the case of an individual, to imprisonment for a term not exceeding 18 months or to a ﬁne not exceeding $200,000: in the case of a body corporate, to a ﬁne not exceeding $2,000,000.
(b) The provisions are— (a) section 70 (which relates to providing false or mislead­ ing information for the purposes of an application for registration): section 72 (which relates to falsely holding out to be a registered bank): section 80 (which relates to failing to obtain or maintain a current credit rating): section 81AC (which relates to failing to supply infor­ mation or data to a registered bank to enable the reg­ istered bank to comply with an Order in Council made under section 81): section 89 (which relates to failing to publish informa­ tion that is required to be published in a disclosure state­ ment): section 89A (which relates to publishing a disclosure statement that includes information that is false or mis­ leading): section 89C(1)(a) (which relates to failing to publish a disclosure statement that does not contain false or mis­ (b) (c) (d) (e) (f) (g) (2) 150 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5 s 156AC (h) (i) (j) (k) (l) (m) (n) (o) (p) (q) (r) (s) (t) leading information after being required to do so under section 83): section 89C(1)(b) (which relates to failing to publish a disclosure statement that contains information that was previously omitted after being required to do so under section 83): 8section 9C(1)(c) (which relates to failing to take the corrective action speciﬁed by the Bank in a notice given under section 83 after being required to do so under that section): section 95 (which relates to failing to supply a report required by the Bank): section 95A (which relates to failing to forward a report prepared under section 95 as required by the Bank): section 99(4) (which relates to failing to comply with a requirement from the Bank to supply information for the purposes of an inspection and to supplying informa­ tion that is false or misleading in a material particular): section 103(1) (which relates to hindering, obstructing, or delaying an investigation, etc): section 103(2) (which relates to failing to comply with a requirement of a person
 appointed to carry out an in­ vestigation, etc) section 114(1) (which relates to failing to comply with a direction): section 114(2) (which relates to obstructing or hinder­ ing, etc, a registered bank from giving effect to a direc­ tion): section 126 (which relates to transferring or removing from New Zealand any property or assets of a registered bank that is subject to statutory management): section 150 (which relates to failing to deliver books, records, etc, to a statutory manager): section 151(1)(a) (which relates to destroying, altering, etc, any book, document, or record relating to a regis­ tered bank that is subject to statutory management): section 151(1)(b) (which relates to failing or refusing to answer a statutory manager’s question about any book, document, etc, relating to a registered bank that is sub­ 151 Part 5A s 156A Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 ject to statutory management, and giving a false answer to that question).
Section 156AC: inserted, on 21 August 2003, by section 40 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Part 5A Retention of documents by banks Part 5A: inserted, on 30 June 1995, by section 2 of the Reserve Bank of New Zealand Amendment Act (No 2) 1995 (1995 No 34).
156A Retention of documents by banks (1) For the purposes of this section, bank means— (a) (b) (c) a registered bank: the Reserve Bank of New Zealand: any other person carrying on in New Zealand the busi­ ness of banking.
Subject to this section, every bank— (a) (b) (c) shall retain, until the expiration of the period speciﬁed in subsection (3)(a), every cheque or bank draft that is drawn on that bank and that is presented to it for payment; and may thereafter destroy it: shall retain, until the expiration of the period speciﬁed in subsection (3)(a), every bill of exchange or promis­ sory note that is made payable at that bank and that is presented to it for payment; and may thereafter destroy it: shall retain, until the expiration of the period speciﬁed in subsection (3)(b), every voucher used in connection with account transactions at a bank or branch of a bank (including every deposit or withdrawal slip); and may thereafter destroy it.
For the purposes of subsection (2),— (a) the period applicable in respect of a document to which paragraph (a) or paragraph (b) of that subsection applies shall be,— (i) in the case of a document payable on demand, the period of 7 years beginning with the date of the document; and (2) (3) 152 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5A s 156A (b) (ii) in the case of any other document, the period of 7 years beginning with the due date of the document; and the period applicable in respect of a voucher to which paragraph (c) of that subsection applies, shall be the period of 7 years beginning with the date of the trans­ action to which the voucher relates.
(4) (5) It is sufﬁcient compliance with the duty to retain imposed by subsection (2) if— (a) a copy of the document has been made by the bank on microﬁlm, microﬁche, tape, disc, electronic or photo­ graphic storage media, or other means; and the copy is able to be reproduced therefrom in a form that can be produced in evidence under the Evidence Act 2006; and the copy is retained by the bank for the same period as the document is required to be retained pursuant to that subsection.
(b) (c) It is sufﬁcient compliance with the duty to retain imposed by subsection (2), in the case of a cheque that has been presented for payment in accordance with section 7D(1)(b)(iii) of the Cheques Act 1960, if— (a) the paying bank arranges, in accordance with the rules of an inter­bank clearing system (within the meaning of section 7A of that Act), for the retention, on behalf of the paying bank, of the cheque or a copy of it in accordance with subsection (4); and the paying bank is entitled to obtain possession of the cheque or the copy; and the cheque or copy is retained on behalf of the paying bank for the period speciﬁed in subsection (3)(a).
(b) (c) (6) No document shall be destroyed pursuant to this section at any time after a demand for the delivery of the document has been made to the bank by the person entitled to it.

(7) A copy of a document made pursuant to this section is admis­ sible in evidence in legal proceedings to the same extent as the document of which it is a copy would have been admissible.
This section applies to cheques, drafts, bills, and promissory notes received by a bank and vouchers in the possession of a (8) 153 Part 5B s 156B Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 bank either before or after the coming into operation of this section.

Section 156A: inserted, on 30 June 1995, by section 2 of the Reserve Bank of New Zealand Amendment Act (No 2) 1995 (1995 No 34).
Section 156A(4)(b): amended, on 1 August 2007, by section 216 of the Evi­ dence Act 2006 (2006 No 69).

Part 5B Oversight of payment systems Part 5B: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

General Heading: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
156B Exercise of powers under this Part The powers conferred on the Bank by this Part must be exer­ cised for the purpose of promoting the maintenance of a sound and efﬁcient ﬁnancial system.

Section 156B: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Supply of information relating to payment systems Heading: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
156C Requirement to supply information relating to payment (1) system The Bank may, by notice in writing to any person referred to in subsection (2), require that person to supply any information or data relating to a payment system.

(2) A notice may be given to— (a) (b) (c) an operator of a payment system; or any person who is wholly or partly responsible for the operation of a payment system; or a participant in a payment system.
(3) A notice may specify— 154 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5B s 156F (a) (b) the periods for which, and the form in which, the infor­ mation or data must be supplied; and the time by which, and the place in New Zealand at which, the information or data must be supplied.

The Bank may, by a subsequent notice, vary, revoke, or amend a notice.
Section 156C: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(4) 156D Offence to fail to supply information (1) A person commits an offence if the person, without lawful justiﬁcation or excuse,— (a) (b) fails to supply information or data in accordance with section 156C or fails to comply with any requirement of the Bank under that section; or supplies information or data in accordance with section 156C that is false or misleading in a material particular.

The penalty for an offence against this section is set out in section 156J.
Section 156D: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

(2) 156E Requirement that information be audited (1) The Bank may, by notice in writing to any person referred to in section 156C(2), require that person to obtain an audit of any information or data supplied in accordance with section 156C if the Bank has reasonable grounds to believe that the information or data is inadequate or inaccurate.
Every audit must be conducted by a suitably qualiﬁed inde­ pendent person who is approved by the Bank.

Section 156E: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

(2) 156F Offence not to comply with requirement for audit (1) A person commits an offence if the person fails, without lawful justiﬁcation or excuse, to comply with a requirement under section 156E(1) for that person to obtain an audit.
The penalty for an offence against this section is set out in section 156J.

(2) 155 Part 5B s 156G Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 Section 156F: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Disclosure of information relating to payment systems Heading: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
156G Disclosure of information (1) The Bank may publish or disclose any information or data sup­ plied in accordance with section 156C only if— (a) (b) (c) (d) (e) (f) the information or data is available to the public under any Act or is otherwise publicly available information; or the information or data is in a statistical or summary form; or the publication or disclosure of the information or data is for the purposes of, or in connection with, the exercise of powers conferred by this Act; or the publication or disclosure of the information or data is to any central bank, authority, or body in any other country that exercises functions that correspond with, or are similar to, those conferred on the Bank under this Act, and the Bank is satisﬁed that the information or data will be used by that central bank, authority, or body for the purpose of exercising those functions; or the publication or disclosure of the information or data is to any person who the Bank is satisﬁed has a proper interest in receiving the information; or the publication or disclosure of the information or data is with the consent of the person to whom the informa­ tion relates or of the person to whom the information is conﬁdential.
(2) The Bank must not publish or disclose information or data under subsection (1)(d) or (e) unless the Bank is satisﬁed that satisfactory provision exists to protect the conﬁdentiality of that information or data.
(3) An ofﬁcer or employee of the Bank must not publish or dis­ close any information or data supplied in accordance with sec­ 156 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5B s 156H tion 156C except for the purposes of, or in connection with, the exercise of powers conferred by this Act.

(4) An ofﬁcer or employee of the Bank commits an offence if the (5) ofﬁcer or employee contravenes this section.
The penalty for an offence against this section is set out in section 156J.

Section 156G: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
156H Limits on further disclosure of information (1) A person to whom any information or data is published or disclosed must not publish, disclose, or use that information or data unless the publication, disclosure, or use is,— (a) in the case of a publication or disclosure under section 156G(1)(c),— (i) for the purposes of, or in connection with, the exercise of powers conferred by this Act; and in accordance with any conditions that may be imposed by the Bank: (ii) (b) in the case of a publication or disclosure under section 156G(1)(e),— (i) authorised by the Bank and in accordance with any conditions that the Bank may have imposed; or necessary or desirable for the exercise of any function or power conferred by any enactment: (ii) (c) in the case of a publication or disclosure under section 156G(1)(f), in accordance with the terms and conditions of the consent referred to in that paragraph.
(2) A person commits an offence if the person contravenes this (3) section.

The penalty for an offence against this section is set out in section 156J.

Section 156H: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
157 Part 5B s 156I Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 156I Application of other enactments to information published or disclosed under section 156G Nothing in any Act, other than this Act or the Ofﬁcial Information Act 1982, requires the Bank or any person to whom information or data has been published or disclosed under section 156G to make that information or data available to any other person.
Section 156I: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Penalties for offences against this Part Heading: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
156J Penalties for offences (1) A person who commits an offence under any of the provisions listed in subsection (2) is liable, on summary conviction,— (a) in the case of an individual, to imprisonment for a term not exceeding 3 months or to a ﬁne not exceeding $50,000; and in the case of a body corporate, to a ﬁne not exceeding $500,000.
The provisions are— (a) (b) section 156D (which relates to failing to supply infor­ mation relating to a payment system): section 156F (which relates to failing to comply with a requirement for an audit): section 156G (which relates to disclosure of informa­ tion supplied in accordance with section 156C): section 156H (which relates to further disclosure of in­ formation).
(b) (c) (d) Section 156J: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Part 5C Designated payment systems Part 5C: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(2) 158 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5C s 156L General Heading: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
156K Exercise of powers under this Part The powers conferred on the Governor­General, the Minister, and the Bank by this Part must be exercised for the purposes of— (a) promoting the maintenance of a sound and efﬁcient ﬁ­ nancial system; or avoiding signiﬁcant damage to the ﬁnancial system that could result from the failure of a participant in a pay­ ment system.

(b) Section 156K: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
156L Deﬁnitions for this Part In this Part, unless the context otherwise requires,— contact person, in relation to a payment system, has the mean­ ing set out in section 156M(2)(c) designated payment system means a payment system that is declared as a designated payment system under section 156M insolvency means,— (a) in the case of a company or other body corporate,— (i) (ia) (ii) (iii) (iv) liquidation under Part 16 of the Companies Act 1993; or voluntary administration under Part 15A of the Companies Act 1993; or statutory management under Part 3 of the Cor­ porations (Investigation and Management) Act 1989; or statutory management under Part 5; or liquidation, winding up, voluntary administra­ tion, statutory management, or other similar process under any other enactment or rule of law (whether of New Zealand or of another country); and (b) in the case of an individual, being adjudged a bankrupt under the Insolvency Act 2006 or any corresponding en­ 159 Part 5C s 156L Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 actment (whether of New Zealand or of another coun­ try) netted balance means any amount calculated under the net­ ting provisions of the rules of a designated payment system as the net debit payable by, or on behalf of, a participant in the designated payment system to, or on behalf of, another par­ ticipant in that system for all or any claims or obligations to which those rules apply netting means the conversion into 1 net claim or obligation, or the set off, of different claims or obligations between par­ ticipants in a payment system that results from the issue and receipt of payment instructions involving 2 or more partici­ pants in the payment system or that is otherwise provided for under the rules of the payment system,— whether on a bilateral or multilateral basis; and (a) (b) whether or not through the interposition of an operator (c) of the payment system; and whether or not the obligations or claims constitute mu­ tual credits, mutual debts, or other mutual
 dealings; and (d) whether or not the obligations or claims are denomin­ ated in New Zealand currency payment instruction means an instruction by a participant in a payment system— (a) that is made in accordance with the rules of that pay­ ment system; and that results, or is intended to result, in 1 or more settle­ ments being effected (b) rules,— (a) in relation to a payment system, means the rules of the payment system (whether made under bylaws, agree­ ments, procedures, contracts, or other documents) that are evidenced in writing and that provide, among other things, for— (i) the basis on which payment given; and the basis on which payments are calculated; and the basis on which settlements are effected (either on a gross basis or using netting); and instructions are (ii) (iii) 160 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5C s 156M (iv) any action to be taken if a participant in the pay­ ment system is unable, or likely to become un­ able, to meet the participant’s obligations to any or all of the following: (A) (B) (C) an operator of the payment system: another participant in the payment system: any other party to those rules; and (b) in the case of a designated payment system, means the rules of that payment system that are contained in docu­ ments speciﬁed in the designation under section 156M; and includes any amendments to those rules that have been notiﬁed to, and agreed by, the Bank settlement means— (a) the making of a payment— (i) that is done in accordance with a payment in­ struction; and that is on a gross basis or that uses netting; and (ii) (iii) whether by way of book entry on the accounts of a central bank or the operator of a designated payment system or otherwise; or (b) any other act that discharges a payment obligation in accordance with a payment instruction.
Section 156L: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 156L insolvency paragraph (a)(ia): inserted, on 1 November 2007, by section 41 of the Companies Amendment Act 2006 (2006 No 56).

Section 156L insolvency paragraph (a)(iv): amended, on 1 November 2007, by section 41 of the Companies Amendment Act 2006 (2006 No 56).
Section 156L insolvency paragraph (b): amended, on 3 December 2007, by section 445 of the Insolvency Act 2006 (2006 No 55).

Designation Heading: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

156M Designation of payment system (1) The Governor­General may, by Order in Council, on the ad­ vice of the Minister given in accordance with a recommenda­ tion of the Bank, declare any payment system to be a desig­ nated payment system.
161 Part 5C s 156N Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (2) (3) The order must specify— (a) the payment system that is the subject of the designa­ tion; and the documents that evidence the rules of that payment system; and the name or title of a person to whom notices relating to the designation must be given (the contact person).
(b) (c) The order may also specify— (a) (b) conditions to which the designation is subject; and that a particular operator is a participant in the payment system that is the subject of the designation.

Section 156M: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
156N Bank’s recommendation subject to procedure in sections 156V to 156X The procedure set out in sections 156V to 156X must be fol­ lowed by the Bank when it makes a recommendation under section 156M(1).

Section 156N: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Effect of designation Heading: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
156O Rules of designated payment system are valid and (1) enforceable The rules of a designated payment system are valid and en­ forceable despite any enactment or rule of law to the contrary.
(2) However, subsection (1) applies only to the extent that the rules provide for— (a) (b) (c) the basis on which payment instructions are given; and the basis on which payments are calculated; and the basis on which settlements are effected (either on a gross basis or using netting); and any action to be taken if a participant in the designated payment system is unable, or likely to become unable, (d) 162 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5C s 156Q to meet the participant’s obligations to any or all of the following: (i) (ii) an operator of the designated payment system: another participant in the designated payment system: any other party to those rules.
(iii) Section 156O: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

156P Settlements must not be reversed, etc (1) A settlement that is effected under the rules of a designated payment system must not, whether in whole or in part, be re­ versed, repaid, recovered, or set aside despite any enactment or rule of law to the contrary.
Subsection (1) extends to any application made to a New Zealand court by a liquidator from another country to reverse, repay, recover, or set aside a settlement (whether in whole or in part) that relates to an insolvency in that country.

Section 156P: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(2) 156Q Limits on application of section 156P(1) (1) Section 156P(1) does not apply to a settlement that is effected under the rules of a designated payment system if— (a) a participant in the designated payment system in re­ spect of whom the settlement is effected becomes in­ solvent; and the settlement is effected after the commencement of that insolvency.
(b) (2) Despite subsection (1), section 156P(1) applies to the settle­ ment if— (a) (b) the settlement is effected within 24 hours of the com­ mencement of the insolvency; and the contact person can demonstrate that the contact per­ son did not have notice of the commencement of the insolvency at the time that the settlement was effected.
For the purposes of subsection (2), a contact person is taken to have notice of the commencement of an insolvency if— (3) 163 Part 5C s 156R Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (a) (b) the contact person fails to make any inquiries into the matter that an honest and reasonable person would have made in the circumstances; or the contact person fails to have regard to any public notice of the commencement of the insolvency that an honest and reasonable person would have had regard to in the circumstances.
Section 156Q: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

156R Netting is valid and enforceable If the rules of a designated payment system provide for netting, any netting under those rules is valid and enforceable despite any enactment or rule of law to the contrary.

Section 156R: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
156S Certain provisions of Companies Act 1993 and of Insolvency Act 2006 not to apply to netting The following provisions do not apply to any netting under the rules of a designated payment system: sections 310A to 310O of the Companies Act 1993: (a) sections 255 to 262 of the Insolvency Act 2006.

(b) Section 156S: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 156S heading: amended, on 3 December 2007, by section 445 of the Insolvency Act 2006 (2006 No 55).

Section 156S(b): substituted, on 3 December 2007, by section 445 of the Insol­ vency Act 2006 (2006 No 55).
156T Limits on effect of section 156O or section 156P or section 156R (1) Nothing in section 156O or section 156P or section 156R pre­ vents— (a) the operation of any enactment or rule of law in relation to an underlying transaction (including, without limita­ tion, sections 56, 292, 297, and 298 of the Companies Act 1993 and section 194 of the Insolvency Act 2006); or 164 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5C s 156U (b) any party from taking action against another party that has acted fraudulently or dishonestly so long as the rem­ edy sought or obtained in respect of that action does not affect the application of section 156O or section 156P or section 156R.
(2) If a person brings an action under any enactment or rule of law in relation to an underlying transaction (including, without limitation, sections 56, 292, 297, and 298 of the Companies Act 1993 and section 194 of the Insolvency Act 2006), that person may produce evidence of a settlement before the court for the purpose of proving that— (a) a participant received value by means of that settlement; and the value received was an element of the underlying transaction.
(b) (3) In this section, underlying transaction— (a) means a transaction that gives rise to— (b) a payment; or a payment obligation; but (i) (ii) does not include— (i) (ii) a payment instruction; or a settlement in accordance with the rules of a designated payment system.

Section 156T: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 156T(1)(a): amended, on 3 December 2007, by section 445 of the In­ solvency Act 2006 (2006 No 55).
Section 156T(2): amended, on 3 December 2007, by section 445 of the Insol­ vency Act 2006 (2006 No 55).

156U Certain enactments prevail over sections 156O, 156P, and 156R The following enactments prevail over sections 156O, 156P, and 156R: (a) (b) sections 122(8) and 127(4): sections 42(8) and 44(4) of the Corporations (Investiga­ tion and Management) Act 1989.

Section 156U: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
165 Part 5C s 156V Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 Procedure for making designation Heading: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

156V Application for designation (1) A person who wishes to have a payment system declared as a designated payment system may apply to the Bank.
(2) An application must be accompanied by— (a) (b) a copy of the rules of the payment system and any in­ formation required by the Bank; and the application fee (if any) that is determined by the Bank and approved by the Minister by notice in the Gazette.

Section 156V: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

156W Consideration of application (1) (2) The Bank must consider any application made in accordance with section 156V.
In considering an application, the Bank may have regard to any or all of the following matters: (a) (b) (c) the purpose and scope of the payment system: the rules of the payment system: any laws or regulatory requirements relating to the op­ eration of the payment system and the extent to which the payment system complies with those laws or regu­ latory requirements: the importance of the payment system to the ﬁnancial system: any other matters that the Bank considers appropriate.
(e) Section 156W: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(d) 156X Decision on application (1) After considering an application, the Bank may— (a) make a recommendation to the Minister that the pay­ ment system to which the application relates be declared to be a designated payment system under section 156M; or 166 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5C s 156Z (2) refuse to make that recommendation.
(b) If subsection (1)(b) applies, the Bank must give notice in writ­ ing to the applicant stating— (a) that the Bank refuses to make a recommendation that the payment system to which the application relates be declared to be a designated payment system under sec­ tion 156M; and the reasons for the refusal.

(b) Section 156X: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Further provisions relating to designation Heading: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
156Y Variation of designation The Governor­General may, by Order in Council, on the ad­ vice of the Minister given in accordance with a recommen­ dation of the Bank, vary any designation made under section 156M— (a) by amending any of the matters referred to in section 156M(2)(b) and (c) and (3)(b); or by revoking or amending any condition to which the designation is subject; or (c) by making the designation subject to a new condition.
Section 156Y: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

(b) 156Z Revocation of designation The Governor­General may, by Order in Council, on the ad­ vice of the Minister given in accordance with a recommenda­ tion of the Bank, revoke any designation made under section 156M.

Section 156Z: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
167 Part 5C s 156ZA Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 156ZA Settlement and netting not affected by variation or revocation of designation The variation or revocation of a designation made under sec­ tion 156M does not affect the application of sections 156O, 156P, and 156R to settlements that were effected, and netting that took place, before the variation or revocation.
Section 156ZA: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
156ZB Matters Bank may have regard to in recommending (b) (c) variation or revocation of designation In determining whether to make a recommendation that any designation made under section 156M be varied or revoked, the Bank may have regard to any or all of the following mat­ ters: (a) the purpose and scope of the designated payment sys­ tem: the rules of the designated payment system: any laws or regulatory requirements relating to the op­ eration of the designated payment system and the extent to which the designated payment system complies with those laws or regulatory requirements: the importance of the designated payment system to the ﬁnancial system: any failure to comply with any condition to which the designation is subject: any other matters that the Bank considers appropriate.
(f) Section 156ZB: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(d) (e) 156ZC Procedure for variation or revocation of designation (1) Before making a recommendation that any designation made under section 156M be varied or revoked, the Bank must— (a) give the contact person notice of— (i) the reasons for proposing to vary or revoke the designation; and the fact that the contact person may make sub­ missions to the Bank in relation to the proposed variation or revocation; and (ii) 168 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5C s 156ZD (b) (c) give the contact person an opportunity to make those submissions within a time period that the Bank consid­ ers reasonable in the circumstances; and consider any submissions made by the contact person during that time period.
The notice referred to in subsection (1)(a) may be given either in writing or orally depending on the circumstances of the par­ ticular case.

Section 156ZC: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

(2) Supply of information Heading: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
156ZD Supply of information relating to designated payment (1) (2) system The Bank may, by notice in writing, require any or all of the following persons to supply the Bank with any information relating to any designated payment system: (a) (b) (c) The Bank may exercise the power conferred by subsection (1) only if the Bank considers that the information is reasonably required to enable it to perform its functions and duties under this Part.
an operator of the designated payment system: a participant in the designated payment system: the contact person of the designated payment system.

(3) A notice under subsection (1) may specify— (a) (b) the periods for which, and the form in which, the infor­ mation must be supplied; and the manner in which the information must be veriﬁed.
(4) A person commits an offence if the person, without lawful jus­ tiﬁcation or excuse, fails to supply information in accordance with this section and is liable, on summary conviction,— (a) in the case of an individual, to imprisonment for a term not exceeding 12 months or to a ﬁne not exceeding $100,000: in the case of a body corporate, to a ﬁne not exceeding $1,000,000.
(b) 169 Part 5C s 156ZE Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 Section 156ZD: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
156ZE Contact person must be notiﬁed of insolvency (1) This section applies if— (a) (b) a participant in a designated payment system (partici­ pant A) becomes insolvent: any other participant whose settlements are effected by participant A through that designated payment system becomes insolvent.

(2) (3) If this section applies, participant A must, as soon as practic­ able after becoming aware of the insolvency, notify that fact to the contact person of that designated payment system.
It is sufﬁcient compliance with the requirement to notify the contact person under subsection (2) if— (a) participant A takes all reasonable steps to comply with that requirement; or the contact person was already aware of the commence­ ment of the insolvency by the time participant A had to notify the contact person under that subsection.

Section 156ZE: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
(b) Part 5D Deposit takers Part 5D: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

Preliminary provisions Heading: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157A Exercise of powers under this Part The powers conferred on the Governor­General, the Minister, and the Bank by this Part must be exercised for the purposes of— (a) promoting the maintenance of a sound and efﬁcient ﬁ­ nancial system; or 170 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5D s 157B (b) avoiding signiﬁcant damage to the ﬁnancial system that could result from the failure of a deposit taker.
Section 157A: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157B Interpretation (1) In this Part, unless the context otherwise requires,— approved rating agency means a rating agency approved by the Bank under section 157J borrowing group, in relation to a deposit taker, means the deposit taker and all its guaranteeing subsidiaries capital ratio, in relation to a deposit taker or borrowing group, means the level of capital in relation to the credit exposures and other risks of a deposit taker or borrowing group collective investment scheme means— (a) an arrangement or scheme to which a participatory se­ curity (within the meaning of section 2(1) of the Secur­ ities Act 1978) relates; and a superannuation scheme (within the meaning of section 2A(1) of the Superannuation Schemes Act 1989); and a unit trust (within the meaning of section 2(1) of the Unit Trusts Act 1960) (b) (c) (b) (c) (d) debt security has the meaning given to it by section 2(1) of the Securities Act 1978 governing body means,— (a) in relation to a body corporate, the board of directors (or other persons or body exercising powers of manage­ ment, however described) of the body corporate: in relation to a trust, the trustees: in relation to a unit trust, the manager and trustee: in relation to a partnership, unincorporated joint ven­ ture, or other unincorporated body of persons, either— the board of directors (or other persons or body (i) exercising powers of management, however de­ scribed) of the partnership, unincorporated joint venture, or other unincorporated body of persons; or if there is no board or other persons or body as described in subparagraph (i), the partners of (ii) 171 Part 5D s 157B Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 the partnership or members of the unincorporated joint venture or other unincorporated body of per­ sons governing document means the rules and instruments consti­ tuting, or deﬁning the constitution of, an entity guaranteeing subsidiary, in relation to a deposit taker, means a subsidiary of the deposit taker that— (a) is unconditionally
 liable (whether or not jointly or sev­ erally with the deposit taker or any other person) to re­ pay some or all debt securities issued by the deposit taker; or is liable to repay some or all debt securities issued by the deposit taker subject only to the condition that the deposit taker or any other person has failed to do so (b) (d) (e) (f) related party, in relation to a deposit taker, means— (a) (b) (c) the directors of the deposit taker; and the senior ofﬁce holders of the deposit taker; and the relatives of persons referred to in paragraphs (a) and (b); and subsidiaries; and in the case of a deposit taker that is a company, any person who— (i) owns, or in any way has the power to control (whether directly or indirectly), or has the right to acquire, 10% or more of the ordinary shares of the company; or owns, or in any way has the power to control (whether directly or indirectly), or has the right to acquire, 10% or more of the voting rights of the company; or has, by any other means, 10% or more of the control of the company; and (ii) (iii) in the case of a deposit taker that is an entity other than a company, any person who— (i) is in a position to control (whether directly or indirectly) 10% or more of the voting rights in relation to that entity; or has, by any other means, 10% or more of the control of that entity; and (ii) 172 (b) (c) (b) (c) Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5D s 157B (g) (h) any person who has control (whether directly or indi­ rectly) or signiﬁcant inﬂuence over 25% or more of the composition of the governing body of the deposit taker; and any person or class of persons declared by regulations to be a related party for the purposes of this Part relative, in relation to any person, means— (a) that person’s spouse, civil union partner, or de facto partner; and any parent (including step­parent), brother, sister, or child (including stepchild) of that person; and any parent (including
 step­parent), brother, sister, or child (including stepchild) of that person’s spouse, civil union partner, or de facto partner senior ofﬁce holder,— (a) in relation to a deposit taker, means a person occupying a position that allows the person to exercise signiﬁcant inﬂuence over the management or administration of the deposit holder (for example, a chief executive or a chief ﬁnancial ofﬁcer); and includes any class or classes of persons declared by regulations to be senior ofﬁce holders for the purposes of this Part; but does not include any class or classes of persons declared by regulations not to be senior ofﬁce holders for the purposes of this Part subsidiary means a subsidiary within the meaning of sections 5 to 8 of the Companies Act 1993 trust deed, in relation to a deposit taker, means a trust deed required by section 33(2)(a) of the Securities Act 1978 in re­ spect of any debt security offered to the public by the deposit taker trustee, in relation to a deposit taker, means a person ap­ pointed as trustee in accordance with the Securities Act 1978 in respect of any debt security offered to the public by the deposit taker.
The Governor­General may, by Order in Council, on the ad­ vice of the Minister given in accordance with a recommenda­ (2) 173 Part 5D s 157C Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 tion of the Bank, make regulations for either or both of the following purposes: (a) declaring a person or class of persons to be a related party for the purposes of this Part: declaring a class of persons to be, or not to be, senior ofﬁce holders for the purposes of this Part.
(b) Section 157B: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157C Deposit taker deﬁned (1) For the purposes of this Part, deposit taker— (a) means a person who— (b) (c) (i) (ii) offers debt securities to the public in New Zealand; and carries on the business of borrowing and lending money, or providing ﬁnancial services, or both; and includes— (i) a building society as deﬁned in section 2(1) of the Building Societies Act 1965, unless the building society is a registered bank; and a credit union as deﬁned in section 2 of the Friendly Societies and Credit Unions Act 1982; and a person or class of persons that is declared by regulations to be a deposit taker for the purposes of this Part; but (ii) (iii) does not include— (i) (ii) (iii) (iv) an issuer of a collective investment scheme: a registered bank: a local authority: the Crown (as deﬁned in section 2(1) of the Pub­ lic Finance Act 1989): a person or class of persons that is declared by regulations not to be a deposit taker for the pur­ poses of this Part.
(v) (2) For the purposes of this Part, a reference to an offer of debt securities to the public has the same meaning as an offer of 174 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5D s 157D (3) securities to the public as set out in section 3 of the Securities Act 1978.
If a person has, before this section comes into force, offered debt securities to the public in New Zealand and any of those securities remain unpaid, the person must be treated as satis­ fying the requirement in subsection (1)(a)(i).

(4) A person remains a deposit taker until all debt securities of­ (5) (6) fered to the public in New Zealand by the person are repaid.
The Governor­General may, by Order in Council, on the ad­ vice of the Minister given in accordance with a recommenda­ tion of the Bank, make regulations for the purpose of declaring a person or class of persons to be, or not to be, a deposit taker for the purposes of this Part.
In considering whether to advise and recommend the making of regulations under subsection (5), the Minister and the Bank must have regard to— (a) (b) the purposes of this Part; and the nature of the business activities carried on by the person or class of persons and the extent to which those activities— (i) are similar in substance to the activities of a de­ posit taker (as deﬁned in subsection (1)); or involve activities as a deposit taker; and (ii) the public interest; and any other matters the Minister or the Bank considers relevant.
(c) (d) Section 157C: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

157D Application of Part This Part, in so far as it applies to trust deeds, applies to every trust deed whether or not the trust deed was registered under the Securities Act 1978 before the date of commencement of this Part.

Section 157D: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
175 Part 5D s 157E Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 157E Bank to consult before recommending making of (1) (2) regulations under this Part The Bank must consult with the following before making a recommendation for the making of any regulations under this Part: (a) (b) the Securities Commission; and if reasonably practicable, other persons, or the represen­ tatives of those persons, who the Bank considers will be substantially affected by any regulations made in ac­ cordance with the recommendation.
Failure to comply with subsection (1) does not affect the val­ idity of regulations made under this Part.

Section 157E: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157F Principles to be taken into account under this Part (1) The Bank must take into account the principles in subsection (2) when carrying out its functions and exercising its powers under this Part, including— granting exemptions: (a) imposing terms and conditions in relation to exemp­ (b) tions: (c) making recommendations to the Minister for the mak­ ing of regulations under this Part.
The principles are the following: (a) (b) the desirability of consistency in the treatment of similar institutions, regardless of matters such as their corporate form: the importance of recognising— (i) that it is not the purpose of this Part to eliminate all risk in relation to the performance of deposit takers or to limit diversity among deposit takers; and that depositors are responsible for assessing risk in relation to potential investments and for their own investment choices: (ii) (c) the desirability of providing to depositors adequate in­ formation to enable them to assess risk in relation to po­ (2) 176 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5D s 157G tential investments and to distinguish between high­risk and low­risk deposit takers: the desirability of sound governance of deposit takers: the desirability of effective risk management by deposit takers: the need to avoid unnecessary compliance costs: the need to maintain competition within the deposit tak­ ing sector.
(d) (e) (f) (g) Section 157F: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

157G Exemptions from Part (1) (2) The Bank may, by notice in the Gazette, exempt any deposit taker, class of deposit takers, or trustee from compliance with any provision or provisions of— (a) (b) The Bank must not grant an exemption under this section un­ less it is satisﬁed that— (a) this Part; or any regulations made under this Part.
the exemption will be consistent with the maintenance of a sound and efﬁcient ﬁnancial system; and compliance with the relevant provision or provisions would, in the circumstances, require the deposit taker, class of deposit takers, or trustee to comply with re­ quirements that are unduly onerous or burdensome; and the extent of the exemption is not broader than what is reasonably necessary to address the matters that gave rise to the exemption.
(b) (c) (b) (3) An exemption may be granted on any terms and conditions that the Bank thinks ﬁt, including, in relation to a deposit taker,— a requirement that the deposit taker have a minimum (a) capital ratio: a requirement that the deposit taker have a speciﬁed minimum level of capital: a requirement that the deposit taker comply with speci­ ﬁed liquidity requirements: a requirement that the deposit taker disclose that it does not have a rating of its creditworthiness under section 157I, and the form and content of that disclosure: (d) (c) 177 Part 5D s 157H Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (e) (f) (g) (h) (i) a prohibition or restriction on disclosure by the deposit taker of any rating of creditworthiness or ﬁnancial con­ dition that is not from an approved rating agency: a maximum limit on exposures to related parties: a requirement that the deposit taker comply with spe­ ciﬁed requirements in relation to the governance of the deposit taker: a requirement that the deposit taker comply with spe­ ciﬁed requirements in relation to systems, policies, and standards to be adopted and complied with by the de­ posit taker for the purpose of managing credit risk, liq­ uidity risk, market risk, and operational risk: any other prudential requirements the Bank considers necessary or desirable to achieve the purposes of this Part.
(4) (5) The Bank may amend or revoke an exemption in the same way as an exemption may be granted under this section.

The Bank’s reasons for granting an exemption (including why an exemption is appropriate) must be notiﬁed in the Gazette, together with the exemption.

(6) However, the Bank may defer notifying or not notify the rea­ sons for granting an exemption if the Bank is satisﬁed on rea­ sonable grounds that it is proper to do so on the ground of commercial conﬁdentiality.
(7) An exemption under this section is a regulation for the pur­ poses of the Acts and Regulations Publication Act 1989 and the Regulations (Disallowance) Act 1989.

Section 157G: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

157H Effect of exemption A person does not breach a requirement of this Part if— (a) an exemption from the requirement applies to that per­ son; and the person complies with the terms and conditions of the exemption.
(b) Section 157H: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

178 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5D s 157K Credit ratings Heading: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

157J Bank may approve rating agencies (1) (2) (3) (4) (5) (e) (d) The Bank may approve a person as a rating agency for the purposes of this Part.
In deciding whether to approve a person as a rating agency, the Bank must have regard to the following: (a) (b) (c) the independence of the rating agency: the adequacy of resources available to the rating agency: the credibility and objectivity of the rating agency’s methodology: the consistency and comparability of the rating agency’s ratings when assessed against ratings industry practice: the adequacy of the rating agency’s disclosure of infor­ mation, including information about its processes, ex­ perience, and ownership: relevant international standards, codes, and recom­ mended practices relating to the ratings industry.
The Bank may, at any time, review the approval of a person as a rating agency, and in conducting the review the Bank must have regard to the matters in subsection (2).

If, after conducting the review, the Bank considers that the person should no longer be an approved rating agency, it may revoke the approval.

The Bank must publish and keep up to date a list of approved rating agencies on an Internet site maintained by, or on behalf of, the Bank that is publicly accessible at all reasonable times.
Section 157J: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
(f) 157K Regulations relating to credit ratings The Governor­General may, by Order in Council, on the ad­ vice of the Minister given in accordance with a recommenda­ tion of the Bank, make regulations for either or both of the following purposes: 179 Part 5D s 157P Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (a) (b) providing for the following matters in relation to ratings of creditworthiness required to be held by deposit tak­ ers: (i) the type of rating (for example, whether it is a short­term or long­term rating): (ii) what the rating relates to (for example, whether it indicates the creditworthiness of a deposit taker with respect to a speciﬁc ﬁnancial obli­ gation or applies to the deposit taker’s overall creditworthiness): requiring a deposit taker to have a rating of credit­ worthiness of the borrowing group of which the deposit taker is part.
Section 157K: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

Minimum capital requirement Heading: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157P Regulations may impose requirement that trust deed sets out minimum capital that deposit taker is required to maintain The Governor General may, by Order in Council, on the advice of the Minister given in accordance with a recommendation of the Bank, make regulations for the purpose of imposing a requirement that deposit takers and trustees ensure that the trust deed sets out the minimum capital that the deposit taker is required to maintain.
Regulations made under this section may— (a) require the trust deed to set out— (i) the amount of the minimum capital that the de­ posit taker is required to maintain; and the form of that capital (for example, the ﬁnancial instruments that may be taken into account in calculating capital); and (ii) (b) provide that the amount of the minimum capital set out in the trust deed must be not less than an amount pre­ scribed in the regulations; and (1) (2) 180 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5D s 157S (c) provide that the form of the capital set out in the trust deed must be a form prescribed by the regulations.
Section 157P: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

157Q Deposit takers and trustees must ensure trust deed sets out minimum capital deposit taker is required to maintain A deposit taker and the trustee must comply with any require­ ment imposed by regulations made under section 157P.

Section 157Q: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157R Deposit taker must maintain not less than minimum capital prescribed A deposit taker must maintain minimum capital of not less than the amount prescribed by regulations for the purposes of section 157P in a form prescribed by regulations for the purposes of that section.

Section 157R: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
Capital ratio requirement Heading: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157S Regulations may impose requirement that trust deed (1) (2) includes capital ratio The Governor­General may, by Order in Council, on the ad­ vice of the Minister given in accordance with a recommenda­ tion of the Bank, make regulations for the purpose of imposing a requirement that deposit takers and trustees ensure that trust deeds include a capital ratio, calculated in accordance with a prescribed framework, that the deposit taker must maintain.
Regulations made under this section may do 1 or more of the following: (a) provide for the capital ratio to be calculated in respect of— (i) the deposit taker; or 181 Part 5D s 157T Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (b) (c) (d) (e) (ii) a borrowing group of which the deposit taker is part: provide for the capital ratio to be set at a speciﬁed min­ imum level for a particular deposit taker or a class of deposit takers: prescribe the framework in accordance with which the capital ratio must be calculated: provide for variation (whether as to content or other­ wise) of the framework to apply to particular deposit takers or classes of deposit takers: incorporate by reference a framework published by, or on behalf of, any body or person in any country— (i) (ii) with modiﬁcations, additions, or variations spe­ in whole or in part; and ciﬁed in the regulations.
(3) The provisions of Schedule 3 apply to a framework incorpor­ ated by reference in regulations made under this section.

Section 157S: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

157T Deposit takers and trustees must ensure capital ratio included in trust deed A deposit taker and the trustee must comply with any require­ ment imposed by regulations made under section 157S.
Section 157T: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

157U Deposit taker must maintain capital ratio required to be included in trust deed A deposit taker must maintain any capital ratio that is required to be included in the trust deed by regulations made under section 157S.

Section 157U: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
182 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5D s 157V Restrictions on related party exposures Heading: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157V Regulations may impose requirement that trust deed (1) (2) (3) includes maximum limit on exposures to related parties The Governor­General may, by Order in Council, on the ad­ vice of the Minister given in accordance with a recommenda­ tion of the Bank, make regulations for the purpose of imposing a requirement that deposit takers and trustees ensure that trust deeds include a maximum limit on exposures to related par­ ties.
Regulations made under this section may— (a) provide that the maximum limit on exposures to related parties is relative to— (i) (ii) the capital of the deposit taker; or the capital of the borrowing group of which the deposit taker is part: (c) (d) (b) provide that the maximum limit on exposures to re­ lated parties applies in respect of exposures of the de­ posit taker or exposures calculated across the borrowing group of which the deposit taker is part: require every deposit taker and trustee to ensure that the trust deed includes a speciﬁed maximum limit on exposures to related parties: require every deposit taker and trustee to ensure that the trust deed includes a maximum limit on exposures to related parties that is ﬁxed by agreement between the deposit taker and the trustee (see section 157ZD for provisions that apply if there is no agreement).
If subsection (2)(d) applies, the regulations must specify the framework (for example, covering matters as to the identiﬁca­ tion and measurement of credit exposures) in accordance with which the deposit taker and the trustee must ﬁx the maximum agreed limit.

Section 157V: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
183 Part 5D s 157W Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 157W Regulations may incorporate by reference framework (1) for calculation of maximum limit on exposures to related parties Regulations made under section 157V may incorporate by ref­ erence a framework published by, or on behalf of, any person or body in any country.
(2) A framework incorporated by reference in the regulations— (a) may be incorporated in whole or in part; and (b) with modiﬁcations, additions, or variations speciﬁed in the regulations.

(3) The provisions of Schedule 3 apply to a framework incorpor­ ated by reference in regulations made under section 157V.

Section 157W: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157X Deposit takers and trustees must ensure maximum limit on exposures to related parties is included in trust deed A deposit taker and the trustee must comply with any require­ ment imposed by regulations made under section 157V.

Section 157X: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157Y Deposit taker must not exceed maximum limit on related party exposures A deposit taker must not exceed any maximum limit on ex­ posures to related parties required by regulations made under section 157V to be included in the trust deed.

Section 157Y: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
Liquidity requirements Heading: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157Z Regulations may impose requirement that liquidity requirements be included in trust deed The Governor­General may, by Order in Council, on the ad­ vice of the Minister given in accordance with a recommenda­ tion of the Bank, make regulations for the purpose of imposing (1) 184 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5D s 157ZB (2) a requirement that deposit takers and trustees ensure that trust deeds include liquidity requirements.
Regulations made under this section may, in relation to the liq­ uidity requirements to be included in the trust deed, prescribe 1 or more of the following: (a) assets that qualify as liquid assets for the purposes of the regulations: (b) minimum amounts of liquid assets relative to liabilities (c) (d) (e) that must be maintained by deposit takers: requirements concerning matching maturity of assets and liabilities: requirements in respect of a deposit taker that require the liquidity of the borrowing group of which the de­ posit taker is part to be taken into account: other measures to better ensure that a deposit taker maintains prudent cash ﬂows and a level of liquid as­ sets sufﬁcient to enable it to withstand a plausible range of liquidity shocks (for example, events that result in it experiencing a signiﬁcantly reduced inﬂow of liquid assets).
Section 157Z: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

157ZA Deposit takers and trustees must ensure liquidity requirements are included in trust deeds A deposit taker and the trustee must comply with any require­ ment prescribed by regulations made under section 157Z.

Section 157ZA: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157ZB Deposit takers must comply with liquidity requirements in trust deeds A deposit taker must comply with the liquidity requirements required to be included in the trust deed by regulations made under section 157Z.

Section 157ZB: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
185 Part 5D s 157ZC Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 Other matters relating to trust deeds Heading: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157ZC Amendment to trust deed must be treated as if (1) (2) authorised to be made If this Part requires, or any regulations made under this Part require, a deposit taker and the trustee to ensure that a matter is included in or excluded from a trust deed, an amendment to the trust deed in compliance with that requirement— (a) must be treated for all purposes as if it were authorised to be made and were made in accordance with the provi­ sions of the trust deed before the amendment was made; and applies despite any defect in the form or mode of exe­ cution of the amendment.
(b) Subsection (1) applies despite there being no power of vari­ ation in the trust deed or anything to the contrary in the trust deed or other enactment, rule of law, or agreement.

Section 157ZC: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157ZD Trustee may execute amendment to trust deed (1) This section applies if— (a) (c) (b) this Part requires, or regulations made under this Part require, a deposit taker and the trustee to ensure that a matter is included in or excluded from a trust deed; and it is necessary to amend the trust deed within a certain time in order to comply with that requirement; and the trustee has made reasonable efforts, in good faith, to negotiate with the deposit taker for the purpose of agreeing to an amendment to the trust deed to ensure compliance with the requirement; and the trustee has not, within a reasonable period before the expiry of the time allowed for amending the trust deed, been able to reach an agreement with the deposit taker about the amendment to be made to the trust deed.
If this section applies, the trustee may execute a deed amend­ ing the trust deed without the consent or agreement of the de­ (d) (2) 186 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5D s 157ZE (3) (4) posit taker or any other person in order to ensure that the trust deed complies with the requirement of this Part or the regula­ tions.
The deed amending the trust deed— (a) has effect despite there being no consent or agreement of the deposit taker or any other person; and (b) must be treated for all purposes as if it were authorised to be made and were made in accordance with the provi­ sions of the trust deed before the amendment was made; and applies despite any defect in its form or mode of execu­ tion.
(c) Subsection (3) applies despite there being no power of vari­ ation in the trust deed or anything to the contrary in the trust deed or other enactment, rule of law, or agreement.

Section 157ZD: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

Obligations of trustees to Bank Heading: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157ZE Bank may require trustee to attest as to deposit taker’s (1) (2) compliance with requirements The Bank may require a trustee to attest to the Bank, at a time and in a manner speciﬁed by the Bank, as to whether the trustee is satisﬁed that the deposit taker is complying with the require­ ments of this Part or of regulations made under this Part.
If the Bank requires a trustee to attest to the Bank under this section, the trustee must either— provide that attestation; or (a) if the trustee is not able to attest to the Bank as required, (b) the trustee must report the reason, including the details of any non­compliance or suspected non­compliance by the deposit taker.

Section 157ZE: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
187 Part 5D s 157ZF Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 157ZF Trustee must report to Bank non­compliance or likely non­compliance by deposit taker If a trustee has reasonable grounds to believe that a failure on the part of the deposit taker to comply in a material respect with this Part or any regulations made under this Part has or may have occurred, or is likely to occur, the trustee must report the non­compliance or likely non­compliance to the Bank as soon as practicable.
Section 157ZF: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157ZG Obligation on trustees to disclose information to Bank in certain circumstances This section applies if a trustee, in the course of or in con­ nection with the performance of functions as trustee, becomes aware of information on the basis of which he or she could reasonably form an opinion that— (a) (b) (c) (d) the deposit taker is unable to pay the deposit taker’s debts as they become due in the normal course of busi­ ness; or the value of the deposit taker’s assets is less than the value of the deposit taker’s liabilities, including contin­ gent liabilities; or it is likely that— (i) the deposit taker will be unlikely to be able to pay the deposit taker’s debts as they become due in the normal course of business; or the value of the deposit taker’s assets will be less than the value of the deposit taker’s liabilities, including contingent liabilities; or (ii) the deposit taker has breached, or is likely to breach, in a material respect,— (i) (ii) the terms of the trust deed; or the terms of any offer of debt securities to which the trust deed relates.
This section also applies if the Bank, by notice in writing to the trustee, requires the trustee to provide the Bank with infor­ mation relating to the business, operation, or management of a deposit taker.
(1) (2) 188 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5D s 157ZI (3) If this section applies, the trustee must, as soon as practicable, disclose to the Bank all information held by the trustee that is relevant to the matter referred to in subsection (1) or, as the case may be, the matters referred to in the notice under subsection (2), obtained in the course of, or in connection with, the performance of functions as trustee.
Section 157ZG: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

157ZH Protection of trustees (1) No civil, criminal, or disciplinary proceedings lie against a trustee arising from the disclosure in good faith of information to the Bank under section 157ZE to 157ZG.

(2) No person may terminate the appointment of a trustee by rea­ son of the trustee disclosing information to the Bank in good faith under section 157ZE to 157ZG.
(3) No tribunal, body, or authority, having jurisdiction in respect of the professional conduct of a trustee, may make an order against, or do any act in relation to, that person in respect of the fact of that disclosure.

Section 157ZH: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
Investigation and enforcement powers of Bank Heading: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157ZI Bank may require report relating to deposit taker (1) For the purpose of investigating whether a deposit taker is complying with the requirements of this Part, or regulations made under this Part, the Bank may, by notice to the deposit taker, require the deposit taker to supply the Bank with a report or series of reports prepared by a person approved or appointed by the Bank on matters relating to the business, operation, or management of the deposit taker.
The deposit taker must provide the approved or appointed per­ son with access to the accounting and other records of the deposit taker and must provide information relating to those (2) 189 Part 5D s 157ZJ Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (3) (4) records if the person preparing the report requests the deposit taker to do so for the purposes of the report.

Subsection (2) is subject to section 157ZK.


To avoid doubt, the deposit taker is liable for the cost of every report that it is required to supply to the Bank under this sec­ tion.

Section 157ZI: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

157ZJ Power to obtain information and documents (1) This section applies if the Bank has reasonable cause to believe that a deposit taker has committed an offence against this Part.
If this section applies, the Bank may,— (a) (2) (b) by notice in writing to the deposit taker, require the de­ posit taker to supply to the Bank, within the time speci­ ﬁed in the notice, the information, papers, documents, records, or things speciﬁed in the notice; or appoint in writing a suitably qualiﬁed person to enter and search any place and inspect, remove, and take copies of any information, papers, documents, records, or things in the possession, custody, or control of any person.
Section 157ZJ: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

157ZK Limitation on information to be provided Nothing in section 157ZI(2) or 157ZJ(2) requires a person to produce any information, papers, documents, records, or things if compliance with that requirement would be a breach of an obligation of secrecy or non­disclosure imposed on the person by an enactment (other than the Ofﬁcial Information Act 1982 or the Privacy Act 1993).
Section 157ZK: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157ZL Limitations on entering and searching place A person appointed under section 157ZJ(2)(b) must not enter and search any place, or inspect, remove, or take copies of any information, papers, documents, records, or things in the pos­ 190 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5D s 157ZN session, or under the control, of any person unless that person is authorised by search warrant issued under section 157ZM.
Section 157ZL: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

157ZM Search warrant may be issued (1) A Judge of the High Court or a District Court Judge may issue a search warrant in terms of clause 5 of Schedule 4 to a person appointed under section 157ZJ(2)(b) if the Judge is satisﬁed that there is reasonable cause to believe that a deposit taker has committed an offence under this Part.
The provisions of Schedule 4 apply to a search warrant issued under this section.

Section 157ZM: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
(2) 157ZN Privileges (1) If a person could, in a criminal proceeding, assert a privilege under sections 54 to 57 of the Evidence Act 2006 in respect of any communication or information, the person is taken to have the same privilege for the purposes of— (a) a request to supply access to accounting and other records of the deposit taker or provide information relating to those records under section 157ZI(2); and a notice under section 157ZJ(2)(a); and (b) (c) a search warrant issued under section 157ZM.
Subsection (3) applies to documents that are books of account or accounting records referred to in section 55(1) of the Evi­ dence Act 2006.
The application by subsection (1) of section 54 of the Evidence Act 2006 (which relates to the privilege for communications with legal advisers) does not prevent, limit, or affect— (a) the issue of, or the obligation to comply with, a notice under section 157ZJ(2)(a) in respect of a document to which this subsection applies; or the issue or execution of a search warrant under section 157ZM in respect of a document to which this subsec­ tion applies; or (b) (2) (3) 191 Part 5D s 157ZN Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (c) the admissibility, in a criminal proceeding under this Part, of any evidence that relates to the contents of a document obtained as a result of a notice under section 157ZJ(2)(a) or a search warrant issued under section 157ZM.
(c) (a) (b) (4) A person who has a privilege under this section has the right— to refuse to disclose a communication or information to which the privilege would apply if it were sought to be disclosed in a criminal proceeding; and to prevent the search of any such communication or in­ formation; and to require the return of such communication or infor­ mation if it is seized by a person exercising a power of search pending determination of the claim to privilege.
If a person refuses to disclose a communication or informa­ tion on the ground that it is privileged under this section, the Governor may apply to a District Court Judge for an order determining whether the claim of privilege is valid; and, for the purpose of determining any such application, the District Court Judge may require the communication or information to be produced to him or her.
(5) (6) A District Court Judge may, on the application of the Gov­ ernor, disallow a privilege claimed under this section if the Judge is satisﬁed that the claim to privilege would, under sec­ tion 67(1) of the Evidence Act 2006, be disallowed in a pro­ ceeding.

Section 65 of the Evidence Act 2006 (which relates to waiver of privilege) applies in respect of any privilege under this sec­ tion.

(7) (8) Nothing in this section affects the application of section 60 of the Evidence Act 2006.
Section 157ZN: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

192 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5D s 157ZO Conﬁdentiality of information Heading: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157ZO Conﬁdentiality of information (1) This section applies to— (a) information supplied or disclosed to, or obtained by,— the Bank, under or for the purposes of, or in con­ (i) nection with, the exercise of powers conferred by this Part: a person appointed by the Bank under section 157ZJ(2)(b): (ii) (b) (c) information derived from, or based on, information re­ ferred to in paragraph (a): information relating to the exercise, or possible exer­ cise, of the powers conferred by this Part.
(2) The Bank, and any person appointed by the Bank under section 157ZJ(2)(b), must not publish or disclose information to which this section applies except— (a) with the consent of the person to whom the information relates; or to the extent that the information is available to the pub­ lic under any Act, other than the Ofﬁcial Information Act 1982, or in a public document; or for the purposes of this Part or in connection with the exercise of powers conferred by this Part; or in connection with any proceedings for an offence against this Part; or to the Registrar of the Companies Ofﬁce or the Secur­ ities Commission; or to the trustee of the deposit taker to whom the informa­ tion relates; or to any person who the Bank is satisﬁed has a proper interest in receiving the information.
(b) (c) (d) (e) (f) (g) (3) Information to which this section applies must not be pub­ lished or disclosed under subsection (2)(f) or (g) unless the Bank is satisﬁed that satisfactory provision exists to protect the conﬁdentiality of the information published or disclosed.
193 Part 5D s 157ZP Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (4) A person to whom information to which this section applies is published or disclosed under subsection (2)(c) must not pub­ lish, disclose, or use the information except— (a) for the purposes of this Part or in connection with the exercise of powers conferred by this Part; or in accordance with any conditions that may be speciﬁed by the Bank.
(b) (5) A person to whom information to which this section applies is disclosed under subsection (2)(e), (f), or (g) must not pub­ lish, disclose, or use the information unless the publication, disclosure, or use is— (a) (b) authorised by the Bank; or necessary or desirable in connection with the exercise of any function or power conferred by any enactment.

Section 157ZO: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157ZP Person who does not comply with section 157ZO commits offence Every person who does not comply with section 157ZO com­ mits an offence and is liable, on summary conviction,— (a) in the case of an individual, to imprisonment for a term not exceeding 3 months or to a ﬁne not exceeding $50,000; or in the case of a body corporate, to a ﬁne not exceeding $500,000.

(b) Section 157ZP: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157ZQ Application of Ofﬁcial Information Act 1982, etc Nothing in the Ofﬁcial Information Act 1982 or any other Act, other than this Act, applies to information to which section 157ZO applies, whether or not that information has been pub­ lished or disclosed to any person under that section.

Section 157ZQ: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
194 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5D s 157ZR Offences and penalties Heading: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157ZR Offences by deposit takers against this Part Every deposit taker who breaches any of the following sec­ tions commits an offence: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) section 157I (which relates to the requirement to have a current credit rating): section 157L (which relates to requirements concerning the governance of deposit takers): section 157M (which relates to the requirement to have and comply with a risk management programme): section 157N (which relates to the requirement to pro­ vide a copy of the risk management programme to the trustee and amend the programme as required): section 157O (which relates to the obligation to comply with a requirement of the trustee that the deposit taker have its risk management programme audited): section 157Q (which relates to the obligation to ensure that the trust deed complies with any requirement im­ posed by regulations to set out the minimum capital that the deposit taker is required to maintain): section 157R (which relates to the obligation to main­ tain minimum capital of not less than the amount pre­ scribed by regulations): section 157T (which relates to the obligation to ensure that the trust deed complies with any requirement im­ posed by regulations to include a capital ratio in the trust deed): section 157U (which relates to the obligation to main­ tain any capital ratio required to be included in the trust deed by regulations): section 157X (which relates to the obligation to ensure that the trust deed complies with any requirement im­ posed by regulations to include a maximum limit on ex­ posures to related parties): 195 Part 5D s 157ZS Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (k) (l) (m) section 157Y (which relates to the obligation not to ex­ ceed any maximum limit on exposures to related parties required by regulations to be included in the trust deed): section 157ZA (which relates to the obligation to ensure the trust deed complies with any requirement imposed by regulations to include liquidity requirements in the trust deed): section 157ZB (which relates to the obligation to com­ ply with any liquidity requirements required by regula­ tions to be included in the trust deed).
Section 157ZR: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157ZS Other offences by deposit takers against this Part Every deposit taker commits an offence who— (a) (b) (c) (d) (e) (f) fails to provide a report to the Bank if required to do so under section 157ZI; or fails to provide access to accounting and other records of the deposit taker or fails to provide information re­ lating to those records if requested to do so for the pur­ poses of a report under section 157ZI; or fails to provide any information, papers, documents, records, or things as and when required to do so by no­ tice under section 157ZJ; or fails, as and when required by this Part or any regula­ tions made under this Part, to deliver any paper, docu­ ment, record, report, copy, or thing; or fails, as and when required by this Part or any regula­ tions made under this Part, to allow a person to look at a paper, document, record, report, copy, or thing; or fails, as and when required to do so by this Part or regu­ lations made under this Part, to supply any information; or (g) makes any statement or supplies any paper, document, record, copy, or thing to the Bank knowing that it is false or misleading in a material particular; or (h) without reasonable excuse, obstructs or hinders an au­ thorised person in the execution of any powers con­ 196 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5D s 157ZU ferred on that person by or under this Part or any regu­ lations made under this Part.
Section 157ZS: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157ZT Defence for deposit takers charged with offences against (1) (2) this Part In any prosecution of a deposit taker for an offence against section 157ZR or 157ZS, it is a defence if the deposit taker proves that— (a) the contravention was due to the act or omission of an­ other person, or some other cause beyond the deposit taker’s control; and the deposit taker took reasonable precautions and exer­ cised due diligence to avoid the contravention.
For the purposes of subsection (1)(a), the term another person does not include a director, employee, or agent of the deposit taker.
(b) (3) A deposit taker is not, without the leave of the court, entitled as part of a defence provided by this section to rely on any of the matters speciﬁed in subsection (1)(a) unless the deposit taker has, not later than 7 working days before the date on which the hearing of the proceedings commences, served on the prosecu­ tion a notice in writing identifying the act, omission, or cause relied on by the deposit taker.
Section 157ZT: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

157ZU Power of court to discharge deposit taker (1) If a deposit taker is charged with an offence against section 157ZR or 157ZS, the court may direct that the defendant be discharged if the court considers that the alleged contravention was in respect of matters that were immaterial.
(2) A direction under subsection (1) may be made at any stage of the proceeding— (a) on the motion of the court or on the application of the defendant; and after giving both the prosecutor and the defendant a rea­ sonable opportunity to be heard on the matter.

(b) 197 Part 5D s 157ZV Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (3) A discharge under this section is deemed to be an acquittal.

(4) Nothing in this section limits sections 106 to 109 of the Sen­ tencing Act 2002.
Section 157ZU: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157ZV Liability of directors If a body corporate is convicted of an offence under section 157ZR or 157ZS, every director of the body corporate is guilty of an offence if it is proved— (a) that the act that constituted the offence took place with his or her authority, permission, or consent; and that he or she— (i) (b) knew, or could reasonably be expected to have known, that the offence was to be or was being committed; and failed to take reasonable steps to prevent or stop it.
(ii) Section 157ZV: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157ZW Offences by trustees against this Part (1) Every trustee who breaches any of the following sections com­ mits an offence: (a) section 157Q (which relates to the obligation to ensure that the trust deed complies with a requirement imposed by regulations to set out the minimum capital that the deposit taker is required to maintain): section 157T (which relates to the obligation to ensure that the trust deed complies with a requirement im­ posed by regulations to include a capital ratio in the trust deed): section 157X (which relates to the obligation to ensure that the trust deed complies with a requirement imposed by regulations to include a maximum limit on exposures to related parties): section 157ZA (which relates to the obligation to ensure the trust deed complies with a requirement imposed by (b) (c) (d) 198 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 5D s 157ZX (f) (e) regulations to include liquidity requirements in the trust deed): section 157ZE (which relates to the obligation to pro­ vide an attestation to the Bank or reasons why an attest­ ation cannot be provided): section 157ZF (which relates to the obligation to report to the Bank any non­compliance or likely non­compli­ ance by the deposit taker): section 157ZG (which relates to the obligation to pro­ vide information to the Bank in certain circumstances).
Every trustee commits an offence who makes a statement to the Bank in relation to its obligations to the Bank, including providing an attestation, knowing it to be false or misleading in a material particular.

Section 157ZW: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
(g) (2) 157ZX Penalties for offences (1) Every deposit taker who commits an offence under section 157ZR(a) is liable, on summary conviction,— (a) in the case of an individual, to imprisonment for a term not exceeding 18 months or to a ﬁne not exceeding $200,000, or both; or in the case of a body corporate, to a ﬁne not exceeding $2,000,000.
(b) (2) (3) Every deposit taker who commits an offence under any other provision in section 157ZR or 157ZS is liable, on summary conviction,— (a) in the case of an individual, to imprisonment for a term not exceeding 12 months or to a ﬁne not exceeding $100,000, or both; or in the case of a body corporate, to a ﬁne not exceeding $1,000,000.
(b) Every director who commits an offence under section 157ZV is liable, on summary conviction, to imprisonment for a term not exceeding 12 months or a ﬁne not exceeding $100,000, or both.

199 Part 5D s 157ZY Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (4) Every trustee who commits an offence under any provision in section 157ZW is liable, on summary conviction, to a ﬁne not exceeding $200,000.
Section 157ZX: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

Miscellaneous Heading: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
157ZY Matters relating to regulation­making powers under this Part Regulations made under section 157K, 157P, 157S, 157V, or 157Z may— (a) prescribe clauses relating to all or any of the matters referred to in those sections that are deemed to be con­ tained in, or adopted by, trust deeds; and prescribe requirements or clauses that apply to all de­ posit takers; and prescribe different requirements or clauses for different classes of deposit takers; and prescribe different requirements or clauses for particu­ lar deposit takers.
(b) (c) (d) Section 157ZY: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

157ZZ Bank must review and report on operation of this Part (1) The Bank must, not later than 5 years after the commencement of this section,— (a) review the operation of this Part since the commence­ ment of this section; and (b) prepare a report on the review for the Minister.
The report on the review must include recommendations to the Minister on whether any amendments to the Act concerning the matters dealt with in this Part are necessary or desirable.

(2) (3) As soon as practicable after receiving the report, the Minister must present a copy of that report to the House of Representa­ tives.
200 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 6 s 159 Section 157ZZ: inserted, on 10 September 2008, by section 17 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

Part 6 Financial and accountability matters Part 6 heading: substituted, on 10 September 2008, by section 21 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

157 Financial year The Bank’s ﬁnancial year ends on the day on which the Gov­ ernment’s ﬁnancial year ends.
Section 157: substituted, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).

Income and expenditure 158 Meaning of notional surplus income [Repealed] Section 158: repealed, on 10 September 2008, by section 18 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
159 Funding agreements (1) The Minister and the Governor may enter into a funding agree­ ment that speciﬁes the amount of the Bank’s income that may be paid or applied in meeting the operating expenses incurred by the Bank in each ﬁnancial year in carrying out its functions and exercising its powers under— Part 2 (except sections 16, 32, 34, and 35): (a) Parts 3 to 5: (b) Part 5B: (c) Part 5C: (d) (da) Part 5D: (e) (f) sections 163, 166, 167, and 190: if the Minister and the Governor agree, any other pro­ vision of this Act: any other Act.
(g) There shall be a funding agreement applying for every ﬁnan­ cial year and each funding agreement shall apply to a period that comprises 5 consecutive ﬁnancial years.

(2) 201 Part 6 s 160 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (3) The Minister and the Governor may, from time to time, by agreement— (a) (b) vary the provisions of a funding agreement; or terminate a funding agreement and enter into a new funding agreement.
Section 159(1): substituted, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 159(1)(da): inserted, on 10 September 2008, by section 19 of the Re­ serve Bank of New Zealand Amendment Act 2008 (2008 No 59).
160 Contents of funding agreements Every funding agreement shall be in writing and— (a) shall make provision for the operating expenses to be incurred by the Bank in carrying out the functions and exercising the powers set out in paragraphs (a) to (f) of subsection (1) of section 159: shall make provision for such items as may, in accord­ ance with generally accepted accounting practice, prop­ erly be taken into account in determining the operating expenses applicable to those functions and powers: (b) (c) may provide for the extent, if any, to which any material change in the nature or extent of the work undertaken by the Bank in respect of any of those functions or powers shall require the total level of operating expenses to be redetermined between the Governor and the Minister: (d) may make provision for such other matters, not being matters that are inconsistent with this section, as the Governor and the Minister may think ﬁt.
Section 160(a): amended, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 160(b): amended, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 160(c): amended, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).
161 Funding agreements to be ratiﬁed by House of Representatives (1) Within 12 sitting days after a funding agreement is entered into, or a funding agreement is varied, the Minister shall lay 202 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 6 s 162AA a copy of the agreement or the variation before the House of Representatives.
(2) No funding agreement, and no variation of a funding agree­ ment, shall be effective for the purposes of this Act unless it is ratiﬁed by a resolution of the House of Representatives.

162 Determination of annual dividend (1) (2) (3) (4) The Bank must, as soon as practicable after the end of each ﬁ­ nancial year, recommend to the Minister the amount appropri­ ately payable by the Bank to the Crown as an annual dividend in respect of the ﬁnancial year.
The Bank must determine the amount it recommends to the Minister under subsection (1) in accordance with the princi­ ples set out in its statement of intent.

The Minister must determine the amount that the Bank must pay to the Crown as an annual dividend in respect of the ﬁnan­ cial year having regard to— (a) (b) (c) The Bank must publish in its annual report— (a) the recommendation of the Bank; and the views of the Board of the Bank; and any other relevant matters.
the amount it recommends to the Minister under sub­ section (1); and the determination made by the Minister under subsec­ tion (3).

(b) Section 162: substituted, on 10 September 2008, by section 20 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

Accountability documents Heading: inserted, on 10 September 2008, by section 22 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
162AA Purpose of accountability documents The purpose of the 3 accountability documents required under this Part is as follows: (a) statement of intent: to promote the public accountabil­ ity of the Bank by— 203 Part 6 s 162AB Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (i) (ii) (iii) enabling the Crown to participate in the process of setting the Bank’s medium­term intentions and undertakings; and setting out for the House of Representatives those intentions and undertakings; and providing a base against which the Bank’s actual performance can be later assessed: (b) (c) annual report: to— (i) (ii) (iii) (ii) report on the activities of the Bank during the previous year; and assess those activities against the intentions and undertakings set out in the latest statement of in­ tent; and ensure the accountability of the Bank for the funds available to it: ﬁnancial stability report: to— (i) report on matters relating to the soundness and efﬁciency of the ﬁnancial system and other mat­ ters associated with the Bank’s statutory pruden­ tial purposes; and allow assessments to be made of the effectiveness of the Bank’s use of its powers to achieve its statutory prudential purposes.
Compare: 2004 No 115 s 138 Section 162AA: inserted, on 10 September 2008, by section 22 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
162AB Assessment of regulatory impacts of policies (1) The Bank must— (a) (b) assess the expected regulatory impacts of any policy that it intends to adopt under Part 5 and Parts 5B to 5D; and assess the regulatory impacts of the policies adopted and applied under Part 5 and Parts 5B to 5D at intervals appropriate to the nature of the policy being assessed; and (c) give reports on the assessments to the Minister.

Subsection (1) does not apply in respect of any policy that is of a minor or technical nature.
(2) 204 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 6 s 162B (3) (4) The Bank may provide reports on the assessments of regula­ tory impacts to the Minister— (a) (b) as part of an accountability document or other report; or as a stand­alone report prepared following a request by the Minister or on the Bank’s own initiative.

The Bank must publish every report on the assessment of regu­ latory impacts on an Internet site maintained by, or on behalf of, the Bank.
(5) However, the Bank may omit information from any report published if it is satisﬁed on reasonable grounds that it is proper to omit the information on the ground of commercial conﬁdentiality relating to a ﬁnancial institution.

To avoid doubt, the publication of an accountability document that includes a report on the assessments of regulatory impacts satisﬁes the obligation in subsection (4).
Section 162AB: inserted, on 10 September 2008, by section 22 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

(6) Statement of intent Heading: inserted, on 10 September 2008, by section 23 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

162A Obligation to provide statement of intent The Bank must, in each ﬁnancial year, provide to the Minister a statement of intent for the Bank and its subsidiaries for that ﬁnancial year and at least the next 2 ﬁnancial years.
Section 162A: inserted, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).
162B Content of statement of intent (1) Each statement of intent must contain the following informa­ tion for the full period to which it relates: (a) key background information about the Bank and its op­ erating environment: the nature and scope of the Bank’s functions and its principal areas of operation: the speciﬁc impacts, outcomes, or objectives that the Bank seeks to achieve or contribute to: (b) (c) 205 Part 6 s 162B Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (d) (da) (e) (f) (g) (h) (i) (j) how the Bank intends to perform its functions and con­ duct its operations to achieve those impacts, outcomes, or objectives: if a direction has been given under section 68B, how the Bank has had regard to the direction: the proposed strategies for managing the organisational health and capability of the Bank: a statement of the projected income and expenditure for the ﬁrst ﬁnancial year in the period to which the statement of intent relates: a statement of the principles in accordance with which the Bank must determine the amount it recommends to the Minister as appropriately payable by the Bank to the Crown as an annual dividend: the main ﬁnancial and non­ﬁnancial measures and stan­ dards by which the future performance of the Bank may be judged: the matters on which the Bank will consult or notify the Minister before making a decision, the matters on which it will report to its Minister, and the frequency of reporting: any other matters that are reasonably necessary to achieve an understanding of the Bank’s intentions and direction.
(2) Each statement of intent must be dated and signed by the Gov­ ernor and the Deputy Chief Executive.

Section 162B: inserted, on 25 January 2005, by section 37(1) of the Public Fi­ nance Amendment Act 2004 (2004 No 113).

Section 162B(1)(c): substituted, on 10 September 2008, by section 24(1) of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

Section 162B(1)(d): substituted, on 10 September 2008, by section 24(1) of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
Section 162B(1)(da): inserted, on 10 September 2008, by section 24(1) of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

Section 162B(1)(g): added, on 10 September 2008, by section 24(2) of the Re­ serve Bank of New Zealand Amendment Act 2008 (2008 No 59).

Section 162B(1)(h): added, on 10 September 2008, by section 24(2) of the Re­ serve Bank of New Zealand Amendment Act 2008 (2008 No 59).
Section 162B(1)(i): added, on 10 September 2008, by section 24(2) of the Re­ serve Bank of New Zealand Amendment Act 2008 (2008 No 59).

206 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 6 s 162D Section 162B(1)(j): added, on 10 September 2008, by section 24(2) of the Re­ serve Bank of New Zealand Amendment Act 2008 (2008 No 59).
162C Process for providing statement of intent to Minister (1) To provide a statement of intent under section 162A, the Bank must— (a) prepare a draft statement of intent and provide it to the Minister not later than 30 days before the start of each ﬁnancial year; and consider the Minister’s comments (if any) on the draft and provide the ﬁnal statement of intent to the Minister on or before the start of the ﬁnancial year.
(b) (2) If the Minister’s comments include comment on the ﬁnan­ cial sector regulatory outcomes set out in the Bank’s draft statement of intent, the Bank must, when providing its ﬁnal statement of intent to the Minister, also provide a response to the Minister’s comments that demonstrates how the Bank has taken those comments into account in formulating its object­ ives.

Section 162C: inserted, on 25 January 2005, by section 37(1) of the Public Fi­ nance Amendment Act 2004 (2004 No 113).
Section 162C(2): added, on 10 September 2008, by section 25 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

162D Amendments by Bank to statement of intent (1) The Bank must amend its statement of intent if any matters arise that signiﬁcantly affect or alter the information contained in the statement that relates to section 162B(1)(b), (d), or (e).
To amend its statement of intent, the Bank must— (a) (b) provide a draft amendment to the Minister; and consider the Minister’s comments (if any) and provide the ﬁnal amendment to the Minister as soon as practic­ able.

(2) Section 162D: inserted, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).
207 Part 6 s 162E Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 162E Statement of intent stands referred to House of Representatives A ﬁnal statement of intent and any amendments to it that have been provided to the Minister stand referred, by virtue of this section, to the House of Representatives.

Section 162E: inserted, on 25 January 2005, by section 37(1) of the Public Fi­ nance Amendment Act 2004 (2004 No 113).
Annual reports Heading: inserted, on 10 September 2008, by section 26 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
163 Annual reports and accounts (1) Within 3 months after the end of each ﬁnancial year the Bank must deliver to the Minister— (a) (b) a report on the operations of the Bank and its sub­ sidiaries during the ﬁnancial year; and audited ﬁnancial statements for the Bank for the ﬁnan­ cial year and, if the Bank has any subsidiaries, audited consolidated ﬁnancial statements for the Bank and its subsidiaries for that year; and the auditor’s report on those ﬁnancial statements.
(c) The report must contain— (aaa) an assessment against the intentions, measures, and standards set out in the statement of intent prepared at the beginning of the ﬁnancial year; and information on the remuneration, compensation, and other beneﬁts (including indemnities and insurance cover) provided or granted, during the ﬁnancial year, to— (i) (a) (ii) each member of the Board or a committee of the Board (whose identity must be disclosed in the report for the purposes of this section); and employees of the Bank (any of whose identity must not be disclosed in the report); and any other matters that the Bank is required, has under­ taken, or wishes to report on in its annual report; and if the Board agrees, the Board’s report prepared in ac­ cordance with section 53A; and (2) (b) (c) 208 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 6 s 164 (3) (d) any other information that is necessary, in conjunction with any policy statements published under section 15, to enable an informed assessment to be made of the Bank’s performance in carrying out its functions during the ﬁnancial year.
The documents delivered to the Minister under subsection (1) stand referred, by virtue of this section, to the House of Rep­ resentatives.

Section 163: substituted, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 163(2)(aaa): inserted, on 10 September 2008, by section 27 of the Re­ serve Bank of New Zealand Amendment Act 2008 (2008 No 59).

163A Bank not Crown entity The Bank is not a Crown entity for the purposes of the Crown Entities Act 2004.
Section 163A: inserted, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).
164 Contents of ﬁnancial statements (1) The ﬁnancial statements shall be prepared in accordance with generally accepted accounting practice and shall include— (a) (b) (c) (d) (e) (f) (g) (h) a statement of the Bank’s ﬁnancial position at its bal­ ance date: an operating statement reﬂecting the revenue and ex­ penses of the Bank for that year by reference to the func­ tions carried out by the Bank: a statement of cash ﬂows reﬂecting the Bank’s cash ﬂow for that year: a statement of the Bank’s commitments as at the balance date: a statement of the Bank’s contingent liabilities as at the balance date: a statement of accounting policies: such other statements as are necessary to fairly reﬂect the ﬁnancial operations of the Bank for that year and its ﬁnancial position at the end of that year: comparative actual ﬁgures for the previous ﬁnancial year for paragraphs (a) to (e) and, where appropriate, paragraph (g).
209 Part 6 s 165 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (2) The ﬁnancial statements shall show separately— (a) any payments made by the Bank under section 21(1); and any payments made by the Minister to the Bank under section 21(2).

(b) 165 Management statements (1) (2) The ﬁnancial statements of the Bank shall be accompanied by a management statement signed by the Governor and the Deputy Chief Executive.
The management statement shall comprise: (a) a statement of the management’s responsibility for the preparation of the annual ﬁnancial statements and the judgments used in them: a statement of the management’s responsibility for es­ tablishing and maintaining a system of internal control designed to provide reasonable assurance as to the in­ tegrity and reliability of ﬁnancial reporting: a statement that, in the opinion of the management, the annual ﬁnancial statements for the ﬁnancial year fairly reﬂect the ﬁnancial position and operations of the Bank.
(b) (c) Financial stability reports Heading: inserted, on 10 September 2008, by section 28 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

165A Financial stability reports (1) The Bank must, not less than twice in every calendar year,— deliver a ﬁnancial stability report to the Minister; and (a) publish the report on an Internet site maintained by, or (b) on behalf of, the Bank.
(2) A ﬁnancial stability report must— (a) (b) report on the soundness and efﬁciency of the ﬁnancial system and other matters associated with the Bank’s statutory prudential purposes; and contain the information necessary to allow an assess­ ment to be made of the activities undertaken by the Bank to achieve its statutory prudential purposes under this Act and any other enactment.
210 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 6 s 167 (3) The Minister must, as soon as practicable after receiving the report, present it to the House of Representatives.

Section 165A: inserted, on 10 September 2008, by section 28 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

Audits Heading: inserted, on 10 September 2008, by section 29 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
166 Auditor­General to be auditor of Bank The Bank is a public entity as deﬁned in section 4 of the Public Audit Act 2001 and, in accordance with that Act, the Auditor­ General is its auditor.

Section 166: substituted, on 1 July 2001, by section 53 of the Public Audit Act 2001 (2001 No 10).
167 Performance audit (1) The Minister may, from time to time, appoint 1 or more per­ sons (whether as individuals or as members from time to time of any ﬁrm or ﬁrms) to carry out an assessment of the per­ formance by the Bank of its functions and of the exercise by the Bank of its powers under this Act.

(2) As soon as practicable after completing an assessment the per­ son appointed shall submit a report to the Minister setting out the results of that assessment.
The report stands referred, by virtue of this section, to the House of Representatives.
(3) (4) A person appointed to conduct an assessment under this sec­ tion, for the purpose of conducting that assessment,— (a) shall have full access to all books and documents that are the property of or that are under the control of any person relating to the Bank or its affairs: (b) may require any director, ofﬁcer or employee of the Bank or any other person to answer any question relat­ ing to the Bank or its affairs: (c) may, by notice in writing to any person, require that person to deliver any books or documents relating to the Bank or its affairs in the possession or under the control 211 Part 7 s 168 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 of that person and may take copies of them or extracts from them.
(5) Nothing in subsection (4) limits or affects section 105.

(6) The fees of the person appointed to carry out an assessment under this section shall be paid out of the funds of the Bank.

Section 167(3): substituted, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).
Part 7 Miscellaneous provisions 168 Bank to be good employer The Bank shall operate a personnel policy containing provi­ sions generally accepted as necessary for the fair and proper treatment of employees in all aspects of their employment, in­ cluding provisions requiring— (a) (b) (c) good and safe working conditions; and an equal opportunities employment programme; and the impartial selection of suitably qualiﬁed persons for appointment; and opportunities for the enhancement of the abilities of in­ dividual employees.
(d) Compare: 1986 No 124 s 4(1)(b), (2) 169 Bank to exhibit sense of social responsibility It shall be an objective of the Bank to exhibit a sense of social responsibility in exercising its powers under this Act.

Compare: 1986 No 124 s 4(1)(c) 170 Application of Banking Act 1982 to Bank [Repealed] Section 170: repealed, on 30 June 1995, by section 2(4) of the Banking Act Repeal Act 1995 (1995 No 32).
171 Conﬂict with other Acts If there is any conﬂict between this Act and the provisions of the Banking Act 1982, or of any other Act relating to any bank 212 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 7 s 173 or to the business of banking, the provisions of this Act shall prevail.
Compare: 1964 No 134 s 48 172 Obligations under this Act not limited An obligation or limitation imposed on a person by any other Act or instrument or by any trust or agreement shall not pre­ vent or excuse that person from complying with any provision of this Act or any regulation made under it or with any direc­ tion, notice, requirement or condition given or imposed under that provision.
Compare: 1964 No 134 s 49 173 Regulations The Governor­General may from time to time, by Order in Council, make regulations for all or any of the following pur­ poses: (a) (b) (c) providing for such matters as are necessary to enable the Minister or the Bank to exercise any powers and functions conferred on the Minister or the Bank by this Act or by any regulations made for any of the purposes of this Act: providing for the granting, refusal, and revocation of consents, permissions, and exemptions in respect of any matters to which any regulations made under this Act relate; and authorising the imposition, variation, and revocation of conditions subject to which such consents, permissions, and exemptions may be granted: providing for the furnishing of information and the pro­ duction of books or documents to the Minister or the Bank or any other person for any of the purposes of any such regulations (whether or not the effect of do­ ing so may be to require the furnishing of information, or the production of books or documents, that will re­ veal the identity or affairs of any particular person); and providing for the veriﬁcation of any such information; and providing that any such books or documents may be copied, and may be retained or impounded, by any person or persons to whom they are produced: 213 Part 7 s 174 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (d) (e) (f) (g) (h) (i) (j) (k) authorising the Minister or the Bank or any other person to exercise any discretionary power or authority for the purposes of any such regulations: providing for the delegation of any of the powers or functions of the Minister (including the power of dele­ gation) or the Bank under any such regulations: providing for and regulating the issue, registration, transfer, control, and redemption of any securities issued by the Bank: pescribing forms for the purposes of this Act or of any such regulations, in any case where a form is not pre­ scribed by this Act: providing for and regulating the giving or
 service of no­ tices for the purposes of this Act or of any such regula­ tions, and the effect of such notices: prescribing fees to be charged by the Bank in respect of any matter under this Act: prescribing offences against any such regulations, and prescribing ﬁnes not exceeding in respect of any such offence $5,000 and, in the case of a continuing offence, $200 for every day on which the offence has continued: providing for such matters as are contemplated by or necessary for giving full effect to the provisions of this Act and for its due administration.
Compare: 1964 No 134 s 50; 1977 No 68 s 6 174 Consents under regulations (1) If a transaction is entered into or an instrument is executed without the prior consent of the Minister or the Bank required by any regulations made under this Act, the Minister or the Bank, as the case may be, may, at any time, consent to the entry into the transaction or the execution of the instrument.
Subject to the terms of the consent, any transaction, or instru­ ment, and any relationship, or interests created by it, which would be invalid or unenforceable without that consent, shall, on the giving of that consent, be valid or enforceable as if the consent had been given before the transaction was entered into or the instrument executed.
Consent may be given— (2) (3) 214 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 7 s 175A (a) in respect of such transactions, instruments, or persons or classes of transactions, instruments, or persons as the Minister or the Bank may determine, or in respect of any speciﬁed transaction, instrument, or person: (b) wholly or partly and either unconditionally or subject to such conditions as the Minister or the Bank thinks ﬁt.
(4) A consent to the entry into any transaction or the execution of any instrument shall be deemed to be a consent given under the regulations requiring consent.
Compare: 1964 No 134 s 50A; 1968 No 135 s 3; 1970 No 2 s 3 175 Offences against regulations (1) Every person commits an offence against this Act who— (a) with intent to deceive, makes any false or misleading statement or any material omission in— (i) any offer or declaration made for the purposes of any regulations under this Act; or any communication with, or application to, the Minister or the Bank or any other person (whether in writing or otherwise) for the pur­ poses of those regulations: (ii) (b) (c) resists, obstructs, or deceives any person who is exer­ cising or attempting to exercise any power or function under any such regulations: without lawful excuse, acts in contravention of, or fails to comply in any respect with, any provision of any such regulations or any direction, notice, requirement, or condition given or imposed under any such regula­ tions.
(2) Nothing in subsection (1) limits section 173(j).

Compare: 1964 No 134 s 51 175A Privilege against self­incrimination no excuse A person is not excused from answering any question, supply­ ing any information, producing any document, or providing any explanation under this Act on the ground that to do so would or might incriminate or tend to incriminate that person.

Section 175A: inserted, on 21 August 2003, by section 44 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
215 Part 7 s 175B Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 175B Admissibility of self­incriminating statements (1) A self­incriminating statement made orally by a person (whether or not the statement is recorded in writing) in the course of answering any question, or supplying any information, or producing any document, or providing any explanation, may be used in evidence against that person only in a prosecution for any offence where the person gives evidence inconsistent with the statement.
(2) Despite subsection (1), any statement made in relation to— (a) (b) a refusal or failure to answer any question, supply any information, produce any document, provide any ex­ planation, or comply with any other requirement may be used in evidence against that person in a prosecution for any offence under this Act arising from that refusal or failure: the answering of any question in a way that is false or misleading in a material particular, or the supply of any information, or the production of any document, or the provision of any explanation that is false or misleading in a material particular, may be used in evidence against that person in a prosecution for any offence under this Act arising from that act.
Section 175B: inserted, on 21 August 2003, by section 44 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

176 Penalties for offences Every person who commits an offence against this Act for which no penalty is provided except in this section is liable on summary conviction— (a) in the case of an individual, to imprisonment for a term not exceeding 12 months, or to a ﬁne not exceeding $10,000: in the case of a body corporate, to a ﬁne not exceeding $25,000.
(b) Compare: 1964 No 134 s 52(1); 1977 No 68 s 7(1) Section 176: amended, on 24 March 1995, by section 10 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
216 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 7 s 179 177 Time limit for prosecutions Despite section 14 of the Summary Proceedings Act 1957, an information for an offence against this Act may be laid,— (a) in the case of an offence against section 28 or section 30, within 3 years from the time when the matter of the information arose; or in any other case, within 6 years from the time when the matter of the information arose.
(b) Section 177: substituted, on 21 August 2003, by section 45 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

178 Evidence (1) A copy of a resolution of the Bank certiﬁed by the Governor to be correct shall, in the absence of proof to the contrary, be sufﬁcient evidence of the resolution in any proceedings.
(2) A certiﬁcate signed by the Governor to the effect that— (a) (b) any approval or consent required under any Act has or has not been given by the Bank, or is or is not for the time being in force; or any document has been duly signed by, or on behalf of, the Bank or the Governor— shall, in the absence of proof to the contrary, be sufﬁcient evi­ dence of the matters stated in it in any proceedings.
(3) Any certiﬁcate purporting to have been signed by the Gov­ ernor shall, in the absence of proof to the contrary, be deemed for all purposes to have been duly signed by the Governor.
Compare: 1964 No 134 s 52B; 1977 No 68 s 8 179 Protection from liability This section applies to— (1) (a) every statutory manager of a registered bank or of an associated person of a registered bank; and every ofﬁcer or employee of the Bank; and every person appointed under section 66E or section 99 or section 101; and every director of the Bank.
(b) (c) (d) (2) No person to whom this section applies is personally liable for an act done or omitted to be done in the exercise or perform­ 217 Part 7 s 179A Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 ance in good faith of that person’s functions, duties, or powers under this Act.

Section 179: substituted, on 21 August 2003, by section 46 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 179(1)(c): amended, on 1 November 2006, by section 9 of the Reserve Bank of New Zealand Amendment Act 2006 (2006 No 51).

Section 179(1)(d): added, on 1 November 2006, by section 9 of the Reserve Bank of New Zealand Amendment Act 2006 (2006 No 51).
179A Indemnity (1) (2) The Crown indemniﬁes the persons listed in subsection (2) for any liability that arises from the exercise or purported exercise of, or omission to exercise, any power conferred by this Act unless it is shown that the exercise or purported exercise of, or omission to exercise, the power was in bad faith.
The persons are— (a) every statutory manager of a registered bank or of an associated person of a registered bank: every ofﬁcer or employee of the Bank: every person appointed under section 66E or section 99 or section 101: every member of an advisory committee: the Bank: every director of the Bank.

(b) (c) (d) (e) (f) (3) Any money required for the purposes of this section must be paid out of the Crown Bank Account without further appropri­ ation than this section.
The indemnity conferred by subsection (1) extends to legal costs incurred in defending a proceeding.

(4) (5) Within 12 sitting days of the making of any payment under this section, the Minister must present to the House of Repre­ sentatives a report which contains details of the circumstances giving rise to the liability of the Crown, the amount of the pay­ ment, the person to whom the payment was made and any other relevant matters.
Section 179A: inserted, on 21 August 2003, by section 47 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 179A(2)(f): added, on 1 November 2006, by section 10 of the Reserve Bank of New Zealand Amendment Act 2006 (2006 No 51).

218 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 7 s 182 180 Amendment to Income Tax Act 1976 [Repealed] Section 180: repealed, on 1 April 1995, by section YB 3(1) of the Income Tax Amendment Act 1994 (1994 No 164).
181 Amendments to Securities Act 1978 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Section 48 of the Securities Amendment Act 1988 is hereby [Repealed] [Expired] [Repealed] [Repealed] [Repealed] [Expired] [Repealed] [Repealed] [Repealed] [Repealed] consequentially repealed.

Section 181(1): repealed, on 1 October 1997, by section 6(6) of the Securities Amendment Act 1996 (1996 No 100).

Section 181(2): expired, on 31 March 1990, by section 181(3).
Section 181(3): repealed, on 1 October 1997, by section 6(6) of the Securities Amendment Act 1996 (1996 No 100).

Section 181(4): repealed, on 1 October 1997, by section 6(6) of the Securities Amendment Act 1996 (1996 No 100).

Section 181(5): repealed, on 1 October 1997, by section 6(6) of the Securities Amendment Act 1996 (1996 No 100).

Section 181(6): expired, on 30 June 1996, by clause 2 of the Reserve Bank of New Zealand Act Commencement Order 1995 (SR 1995/249).
Section 181(7): repealed, on 1 October 1997, by section 6(6) of the Securities Amendment Act 1996 (1996 No 100).

Section 181(8): repealed, on 1 October 1997, by section 6(6) of the Securities Amendment Act 1996 (1996 No 100).

Section 181(9): repealed, on 1 October 1997, by section 6(6) of the Securities Amendment Act 1996 (1996 No 100).

Section 181(10): repealed, on 1 October 1997, by section 16(2)(b) of the Se­ curities Amendment Act 1996 (1996 No 100).
182 Amendments to Superannuation Schemes Act 1989 Amendment(s) incorporated in the Act(s).

219 Part 7 s 183 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 183 Amendments to Trustee Banks Restructuring Act 1988 [Repealed] Section 183: repealed, on 21 May 1999, by section 5 of the Trustee Banks Restructuring Act Repeal Act 1999 (1999 No 53).

184 Amendment to Securities Amendment Act 1988 Amendment(s) incorporated in the Act(s).
185 Consequential amendments The enactments listed in Schedule 1 are hereby amended in the manner indicated in that schedule.

186 Repeals and savings (1) (2) The enactments listed in Schedule 2 are hereby repealed.

The regulations and the proclamation speciﬁed in Schedule 2 are hereby revoked.
(3) Without limiting the Interpretation Act 1999, the repeal of those enactments does not affect any document made or any thing done under any of the provisions of those enactments, and every document or thing subsisting or in force at the com­ mencement of this Act shall continue to have effect as if it had been made or done under this Act.

[Repealed] Section 186(4): repealed, on 1 July 1994, by section 63 of the Companies Amendment Act 1993 (1993 No 108).
(4) 187 References to trading banks to be read as references to registered banks Every reference in any other Act to the expression “trading bank” shall be read as a reference to a registered bank.
Compare: 1986 No 131 s 15 188 Savings (1) Notwithstanding the repeal, by section 186, of the Reserve Bank of New Zealand Act 1964,— (a) the provisions of that Act, and in particular Part 5C of that Act, shall continue in force and apply to any person that was, immediately before the commencement of this 220 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 7 s 189 (b) Act, subject to statutory management under that Act, in all respects as if they had not been repealed; and any person empowered under that Act to exercise any power or function in respect of any such person shall continue to have, in respect of that person, the same powers and functions that he or she had before the re­ peal of that Act.
(2) This section shall apply unless an Order in Council has been made in respect of that person pursuant to section 189.
189 Procedure for applying this Act to persons subject to (1) statutory management under Reserve Bank of New Zealand Act 1964 The Governor­General may, by Order in Council, on the ad­ vice of the Minister given in accordance with a recommenda­ tion of the Bank,— (a) declare that any person that is subject to statutory man­ agement under the Reserve Bank of New Zealand Act 1964 shall become subject to statutory management under this Act: provide in that order or in any subsequent Order in Council, such transitional provisions as are necessary for giving effect to any such declaration.
(2) Where any such order is made, the following provisions shall (b) apply on and after the commencement of the order: (a) (b) (c) (d) the Reserve Bank of New Zealand Act 1964 shall cease to apply to that person; and any person who holds ofﬁce as a statutory manager of that person under the Reserve Bank of New Zealand Act 1964 shall be deemed to have been appointed as statutory manager of that person under this Act; and any such statutory manager shall have in respect of that person all the powers, rights, authorities, and privileges conferred by this Act on a statutory manager; and any advisory committee appointed under section 38S of the Reserve Bank of New Zealand Act 1964 shall be deemed to have been appointed under this Act.
221 Part 7 s 190 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 190 Transitional provisions in relation to Part 5A and Part 5C (1) of Reserve Bank of New Zealand Act 1964 Subject to subsection (2), Part 5C of the Reserve Bank of New Zealand Act 1964 (as substituted by section 10 of the Reserve Bank of New Zealand Amendment Act 1986) shall, notwith­ standing the repeal of that Act, continue in force and apply for a period of 12 months from and after the commencement of this Act to every person that was, immediately before the commencement of this Act, a speciﬁed institution within the meaning of section 38K of that Act.
(2) Any application for registration as a registered bank, made under section 38C of the Reserve Bank of New Zealand Act 1964 (as inserted by section 10 of the Reserve Bank of New Zealand Amendment Act 1986) and not determined before the commencement of this Act shall be determined under this Act.

(3) Nothing in subsection (1) applies to: a registered bank: a person that is exempted from the application of that subsection by the Bank by notice in the Gazette.
(a) (b) 191 Transitional provisions in relation to ofﬁce holders (1) The person holding ofﬁce at the commencement of this Act as Governor of the Bank shall be deemed to have been appointed under section 40 for the balance of the term for which that person was appointed.

The person holding ofﬁce at the commencement of this Act as Deputy Governor of the Bank shall be deemed to have been ap­ pointed under section 43 for the balance of the term for which that person was appointed.
(2) (3) Any other person holding ofﬁce as a director of the Bank im­ mediately before the commencement of this Act shall vacate ofﬁce on the commencement of this Act.

(4) No director of the Bank who vacates ofﬁce under subsection (3) is entitled to compensation for loss of ofﬁce as a director.

(5) Nothing in subsection (3) prevents a person who vacates ofﬁce under that subsection from being appointed under section 54 as a director of the Bank.
222 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Part 7 s 192 192 Transitional provision in relation to accounts of Bank The provisions of sections 40 to 45 and section 46 of the Re­ serve Bank of New Zealand Act 1964 shall, notwithstanding the repeal of that Act by section 186(1), continue in force in relation to the ﬁnancial year of the Bank ending on 31 March 1990.
223 Schedule 1 Reserve Bank of New Zealand Act 1989 Schedule 1 Enactments amended Reprinted as at 10 September 2008 s 185 Corporations Investigation and Management Act 1989 (1989 No 11) Amendment(s) incorporated in the Act(s).

Housing Corporation Act 1974 (1974 No 19) [Repealed] International Finance Agreements Act 1961 (1961 No 3) Amendment(s) incorporated in the Act(s).

Overseas Investment Act 1973 (1973 No 14) Amendment(s) incorporated in the Act(s).
Stamp and Cheque Duties Act 1971 (1971 No 51) Amendment(s) incorporated in the Act(s).

Schedule 1 Housing Corporation Act 1974: 25(1)(c) of the Housing Corporation Amendment Act 2001 (2001 No 37).

repealed, on 1 July 2001, by section 224 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Schedule 2 Enactments repealed Schedule 2 s 186(1) Decimal Currency Act 1964 (1964 No 27) (RS Vol 2, p 77) Amendment(s) incorporated in the Act(s).
Decimal Currency Amendment Act 1965 (1965 No 124) (RS Vol 2, p 294) Amendment(s) incorporated in the Act(s).

Decimal Currency Amendment Act 1967 (1967 No 3) (RS Vol 2, p 301) Amendment(s) incorporated in the Act(s).

Decimal Currency Amendment Act 1973 (1973 No 56) (RS Vol 2, p 302) International Finance Agreements Amendment Act 1976 (1976 No 25) ((RS Vol 16, p 374) Amendment(s) incorporated in the Act(s).
Reserve Bank of New Zealand Act 1964 (1964 No 134) (RS Vol 16, p 455) Reserve Bank of New Zealand Amendment Act 1968 (1968 No 135) (RS Vol 16, p 509) Reserve Bank of New Zealand Amendment Act 1970 (1970 No 2) (RS Vol 16, p 510) Reserve Bank of New Zealand Amendment Act 1971 (1971 No 125) (RS Vol 16, p 510) Reserve Bank of New Zealand Amendment Act 1973 (1973 No 16) (RS Vol 16, p 511) 225 Schedule 2 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Amendment Act 1974 (1974 No 118) (RS Vol 16, p 513) Reserve Bank of New Zealand Amendment Act 1975 (1975 No 19) (RS Vol 16, p 514) Reserve Bank of New Zealand Amendment Act 1977 (1977 No 68) (RS Vol 16, p 514) Reserve Bank of New Zealand Amendment Act 1980 (1980 No 138) (RS Vol 16, p 517) Reserve Bank of New Zealand Amendment Act 1982 (1982 No 168) (RS Vol 16, p 517) Reserve Bank of New Zealand Amendment Act 1986 (1986 No 131) Regulations revoked Exchange Control Regulations 1985 (SR 1985/4) Exchange Control Regulations 1985, Amendment No 7 (SR 1986/294) Exchange Control Regulations 1985, Amendment No 9 (SR 1987/60) Exchange Control Regulations 1985, Amendment No 15 (SR 1988/84) Reserve Bank of New Zealand Act (Fees) Regulations 1987 (SR 1987/108) Reserve Bank of New Zealand Amendment Act Commencement Order 1988 (1988/77) 226 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Schedule 2 Reserve Bank of New Zealand Order 1988 (SR 1988/192) Proclamation revoked Decimal Currency (End of Transitional Period) Proclamation 1986 (SR 1968/86) 227 Schedule 3 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 Schedule 3 ss 81AA(3), 157S(3), 157W(3) General provisions relating to material incorporated by reference Schedule 3: added, on 10 September 2008, by section 30 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
1 (1) Effect of material incorporated by reference This clause and clauses 2 to 7 apply to material incorporated by reference in— (a) (b) an Order in Council made under section 81; and regulations made under Part 5D.

(2) Material incorporated by reference in an Order in Council made under section 81 or regulations has effect as part of the Order in Council or regulations.
2 Effect of amendments to, or replacement of, material incorporated by reference An amendment to, or replacement of, material incorporated by reference in an Order in Council or regulations has legal effect as part of that instrument only if an Order in Council made under section 81 or regulations made under Part 5D after the making of that instrument state that the particular amendment or replacement has that effect.
Proof of material incorporated by reference 3 (1) A copy of the material incorporated by reference in an Order in Council or regulations, including any amendment to, or re­ placement of, the material, must be— (a) certiﬁed as a correct copy of the material by the Gov­ ernor; and retained by the Governor.
(b) The production in proceedings of a certiﬁed copy of the ma­ terial is, in the absence of evidence to the contrary, sufﬁcient evidence of the incorporation in the Order in Council or regu­ lations of the material.
(2) 228 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Schedule 3 4 5 (1) Effect of expiry or revocation of material incorporated by reference Material incorporated by reference in an Order in Council or regulations that expires or is revoked, or that ceases to have ef­ fect, ceases to have legal effect as part of the Order in Council or regulations only if an Order in Council made under section 81 or regulations made under Part 5D state that the material is revoked or ceases to have legal effect.
Access to material incorporated by reference The Governor— (a) must make the material referred to in subclause (2) available for inspection during working hours free of charge at the head ofﬁce of the Bank and at any other places that the Governor determines are appropriate; and (b) must make copies available for purchase at a reasonable price; and (c) may make copies of the material available in any other way that the Governor considers appropriate in the cir­ cumstances (for example, on an Internet website); and (d) must give notice in the Gazette stating that— (i) (ii) (iii) (iv) the material is incorporated in the regulations and the date on which the regulations were made; and the material is available for inspection during working hours, free of charge, and the location of the place or places at which it can be inspected; and copies of the material can be purchased and the location of the place or places at which they can be purchased; and if copies of the material are available under para­ graph (c), the material is available in other ways, and giving the details of how and where it can be accessed and obtained.
(2) The material is— (a) a framework, standard, speciﬁcation, or requirement in­ corporated by reference in an Order in Council made under section 81: 229 Schedule 3 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (b) (c) (d) (ii) any amendment to, or replacement of,— (i) the framework, standard, speciﬁcation, or re­ quirement incorporated by reference in the Order in Council; or the framework, standard, speciﬁcation, or re­ quirement referred to in paragraph (a) with the amendments or replacement framework, stan­ dard, speciﬁcation, or requirement incorporated within it: a framework incorporated by reference in regulations made under section 157S or 157V: any amendment to, or replacement of,— (i) the framework that is incorporated in the regula­ tions; or the framework referred to in paragraph (c) with the amendments or replacement framework in­ corporated within it.
(ii) (3) A failure to comply with this clause does not invalidate— (a) (b) an Order in Council that incorporates a framework, standard, speciﬁcation, or requirement by reference; or regulations that incorporate a framework by reference.
6 7 Acts and Regulations Publication Act 1989 not applicable to material incorporated by reference The Acts and Regulations Publication Act 1989 does not apply to material incorporated by reference in an Order in Council or regulations or to an amendment to, or replacement of, that material.
Application of Regulations (Disallowance) Act 1989 to material incorporated by reference (1) Nothing in section 4 of the Regulations (Disallowance) Act 1989 requires material that is incorporated by reference in an Order in Council or regulations to be laid before the House of Representatives.
The Regulations (Disallowance) Act 1989, apart from the modiﬁcation to the application of section 4 of that Act made (2) 230 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Schedule 3 by subclause (1) of this clause, applies to an Order in Council or regulations that incorporate material by reference.
231 Schedule 4 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 Schedule 4 General provisions relating to search warrants issued under Part 5D s 157ZM(2) Schedule 4: added, on 10 September 2008, by section 30 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

1 2 Interpretation In this schedule, Judge means a Judge of the High Court or a District Court Judge.
Application of clauses 3 to 13 Clauses 3 to 13 apply to every search warrant applied for and issued under Part 5D that would enable the entry and inspec­ tion, or entry and search, of any place.
Application for search warrant 3 (1) An application for a search warrant must contain, in reasonable detail, the following particulars: the name of the applicant: (a) the grounds on which the application is made: (b) the address or other description of the place to be (c) searched: a description of the item or items, believed to be at the place, that are sought by the applicant.
(d) The Judge may require the applicant to supply further infor­ mation concerning the grounds on which the search warrant is sought.

The applicant must disclose in the application— (a) details of any other applications for a search warrant that the applicant knows to have been made within the previous 3 months in respect of the place proposed to be searched; and the result of that application or applications.
(b) The applicant must, before making an application for a search warrant, make reasonable inquiries for the purpose of comply­ ing with subclause (3).

(2) (3) (4) 232 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Schedule 4 (5) The Judge may authorise the search warrant to be executed on more than 1 occasion if he or she is satisﬁed that this is required for the purposes for which the warrant is being issued.
Mode of application for search warrant 4 (1) An application for a search warrant— (a) must be in writing, unless subclause (3) applies; and (b) may be transmitted to the Judge electronically.

The applicant must appear in person before the Judge unless subclause (3) applies.
(2) (3) A Judge may allow an application for a search warrant to be made orally (for example, by telephone call) and excuse the applicant from making a personal appearance if the Judge is satisﬁed that— (a) the delay that would be caused by requiring an applicant to appear in person would compromise the effectiveness of the search; and the question of whether the warrant should be issued can properly be determined on the basis of an oral com­ munication (together with the information described in paragraph (c)); and the information required by clause 3(1) to (3) has been supplied to the Judge.
(b) (c) 5 (1) Form and content of search warrant Every search warrant issued must be directed to an authorised person by name, to every authorised person holding a speciﬁed ofﬁce or authorisation, or to every authorised person.
(2) A search warrant issued— (a) may be executed by all or any of the persons to whom it is directed: (b) may be subject to any conditions speciﬁed in the war­ rant that the Judge considers reasonable: (c) may be executed only once, unless execution on more than 1 occasion has been authorised.
(3) Every search warrant must contain, in reasonable detail, the following particulars: (a) the place or thing that may be searched: 233 Schedule 4 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (b) (c) (d) (e) (f) the provision authorising the issue of the warrant: a description of what may be seized: the period during which the warrant may be executed, being a period not exceeding 14 days from the date of issue: any conditions speciﬁed by the Judge under subclause (2)(b): if the warrant may be executed on more than 1 occasion, the number of times, or the period of time over which, the warrant may be executed.
6 Transmission of search warrant If it is not possible for the person charged with executing the warrant to have it in his or her possession at the time of exe­ cution, 1 of the following documents (which is deemed for all legal purposes to constitute the warrant) may be executed: (a) a faxed copy or electronic copy of a warrant issued by the Judge: a copy made by the person to whom the warrant is di­ rected, at the direction of the Judge and endorsed to that effect.
(b) Retention of documents 7 (1) A copy of every written application for a search warrant or (in the case of an oral application) the written record of the application made by the Judge must be retained permanently by, or on behalf of, the Judge.
(2) An applicant to whom a search warrant is issued must retain the warrant, a copy of the application (if made in written form), and all documents tendered by the applicant in support of the application until,— (a) in the case of a warrant that is executed, the completion of all proceedings in respect of which the validity of the warrant may be in issue; and in any other case, the destruction or transfer of the warrant and other documents is required by the Public Records Act 2005 or any other enactment or rule of law.
(b) 234 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Schedule 4 8 9 (1) When search warrant is executed A search warrant is executed when the person executing the warrant— (a) (b) has seized all the items speciﬁed in the warrant; or leaves the place or thing being searched and does not return within 4 hours.
Powers conferred by search warrant Every search warrant issued under Part 5D authorises the per­ son executing it to— (a) (b) (c) (d) (e) (f) (g) (h) enter and search the place or thing speciﬁed in the war­ rant, and any item or items found in that place or thing, at any time that is reasonable in the circumstances: request any person to assist in the execution of the war­ rant (including, without limitation, a member of a hapū or iwi if the place to be entered is of cultural or spiritual signiﬁcance to that hapū or iwi): use any force that is reasonable for the purposes of exe­ cuting the warrant: seize any thing authorised by the warrant: bring, and use in or on the place or thing searched, any equipment, to use any equipment found on the place or thing, and to extract any electricity from the place or thing to operate the equipment that is reasonable to use in the circumstances, for the purposes of executing the warrant: copy any document, or part of a document, that may be seized under the warrant: require any person to reproduce, or to assist the person executing the warrant to reproduce, in usable form, any information recorded or stored in any document that may be seized under the warrant: take photographs or video recordings of the place or thing searched, and of any thing found in that place, if the person executing the warrant has reasonable grounds to believe that the photographs or video recordings may be relevant in any proceedings arising from the execution of the warrant.
235 Schedule 4 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 The person executing the search warrant may seize any item or items that he or she, or any person assisting him or her, ﬁnds in the course of executing the warrant if the person executing the warrant has reasonable grounds to believe that he or she or any other person who can apply for a search warrant under Part 5D could obtain a warrant to seize it under Part 5D.
The person executing a search warrant may, in a manner and for the duration that is reasonable for the purposes of executing the warrant,— (a) secure the place searched, any area within that place, or any thing found within that place: exclude any person from the place searched, or from any area within the place or thing, if the person executing the warrant has reasonable grounds to believe that the person to be excluded will obstruct or hinder the execu­ tion of the warrant.
(b) The powers conferred by this clause are subject to any condi­ tions imposed under clause 5(2)(b).

Section 198B of the Summary Proceedings Act 1957 applies in respect of every search warrant as if for each reference to a constable there were substituted a reference to a person au­ thorised to execute the search warrant.
enter the place to be searched: Powers of persons called to assist Every person called on to assist a person executing a search warrant may— (a) (b) while in the company and under the direction of the person executing the warrant, use reasonable force in respect of any property for the purposes of executing the warrant: search areas within the place that the person executing the warrant has determined may lawfully be searched: seize any thing that the person executing the warrant has determined may lawfully be seized: take photographs and video recordings of the place and things found in the place or thing if the person executing the warrant has determined that those things may be lawfully taken: (d) (e) (c) (2) (3) (4) (5) 10 (1) 236 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Schedule 4 (f) (g) bring onto the place or thing and use any equipment, make use of any equipment found on the place or thing, or extract electricity from the place or thing for the pur­ poses of operating the equipment that the person execut­ ing the warrant has determined may be lawfully used: copy any document, or part of a document, that the per­ son executing the warrant has determined may be law­ fully copied.
(2) (3) (4) 11 (1) If a member of the police is assisting another person execut­ ing a search warrant, that member of the police may exercise any power ordinarily exercisable by him or her in executing a search warrant.

The person executing a search warrant must— (a) accompany any assistant on the ﬁrst occasion when the assistant enters the place or thing to be searched; and provide such other supervision of any assistant as is rea­ sonable in the circumstances.
(b) The powers conferred by this clause are subject to any condi­ tions imposed under clause 5(2)(b).
Person executing warrant to produce evidence of authority The person exercising the search warrant must— (a) before initial entry into or onto the place or thing to be searched— (i) announce his or her intention to enter and search the place pursuant to a search warrant; and identify himself or herself; and (ii) before initial entry into or onto the place or thing to be searched— (i) give the occupier (if present) of the place or thing a copy of the search warrant; and produce to the occupier (if present) of the place or thing evidence of his of her identity; and if requested to do so at any time after initial entry into or onto the place or thing to be searched, produce— (i) (ii) a copy of the search warrant; and evidence of his or her identity.
(ii) (b) (c) 237 Schedule 4 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 (2) (3) The person executing the search warrant is not required to comply with subclause (1)(a) and (b) if he or she believes on reasonable grounds that no person is lawfully present in or on the place to be searched.
The person executing the search warrant may use reasonable force in order to effect entry into or onto the place if— (a) (b) subclause (2) applies; or following a request, the person present refuses entry or does not allow entry within a reasonable time.
(4) On completion of the execution of the search warrant, the per­ son executing it must provide written notice containing the fol­ lowing particulars: (a) (b) (c) (d) (e) the date and time of the commencement and completion of execution of the warrant: the name of the person executing the warrant who had overall responsibility for that execution: the address of the police station or other ofﬁce to which inquiries should be made: if nothing is seized, the fact that nothing was seized: if anything was seized, the fact that seizure occurred and that an inventory of the things seized will be provided to the occupier not later than 7 days after the seizure.
If the occupier is not present at any time during the execution of the warrant, or if it is not reasonably practicable to comply with subclause (1)(c), the person executing the warrant must on completion of execution leave a copy of the warrant and the notice required by subclause (4) in a prominent position on the place, except where this is not reasonably practicable.

This clause is subject to clause 13.


Inventory of items seized The person who executed the search warrant must, not later than 7 days after the seizure of any property or evidence, pro­ vide to the occupier, and to every other person who the person who executed the search warrant has reason to believe may have an interest in what was seized,— (a) (b) written notice specifying what was seized; and a copy of the warrant and the written notice required by clause 11(4).
(5) (6) 12 (1) 238 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Schedule 4 (2) A person who executes a search warrant must make reasonable (3) 13 inquiries for the purposes of complying with subclause (1).

This clause is subject to clause 13.


Compliance with certain provisions may be deferred in certain circumstances (1) A person executing a search warrant may apply to a Judge for a postponement of the obligation to comply with clause 11(1), (4), and (5) or 12 on the grounds that— (a) (b) compliance would endanger the safety of any person; or compliance would prejudice ongoing investigations of breaches or potential breaches of Part 5D or executions of the warrant on subsequent occasions.
(2) An application may be made under subclause (1) at the time of the initial application for the warrant or until the expiry of 7 days after the warrant is ﬁnally executed.
(3) On an application under subclause (1), the Judge may postpone for a speciﬁed period not exceeding 12 months the obligation to comply with clause 11(1), (4), and (5) or 12, if the Judge is satisﬁed there were reasonable grounds for believing that compliance would— (a) (b) endanger the safety of any person; or prejudice ongoing investigations under Part 5D or the exercise of entry and search powers on subsequent oc­ casions.
239 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Amendment Act 1993 1993 No 118 Public Act Date of assent Commencement see section 1(2) Short Title and commencement This Act may be cited as the Reserve Bank of New Zealand Amendment Act 1993, and shall be read together with and deemed part of the Reserve Bank of New Zealand Act 1989 (hereinafter referred to as “the principal Act”).

This Act shall come into force on 1 July 1994.
Transitional provisions Nothing in section 4 applies to or affects— (a) a registered bank that was subject to statutory manage­ ment under the principal Act immediately before the commencement of this Act: any transaction entered into by a registered bank or any­ thing done by any person before the commencement of this Act— (b) and, in any such case, sections 308 (except subsection (1)(d)), 309 to 311C, and 319 to 321 of the Companies Act 1955, as in force before the commencement of this Act, shall continue to apply to the registered bank in all respects and with such modiﬁcations as may be necessary, as if— (c) the registered bank were a company that was being wound up under the Companies Act 1955; and the statutory manager of the registered bank was the liquidator of the company; and the date on which the registered bank became subject to statutory management was the date of the commence­ ment of the winding up.
(d) (e) 1 (1) (2) 5 240 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Reserve Bank of New Zealand Amendment Act 2003 Public Act Date of assent Commencement 2003 No 46 see section 2 1 (1) (2) 2 50 51 (1) Title This Act is the Reserve Bank of New Zealand Amendment Act 2003.

In this Act, the Reserve Bank of New Zealand Act 1989 is called "the principal Act".

Commencement This Act comes into force on the day after the date on which it receives the Royal assent.
Part 3 Miscellaneous Transitional provisions Savings relating to authorisations or consents under Part 4 of principal Act Any authorisations or consents relating to the use of a re­ stricted word that were granted under section 65 of the princi­ pal Act before the commencement of this Act remain in force.
Temporary exemption from Part 4 of principal Act This section applies to any person who,— (a) immediately before the commencement of this Act, was lawfully entitled to use, or was lawfully using, a name or title that included a restricted word; and after the commencement of this Act, can no longer law­ fully use that name or title.
(b) (2) A person to whom this section applies may, despite anything in Part 4 of the principal Act, continue to use that name or title for a period of 6 months commencing on the date of com­ mencement of this Act.
241 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 52 Existing applications An application for registration as a registered bank under the principal Act that has been made, but not determined or with­ drawn, before the date of commencement of this Act must con­ tinue to be dealt with in accordance with the principal Act and any regulations made under that Act as if this Act had not been enacted.
242 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Reserve Bank of New Zealand Amendment Act 2008 Public Act Date of assent Commencement 2008 No 59 see section 2 1 2 (1) (2) (3) (4) 3 Title This Act is the Reserve Bank of New Zealand Amendment Act 2008.

Commencement Sections 157M to 157O of the principal Act (as inserted by section 17 of this Act) come into force on 1 September 2009.
Section 157I of the principal Act (as inserted by section 17 of this Act) comes into force on 1 March 2010.

Section 157L of the principal Act (as inserted by section 17 of this Act) comes into force on a date to be appointed by the Governor­General by Order in Council.

The rest of this Act comes into force on the day after the date on which it receives the Royal assent.

Principal Act amended This Act amends the Reserve Bank of New Zealand Act 1989.
Part 1 Amendments outside Part 6 of principal Act 17 New Part 5D inserted The following Part is inserted after section 156ZE: “Part 5D “Deposit takers “Credit ratings “157I Deposit taker must have current credit rating A deposit taker must have a current rating of its creditworthi­ ness, or, if required by regulations made under section 157K, 243 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 the creditworthiness of the borrowing group of which the de­ posit taker is part, that— “(a) complies with the requirements prescribed by regula­ tions made under section 157K; and is given by an approved rating agency.
“(b) “Governance requirements “157L Governance requirements “(1) If a deposit taker is a company or a building society,— “(a) the governing body of the deposit taker must include at least 2 independent directors; and the chairperson of the governing body of the deposit taker may not be an employee of either the deposit taker or a related party.
“(b) “(2) If a deposit taker is a subsidiary, the constitution of the deposit taker must not include any provision under which directors of the deposit taker may act otherwise than in the best interests of the deposit taker.
“(3) For the purposes of this section, independent director means a director that— “(a) “(b) “(c) is not an employee of either the deposit taker or a related party; and is not a director of a related party; and does not, directly or indirectly, have a qualifying inter­ est in more than 10% of the voting securities of the de­ posit taker or a related party.
“Risk management “157M Deposit taker must have and comply with risk management programme “(1) Every deposit taker must have a risk management programme and take all practicable steps to comply with that programme.
“(2) The risk management programme must— “(a) “(b) be in writing; and set out the procedures that the deposit taker will use for the effective identiﬁcation and management of the following risks: “(i) credit risk: 244 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 liquidity risk: “(ii) “(iii) market risk: “(iv) operational risk; and set out appropriate and auditable documentation and record keeping requirements; and “(c) “(d) describe the steps that the deposit taker will take to en­ sure that the programme remains current, which must include procedures for— “(i) regular review of the programme to systemati­ cally identify deﬁciencies in the effectiveness of the programme; and “(e) “(ii) obtaining the approval of the trustee to amend­ ments to the programme that are necessary to ad­ dress such deﬁciencies; and be appropriate to the operations of the deposit taker, having regard to the factors relevant to the risks referred to in paragraph (b) (for example, the size of the deposit taker, its funding structure, the market sector in which it operates, its business strategy, and its relationship with its borrowing group).
“(3) The Bank may issue, in the manner that the Governor thinks ﬁt, guidelines for the purpose of interpreting the risk categories referred to in subsection (2)(b) that must be covered by the risk management programme.

“157N Risk management programme must be provided to trustee and must be amended if required by trustee “(1) The deposit taker must give a copy of its risk management programme to the trustee.
“(3) “(2) The trustee must, as soon as practicable after receiving the copy of the risk management programme, inform the deposit taker whether the trustee is satisﬁed that the risk management programme meets the requirements in section 157M(2).
If the trustee is not satisﬁed that the risk management pro­ gramme meets the requirements in section 157M(2),— “(a) the trustee may require the deposit taker to amend the programme and to resubmit the programme to the trustee for approval within any reasonable time that the trustee may specify; and 245 Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 “(b) the deposit taker must comply with those requirements.
“157O Trustee may require deposit taker to have risk management programme audited “(1) The trustee may require the deposit taker to have the risk man­ agement programme audited in a speciﬁed manner, at the cost of the deposit taker, within any reasonable time that the trustee may specify.
“(2) The deposit taker must comply with a requirement of the trustee under subsection (1) within the time speciﬁed by the trustee.” 246 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Notes Contents 1 2 3 4 General Status of reprints How reprints are prepared Changes made under section 17C of the Acts and Regulations Publication Act 1989 List of amendments incorporated in this reprint (most recent ﬁrst) 5 Notes 1 2 3 General This is a reprint of the Reserve Bank of New Zealand Act 1989.
The reprint incorporates all the amendments to the Act as at 10 September 2008, as speciﬁed in the list of amendments at the end of these notes.

Relevant provisions of any amending enactments that have yet to come into force or that contain relevant transitional or savings provisions are also included, after the principal enactment, in chronological order.
Status of reprints Under section 16D of the Acts and Regulations Publication Act 1989, reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by the amendments to that enactment.

This presumption applies even though editorial changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in the reprint.
This presumption may be rebutted by producing the ofﬁcial volumes of statutes or statutory regulations in which the principal enactment and its amendments are contained.

of How reprints are prepared A number editorial in the preparation of enacting words provisions are that are repealed or conventions reprints.

not included followed are the For example, and in Acts, revoked are omitted.
247 Notes Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 see For a detailed list of http://www.pco.parliament.govt.nz/legislation/reprints.shtml or Part 8 of the Tables of Acts and Ordinances and Statutory Regulations and Deemed Regulations in Force.
the editorial conventions, 4 Changes made under section 17C of the Acts and Regulations Publication Act 1989 Section 17C of the Acts and Regulations Publication Act 1989 authorises the making of editorial changes in a reprint as set out in sections 17D and 17E of that Act so that, to the extent permitted, the format and style of the reprinted enactment is consistent with current legislative drafting practice.

Changes that would alter the effect of the legislation are not permitted.
A new format of legislation was introduced on 1 January 2000.

Changes to legislative drafting style have also been made since 1997, and are ongoing.

To the extent permitted by section 17C of the Acts and Regulations Publication Act 1989, all legislation reprinted after 1 January 2000 is in the new format for legislation and reﬂects current drafting practice at the time of the reprint.
In outline, the editorial changes made in reprints under the authority of section 17C of the Acts and Regulations Publication Act 1989 are set out below, and they have been applied, where relevant, in the preparation of this reprint: • omission of unnecessary referential words (such as “of this section” and “of this Act”) typeface and type size (Times Roman, generally in 11.5 point) layout of provisions, including: • • indentation position of section headings (eg, the number and heading now appear above the section) format of deﬁnitions (eg, the deﬁned term now appears in bold type, without quotation marks) format of dates (eg, a date formerly expressed as “the 1st day of January 1999” is now expressed as “1 January 1999”) • • • • 248 Reprinted as at 10 September 2008 Reserve Bank of New Zealand Act 1989 Notes • • • • • • • position of the date of assent (it now appears on the front page of each Act) punctuation (eg, colons are not used after deﬁnitions) Parts numbered with roman numerals are replaced with arabic numerals, and all cross­references are changed accordingly case and appearance of letters and words, including: • followed by small capital format of headings (eg, headings where each word formerly appeared with an initial capital letter letters are amended so that the heading appears in bold, with only the ﬁrst word (and any proper nouns) appearing with an initial capital letter) small capital letters in section and subsection references are now capital letters • schedules are renumbered (eg, Schedule 1 replaces First Schedule), and all cross­references are changed accordingly running heads (the information that appears at the top of each page) format of amendments, and schedules of are rearranged into alphabetical order, chronological).
two­column schedules of consequential they rather than repeals (eg, 5 List of amendments incorporated in this reprint (most recent ﬁrst) Disability (United Nations Convention on the Rights of Persons with Disabilities) Act 2008 (2008 No 64): section 15 Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59) Property Law Act 2007 (2007 No 91): section 364(1) Reserve Bank of New Zealand Amendment Act 2007 (2007 No 76) Evidence Act 2006 (2006 No 69): section 216 Companies Amendment Act (No 2) 2006 (2006 No 62): section 17 Companies Amendment Act 2006 (2006 No 56): section 41 Insolvency Act 2006 (2006 No 55): section 445 Reserve Bank of New Zealand Amendment Act 2006 (2006 No 51) Securities Amendment Act 2006 (2006 No 46): section 25 Overseas Investment Act 2005 (2005 No 82): section 75 249 Notes Reserve Bank of New Zealand Act 1989 Reprinted as at 10 September 2008 State Sector Amendment Act (No 2) 2004 (2004 No 114): section 19(1) Public Finance Amendment Act 2004 (2004 No 113): section 37(1) Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46) Human Rights Amendment Act 2001 (2001 No 96): section 70(1) Housing Corporation Amendment Act 2001 (2001 No 37): section 25(1)(c) Public Audit Act 2001 (2001 No 10): section 53 Personal Property Securities Act 1999 (1999 No 126): section 191(1) Trustee Banks Restructuring Act Repeal Act 1999 (1999 No 53): section 5 Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22) Treasurer (Statutory References) Act 1997 (1997 No 20): section 2 Financial Reporting Amendment Act 1997 (1997 No 17): section 6 Securities Amendment Act 1996 (1996 No 100): sections 6(6), 16(2)(b) Reserve Bank of New Zealand Act Commencement Order 1995 (SR 1995/249) Reserve Bank of New Zealand Amendment Act (No 2) 1995 (1995 No 34) Banking Act Repeal Act 1995 (1995 No 32): section 2(4) Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5) Income Tax Act 1994 (1994 No 164): section YB 3(1) Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16): section 2 Reserve Bank of New
 Zealand Amendment Act 1993 (1993 No 118) Companies Amendment Act 1993 (1993 No 108): section 63 Reserve Bank of New Zealand Amendment Act 1992 (1992 No 32) Reserve Bank of New Zealand Amendment Act 1990 (1990 No 96) 12 250 Wellington, New Zealand: Published under the authority of the New Zealand Government—2009