Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698937750179.pdf (New Zealand)
Reprint as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Public Act 1989 No 157 Date of assent 20 December 1989 Commencement see section 1(2) Contents Title [Repealed] Short Title and commencement Purpose Interpretation Interpretation of provisions relating to false or misleading information Act to bind the Crown Part 1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 Part 2 Functions and powers of Reserve Bank Central bank Bank to act as central bank Page 15 15 15 15 23 23 23 24 24 1 1A Note Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.
Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Reserve Bank of New Zealand.
1 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 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 Financial products registry services Bank may require financial institution to supply information Failure to supply information Requirement that information be audited Powers Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 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 Board of directors Duties of Board Board must prepare annual report Membership of Board Term of office of non-executive directors Considerations affecting appointment of non-executive directors Extraordinary vacancies Disqualification of non-executive directors Removal from office of non-executive directors Chairperson of Board Meetings of Board Teleconference meeting Directors to be notified of meetings Who presides at meetings of Board Directors to disclose interests Committees Fees and expenses of non-executive directors Part 4 Use of words ‘bank’, ‘banker’, and ‘banking’ Limit on use of restricted words in name or title 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 40 41 42 43 44 45 46 47 48 49 50 51 52 53 53A 54 55 56 57 58 59 59A 60 60A 60B 60C 61 62 63 64 65 66 66A 66B Limit on use of restricted words in advertisement Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 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 [Repealed] 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 Trans-Tasman co-operation Bank to have regard to directions about government policy objectives Registration of banks Register Application for registration Voluntary removal of name from register 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 67A 67 68 68A 68B 69 70 71 72 73 73A 73B 74 75 76 77 77A 77B Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 79 80 Annual fee [Repealed] Credit rating of registered banks Financial disclosure by registered banks Public disclosure of information or data by registered banks 81 81AA Further matters that may be 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] 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 Offence to fail to publish required information in disclosure statement Offence to publish false or misleading disclosure statements 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 84 85 86 87 88 89 89A 89B 89C 90 91 92 93 93A 93B 93C 94 95 95A Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 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 82 83 83 84 85 85 86 87 88 90 91 91 91 92 93 93 93 94 95 96 96 97 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 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 Scope of directions Power to remove, replace, or appoint directors Offence to contravene directions Offence to disclose giving of direction Miscellaneous provisions with respect to directions and dispositions Statutory management of registered banks 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 Statutory manager to avoid actions likely to have detrimental effect Moratorium 97 99 99 100 100 101 102 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 113A 113B 114 115 116 117 118 119 120 121 121A 122 6 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 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 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 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 Interpretation relating to covered bonds Interpretation 139A 139B Meaning of covered bond SPV 139C Meaning of issuer Registration of covered bond programmes 139D 139E 139F 139G 139H Register of registered covered bond programmes Requirement, and application, for registration of covered bond
 programme Determination of application for registration of covered bond programme Bank must approve or decline application Requirements relating to registered covered bond programmes 139I Cover pool monitor Cover pool monitor Statutory management, etc, of issuer 139J Limitation on application of statutory management, etc, provisions to covered bond SPV Miscellaneous provisions 140 141 142 143 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 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 143A 144 145 146 147 148 149 150 151 152 152A 153 154 155 156 Continuation of statutory management Termination of statutory management Obligations incurred by statutory manager Indemnity [Repealed] Registered bank not entitled to be informed about exercise 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 Regulations are confirmable instruments Application of other Acts Appointment of auditors Annual accounts Annual report by statutory manager 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 Part 5B Oversight of payment systems General 156B Exercise of powers under this Part 156C 156D 156E 156F 156G 156H 156I Supply of
 information relating to payment systems Requirement to supply information relating to payment system Offence to fail to supply information Requirement that information be audited Offence not to comply with requirement for audit Disclosure of information relating to payment systems Disclosure of information Limits on further disclosure of information Application of other enactments to information published or disclosed under section 156G Penalties for offences against this Part 156J Penalties for offences 8 126 126 128 128 128 129 129 130 130 131 131 132 133 134 134 135 135 136 138 140 140 140 141 141 141 142 143 143 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5C Designated settlement systems General 156K 156L Exercise of powers under this Part Limit on FMA’s powers in relation to Bank 156M Definitions for this Part Designation [Repealed] Designation 156N Designation of settlement system Effect of designation [Repealed] 156O Joint regulators’ recommendations subject to procedure in sections 156Y to 156ZA Effect of designation 156P 156Q 156R 156S 156T 156U Application of this Part to pure payment systems Rules of designated settlement system are valid and enforceable Settlements must not be reversed, etc Limits on application of section 156R(1) Netting is valid and enforceable Interrelationship between netting and Companies Act 1993 and Insolvency Act 2006 Procedure for making designation [Repealed] 156V Underlying transactions, settlements, and limits on effect of sections 156Q, 156R, and 156T 156W Interrelationship with other enactments 156X Transfer of property in accordance with rules is effective Procedure for making designation 156Y 156Z 156ZA Decision on application Application for designation Consideration of application Amendments to rules 156ZB Joint regulators must be notified of proposed amendments to rules 156ZC Proposed amendments to rules may be disallowed Variation and revocation of designation 156ZD Variation of
 designation 156ZE Revocation of designation 144 144 144 148 149 149 150 151 151 152 152 153 154 154 155 155 156 156 157 157 158 9 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 156ZF Settlement and netting not affected by variation or revocation of designation 156ZG Application for variation or revocation of designation 156ZH Either joint regulator may independently begin review of designation 156ZI Matters joint regulators may have regard to in recommending 156ZJ variation or revocation of designation Procedure for variation or revocation of designation Obligations to give notice and supply information 156ZK Contact person must be notified of insolvency event 156ZL Supply of information relating to designated settlement system Disclosure of information 156ZM Disclosure of information between joint regulators 156ZN Disclosure of information to third parties 156ZO Limits on further disclosure of information 156ZP Application of other enactments to information published or disclosed under section 156ZN Penalties for offences against this Part 156ZQ Penalties for offences Part 5D Deposit takers [Repealed] Preliminary provisions [Repealed] 157A 157B 157C 157D 157E 157F 157G 157H Exercise of powers under this Part [Repealed] Interpretation [Repealed] Deposit taker defined [Repealed] Application of Part [Repealed] Bank to consult before recommending making of regulations under this Part [Repealed] Principles to be taken into account under this Part [Repealed] Exemptions from Part [Repealed] Effect of exemption [Repealed] Credit ratings [Repealed] 157I 157J 157K Deposit taker must have current credit rating [Repealed] Bank may approve rating agencies [Repealed] Regulations relating to credit ratings [Repealed] 158 158 159 159 160 160 161 161 162 162 163 163 164 164 164 164 164 165 165 165 165 165 165 10 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Governance requirements [Repealed] 157L Governance requirements [Repealed] Risk
 management [Repealed] 157M Deposit taker must have and comply with risk management 157N 157O 157P 157Q 157R 157S 157T 157U programme [Repealed] Risk management programme must be provided to trustee and must be amended if required by trustee [Repealed] Trustee may require deposit taker to have risk management programme audited [Repealed] Minimum capital requirement [Repealed] Regulations may impose requirement that trust deed sets out minimum capital that deposit taker is required to maintain [Repealed] Deposit takers and trustees must ensure trust deed sets out minimum capital deposit taker is required to maintain [Repealed] Deposit taker must maintain not less than minimum capital prescribed [Repealed] Capital ratio requirement [Repealed] Regulations may impose requirement that trust deed includes capital ratio [Repealed] Deposit takers and trustees must ensure capital ratio included in trust deed [Repealed] Deposit taker must maintain capital ratio required to be included in trust deed [Repealed] Restrictions on related party exposures [Repealed] 157V Regulations may impose requirement that trust deed includes maximum limit on exposures to related parties [Repealed] 157W Regulations may incorporate by reference framework for 157X 157Y calculation of maximum limit on exposures to related parties [Repealed] Deposit takers and trustees must ensure maximum limit on exposures to related parties is included in trust deed [Repealed] Deposit taker must not exceed maximum limit on related party exposures [Repealed] 165 166 166 166 166 166 166 167 167 167 167 167 167 168 11 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 Liquidity requirements [Repealed] 157Z Regulations may impose requirement that liquidity requirements be included in trust deed [Repealed] 157ZA Deposit takers and trustees must ensure liquidity requirements are included in trust deeds [Repealed] 157ZB Deposit takers must comply with liquidity requirements in trust deeds [Repealed] Other
 matters relating to trust deeds [Repealed] 157ZC Amendment to trust deed must be treated as if authorised to be made [Repealed] 157ZD Trustee may execute amendment to trust deed [Repealed] Obligations of trustees to Bank [Repealed] 157ZE Bank may require trustee to attest as to deposit taker’s compliance with requirements [Repealed] 157ZF Trustee must report to Bank non-compliance or likely non- compliance by deposit taker [Repealed] 157ZG Obligation on trustees to disclose information to Bank in certain circumstances [Repealed] 157ZH Protection of trustees [Repealed] Investigation and enforcement powers of Bank [Repealed] Power to obtain information and documents [Repealed] 157ZI Bank may require report relating to deposit taker [Repealed] 157ZJ 157ZK Limitation on information to be provided [Repealed] 157ZL Limitations on entering and searching place [Repealed] 157ZM Search warrant may be issued [Repealed] 157ZN Privileges [Repealed] Confidentiality of information [Repealed] 157ZO Confidentiality of information [Repealed] 157ZP Person who does not comply with section 157ZO commits offence [Repealed] 157ZQ Application of Official Information Act 1982, etc [Repealed] Offences and penalties [Repealed] 157ZR Offences by deposit takers against this Part [Repealed] 157ZS Other offences by deposit takers against this Part [Repealed] 12 168 168 168 168 168 169 169 169 169 169 169 170 170 170 170 170 170 170 171 171 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 157ZT Defence for deposit takers charged with offences against this Part [Repealed] 157ZU Power of court to discharge deposit taker [Repealed] 157ZV Liability of directors [Repealed] 157ZW Offences by trustees against this Part [Repealed] 157ZX Penalties for offences [Repealed] Miscellaneous [Repealed] 157ZY Matters relating to regulation-making powers under this Part [Repealed] 157ZZ Bank must review and report on operation of this Part [Repealed] Part 6 Financial and accountability matters 157
 Financial year Income and expenditure 158 159 160 161 162 Meaning of notional surplus income [Repealed] Funding agreements Contents of funding agreements Funding agreements to be ratified by House of Representatives Determination of annual dividend Accountability documents 162AA Purpose of accountability documents 162AB Assessment of regulatory impacts of policies Statement of intent 162A 162B 162C 162D 162E 163 163A 164 165 Obligation to provide statement of intent Content of statement of intent Process for providing statement of intent to Minister Amendments by Bank to statement of intent Statement of intent stands referred to House of Representatives Annual reports Annual reports and accounts Bank not Crown entity Contents of financial statements Management statements Financial stability reports 165A Financial stability reports 166 167 Auditor-General to be auditor of Bank Performance audit Audits 171 171 171 171 171 171 172 172 172 172 173 173 173 174 175 176 176 177 177 178 178 179 179 179 180 180 180 13 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 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 Privilege against self-incrimination no excuse Admissibility of self-incriminating statements Penalties for offences Time for filing charging document Evidence Protection from liability Indemnity Amendment to Income Tax Act 1976 [Repealed] 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 [Repealed] 175A 175B 176 177 178 179 179A 180 181 182 183 184 185 186 187 188 189 190 191 192 14 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Schedule 4 General provisions relating to search warrants issued under Part 5D [Repealed] s 2 193 Title [Repealed] Title: repealed, on 10 September 2008, by section 4 of the Reserve Bank of New Zealand Amend- ment 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) (b) (c) formulating and implementing monetary policy designed to promote sta- bility in the general level of prices, while recognising the Crown’s right to determine economic policy; and promoting the maintenance of a sound and efficient financial system; and carrying out other functions, and exercising powers, specified in this Act.
(2) 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).
2 (1) Interpretation In this Act, unless the context otherwise requires,— bank note or note means any negotiable instrument used or circulated, or in- tended for use or circulation, as currency banking group has the meaning given to it in the Orders in Council made under section 81 debt security has the same meaning as in section 8 of the Financial Markets Conduct Act 2013 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 15 s 2 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 under this Act as Deputy Governors of the Bank, the Deputy Governor desig- nated 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 settlement system has the meaning set out in section 156M director, except in relation to the Bank, means— (a) (b) 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 in- corporated in New Zealand under the Companies Act 1993 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) (c) (d) (e) any writing on any material: any information recorded or stored by means of any tape-recorder, com- puter, or other device; and any material subsequently derived from infor- mation 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 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 financial services, or both, and without limiting the gener- ality of the foregoing includes— (a) (b) (c) (d) an insurer that issues, or is liable under, life policies within the meaning of section 6(1) of the Insurance (Prudential Supervision) Act 2010; and includes any branch, division, or office of that insurer; 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 per- sons, whether incorporated or not) who is or are declared by the Governor-General, by Order in Council, to be a financial institution or institutions for the purposes of this Act 16 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 s 2 financial product has the same meaning as in section 7 of the Financial Mar- kets Conduct Act 2013 financial year has the meaning given to it by section 157 FMA means the Financial Markets Authority established under Part 2 of the Financial Markets Authority Act 2011 foreign exchange means— (a) (b) (c) (d) (e) 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 debt security in respect of which any amount payable is payable in a country other than New Zealand or in a foreign currency Governor means the Governor of the Bank appointed under this Act holding company means a holding company within the meaning of
 section 5 of the Companies Act 1993 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 home jurisdiction means,— (a) (b) in the case of an overseas person that is a body corporate, the country in which that body is incorporated: in the case of an overseas person that is an unincorporated body, the country in which that body has its head office or principal place of busi- ness licensed insurer has the same meaning as in section 6(1) of the Insurance (Pru- dential Supervision) Act 2010 managed investment scheme has the same meaning as in section 9 of the Fi- nancial Markets Conduct Act 2013 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 provi- sions of this Act 17 s 2 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 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, in relation to an overseas incorporated registered bank, means— (a) (b) (c) 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 speci- fied by the Bank under that section non-voting 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 (b) does not include— (i) (ii) (iii) interest, foreign exchange losses, and losses (or provision for los- ses) on financial instruments or revaluation of financial instru- ments; or any payments made to the Crown under section 21; or any expenses agreed by the Minister and the Bank not to be oper- ating expenses operator, in relation to either a settlement system or a payment system, means any person that provides clearing, settlement, or processing services in respect of that 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 parent bank means an overseas bank that is a holding company of a registered bank participant, in relation to either a settlement system or a payment system,— (a) means a person who has agreed to participate in either a settlement sys- tem or a payment system in accordance with the rules of that system; and 18 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 s 2 (b) in the case of a designated settlement system, includes an operator of the settlement system if the designation under section 156N(3)(b) so pro- vides payment system— (a) means a system or arrangement for— (i) (ii) the clearing or settlement of payment obligations; or the processing of payment instructions; and (b) includes any instruments, rules, and procedures that relate to the matters referred to in paragraph (a) qualifying interest, in relation to a specified security, means— (a) (b) (c) (d) (e) the legal or beneficial ownership of the specified security; or the power to exercise, or control the exercise of, any voting right attach- ed 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 secur- ity by another person; or 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 main- tained 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 constitu- ted 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 those words into another language (whether or not the translation of those words is part of any other word) settlement system has the meaning set out in section 156M significant influence, in relation to a registered bank, means— (a) (b) the ability to directly or indirectly appoint 25% or more 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 se- curities issued or allotted by the registered bank specified operator has the meaning set out in section 156M 19 s 2 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 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 5(1)(a)(iii) and (b) of the Companies Act 1993 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 share- holders or members of that body; but (b) does not include a right to vote that is exercisable only in 1 or more of the following circumstances: (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 con- fers the voting right: on a proposal to put the body into liquidation or voluntary admin- istration: 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, bankruptcy, or statutory management of the body; and (c) does not include a right to vote that is exercisable only for a special, im- material, or remote matter that is inconsequential to the control of the body voting security, in relation to any body, means a specified security that confers a voting right.
(2) 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) (b) (c) (d) that person directly or indirectly controls the management of the finan- cial institution or registered bank; or that person has a direct or indirect qualifying interest in 20% or more of the voting or non-voting 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 quali- fying interest in 20% or more of the voting or non-voting securities issued by that person.
20 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 s 2 (3) For the purposes of section 77A, transaction includes the— (a) (b) (c) sale or transfer of property or financial products; and issue or allotment of financial products; and entering into, or giving effect to a provision in, a contract or arrange- ment; and (d) arriving at, or giving effect to, an understanding.
(4) For the purposes of Part 5, a holding company of a registered bank has a sub- stantial interest in a body if— (a) (b) 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.
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: repealed, on 24 November 2009, by section 4(1) of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

Section 2(1) debt security: inserted, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
Section 2(1) designated payment system: repealed, on 24 November 2009, by section 4(2) of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

Section 2(1) designated settlement system: inserted, on 24 November 2009, by section 4(2) of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

Section 2(1) director: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zea- land Amendment Act 2003 (2003 No 46).
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 (a): replaced, on 8 September 2010, by section 241(1) of the Insurance (Prudential Supervision) Act 2010 (2010 No 111).

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 product: inserted, on 1 December 2014, by section 150 of the Financial Mar- kets (Repeals and Amendments) Act 2013 (2013 No 70).

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) FMA: inserted, on 1 May 2011, by section 82 of the Financial Markets Authority Act 2011 (2011 No 5).
Section 2(1) foreign exchange paragraph (e): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 2(1) holding company: replaced, on 5 December 2013, by section 14 of the Companies Amendment Act 2013 (2013 No 111).

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).

21 s 2 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 Section 2(1) licensed insurer: inserted, on 8 September 2010, by section 241(1) of the Insurance (Prudential Supervision) Act 2010 (2010 No 111).
Section 2(1) managed investment scheme: inserted, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 2(1) Minister: replaced, on 25 June 1997, by section 2 of the Treasurer (Statutory Referen- ces) 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) non-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(1) operating expenses: inserted, on 25 January 2005, by section 37(1) of the Public Fi- nance Amendment Act 2004 (2004 No 113).
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): inserted, on 10 September 2008, by section 6 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

Section 2(1) operator: replaced, on 24 November 2009, by section 4(3) of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).
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: replaced, on 24 November 2009, by section 4(4) of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

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) security: repealed, on 1 December 2014, by section 150 of the Financial Markets (Re- peals and Amendments) Act 2013 (2013 No 70).

Section 2(1) settlement system: inserted, on 24 November 2009, by section 4(5) of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).
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 operator: inserted, on 24 November 2009, by section 4(5) of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

Section 2(1) specified security: replaced, on 25 August 2005, by section 75 of the Overseas Invest- ment Act 2005 (2005 No 82).
Section 2(1) subsidiary: replaced, on 5 December 2013, by section 14 of the Companies Amendment Act 2013 (2013 No 111).

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

22 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 1 s 5 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): replaced, on 21 August 2003, by section 3(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

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

Section 2(3)(a): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
Section 2(3)(b): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 2(4): inserted, on 21 August 2003, by section 3(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
3 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 mislead- ing by reason of— (a) (b) 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 supplied.

4 Act to bind the Crown This Act shall bind the Crown.
Part 1 Constitution of Reserve Bank of New Zealand 5 (1) (2) 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 per- sonal 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.
(4) The Bank is the same body corporate as that which was continued in existence by the Reserve Bank of New Zealand Act 1964.

Compare: 1964 No 134 s 3(1), (2) 23 Part 1 s 6 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 6 Branches and agencies The Bank may establish branches and agencies and appoint agents in New Zea- land or elsewhere.
Compare: 1964 No 134 s 3(3) Part 2 Functions and powers of Reserve Bank Central bank 7 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 8 Primary function of Bank Monetary policy The primary function of the Bank is to formulate and implement monetary pol- icy directed to the economic objective of achieving and maintaining stability in the general level of prices.
9 (1) (2) 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 person’s term of office shall be fixed by the Minister, in agreement with the Governor, within 30 days after the commencement of this Act.

(3) Policy targets may be fixed for the term of office of the Governor, or for speci- fied periods during the term of office of the Governor, or for both.
(4) The Minister and the Governor may, from time to time,— (a) (b) review or alter any policy targets fixed under this section; or substitute new policy targets for targets fixed under this section.
(5) Where policy targets are fixed under this section,— (a) (b) the Minister shall ensure that they are recorded in writing; and the Governor shall ensure that they are tabled at the first Board meeting held after the date on which they are fixed; and 24 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 2 s 12 (c) 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 Repre- sentatives.
10 Formulation and implementation of monetary policy In formulating and implementing monetary policy the Bank shall— (a) (b) have regard to the efficiency and soundness of the financial system: consult with, and give advice to, the Government and such persons or or- ganisations as the Bank considers can assist it to achieve and maintain the economic objective of monetary policy.
11 Governor to ensure policy targets followed It is the duty of the Governor to ensure that the actions of the Bank in imple- menting monetary policy are consistent with the policy targets fixed under sec- tion 9.
12 (1) Bank may be directed to formulate and implement monetary policy for different economic objective The Governor-General may, from time to time, by Order in Council, on the ad- vice of the Minister, direct the Bank to formulate and implement monetary pol- icy for any economic objective, other than the economic objective specified in section 8, for such period not exceeding 12 months as shall be specified in the order.
(2) Notwithstanding anything in section 8, the Bank shall formulate and implement monetary policy in accordance with any economic objective specified in an Order in Council in force under subsection (1).
(3) (4) The Governor-General may, by Order in Council, on the advice 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 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 revoked.

(6) 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,— 25 Part 2 s 13 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (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 (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 func- tion.
(8) Subsections (4) and (5) of section 9 shall apply in relation to any policy targets fixed under subsection (7)(b) of this section.

13 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 commencement of this Act limits or affects the obligation of the Bank to carry out its primary function.
14 Advice concerning effects of monetary policy Where the Bank gives advice to the Minister under any provision of this Act and the Governor considers that giving effect to that advice would, or would be likely to, affect the monetary policy of the Bank, the Governor shall advise the Minister of— (a) (b) the effect, or likely effects, on monetary policy; and any action that may be taken by the Bank in implementing 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 accordance with subsec- tion (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 exceeding 6 months from the date of publi- cation 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.
(2) The policy statement shall be signed by the Governor and shall— (a) (b) (c) specify the policies and means by which the Bank intends 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: 26 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 2 s 18 (d) contain a review and assessment of the implementation by the Bank of monetary policy during the period to which the preceding policy state- ment relates.
(3) Every policy statement stands referred, by virtue of this section, to the House of Representatives.

Section 15(1): replaced, 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): replaced, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).

16 Dealing in foreign exchange by Bank Foreign exchange 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,— (a) (b) with any person, including the Crown; and on behalf of any person, including the Crown.
Section 16: replaced, on 10 September 2008, by section 7 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

17 (1) 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 ex- change dealing by the Bank shall comply with the direction.

(3) 18 (1) The Minister may, from time to time, by notice in writing to the Bank, vary or revoke any direction given under subsection (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 Minis- ter in the direction: 27 Part 2 s 19 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (b) 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.
(2) Notwithstanding sections 16 and 17, the Bank shall, on receiving a direction under this section,— (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 direc- tion as may require 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 Governor-General 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 targets fixed under section 9, the Governor may, by notice in writing to the Minister, advise the Minister that the Bank will, in giving effect to the di- rection, 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 poli- cy targets.
20 (1) 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 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 requires the Bank to formulate and 28 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 2 s 23 21 (1) (2) 22 (1) implement monetary policy in accordance with an economic objective that is consistent with the direction, be required to comply with that direction.
Foreign exchange gains and losses The Bank shall pay into a Crown Bank Account any exchange gains (whether realised or unrealised) made by the Bank as a result of dealing in foreign ex- change under sections 17 and 18.

The Minister shall, without further appropriation, pay to the Bank out of a Crown Bank Account the amount of any exchange losses (whether realised or unrealised) incurred by the Bank as a result of dealing in foreign exchange under sections 17 and 18.
Section 21(1): amended, on 25 January 2005, pursuant to section 65R(3) of the Public Finance Act 1989 (1989 No 44).

Section 21(2): amended, on 25 January 2005, pursuant to section 65R(3) of the Public Finance Act 1989 (1989 No 44).
Temporary suspension of foreign exchange business The Governor may, if the Governor is satisfied that it is necessary to avoid dis- order in the foreign exchange market, from time to time, by notice in writing to all registered banks, direct that, subject to any exceptions specified in the no- tice, no registered bank shall, except with permission granted by the Bank, deal until further notice in any foreign exchange or foreign exchange of such kinds as are specified in the notice.
(2) The Governor shall, as soon as practicable, give notice in writing to the Minis- ter of the exercise of the power conferred under subsection (1).

(3) 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 registered banks.
(4) An obligation on a person to do a thing on a day on which that person is pre- vented from doing it by a notice under this section, or is unable to do it by rea- son 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 section 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 non-business day for the purposes of the Bills of Exchange Act 1908.
Compare: 1964 No 134 s 26A; 1986 No 131 s 8 23 Bank to advise Minister on foreign exchange matters The Bank shall, from time to time, advise the Minister on— (a) foreign exchange rate systems: 29 Part 2 s 24 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (b) (c) (d) 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 main- tained for the purpose of enabling the Bank to exercise the powers conferred by this Act.

24 (1) (2) The Bank must hold and maintain foreign reserves at that level or within those levels.

Section 24(2): replaced, on 10 September 2008, by section 8 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
25 (1) (2) (3) 26 (1) Currency Issue of currency by Bank The Bank shall have the sole right to issue bank notes and coins in New Zea- land.

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 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) 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 issued before the commencement of this Act which has ceased to be legal tender before the com- mencement of this Act and which the Bank was, immediately before the com- mencement of this Act, liable to pay, on presentation at the head office of the Bank.
(4) 30 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 2 s 28 (5) 27 (1) The Bank shall be liable to pay any coin issued by the Minister before the com- mencement of this Act which has ceased to be legal tender before the com- mencement of this Act, on presentation at the head office of the Bank.

Compare: 1964 No 27 s 12; 1964 No 134 s 22 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) (b) (c) (d) 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: 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 in- clude references to coins and bank notes that have been called in.

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

(3) Every person who contravenes subsection (1) or subsection (2) commits an of- fence against this Act and is liable on conviction to a fine not exceeding $1,000.
Compare: 1964 No 134 s 23 Section 28(3): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

31 Part 2 s 29 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 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.
(2) Every person who contravenes subsection (1) commits an offence against this Act and shall be liable on conviction,— (a) in the case of an individual, to imprisonment for a term not exceeding 3 years or to a fine not exceeding $100,000: (b) in the case of a body corporate, to a fine not exceeding $300,000.

Section 29(2): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
30 Reproduction or imitation of currency (1) No person shall, without the prior consent of the Bank,— (a) make, design, engrave, print, or reproduce; or (b) use, issue, or publish— 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.

(2) Every person who contravenes subsection (1) commits an offence against this Act.
(3) Where a person is convicted of an offence against subsection (2), the court may order— (a) (b) (c) the article or thing: any copy of it: any plates, blocks, dies, and other instruments used or 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 Other functions and powers 31 Bank to act as lender of last resort The Bank shall, if the Bank considers it necessary for the purpose of maintain- ing the soundness of the financial system, act as lender of last resort for the fi- nancial system.

32 Bank may provide settlement account services The Bank may provide settlement account services for financial institutions on such terms and conditions as may be determined by agreement.
32 Reprinted as at 1 January 2016 33 Policy advice Reserve Bank of New Zealand Act 1989 Part 2 s 35 (1) On request by the Minister, the Bank must provide advice to the Minister on any matter specified in the request that is connected with the functions of the Bank.

(2) A request may not be made under subsection (1) that may limit the Bank in ex- ercising its primary function in section 8.
(3) The Bank may also provide advice to the Minister, at any time, on any matters or subjects within the responsibility of the Bank.

Section 33: replaced, 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 accordance 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 35 (1) banking services.

Compare: 1964 No 134 s 12 Financial products registry services The Bank may provide financial products registry services for any person in- cluding services in connection with— (a) (b) (c) the issue, registration, exchange, transfer, or replacement of financial products: the calling and acceptance of tenders for financial products: the making or receiving of payment in respect of any financial product.
(2) Financial products registry services may be provided for such remuneration, and on such terms and conditions, as may be agreed by the Bank and the per- son for whom they are provided.

Section 35 heading: amended, on 1 December 2014, by section 150 of the Financial Markets (Re- peals and Amendments) Act 2013 (2013 No 70).

Section 35(1): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
Section 35(1)(a): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 35(1)(b): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 35(1)(c): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
Section 35(2): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
33 Part 2 s 36 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 36 (1) Bank may require financial institution to supply information For the purposes of enabling the Bank to carry out the functions and exercise the powers conferred on it by this Part, the Bank may, from time to time, by notice in writing to any financial institution, or by notice in the Gazette apply- ing 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 informa- tion 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 information and data to be supplied relating to the assets and liabilities, income and expenditure (in- cluding interest rates charged and payable), fees and charges, obligations and commitments, and risk exposures of, and classes of transactions entered into by, that institution or class of institutions and any associated person and, where specified, in consolidated form, in respect of business carried on in New Zea- land or elsewhere and whether as principal, broker, agent, or intermediary.
(3) A notice given pursuant to this section may, by a subsequent notice, be re- voked, varied, or amended by the Bank.

(4) 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 spe- cified 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 particular customer or client.
(6) 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 neces- sary 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 Section 36(6): inserted, 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 law- ful justification or excuse, it— (a) (b) 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 sec- tion 36 which is false or misleading in any material particular.
Compare: 1964 No 134 s 38H(7); 1986 No 131 s 10 34 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 3 s 40 38 Requirement that information be audited (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 financial institution, require that information or data to be audited by an auditor approved by the Bank.
(2) Every financial institution commits an offence against this Act if, without law- ful justification or excuse, it fails to comply with a requirement under subsec- tion (1).
Compare: 1964 No 134 s 38H(3); 1986 No 131 s 10 39 Powers Without limiting section 5 or any other provision of this Act, the Non-bank De- posit Takers Act 2013, or the Insurance (Prudential Supervision) Act 2010, the Bank has power, whether in New Zealand or elsewhere, to— (a) (b) (c) (d) (e) (f) carry on the business of banking: issue financial products: 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 provision, 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 assurances necessary or desirable for carrying out its functions and exercising its powers: carry on any business or exercise any powers, not inconsistent 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.
Section 39: amended, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Section 39: amended, on 8 September 2010, by section 241(1) of the Insurance (Prudential Supervi- sion) Act 2010 (2010 No 111).

Section 39(b): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
Part 3 Management of Reserve Bank Governor and Deputy Governor 40 (1) Governor There shall be a Governor of the Bank who shall be appointed by the Minister on the recommendation of the Board.

35 Part 3 s 41 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (2) 41 (1) 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— (a) (b) (c) (d) this Act; and the Anti-Money Laundering and Countering Financing of Terrorism Act 2009; and the Insurance (Prudential Supervision) Act 2010; and the Non-bank Deposit Takers Act 2013.
(2) The Governor has the authority, in the performance of those functions, to act in relation to all matters that are not required, by any Act referred to in subsection (1), to be dealt with by the Board.

Section 41: replaced, on 8 September 2010, by section 241(1) of the Insurance (Prudential Supervi- sion) Act 2010 (2010 No 111).

Section 41(1)(c): replaced, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
Section 41(1)(d): inserted, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Section 41(2): replaced, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

42 (1) (2) 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 remuneration, shall be— (a) determined by agreement between the Minister and the Governor after consultation with the Board; and (b) tabled at the first Board meeting after they are agreed.

(3) No condition of the agreement shall have effect if it is inconsistent with the Bank’s functions or limits or prevents the Governor from ensuring that those functions are carried out.
Deputy Governor There shall be either 1 Deputy Governor or 2 Deputy Governors 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.
43 (1) (2) 36 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 3 s 46 (3) 44 (1) (2) 45 (1) Subject to this Act, the Deputy Governor or Deputy Governors, 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 ap- pointed 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, including remuneration, of the Deputy Governor or Deputy Governors, shall be determined by the Board and shall specify the grounds on which the Governor may recommend that the Deputy Governor may be removed from office by the Board.

Removal of Deputy Governor from office The Board may, on the recommendation of the Governor, remove any Deputy Governor from office.
(2) A recommendation under subsection (1) may be made only on the grounds spe- cified for that purpose in the conditions of employment of the Deputy Governor to whom the recommendation 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 Governor, if that person— (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) is a member of Parliament; or is an employee of a registered bank or of a licensed NBDT as defined in the Non-bank Deposit Takers Act 2013 or of a licensed insurer; 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 discharge, 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 [Repealed] [Repealed] is prohibited from being a director or promoter of, or being concerned or taking part in the management of, an incorporated or unincorporated 37 Part 3 s 47 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 body under the Companies Act 1993, or the Financial Markets Conduct Act 2013, or the Takeovers Act 1993.
(k) [Repealed] (2) 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 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Section 46(1)(b): amended, on 8 September 2010, by section 241(1) of the Insurance (Prudential Supervision) Act 2010 (2010 No 111).
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): repealed, on 5 December 2013, by section 14 of the Companies Amendment Act 2013 (2013 No 111).

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): replaced, on 25 October 2006, by section 25 of the Securities Amendment Act 2006 (2006 No 46).
Section 46(1)(j): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 46(1)(j): amended, on 10 September 2008, by section 15(2) of the Disability (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 Disability (United Nations Convention on the Rights of Persons with Disabilities) Act 2008 (2008 No 64).
47 (1) 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, responsibilities, and functions of the Governor under this Act and may exercise all the powers of the Governor under this Act or the Non-bank Deposit Takers Act 2013.
(2) In the case of the absence or incapacity of the Governor and the Deputy Chief Executive, the Minister shall, on the recommendation of the Board, appoint— (a) (b) a director of the Bank; or an officer of the Bank— to act as Governor.
(3) If the Minister is unable to make an appointment under subsection (2) by rea- son of the fact that, in the circumstances, it is impracticable for a meeting of the Board to be held, the Minister shall appoint— (a) (b) a director of the Bank; or an officer of the Bank— to act as Governor for a period not exceeding 28 days.
The person appointed to act as Governor shall, so long as the appointment con- tinues, have all the duties, responsibilities, and functions of the Governor under (4) 38 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 3 s 49 this Act and may exercise all the powers of the Governor under this Act or the Non-bank Deposit Takers Act 2013.
(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(1): amended, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
Section 47(4): amended, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Section 47(5): replaced, on 21 August 2003, by section 4 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Vacancy in office of Governor If the office of Governor becomes vacant, the Minister shall, on the recommen- dation of the Board, appoint— (a) (b) (c) a director of the Bank; or an officer of the Bank; or any other person— 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 Governor 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.
48 (1) (2) (3) (4) A person who is appointed to act as Governor under this section, but who is not a director of the Bank, shall, while acting as Governor, be deemed to be a director of the Bank.

49 (1) (2) Removal of Governor from office The Governor-General may, by Order in Council, on the advice of the Minister, remove the Governor from office.
The Minister may tender advice under subsection (1) if the Minister is satis- fied— (a) that the Bank is not adequately carrying out its functions; or 39 Part 3 s 50 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (b) (c) (d) (e) (f) (g) (h) that the Governor has not adequately discharged the responsibilities of office; or that the Governor has obstructed, hindered, or prevented 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 in- adequate; or that, in a case where section 9(2) or subparagraph (i) or subparagraph (ii) of section 12(7)(b) applies, the Minister 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 primary 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 man- aged; or that the Governor, except as provided in his or her conditions of employ- ment, has, while holding office as Governor,— (i) (ii) (iii) (iv) held any other office of profit; or engaged in any other occupation for reward; or had an interest in a registered bank or a licensed NBDT as defined in the Non-bank Deposit Takers Act 2013 or a licensed insurer; or had an interest in a bank carrying on business outside New Zea- land; or (i) that the Governor is unable to carry out the responsibilities of office, or has been guilty of serious neglect of duty or misconduct.
(3) 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 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Section 49(2)(h)(iii): amended, on 8 September 2010, by section 241(1) of the Insurance (Prudential Supervision) Act 2010 (2010 No 111).
Removal of Deputy Governor from office by Order in Council The Governor-General may, by Order in Council, on the advice 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) [Repealed] has been guilty of misconduct; or 50 (1) (2) 40 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 3 s 51 (c) (d) 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 employment, has, while holding office as Deputy Governor,— (i) (ii) (iii) (iv) held any other office of profit; or engaged in any other occupation for reward; or had an interest in a registered bank or a licensed NBDT as defined in the Non-bank Deposit Takers Act 2013 or a licensed insurer; or had an interest in a bank carrying on business outside New Zea- land.
(3) 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 employment provide for that person to cease to be employed as an officer 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 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Section 50(2)(d)(iii): amended, on 8 September 2010, by section 241(1) of the Insurance (Prudential Supervision) Act 2010 (2010 No 111).

51 (1) (2) (3) Delegation The Governor may, at any time, delegate to the Deputy Chief Executive any of the Governor’s functions and powers including the power of delegation under subsection (2).
The Governor may, at any time, delegate any of the Governor’s functions and powers— (a) if there is more than 1 Deputy Governor of the Bank, to the Deputy Governor who is not the Deputy Chief Executive: (b) to any officer of the Bank.

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.
(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 ac- cordance with the terms of the delegation.
(5) 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 41 Part 3 s 52 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 this section may exercise them in the same manner and with the same effect as if they had been conferred directly by this Act or under any of the following Acts, and not by delegation: (a) (b) (c) the Anti-Money Laundering and Countering Financing of Terrorism Act 2009: the Insurance (Prudential Supervision) Act 2010: the Non-bank Deposit Takers Act 2013.
(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 Governor.

(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.
(9) To avoid doubt, the Governor’s functions and powers include his or her func- tions and powers under the following Acts: (a) (b) (c) the Anti-Money Laundering and Countering Financing of Terrorism Act 2009: the Insurance (Prudential Supervision) Act 2010: the Non-bank Deposit Takers Act 2013.

Compare: 1964 No 134 s 18(3), (4) Section 51(5): replaced, on 8 September 2010, by section 241(1) of the Insurance (Prudential Super- vision) Act 2010 (2010 No 111).
Section 51(5): amended, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Section 51(5)(c): inserted, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Section 51(9): replaced, on 8 September 2010, by section 241(1) of the Insurance (Prudential Super- vision) Act 2010 (2010 No 111).

Section 51(9)(c): inserted, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
52 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 53 (1) 42 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 3 s 53 (ii) its functions relating to promoting the maintenance of a sound and efficient financial system; and (iii) its other functions under this Act or any other enactment: (b) (c) (d) keep under constant review the performance of the Governor in dis- charging the responsibilities of that office: keep under constant review the performance of the Governor in ensuring that the Bank achieves the policy targets agreed to with the Minister under section 9 or section 12(7)(b): determine whether policy statements made pursuant to section 15 are consistent with the Bank’s primary function and the policy targets agreed to with the Minister under section 9 or section 12(7)(b): (e) keep under constant review the use of the Bank’s resources.
(2) The Board may give advice to the Governor on any matter relating to the per- formance of the Bank’s functions and the exercise of its powers.
(3) If the Board is satisfied— (a) (b) (c) (d) (e) (f) that the Bank is not adequately carrying out its functions; or that the Governor has not adequately discharged the responsibilities 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 in- adequate; or that a policy statement made pursuant to section 15 is inconsistent in a material respect with the Bank’s primary 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 man- aged; or that the Governor, except as provided in his or her conditions of employ- ment has, while holding office as Governor,— (i) (ii) (iii) (iv) held any other office of profit; or engaged in any other occupation for reward; or had an interest in a registered bank or a licensed NBDT as defined in the Non-bank Deposit Takers Act 2013 or a licensed insurer; or had an interest in a bank carrying on business outside New Zea- land; or (g) that the Governor is unable to carry out the responsibilities of office, or has been guilty of serious neglect of duty, or has been guilty of miscon- duct,— the Board shall advise the Minister in writing and may recommend to the Min- ister that the Governor be removed from office.
43 Part 3 s 53A Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 Section 53(1)(a): replaced, on 10 September 2008, by section 14(1) of the Reserve Bank of New Zea- land Amendment Act 2008 (2008 No 59).

Section 53(3)(f)(iii): amended, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Section 53(3)(f)(iii): amended, on 8 September 2010, by section 241(1) of the Insurance (Prudential Supervision) Act 2010 (2010 No 111).
53A Board must prepare annual report (1) The Board must prepare, for each financial year, a report setting out the Board’s assessment of the matters referred to in section 53(1).

(2) The report must— (a) (b) be signed by the chairperson and 1 other non-executive director; and be delivered to the Minister within 3 months after the end of the finan- cial year.

(3) The report stands referred, by virtue of this section, to the House of Represen- tatives.
Section 53A: inserted, on 21 August 2003, by section 6 of the Reserve Bank of New Zealand Amend- ment Act 2003 (2003 No 46).

Section 53A(3): replaced, 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, non-executive directors appointed by the Minister; and (b) the Governor.

(2) (3) The appointment of every non-executive director must be notified in the Gaz- ette.
The Governor is the only person employed in the service of the Bank who may be a director of the Bank.

(4) 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 non-executive director is disqualified from appointment under section 58.

(5) Subsection (3) is subject to sections 47 and 48.
Section 54: replaced, on 21 August 2003, by section 7 of the Reserve Bank of New Zealand Amend- ment Act 2003 (2003 No 46).

Term of office of non-executive directors Except as provided in subsection (2) and in sections 57 to 59, every non-execu- tive director shall hold office for a term of 5 years.
55 (1) 44 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 3 s 58 (2) The first non-executive 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 non-executive director may from time to time be reappointed.

(4) A non-executive director may at any time resign office by notice in writing to the Minister.
56 Considerations affecting appointment of non-executive directors In considering the appointment or reappointment of a person to the office of non-executive 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 represents.
57 (1) Extraordinary vacancies If a non-executive director dies, or resigns or is removed from office, that office shall become vacant and the vacancy shall be deemed to be an extraor- dinary vacancy.

(2) A non-executive director shall be deemed to have resigned office if that director— (a) (b) is prohibited by section 58 from holding office as a director; or fails, without the Board’s consent, to attend 3 consecutive meetings of the Board.
(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 non-executive directors No person shall be appointed, or reappointed, to the office of non-executive director of the Bank, or hold that office, if that person— (a) (b) (c) (d) is a member of Parliament; or is an employee of a registered bank or a licensed insurer or a licensed NBDT (as defined in the Non-bank Deposit Takers Act 2013); or is a bankrupt who has not obtained a final order of discharge, 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 45 Part 3 s 59 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (e) (f) (g) (h) 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 [Repealed] [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 Financial Markets Conduct Act 2013, or the Takeovers Act 1993.
(i) [Repealed] Compare: 1964 No 134 s 5; 1986 No 131 s 5 Section 58(b): amended, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Section 58(b): amended, on 8 September 2010, by section 241(1) of the Insurance (Prudential Super- vision) Act 2010 (2010 No 111).

Section 58(f): repealed, on 5 December 2013, by section 14 of the Companies Amendment Act 2013 (2013 No 111).
Section 58(g): repealed, on 25 October 2006, by section 25 of the Securities Amendment Act 2006 (2006 No 46).

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

Section 58(h): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
Section 58(i): repealed, on 10 September 2008, by section 15(4) of the Disability (United Nations Convention on the Rights of Persons with Disabilities) Act 2008 (2008 No 64).

59 (1) (2) Removal from office of non-executive directors The Governor-General may, by Order in Council, on the advice of the Minister, remove a non-executive director of the Bank from office.
The Minister may tender advice under subsection (1) if the Minister is satisfied that the director— (a) (b) (c) is unable, or has failed, to perform the duties of a director 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.

59A Chairperson of Board (1) The non-executive 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 46 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 3 s 60A (b) is removed from that office, at any time, by a majority vote of the non- executive directors; or (c) ceases to be a non-executive director.
(3) A chairperson whose term of office has expired— (a) is eligible for reappointment so long as he or she continues to be a non- executive director; and (b) continues to hold that office until a successor is appointed.

(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 Amend- ment Act 2003 (2003 No 46).
60 Meetings of Board (1) (2) 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.

(3) At any meeting of the Board, the quorum necessary for the transaction of busi- ness is 4 directors.

(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.
(5) If a vote is tied, the chairperson or, if the chairperson is not present, the director presiding at the meeting has a casting vote.

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

Section 60: replaced, on 21 August 2003, by section 9 of the Reserve Bank of New Zealand Amend- ment Act 2003 (2003 No 46).
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) (b) (c) (d) 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 directors participating in the conference.
47 Part 3 s 60B Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 Section 60A: inserted, on 21 August 2003, by section 9 of the Reserve Bank of New Zealand Amend- ment Act 2003 (2003 No 46).

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 meet- ing under subsection (2)(a).

(5) 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 no- tice by the time required under that subsection.
Section 60B: inserted, on 21 August 2003, by section 9 of the Reserve Bank of New Zealand Amend- ment Act 2003 (2003 No 46).

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.
(2) The non-executive 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.

(3) The person appointed under subsection (2) has and may exercise all the powers, duties, and functions of the chairperson for the purposes of that meet- ing.
Section 60C: inserted, on 21 August 2003, by section 9 of the Reserve Bank of New Zealand Amend- ment Act 2003 (2003 No 46).
48 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 3 s 62 61 Directors to disclose interests (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 or in the exercise or proposed exercise of a power— (a) (b) is not entitled to vote on a resolution that relates to the contract or pro- posed contract or the exercise or proposed exercise of the power: shall not be counted for the purpose of determining whether a quorum is present when— (i) (ii) the contract or proposed contract or the exercise or proposed exer- cise of the power is considered by the Board; or a resolution relating to the contract or proposed contract or the ex- ercise or proposed exercise of the power is voted on.
Section 61(2): replaced, on 8 August 1990, by section 3 of the Reserve Bank of New Zealand Amendment Act 1990 (1990 No 96).

62 (1) 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 delega- tion, to such committees.

(2) 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.
(3) Subject to any direction given by the Board, the functions and powers dele- gated to a committee may be performed or exercised 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.
(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 member- ship of the Board or the committee changes.

(8) Subject to this Act and to any directions given by the Board, a committee may regulate its own procedure.
49 Part 3 s 63 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 63 (1) (2) Fees and expenses of non-executive directors The Bank shall pay the non-executive directors such fees as the Minister, after considering any recommendation by the Board, determines.

The Bank shall pay the non-executive 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: replaced, 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 Amend- ment Act 2003 (2003 No 46).
64 Limit on use of restricted words in name or title (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 restric- ted 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 re- stricted word.
(2) Subsection (1) does not apply to— (a) (b) (c) (d) the Bank; or a registered bank; or 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 authorisa- tion from the Bank under section 65(1)(e), a name or title that includes a re- stricted word in respect of a managed investment scheme of which the regis- tered bank is a supervisor or a manager within the meaning of section 6(1) of the Financial Markets Conduct Act 2013.

(4) Subsection (2)(b) does not extend to a person carrying on any activity by means of, or through the agency of, a registered bank.
50 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 4 s 65 (5) A person commits an offence if the person contravenes this section.

(6) (7) 65 (1) 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: replaced, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amend- ment Act 2003 (2003 No 46).

Section 64(3): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
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) (b) (c) (d) (e) 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 inter- ests of— (i) (ii) any registered bank; or any person connected with a registered bank: an associated person of a registered bank: a registered bank or an associated person of a registered bank that in- tends to use a name or title that includes a restricted word in respect of a managed investment scheme of which the registered bank or the associ- ated person is a supervisor or a manager within the meaning of section 6(1) of the Financial Markets Conduct Act 2013: (f) a person that is not a financial institution.
(2) In the case of an authorisation under subsection (1)(a), the Bank must— (a) (b) give the authorisation by notice in writing to the person; and impose both of the following conditions: (i) (ii) the condition that the person use a particular name or title ap- proved by the Bank; and the condition that the person carry on in New Zealand only those activities specified by the Bank in the notice.
(3) 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.
51 Part 4 s 66 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (4) In the case of an authorisation under subsection (1)(c) to (f), the Bank must— (a) (b) give the authorisation by notice in writing to the person; and impose the condition that the person uses a particular name or title ap- proved by the Bank.

(5) Nothing in subsections (2) to (4) prevents the Bank from imposing any other conditions to the authorisation that it thinks fit.
(6) The Bank may, at any time, revoke an authorisation, or vary or remove a condi- tion of an authorisation, or add a condition of an authorisation, by,— (a) (b) 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.
(7) Any authorisation given under this section applies to any other person (for ex- ample, 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: replaced, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amend- ment Act 2003 (2003 No 46).
Section 65(1)(e): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
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) (b) 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.
Section 66: replaced, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amend- ment 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).

52 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 4 s 66C Limit on use of restricted words in advertisement Heading: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amend- ment 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 advertisement unless the advertisement contains a statement that complies with subsection (2).

(2) The statement must— (a) (b) state that the specified person is not a registered bank; and be communicated in a manner that ensures, as far as is reasonably prac- ticable, 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 contravenes this section.

(4) (5) 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— (i) (ii) the interests of a specified person; or the services or products of that person; and 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— (a) (b) is a financial institution; and 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 Amend- ment 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 de- termining 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 possession, custody, or control: 53 Part 4 s 66D Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (b) supply the Bank with information or an explanation about any informa- tion.
(2) The Bank may exercise the power in subsection (1) only if the Bank has reasonable cause to believe that the person may 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 excuse, the per- son fails to comply with this section.
(5) 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) (b) (c) 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 re- stricted word.
(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 with- in 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 this section.
(5) 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 believe— (a) (b) that any information or documents supplied to the Bank under section 66C or section 66D(2) are false or misleading in a material particular; or that a person has failed to comply with any requirement to supply infor- mation or documents under section 66C or section 66D(2).
54 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 4 s 66G (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 relating 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 per- son hinders, obstructs, or delays the conduct of any search by a person appoin- ted under subsection (2).

(5) 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).
66F Requirements on entering and searching premises (1) A person appointed under section 66E(2) must not enter and search any prem- ises, 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) (b) the occupier of the premises, or the person who has possession, custody, or control of the documents, agrees; or the person appointed under section 66E(2) obtains a warrant under sec- tion 66I.
(2) A person authorised to enter and search any premises under a warrant must, on first entering those premises and, if requested, at any subsequent time, produce— (a) (b) evidence of that person’s authority to enter the premises; and evidence of that person’s identity.

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) (2) 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) with the consent of the person to whom the information relates or of the person to whom the information is confidential; or 55 Part 4 s 66H Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (b) (c) (d) (e) to the extent that the information is available to the public under any Act, including the Official Information Act 1982, or is otherwise public- ly available; or for the purposes of, or in connection with, the exercise of powers con- ferred by this Part; or in connection with any investigation or inquiry (whether or not prelimin- ary 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 or under the Non-bank Deposit Takers Act 2013 for the purposes of the exercise by that central bank, authority, or body of those functions; or (f) to any person who the Bank is satisfied has a proper interest in receiving the information.
(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 pro- vision 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 contra- venes this section.
(5) The persons are— (a) (b) any officer or employee of the Bank; or a person appointed under section 66E(2).

(6) 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).

Section 66G(2)(e): amended, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
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 published or disclosed under section 66G must not publish, disclose, or use that information or those documents unless the publication, disclosure, or use is,— (a) in the case of a publication or disclosure under section 66G(2)(a), in ac- cordance with the terms and conditions of the consent referred to in that paragraph: (b) in the case of a publication or disclosure under section 66G(2)(c),— 56 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 4 s 66K (i) (ii) 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: (c) in the case of a publication or disclosure under section 66G(2)(f),— (i) (ii) 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 ex- ercise of any power conferred by any enactment.
(2) A person commits an offence if the person contravenes this section.

(3) 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).
66I Procedure for obtaining warrants (1) An issuing officer (within the meaning of section 3 of the Search and Surveil- lance Act 2012) may issue a warrant to a person appointed under section 66E(2) if the issuing officer is satisfied, on application made in the manner pro- vided in subpart 3 of Part 4 of that Act, that there are reasonable grounds for believing — (a) (b) that any information or documents supplied to the Bank under section 66C or section 66D(2) are false or misleading in a material particular; or that a person has failed to comply with any requirement to supply infor- mation or documents under section 66C or section 66D(2).
(2) The provisions of Part 4 of the Search and Surveillance Act 2012 (except sec- tions 118 and 119) apply.

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

Section 66I(1): amended, on 1 October 2012, by section 297(1) of the Search and Surveillance Act 2012 (2012 No 24).

Section 66I(2): inserted, on 1 October 2012, by section 297(2) of the Search and Surveillance Act 2012 (2012 No 24).
66J Effect of warrant [Repealed] Section 66J: repealed, on 1 October 2012, by section 297(3) of the Search and Surveillance Act 2012 (2012 No 24).
66K Effect of proceedings (1) If any person commences any proceedings in any court in respect of the exer- cise 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, exer- cised as if the proceedings had not been commenced, and no person is excused 57 Part 4 s 66L Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 from fulfilling any obligation under that section by reason of those proceed- ings.
(2) 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 section 66E unlawful (1) 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.
(2) The Bank must ensure that, as soon as practicable after the decision is given,— (a) any information supplied by a person and any documents or records ob- tained as a result of the unlawful exercise of the power are returned to the person previously having possession, custody, or control of those documents or records, and any copies of those documents or records are destroyed: (b) any documents or records derived from, or based on, the documents or records are destroyed.
(3) No information, documents, or records obtained as a result of the unlawful ex- ercise 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 Amend- ment Act 2003 (2003 No 46).
66M Penalty for offences (1) A person who commits an offence against any of the provisions listed in sub- section (2) is liable, on 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; and (b) in the case of a body corporate, to a fine not exceeding $1,000,000.
(2) The provisions are— (a) (b) (c) 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 advertise- ment): section 66C (which relates to failing to produce a document or supply in- formation to the Bank after being required to do so): 58 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 68 (d) (e) (f) (g) section 66D (which relates to failing to change a person’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 appointed to conduct a search): section 66G (which relates to breaches of confidentiality provisions): section 66H (which relates to further disclosures of information).
Section 66M: inserted, on 21 August 2003, by section 10 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 66M(1): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
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 stabili- ty in Australia includes an action that prevents or interferes with any outsourc- ing arrangement authorised deposit-taking institution has the same meaning as in section 5(1) of the Banking Act 1959 of the Parliament of the Commonwealth of Australia outsourcing arrangement means an arrangement for business, or functions re- lating to any business, of an authorised deposit-taking institution to be carried on by a person other than that authorised deposit-taking institution prescribed Australian financial authority means an Australian public author- ity 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).

67 Registration and prudential supervision The Bank shall in accordance with this Part— (a) (b) register banks; and undertake prudential supervision of registered banks.
Compare: 1964 No 134 s 38I; 1986 No 131 s 10 68 Exercise of powers under this Part The powers conferred on the Governor-General, the Minister, and the Bank by this Part shall be exercised for the purposes of— (a) promoting the maintenance of a sound and efficient financial system; or 59 Part 5 s 68A Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (b) avoiding significant damage to the financial system that could result from the failure of a registered bank.
Compare: 1964 No 134 s 38J; 1986 No 131 s 10 68A Trans-Tasman co-operation (1) When performing functions or duties or exercising powers under this Part or the Insurance (Prudential Supervision) Act 2010, the Bank must— (a) (b) support prescribed Australian financial authorities in meeting their statu- tory responsibilities relating to prudential regulation and financial sys- tem stability in Australia; and to the extent reasonably practicable, avoid any action that is likely to have detrimental effect on financial system stability in Australia.
Subsection (3) applies where the Bank has reasonable cause to believe that an action it proposes to take is an action that is likely to have a detrimental effect on financial system stability in Australia.
The Bank must, to the extent it considers reasonably practicable in the circum- stances having regard to urgency or other similar constraint, consult with and consider the advice of every prescribed Australian financial authority it con- siders to be relevant in the circumstances before taking the proposed action.

(2) (3) (4) No performance of a function or duty or exercise of a power is invalid by rea- son only of a failure to comply with the provisions of this section.
(5) 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 pre- scribing Australian financial authorities for the purposes of this section and section 121A.

Section 68A: inserted, on 15 December 2006, by section 6 of the Reserve Bank of New Zealand Amendment Act 2006 (2006 No 51).

Section 68A(1): amended, on 8 September 2010, by section 241(1) of the Insurance (Prudential Supervision) Act 2010 (2010 No 111).
68B Bank to have regard to directions about government policy objectives (1) (2) The Minister may direct the Bank to have regard to a government policy that relates to the Bank’s functions under this Part and Parts 5B and 5C.

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

(3) The Minister must consult with the Bank before giving a direction.
(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) (ii) presented to the House of Representatives by the Minister; and published in the Gazette.
60 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 70 (5) The Minister may not give a direction that requires the performance or non- performance of a particular act by the Bank, or any employee or office holder of the Bank, or the bringing about of a particular result, in respect of a particu- lar 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).

Section 68B(1): amended, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Registration of banks 69 (1) (2) 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.

(2A) The register must include— (a) (b) (c) the name of each registered bank; and the current rating of each registered bank under section 80 (if any); and any other prescribed information.

(3) The Bank must take all reasonable steps to ensure that the information con- tained in the public register is available to members of the public at all reason- able times.
Section 69: replaced, on 1 November 2006, by section 7 of the Reserve Bank of New Zealand Amendment Act 2006 (2006 No 51).

Section 69(2A): inserted, on 4 September 2013, by section 4 of the Reserve Bank of New Zealand Amendment Act 2013 (2013 No 62).

70 Application for registration (1) Any person may apply to the Bank to be registered as a registered bank.
(2) Applications to be registered as a registered bank shall be— (a) made in such manner as may be specified by the Bank; and (b) accompanied by payment of such fee as may be determined 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 determin- ing the application.
(4) A person commits an offence if the person provides false or misleading infor- mation to the Bank for the purposes of an application.

61 Part 5 s 71 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (5) 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 Section 70(4): inserted, on 21 August 2003, by section 11 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 70(5): inserted, on 21 August 2003, by section 11 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

71 Voluntary removal of name from register (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.
(2) The registered bank shall, within 7 days of giving that notice, give public no- tice of the fact that it had given the notice to the Bank.

(3) The Bank must— (a) remove the name of the registered bank from the register on the date specified in the notice; and (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) Except with the consent of the Bank, a registered bank shall not give a notice under subsection (1) if— (a) (b) (c) (d) 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 rela- tion to that registered bank, the powers conferred by that paragraph; or a person has been appointed under section 101 to carry out an investiga- tion 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.
(5) The Bank may refuse to remove the name of a registered bank from the register if— (a) (b) (c) (d) a notice has been given to the registered bank under section 99(2)(a); or a person has been appointed under section 99(2)(b) to exercise, in rela- tion to that registered bank, the powers conferred by that paragraph; or a person has been appointed under section 101 to carry out an investiga- tion 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.
62 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 73 Section 71(3): replaced, on 21 August 2003, by section 12 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

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

Section 72: replaced, on 21 August 2003, by section 13 of the Reserve Bank of New Zealand Amend- ment Act 2003 (2003 No 46).
73 (1) 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 con- sists of, or to a substantial extent consists of, or will, or will to a substantial extent, consist of, the borrowing and lending of money, or the provision of other financial services, or both.
(2) In determining an application under section 70, the Bank must have regard to all of the following: (a) (b) (c) (d) (e) (f) (g) the incorporation and ownership structure of the applicant; and the size and nature of the applicant’s business or proposed 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 financial markets; and any other matters that may be prescribed in regulations.
63 Part 5 s 73A Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (3) For the purposes of subsection (2)(g), the Governor-General 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.
(4) 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 Section 73(2): replaced, 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 add- ition 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— (i) (ii) (iii) (iv) (v) the recognition and priorities of claims of creditors or classes of creditors in the event of the insolvency 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 applicant; and the licensing, registration, authorisation, and supervision of the applicant; and (b) the nature and extent of the financial and other information 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) the law and regulatory requirements of the home jurisdiction of the over- seas person that relate to— (i) the disclosure by the overseas person of financial and other infor- mation of the kind that a registered bank must disclose under sec- tion 81; and 64 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 74 (ii) (iii) (iv) the accounting and auditing standards applicable to the overseas person; and the duties and powers of the directors of the overseas person; and the licensing, registration, authorisation, and supervision of the overseas person; and (b) the nature and extent of the financial and other information disclosed to the public by the overseas person.
Section 73B: inserted, on 21 August 2003, by section 15 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

74 Conditions of registration (1) A person may be registered as a registered bank unconditionally or subject to any conditions that the Bank may impose.
(2) 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 (b) vary, remove, add to, or substitute any conditions of registration.
(3) The Bank must not exercise a power referred to in subsection (2) unless— (a) (b) (c) 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 rea- sons; and the registered bank has a reasonable opportunity to make submissions to the Bank; and (d) the Bank has regard to those submissions.
(4) The Bank may impose conditions that relate to any of the following matters: (a) (b) (c) 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 regulations made under section 73(2)(g); and the matters referred to in section 78, including any matters prescribed by regulations made under that section; and the matters referred to in section 81, including any matters prescribed by an Order in Council made under that section.
(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.

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

Section 74: replaced, on 21 August 2003, by section 16 of the Reserve Bank of New Zealand Amend- ment Act 2003 (2003 No 46).
65 Part 5 s 75 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 75 Publication of principles The Bank shall publish the principles on which it acts, or proposes to act,— (a) (b) in determining applications for registration; and in imposing, varying, removing, or adding to conditions of registration.
76 (1) (2) 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 person had been registered under this Act.
If that person was registered, or deemed to have been registered, under that Act subject to any conditions, those conditions 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 accordance 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 (b) 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 73 (including a change in any of the matters prescribed by regulations made under section 73(2)(g)); and (ii) the Bank considers the change to be materially adverse to the registered bank’s standing or financial position; or (ba) that, in relation to a registered bank,— (i) (ii) there has been a transfer of direct or indirect control of the regis- tered bank; and the Bank considers the transfer to be materially adverse to the registered bank’s standing or financial position; or (bb) 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 (ii) the Bank considers the change to be materially adverse; or 77 (1) (2) 66 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 77 (c) if the registered bank is a body corporate— (i) (ii) (iii) that an order has been made for the winding up of that body cor- porate; or that a resolution has been passed for the voluntary winding up of that body corporate; or that a receiver has been appointed in respect of that body corpo- rate; or (d) (e) (f) (g) [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 man- ner; or that the registered bank has failed to comply with an obligation imposed under this Act or imposed by regulations made under this Act.
(3) The Bank shall not make a recommendation under subsection (1) unless— (a) (b) (c) 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 rea- sons; and the registered bank has a reasonable opportunity to make submissions to the Bank; and (d) 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.
(5) The Bank must, as soon as practicable after receiving a notice from the Minis- ter under subsection (1),— (a) inform the registered bank in writing of— (i) (ii) (iii) the fact that the Minister has directed the Bank to cancel the regis- tration of the registered bank; and the grounds on which the Bank’s recommendation to cancel the registration of the registered bank was made; and the date of cancellation of the registration of the registered bank; and (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): replaced, 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): replaced, on 21 August 2003, by section 17(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
67 Part 5 s 77A Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 Section 77(2)(ba): inserted, on 21 August 2003, by section 17(2) of the Reserve Bank of New Zea- land 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 Zea- land Amendment Act 2003 (2003 No 46).

Section 77(2)(d): repealed, on 21 August 2003, by section 17(3)(a) of the Reserve Bank of New Zea- land Amendment Act 2003 (2003 No 46).
Section 77(2)(g): amended, on 21 August 2003, by section 17(3)(b) of the Reserve Bank of New Zea- land Amendment Act 2003 (2003 No 46).

Section 77(3): replaced, on 24 March 1995, by section 4 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).

Section 77(5): replaced, 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) (b) (c) 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 registered bank, the transaction would result in that person increasing the level of the person’s significant influence over that registered bank beyond the level permitted in the existing con- sent; or in the case of a person who acquired a significant influence over a regis- tered bank before the commencement of the Reserve Bank of New Zea- land Amendment Act 2003, the transaction would result in that person increasing the person’s significant influence over that registered bank beyond the existing level.
(2) The Bank may, in giving its consent,— (a) specify the level of significant influence that a person may have or ac- quire over any registered bank without the need for a further consent; and (b) impose any terms and conditions the Bank thinks fit.

(3) The Bank may, at any time, by notice in writing, vary or revoke— (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 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.

(5) (6) 68 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 78 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) (2) (3) 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 manner; or (b) determining under section 77(2)(f) or section 113(1)(e) that a registered bank has not carried on its business in a prudent manner,— the Bank shall confine its consideration to the following matters: (c) (d) (e) (f) (fa) (fb) capital in relation to the size and nature of the business or proposed busi- ness: 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: (g) such other matters as may from time to time be prescribed in regulations.
The Governor-General may, from time to time, by Order in Council, on the ad- vice of the Minister given in accordance with a recommendation of the Bank, make regulations prescribing 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 re- ferred 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 Zea- land Amendment Act 2003 (2003 No 46).

69 Part 5 s 79 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 Section 78(1)(fa): inserted, on 21 August 2003, by section 19(2) of the Reserve Bank of New Zea- land 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 Zea- land 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).

79 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).
80 (1) 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 condition by a person or organisation nominated or approved by the Bank; and (b) maintain a current rating of the type referred to in paragraph (a).
(2) The Bank may require a registered bank to publish the registered bank’s current rating, and all the qualifications to that rating, in the manner and with the fre- quency that the Bank directs.

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

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

Section 80: replaced, on 21 August 2003, by section 20 of the Reserve Bank of New Zealand Amend- ment Act 2003 (2003 No 46).
Financial disclosure by registered banks 81 (1) Public disclosure of information or data by registered banks The Governor-General may, by Order in Council made on the advice of the Minister that is given in accordance with a recommendation of the Bank, pre- scribe 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 infor- mation or data specified in the order— (a) (b) in a document to be known as a disclosure statement; and in the manner and with the frequency specified in the order.
(3) The information or data that may be prescribed in an Order in Council in- cludes, without limitation, information or data about— (a) the corporate matters of a registered bank; and 70 Reprinted as at 1 January 2016 (b) (c) (d) Reserve Bank of New Zealand Act 1989 Part 5 s 81AA 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.
(4) The Order in Council must be published in the Gazette.

(5) An Order in Council made under this section is a disallowable instrument, but not a legislative instrument, for the purposes of the Legislation Act 2012 and must be presented to the House of Representatives under section 41 of that Act.

Section 81: replaced, on 21 August 2003, by section 21 of the Reserve Bank of New Zealand Amend- ment Act 2003 (2003 No 46).
Section 81(5): replaced, on 5 August 2013, by section 77(3) of the Legislation Act 2012 (2012 No 119).
81AA Further matters that may be prescribed (1) An Order in Council made under section 81 may, in addition to the matters re- ferred 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 resident 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, domiciled, or resident and if that country is not New Zea- land: 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 overseas company registered under section 337 of the Companies 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) (b) (c) (d) (e) (f) prescribe information that is required to be contained in financial state- ments: require the publication of financial statements and notes to those state- ments 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 published 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— 71 Part 5 s 81AB Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (i) (ii) the directors of the registered bank or persons authorised in writ- ing by the directors of the bank; and in the case of an overseas incorporated registered bank, its New Zealand chief executive officer: (g) incorporate by reference a framework, standard, specification, or re- quirement that is published by, or on behalf of, any body or person in any country— (i) in whole or in part; and (ii) with any modifications, additions, or variations specified in the Order in Council.
(3) Schedule 1 of the Non-bank Deposit Takers Act 2013 applies to any material incorporated by reference in an Order in Council made under section 81 of this Act as if references in that schedule to regulations were references to 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)(a): replaced, on 1 April 2014, by section 126 of the Financial Reporting (Amend- ments to Other Enactments) Act 2013 (2013 No 102).

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

Section 81AA(3): replaced, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
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 required to publish in a disclosure statement any information or data about the affairs of a particular customer or client 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 registered bank has a sub- stantial interest.
(2) Nothing in subsection (1) applies to the publication by a registered bank of in- formation or data about transactions with related 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 registered bank has a sub- stantial interest.
(3) Subsection (1) does not extend to the publication of the following matters: (a) the amount of any loan or risk exposure (without disclosing the identity of the particular customer or client to whom it relates); or 72 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 81A (b) (c) 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 hold- ing company of a registered bank has a substantial interest, and the ac- tual 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 com- pany 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 information or data that the registered bank may be required to disclose under section 81AA if that information or data— (a) (b) is in the possession, custody, or control of that person; and is not in the possession, custody, or control of the registered bank.
(3) A person to whom this section applies commits an offence if, without lawful justification or excuse, the person fails to comply with a requirement of a regis- tered bank under this section.

(4) 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).
81A Bank to consult (1) Before making a recommendation under section 81(1) (including a recommen- dation to amend any Order in Council made under that subsection) the Bank must— (a) consult with— (i) (ii) the FMA; and registered banks that will be affected by any Order in Council made under that subsection; and 73 Part 5 s 82 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (iii) such other persons as the Bank considers will be substantially affected by any Order in Council made under that subsection or organisations representing those persons; and (b) ensure that the persons referred to in paragraph (a) have a reasonable op- portunity to make submissions to the Bank; and (c) have regard to those submissions.
(2) Failure to comply with subsection (1) does not affect the validity of any Order in Council under section 81(1).

(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.
Section 81A: inserted, on 24 March 1995, by section 7 of the Reserve Bank of New Zealand Amend- ment Act 1995 (1995 No 5).

Section 81A(1)(a)(i): amended, on 1 May 2011, by section 82 of the Financial Markets Authority Act 2011 (2011 No 5).
82 (1) (2) (3) 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) (b) 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 Zea- land chief executive officer or that person’s agent authorised in writing to do so.
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 subse- quent 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.
(4) 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: replaced, on 21 August 2003, by section 22 of the Reserve Bank of New Zealand Amend- ment Act 2003 (2003 No 46).
83 Bank may require disclosure statement to be corrected Where the Bank considers that a disclosure statement published by a registered bank— (a) contains information that is false or misleading; or 74 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 88 (b) does not contain information which it is required to contain, whether or not the information contained in the disclosure statement is false or mis- leading as a result of the omission,— the Bank may, by notice in writing to the registered bank, require the registered bank to— (c) (d) publish a disclosure statement that does not contain false or misleading information; or publish a disclosure statement that contains the information that was pre- viously omitted; or (e) take such other corrective action as the Bank may specify 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 Amend- ment Act 1995 (1995 No 5).

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

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

88 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 Amend- ment Act 1995 (1995 No 5).
75 Part 5 s 89 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 Provisions applying to disclosure statements Heading: replaced, on 24 March 1995, by section 9 of the Reserve Bank of New Zealand Amend- ment Act 1995 (1995 No 5).
89 Offence to fail to publish required information in disclosure statement (1) A registered bank commits an offence if, without lawful justification or excuse, the registered bank fails to publish information that it is required to publish in a disclosure statement under section 81.

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

Section 89: replaced, on 21 August 2003, by section 23 of the Reserve Bank of New Zealand Amend- ment Act 2003 (2003 No 46).
89A Offence to publish false or misleading disclosure statements (1) If a disclosure statement that includes information that is false or misleading is published by a registered bank, all of the following persons commit an offence: (a) (b) (c) the registered bank; and every director of the registered bank who signed the 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.
(2) It is a defence to a prosecution for an offence against this section if— (a) (b) the defendant proves that the information was immaterial; or in the case of a defendant who is director of a registered bank or a New Zealand chief executive officer of an overseas incorporated registered bank, that defendant proves that he or she had reasonable grounds to be- lieve, and believed, up to the publication of the disclosure statement, that the information was true.
(3) 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).
89B Offence to fail to make most recent disclosure statement publicly available (1) A registered bank commits an offence if, without lawful justification 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.

(2) 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).
76 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 91 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) (b) (c) publish a disclosure statement that does not contain false or misleading information; or publish a disclosure statement that contains information that was previ- ously omitted; or take the corrective action specified by the Bank in a notice given under that section.
(2) 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).
90 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 con- tained in a disclosure statement, namely,— (a) (b) (c) the registered bank; and every person holding office as a director of the registered bank at the time of the publication of the disclosure statement; and the New Zealand chief executive officer of an overseas incorporated registered bank at the time of the publication of the disclosure statement.
Section 90: replaced, on 24 March 1995, by section 9 of the Reserve Bank of New Zealand Amend- ment Act 1995 (1995 No 5).

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

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

Section 90(c): inserted, on 21 August 2003, by section 24 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
91 Defences A person is not liable under section 90 in relation to false or misleading infor- mation that is included in a disclosure statement 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 know- ledge or consent and, as soon as practicable, also gave reasonable public notice that it was published without his or her knowledge or consent; or (b) after publication of the disclosure statement and before the securities were subscribed for, he or she, on becoming aware of the false or mis- 77 Part 5 s 92 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 leading information, withdrew his or her consent to the disclosure state- ment, forthwith gave notice to the Bank of the withdrawal of that con- sent and, as soon as practicable, also gave reasonable public notice of the withdrawal of that consent; or (c) 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.
Section 91: replaced, on 24 March 1995, by section 9 of the Reserve Bank of New Zealand Amend- ment Act 1995 (1995 No 5).

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

Section 92: replaced, on 24 March 1995, by section 9 of the Reserve Bank of New Zealand Amend- ment Act 1995 (1995 No 5).
Supply of information 93 (1) Supply of information by registered banks for purposes of prudential supervision For the purposes of this Part, the Bank may, by notice in writing to any regis- tered bank or by notice in the Gazette that applies to any specified class of registered banks, require the registered 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 (b) in a consolidated form (if specified by the Bank).
(3) A notice may specify— (a) (b) the periods for which, and the form in which, the information, data, or forecasts must be supplied; and the time by which, and the place in New Zealand at which, the informa- tion, data, or forecasts must be supplied.

(4) The Bank may, by a subsequent notice, vary, revoke, or amend a notice.
(5) A registered bank commits an offence if, without lawful justification or excuse, the registered bank— 78 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 93C (a) (b) 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 sup- ply under this section that is false or misleading in a material particular.
(6) The penalty for an offence against this section is set out in section 156AB.

Section 93: replaced, on 21 August 2003, by section 25 of the Reserve Bank of New Zealand Amend- ment 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 speci- fied class of registered banks to supply, without limitation, information, data, or forecasts in relation to— (a) (b) any associated person of a registered bank; or a body incorporated in New Zealand, or an overseas company registered under section 337 of the Companies Act 1993, in which a holding com- pany 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 com- ply with a notice under section 93.
(2) A person commits an offence if, without lawful justification or excuse, the per- son fails to comply with this section.

(3) 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 prudential supervision (1) 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— (a) the periods for which, and the form in which, the information, data, or forecasts must be supplied; and 79 Part 5 s 94 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (b) the time by which, and the place in New Zealand at which, the informa- tion, data, or forecasts must be supplied.

(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 per- son— (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) 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).

94 (1) 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, da- ta, or forecasts that the registered 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 excuse, the per- son fails to comply with this section.

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

Section 94: replaced, on 21 August 2003, by section 25 of the Reserve Bank of New Zealand Amend- ment Act 2003 (2003 No 46).
95 (1) Bank may require report relating to registered banks, etc The Bank may, by notice in writing to a registered bank, require that registered bank to supply the Bank with a report or series of reports, prepared by a person approved by the Bank, on— (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: (e) 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 overseas company registered under section 337 of the Companies Act 1993, in which a holding company of the registered bank has a substantial inter- est.
80 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 97 (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 relating 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 excuse, the per- son fails to comply with this section.
(4) The penalty for an offence against this section is set out in section 156AC.

Section 95: replaced, on 21 August 2003, by section 25 of the Reserve Bank of New Zealand Amend- ment Act 2003 (2003 No 46).
95A Bank may require report under section 95 to be published (1) The Bank may, by notice in writing to a registered bank, require that the report or series of reports, as the case may be, that has been prepared under section 95 in relation to the registered bank be published by that registered bank in the form specified in the notice.

(2) A registered bank commits an offence if, without lawful justification or excuse, the registered bank fails to comply with this section.
(3) 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).
96 Disclosure of information to Bank by auditors Every person who holds, or at any time has held, office as required by any en- actment, as an auditor of a registered bank or an associated person of a regis- tered 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) (b) the registered bank or associated person is insolvent or is likely to be- come 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.
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).
97 Auditor to inform of intention to disclose Every auditor shall, before disclosing any information to the Bank under sec- tion 96, take reasonable steps to inform the registered bank or associated per- son of the intention to disclose the information and the nature of the informa- tion.
Compare: 1964 No 134 s 38M(5); 1986 No 131 s 10 81 Part 5 s 98 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 Section 97 heading: amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zea- land 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).
98 Protection of auditors (1) No civil, criminal, or disciplinary proceedings shall lie against any auditor aris- ing from the disclosure in good faith of information to the Bank pursuant to section 96.

(2) No tribunal, body, or authority, having jurisdiction in respect of the professio- nal conduct of any auditor shall make any order against, or do any act in rela- tion to, that person in respect of such disclosure.
(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 admissibility of any in- formation 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 Amend- ment 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) 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) (b) conduct an inspection of any person to whom this section applies; or require any person to whom this section applies to supply to the home country supervisor any information, data, or forecasts relating to that person.
(3) (4) The information, data, or forecasts that a home country supervisor may be authorised to obtain may include, without limitation, information about the af- fairs 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 provi- sion exists to protect the confidentiality of the information, data, or forecasts obtained or required by the home country supervisor.
(5) An authorisation may be— granted for the period or periods that the Bank thinks fit; and varied, revoked, or amended by the Bank at any time.

(a) (b) 82 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 99 (6) The Bank must give notice in writing to a person to whom this section applies if the Bank— (a) (b) grants an authorisation in relation to that person; or varies, revokes, or amends that authorisation.
(7) (8) 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) has an office in New Zealand; or has an agent in New Zealand.

Section 98A: inserted, on 21 August 2003, by section 26 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
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) (b) permitting the home country supervisor to conduct an inspection of that person; or supplying the home country supervisor with the required information, data, or forecasts within the time, and at the place, specified in the no- tice.
(2) A person commits an offence if, without lawful justification or excuse, the per- son— (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 required to supply under this section that is false or misleading 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).
Powers to obtain information and documents 99 (1) Powers to obtain information and documents This section applies if the Bank has reasonable cause to believe— (a) (b) that any information or data published in a disclosure statement by a registered bank under section 81 or section 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 statement under section 81 or section 83; or 83 Part 5 s 100 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (c) (d) (e) 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 com- ply with any requirement to supply information, data, or forecasts under section 93 or section 93B or section 93C; or (f) that a registered bank has failed to comply with section 95.
(2) If this section applies, the Bank may,— (a) (b) by notice in writing to the registered bank or person, require that regis- tered bank or person to supply to the Bank, within the time specified in the notice, the information or data specified in the notice; or appoint, in writing, any suitably qualified person to enter and search any premises and inspect, remove, and take copies of any documents 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.
(3) A person commits an offence if, without lawful justification or excuse, the per- son hinders, obstructs, or delays, in the conduct of an inspection under this sec- tion, any person duly authorised to make that inspection.
(4) A registered bank or person commits an offence if, without lawful justification or excuse, the registered bank or person— (a) (b) fails to comply with any requirement of the Bank under subsection (2)(a); or supplies any information or data that is required to be supplied under subsection (2)(a) that is false or misleading in a material particular.
(5) The penalty for an offence against this section is set out,— (a) (b) in the case of an offence against subsection (3), in section 156AB; and in the case of an offence against subsection (4), in section 156AC.

Section 99: replaced, on 21 August 2003, by section 27 of the Reserve Bank of New Zealand Amend- ment 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 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 possession of the documents, agrees; or 84 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 102 (b) that person obtains a warrant under section 106.
(2) Every person authorised to enter and search any premises pursuant to a warrant obtained under section 106 shall, on first entering those premises, and, if re- quested, at any subsequent time, produce— (a) (b) evidence of that person’s authority to enter the premises; and evidence of that person’s identity.

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).
101 Investigation of affairs of registered bank Investigations 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 investigation of the affairs of any registered bank or asso- ciated person of a registered bank should be carried out, the Bank may appoint, in writing, any person to carry out an investigation of the affairs of that regis- tered 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 associated person, or any officer or employee of that registered 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 registered bank or associated person: produce for inspection any documents of, or relating to, the busi- ness, operation, and management of that registered bank or associ- ated person in the custody, or under the control, of that registered bank or associated person, officer, employee, or person: (iii) where necessary, reproduce in usable form any information recor- ded or stored in such documents: (b) take copies of any documents produced for inspection under paragraph (a): 85 Part 5 s 103 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (c) require any officer or employee of that registered bank or associated per- son, or any other person, to answer any question relating to the business, operation, and management of that registered bank or associated person.
(1A) Any questioning under subsection (1)(c) may be carried out by any person ap- pointed 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.
(2) 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, operation, and management of that registered bank or associated person in the possession, or under the con- trol, of any person: (c) if necessary, require any person to reproduce in usable form any infor- mation recorded or stored in those documents.
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 Zea- land Amendment Act 2003 (2003 No 46).
Section 102(1)(a)(ii): amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zea- land 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).
103 Offences in relation to investigations (1) Every person commits an offence against this Act who, without lawful justifi- cation or excuse,— (a) hinders, obstructs, or delays any person appointed to carry out an inves- tigation under section 101 in carrying out that investigation; or (b) refuses to answer any question put to him or her under section 102; or 86 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 104 (c) supplies any information, or provides an answer to any question, re- quired 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) (b) it fails to comply with any requirement of a person appointed to carry out an investigation under section 101; or it supplies any information or data, or provides an answer to any ques- tion, required to be supplied or provided pursuant to section 102(1) which is false or misleading in a material particular.
(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): replaced, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
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 re- quested, produce the instrument of that person’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.
(3) Every person authorised to enter and search any premises pursuant to a warrant obtained under section 106 shall, on first entering those premises and, if re- quested, at any subsequent time, produce— (a) (b) evidence of that person’s authority to enter the premises; and evidence of that person’s identity.
Compare: 1964 No 134 s 38O(3), (5), (9); 1986 No 131 s 10; 1989 No 11 s 22 87 Part 5 s 105 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 Miscellaneous provisions 105 Confidentiality of information (1) This section applies to— (a) information, data, and forecasts supplied or disclosed to, or obtained by,— (i) (ii) the Bank: a person appointed under section 99(2)(b), section 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 information, data, and forecasts referred to in paragraph (a): information relating to the exercise, or possible exercise, of the powers conferred by this Part.
(b) (c) (2) Information, data, and forecasts to which this section applies shall not be pub- lished or disclosed by the Bank, any officer or employee of the Bank, or a per- son appointed under section 99(2)(b), section 101, or section 119, except— (a) (b) (c) (d) (e) (f) with the consent of the person to whom the information relates: to the extent that the information is available to the public under any Act, other than the Official Information Act 1982, or is otherwise public- ly available information: in statistical or summary form arranged in such a manner as to prevent any information published or disclosed from being identified by any per- son as relating to any particular person: for the purposes of, or in connection with, the exercise of powers con- ferred 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 exer- cises 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: (g) to any person whom the Bank is satisfied has a proper interest in receiv- ing such information.
(3) No information, data, or forecasts shall be published or disclosed pursuant to paragraph (f) or paragraph (g) of subsection (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 fore- 88 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 105 casts to which this section applies for a purpose not connected with the purpose for which such information, data, or forecasts was, or were, supplied, dis- closed, or obtained.
(5) No person to whom any information, data, or forecasts to which this section applies is or are published or disclosed pursuant to subsection (2)(d) shall pub- lish, disclose, or use such information, data, or forecasts except— (a) for the purposes of, or in connection with the exercise of powers con- ferred by, this Part; and (b) 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 pursuant to subsection (2)(a) or subsec- tion (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 Reserve Bank of New Zea- land 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): replaced, 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).
89 Part 5 s 106 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 106 Procedure for obtaining warrants (1) An issuing officer (within the meaning of section 3 of the Search and Surveil- lance Act 2012) who is satisfied, on application made in the manner provided in subpart 3 of Part 4 of that Act, that there are reasonable grounds for believ- ing— (aaa) that any information or data published in a disclosure statement by a registered bank under section 81 or section 83 is false or misleading in a material particular; or (aa) (a) (b) (ba) (bb) 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 misleading in a material particular; or that a registered bank has failed to comply with any requirement to sup- ply 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 infor- mation, data, or forecasts to a registered bank under section 93B, or to the Bank under section 93C as the case may be; or (c) that a registered bank has failed to comply with section 95— may issue a warrant, in terms of section 107, to a person appointed pursuant to section 99(2)(b).
(2) An issuing officer (within the meaning of section 3 of the Search and Surveil- lance Act 2012) who is satisfied, on an application made in the manner provi- ded in subpart 3 of Part 4 of that Act, that there are reasonable grounds for be- lieving 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) Part 4 of the Search and Surveillance Act 2012 (except sections 118 and 119) applies.

Compare: 1964 No 134 ss 38N(3), (5), 38O(6); 1986 No 131 s 10; 1989 No 11 s 24 Section 106(1): amended, on 1 October 2012, by section 297(4) of the Search and Surveillance Act 2012 (2012 No 24).

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 Reserve Bank of New Zea- land Amendment Act 2003 (2003 No 46).

Section 106(1)(aa): inserted, on 21 August 2003, by section 28(1) of the Reserve Bank of New Zea- land Amendment Act 2003 (2003 No 46).

90 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 109 Section 106(1)(ba): inserted, on 21 August 2003, by section 28(2) of the Reserve Bank of New Zea- land Amendment Act 2003 (2003 No 46).
Section 106(1)(bb): inserted, on 21 August 2003, by section 28(2) of the Reserve Bank of New Zea- land Amendment Act 2003 (2003 No 46).

Section 106(2): amended, on 1 October 2012, by section 297(5) of the Search and Surveillance Act 2012 (2012 No 24).

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): replaced, on 1 October 2012, by section 297(6) of the Search and Surveillance Act 2012 (2012 No 24).
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— (a) (b) (c) enter and search the premises named in it: inspect, remove, and take copies of documents or extracts from docu- ments relating to the business, operation and management of the regis- tered bank in the possession, or under the control, of any person: where necessary, require any information recorded or stored in those documents to be reproduced in usable form.
(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 practicable after removing any documents or extracts from documents from any premises, supply a copy of the documents or extracts to the person from whom the documents or ex- tracts 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 relation to those proceedings is given, the powers may be, or may continue to be, exercised as if no such proceedings had been com- menced, and no person shall be excused from fulfilling any obligation under those sections by reason of those proceedings.
(2) 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 26 109 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 ex- ercise of those powers is declared unlawful,— 91 Part 5 s 110 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (a) the Bank shall ensure that forthwith after the decision of the court is given— (i) (ii) any information and data supplied by the registered bank pursuant to subsection (2)(a) of that section is destroyed: any documents or extracts from documents obtained pursuant to an inspection made under subsection (2)(b) of that section are re- turned to the person previously having possession of those docu- ments or previously having them under his or her control and any copies of such documents or extracts are destroyed: (iii) any information derived from or based upon any such information and data or documents or extracts is destroyed: (b) no information and data supplied by the registered bank pursuant to sub- section (2)(a) of that section, and no documents or extracts from docu- ments obtained pursuant to an inspection made under subsection (2)(b) of that section, 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 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 ex- tent 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) any information or data obtained pursuant to section 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 92 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 113 her control and any copies of such documents or extracts from documents are destroyed: (iii) any documents or extracts from documents obtained pursuant to an inspection made under section 102(2) are returned to the per- son previously having possession of those documents or previous- ly having them under his or her control and any copies of such documents or extracts from documents are destroyed: (iv) any information derived from or based upon any such informa- tion, documents, or extracts is destroyed: (b) no information or data obtained or documents produced for inspection pursuant to section 102(1)(a) and no documents or extracts from docu- ments 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: replaced, on 21 August 2003, by section 29 of the Reserve Bank of New Zealand Amend- ment 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) (b) (c) the registered bank or associated person is insolvent or is likely to be- come insolvent; or the registered bank or associated person is about to suspend 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 conduc- ted in a manner prejudicial to the soundness of the financial system; or 93 Part 5 s 113A Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (d) (e) (f) 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, conduc- ted in a prudent manner; or any of the following persons has failed to comply with any requirement imposed by or under this Act or regulations 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 (g) 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 (h) the registered bank has failed to comply with a condition of its registra- tion.
(2) The Bank must obtain the consent of the Minister before giving a direction under this section.

(3) A direction given under this section must state the grounds on which it is given.

(4) The Bank may, with the consent of the Minister,— (a) (b) (c) amend or modify a direction; or replace a direction with another direction; or revoke a direction.
(5) 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: replaced, 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 associ- ated person of a registered bank to— (a) consult with the Bank immediately, and from time to time, about the cir- cumstances of the registered bank or of an associated person of the regis- tered bank and the methods of resolving any difficulties facing the regis- tered bank or the associated person; or 94 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 113B (b) (c) (d) (e) (f) (g) (h) carry on business, or any part of its business, in accordance with the di- rection; 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 management or conduct of its business except with the permission 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 approved by the Bank; or take the action that is specified in the direction to address a breach of any condition of its registration; or take the action that is specified in the direction to address any circum- stances of financial difficulties; or (i) take any other action that may be specified in the direction.
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 believe that— (a) (b) any of the circumstances referred to in section 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 registered bank.
(2) If this section applies, the Bank may— (a) (b) remove or replace a director of any registered bank or of an associated person of any registered bank; or appoint any person as a director of any registered bank or of an associ- ated person of any registered bank.
(3) The Bank must— (a) obtain the consent of the Minister before exercising the power conferred by subsection (2); and (b) exercise that power by giving notice in writing to— (i) (ii) the director or the person concerned; and if applicable, the Registrar of Companies.

(4) A notice given under subsection (3)(b)(ii) is sufficient compliance with section 159 of the Companies Act 1993 as long as the notice is accompanied by the form of consent and certificate required under section 152 of that Act.
95 Part 5 s 114 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (5) 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 registered 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) (2) Every person commits an offence against this Act who, being a registered bank or associated person, without lawful justification 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 associated person, without lawful justi- fication or excuse, obstructs, hinders or prevents that registered bank or associ- ated person giving effect to any direction given under section 113.

(3) 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 Section 114(3): inserted, 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 given under section 113 or that a notice has been given under section 113B.
(2) Nothing in subsection (1) applies to the disclosure or publication 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 associ- ated person to which the direction or notice 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 capital, or business undertaking, of the registered bank or as- sociated person: (c) 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 knowing that the direc- tion or notice has been given.
(3) Nothing in subsection (1) applies to the disclosure or publication of the fact that a direction has been given requiring the actions set out in section 113A(d) or section 113A(e) or section 113A(f) for the purpose of giving effect to that direction.

(4) 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 96 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 117 Section 115 heading: amended, on 21 August 2003, by section 41 of the Reserve Bank of New Zea- land 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 Reserve Bank of New Zea- land 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): inserted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
116 Miscellaneous provisions with respect to directions and dispositions (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 registered bank or associated person of the regis- tered bank.
(2) (3) (4) 117 (1) If the Bank has reasonable grounds to believe that 1 or more of the circum- stances 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 provisions of any en- actment requiring any consent, licence, permission, or clearance or other au- thority 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 relation to a registered bank, means the address for service specified in a disclosure statement publish- ed in accordance with section 81.
Section 116: replaced, on 21 August 2003, by section 31 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Statutory management of registered banks Statutory management of registered banks and associated persons The Governor-General may, from time to time, by Order in Council, on the ad- vice of the Minister given in accordance with a recommendation of the Bank,— (a) declare that— (i) (ii) any registered bank: any associated person of a registered bank— 97 Part 5 s 117 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 is subject to statutory management; and (1A) (2) (b) appoint 1 or more persons as statutory manager or statutory managers of that registered bank or associated person for a specified period.
If any question arises as to whether, on the date on which a statutory manager was appointed, an act was done or a transaction was entered into or effected before or after the appointment, 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 subsidiary 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 sub- ject to statutory management and the appointment of a statutory manager for the specified period in respect of that registered bank also applies to those sub- sidiaries.
(2A) If a registered bank acquires a subsidiary after it has been declared to be sub- ject to statutory management under subsection (1), that subsidiary is not subject to statutory management unless a further Order in Council is made declaring that subsidiary to be subject to statutory management.
(3) Where a registered bank or an associated person of a registered bank that is de- clared to be subject to statutory management or a subsidiary of a registered bank that becomes subject to statutory management under subsection (2), is in- corporated outside New Zealand or is an unincorporated body having its head office 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.
(4) (5) Every Order in Council made under subsection (1) must specify 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 con- ferred, and all the duties imposed, on a person appointed under section 101 and, without limitation, the following provisions apply, with any necessary modifications, as if that person were appointed under section 101: (a) (b) (c) section 102 (which relates to powers to carry out an investigation of the affairs of a registered bank); and section 103 (which sets out offences in relation to investigations); and section 104 (which sets out the requirements that must be complied with by a person carrying out an investigation).
(7) Subsections (1)(a) and (2) are subject to section 139J(4).

Compare: 1964 No 134 s 38R(2), (3); 1986 No 131 s 10; 1989 No 11 s 38 98 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 119 Section 117(1)(b): amended, on 21 August 2003, by section 32(2) of the Reserve Bank of New Zea- land 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): replaced, 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): inserted, on 26 April 1999, by section 2 of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).
Section 117(5): inserted, on 26 April 1999, by section 2 of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).

Section 117(6): inserted, on 21 August 2003, by section 32(4) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 117(7): inserted, on 10 December 2013, by section 4 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).
118 Grounds on which registered bank may be declared to be subject to statutory management (1) The Bank must not make a recommendation under section 117 unless— (a) (b) 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.
(2) The Bank shall, as soon as practicable after the making of an Order in Council declaring a registered bank or associated person to be subject to statutory man- agement, 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): replaced, on 21 August 2003, by section 33 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
119 Advisory committee (1) Where an Order in Council is made under section 117 declaring a registered bank or an associated person to be subject to statutory management, the Minis- ter may, by notice in writing to the statutory manager of that registered bank or associated person, on the recommendation of the Bank, appoint the persons specified in the recommendation as an advisory committee.
(2) The functions of an advisory committee shall be— (a) (b) to advise the statutory manager on the conduct of the statutory manage- ment, including the exercise of the powers conferred by this Part: to do such other things as may be specified by the Minister, from time to time, by notice in the Gazette.
99 Part 5 s 120 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (3) (4) (5) (6) 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 recommendation of the Bank, extend the term of appointment of a member of an advisory committee.

The Minister may, by notice in writing, on the recommendation 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 com- mittee for inability to perform the functions of the office, bankruptcy, neglect of duty, or misconduct proved to the satisfaction of the Minister.

(7) A member of an advisory committee may resign office by notice 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).
(9) 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 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).
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): inserted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 119(9): inserted, 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 com- ply 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 manager (1) In exercising the powers conferred by this Part a statutory manager of a regis- tered bank shall have regard to— (a) the need to maintain public confidence in the operation and soundness of the financial system: (b) the need to avoid significant damage to the financial system: 100 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 121A (c) (d) to the extent not inconsistent with the considerations referred to in para- graphs (a) and (b), the need to resolve as quickly as possible the difficul- ties of that registered bank: to the extent not inconsistent with the considerations referred to in para- graphs (a), (b) and (c), preserving the position of creditors and maintain- ing the ranking of claims of creditors: (e) the advice of the Bank.
(2) Every statutory manager shall— (a) (b) (c) consult with the Bank, to the extent required by the Bank, as to the exer- cise of those powers: provide the reports that the Bank may require as to the state of the af- fairs, business, and statutory management of the registered bank to per- sons specified by the Bank (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 appointed under sec- tion 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 commit- tee under subsection (2)(c) if the Bank considers that the refusal is appropriate and gives its written approval 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): replaced, on 21 August 2003, by section 34(1) of the Reserve Bank of New Zea- land Amendment Act 2003 (2003 No 46).
Section 121(2)(c): inserted, on 21 August 2003, by section 34(1) of the Reserve Bank of New Zea- land Amendment Act 2003 (2003 No 46).

Section 121(3): inserted, 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 action.
(2) The statutory manager is not required to comply with subsection (1) if the stat- utory manager is satisfied that it is not reasonably 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.
101 Part 5 s 122 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (4) The Bank is not required to comply with subsection (3) if the Bank is satisfied that it is not reasonably practicable to do so 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 rea- son only of a failure to comply with the provisions of this section.
(6) A statutory manager may consult a prescribed Australian financial authority about whether an action the statutory manager 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) (b) (c) (d) (e) (f) (g) commence or continue any action or other proceedings, including pro- ceedings by way of counterclaim, against that registered bank: issue any execution, attach any debt, or otherwise enforce or seek to en- force 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, instrument, or other security over the prop- erty of that registered 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 re-enter any premises, or ex- ercise or continue any power or rights under or in pursuance of any lease, against that registered bank: (h) exercise any right of set-off against that registered bank.
(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.
102 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 122 (4) Subject to this Act, nothing in subsection (1) affects the existence of any secur- ity over the property of any registered bank or its priority over other debts.
(5) Nothing in subsection (1)(a), (b), and (d) to (h) limits or prevents 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 con- tract 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 statutory manage- ment.
(6) (7) [Repealed] In the case of a netting agreement to which sections 310A to 310O of the Com- panies Act 1993 or sections 255 to 263 of the Insolvency Act 2006 apply,— (a) (b) (c) 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 fol- lowing rights under the netting agreement: (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 netting agree- ment, being an event (including the appointment of a statutory manager) occurring not later than the commencement of statutory management; or (ii) the taking of an account, in accordance with the netting agree- ment, of all money due between the parties to the netting agree- ment in respect of transactions affected by the termination; and nothing in subsection (1) limits or prevents the exercise of any right re- ferred to in paragraphs (d) to (f) of that subsection in respect of any property of that registered bank to the extent that the right is exercised to enforce, or to assist in enforcing, the due performance, by that registered bank, of obligations entered into by that registered bank under a recog- nised 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 settlement system,— (a) (b) nothing in subsection (1) limits or prevents the exercise of any rights re- lating to the calculation of a netted balance under those rules; and nothing in subsection (1) limits or prevents the exercise of any right re- ferred 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 settlement system; and 103 Part 5 s 123 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (ii) has been granted to secure, or to assist in securing, the due per- formance, by that registered bank, of obligations entered into by that registered bank under those rules.
(9) For the purpose of subsection (8), netted balance and netting have the mean- ings set out in section 156L.

(10) Subsection (1) is subject to section 139J(1) to (3).

Compare: 1964 No 134 s 38V; 1986 No 131 s 10; 1989 No 11 s 42 Section 122(1)(c): replaced, 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 Companies Amendment Act 2006 (2006 No 56).
Section 122(1)(d): amended, on 1 January 2008, by section 364(1) of the Property Law Act 2007 (2007 No 91).

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

Section 122(5): replaced, on 21 August 2003, by section 35(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

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): inserted, 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 Insolvency Act 2006 (2006 No 55).

Section 122(7)(c): replaced, on 21 August 2003, by section 35(2) of the Reserve Bank of New Zea- land Amendment Act 2003 (2003 No 46).

Section 122(8): inserted, on 21 August 2003, by section 35(3) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 122(8): amended, on 24 November 2009, by section 5 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

Section 122(8)(b)(i): amended, on 24 November 2009, by section 5 of the Reserve Bank of New Zea- land Amendment Act 2009 (2009 No 53).

Section 122(9): inserted, on 21 August 2003, by section 35(3) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 122(10): inserted, on 10 December 2013, by section 5 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).
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) form and register a body corporate under the Companies Act 1993 or any other Act: 104 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 124 (b) (c) subscribe for or acquire, as trustee for that body corporate or unincorpor- ated body, as the case may be, all or any of the shares of the body corpo- rate: allot or issue all or any of the shares in that body corporate 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).
(2) The Governor-General may, by Order in Council, on the advice of the Minister, given in accordance with a recommendation of the Bank, declare that the whole or any part of any property, rights, assets, and liabilities of any such branch relating 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.
(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 unincorporated body having its head office or principal place of business outside New Zealand.
(4) Every body corporate formed and registered under subsection (1) shall, for the purposes of this Part, be deemed to be a registered bank subject to statutory management as if that body corporate had been declared to be subject to statu- tory management 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 appointed pursuant to that section and the pro- visions 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 Zea- land 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): replaced, 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 property, rights, and assets of a branch in a body corporate formed and registered pursuant to that section notwithstanding the existence, or the terms and conditions, of any se- curity 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 pursuant to an order made under that section in the body corporate, being property, rights or assets 105 Part 5 s 125 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 subject to a security in favour of any other person, shall continue to be subject to that security.
Compare: 1964 No 134 s 38W(6), (7); 1986 No 131 s 10 125 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 pur- suant to that section in those books or registers or in any document.
(2) The presentation to any Registrar or other person of any instrument, whether or not comprising an instrument of transfer, by the company— (a) (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 unincor- porated body; and containing a recital that the property has become vested in the company, by virtue of the provisions of that section— 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 subsection (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 injunction or the making of any order to prevent any property or assets being removed from New Zea- land.

(4) Subsection (1) is subject to section 139J(1) to (3).

Compare: 1964 No 134 s 38X; 1986 No 131 s 10; 1989 No 11 s 43 Section 126(2): replaced, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 126(2A): inserted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 126(4): inserted, on 10 December 2013, by section 6 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).
106 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 128 127 Statutory manager may suspend payment of money owing (1) The statutory manager of a registered bank may, despite the terms of any con- tract,— (a) suspend in whole or in part the repayment of any deposit, or the payment of any debt, or the discharge of any obligation, to any person; and (b) 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 regis- tered bank with any person.
(3) Nothing in subsection (1) shall authorise the suspension by the statutory man- ager of the repayment of any deposit, or the payment of any debt, or the dis- charge 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 net- ted balance in accordance 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.

(5) Subsection (1) is subject to section 139J(1) to (3).
Compare: 1964 No 134 s 38Y; 1986 No 131 s 10; 1989 No 11 s 44 Section 127(1): replaced, on 21 August 2003, by section 36(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 127(2): replaced, 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).

Section 127(4): inserted, 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 Insolvency 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).
Section 127(5): inserted, on 10 December 2013, by section 7 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).
128 Management of registered bank to vest in statutory manager (1) Subject to this Part, where a registered bank is declared to be subject to statuto- ry management, the management of that registered bank shall, on and after the 107 Part 5 s 129 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 date, and at and from the time, specified in the order, vest in the statutory man- ager.
(2) Where a registered bank is declared to be subject to statutory management, it shall not be lawful or competent for any director, manager, or other person to be engaged in the management or conduct of its business, or to act as an officer or as the agent, or servant, of the registered bank, except with the permission of the statutory manager and so far as that permission extends.

(3) Subsection (2) is subject to section 139J(1) to (3).
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).

Section 128(3): inserted, on 10 December 2013, by section 8 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).
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) (b) (c) 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.
(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 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 regis- tered 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): replaced, 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 necessary to carry on that business.
Compare: 1964 No 134 s 38AC; 1986 No 131 s 10; 1989 No 11 s 47 108 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 132 131 Statutory manager may pay creditors and compromise claims Subject to this Part, a statutory manager of a registered bank shall, for the pur- poses of carrying on the business of the registered bank, have power to— (a) pay, in whole or in part, any creditor or class of creditors of the regis- tered bank: (b) make any compromise or arrangement with any creditor, or person claiming to be a creditor, of the registered bank: (c) compromise all calls, debts and claims subsisting, or supposed to subsist, between the registered bank and any other person, and all questions re- lating 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 and upon such terms and conditions as the statu- tory 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 corporate to any per- son, credited as fully or partly paid, as the case may be, up to the value of the business undertaking 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.
(3) The statutory manager shall not sell or otherwise dispose of— (a) (b) (c) the whole or any substantial part of the business undertaking of a regis- tered 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 undertaking of any body corporate formed and registered pursuant to subsection (2)(a),— 109 Part 5 s 133 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 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).
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 re- spect of— (a) (b) (c) the sale or other disposition of the whole or any part of the business undertaking of a registered bank pursuant to section 132(1): the sale or other disposition pursuant to section 132(2)(e) of any of the shares of any body corporate formed and registered pursuant to subsec- tion (2)(a) of that section: the sale or other disposition pursuant to section 132(2)(e) of the whole or any part of the business undertaking of that body corporate— being a sale or disposition to which the Bank has, with the consent of the Min- ister, 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 registered 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 pursuant 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 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 (2) 110 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 134 than the costs of the statutory manager in selling or disposing of the property or assets.
(3) Where a statutory manager of a registered bank sells or otherwise disposes of any property or assets of that registered bank to any body corporate formed and registered pursuant to section 132(2)(a), being property or assets subject to a security in favour of any other person, the property or those assets shall con- tinue to be subject to that security.
(4) (5) If a statutory manager of a registered bank sells or otherwise disposes of any shares in a body corporate formed and registered under section 132(2)(a), any property or assets of which are subject to a security interest, other than a secur- ity interest of the kind described in subsection (6), the person entitled to the se- curity 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 sell- ing 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 assets subject to security interest, other than a se- curity 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 sell- ing or disposing of the property or assets.
(6) The kind of security interest referred to in this section is a security interest that— (a) (b) (c) 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 Personal Property Securities Act 1999; and is not a security interest that has been perfected under the Personal Prop- erty 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 account receivable for which new value is provided by the transferee for the acquisition of that account receivable (whether or not the transfer of the account receivable secures payment or performance of an obliga- tion).
(7) 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): replaced, on 1 May 2002, by section 191(1) of the Personal Property Securities Act 1999 (1999 No 126).
111 Part 5 s 135 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 Section 134(4): replaced, on 1 May 2002, by section 191(1) of the Personal Property Securities Act 1999 (1999 No 126).

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

Section 134(6): inserted, on 1 May 2002, by section 191(1) of the Personal Property Securities Act 1999 (1999 No 126).
Section 134(6)(b): amended, on 3 December 2007, by section 445 of the Insolvency Act 2006 (2006 No 55).

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

Section 134(7): inserted, on 1 May 2002, by section 191(1) of the Personal Property 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 instru- ment transferring or otherwise disposing of any property or assets of a regis- tered bank or any shares in, or property or assets of, any company incorporated pursuant to section 132(2)(a)— (a) (b) 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— 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 books or registers of a certificate signed by the statutory manager that the amount secured by a charge over any property or assets of a registered bank or any company formed and registered 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 (2) 136 Liquidation of registered banks (1) Subject to this Part, a statutory manager of a registered bank may, with the pri- or approval of the Bank,— (a) (b) 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 registered bank declared bankrupt: 112 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 137 (c) 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.
(2) The Governor-General may, by Order in Council, on the advice of the Minister given in accordance with a recommendation of a statutory manager of a regis- tered 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 regis- tered 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: replaced, 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).

Section 136(1)(b): amended, on 3 December 2007, by section 445 of the Insolvency 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 undertaking 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 dispos- ition, 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 liability shall be en- titled to enforce performance of that liability or part of it against the per- son to whom the business 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 disposition.
(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 Zea- land 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 subsection (1)(a) shall relieve any body corporate incorporated outside New Zealand or, as the case may be, any unincorporated 113 Part 5 s 138 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 body having its head office or principal place of business outside New Zealand from any obligation in respect of that liability.
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,— (a) any property has been acquired by a person in circumstances 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 management; or (b) any property has been improperly disposed of, whether or not the prop- erty has become subject to a trust,— the court may, if it thinks fit, make an order— (c) (d) that the property be transferred or delivered to the statutory manager: that any person who acquired or received the property, or his or her ad- ministrator, shall pay to the statutory manager a sum not exceeding the value of that property.
(2) For the purpose of giving effect to any such order, the court may make such further order as it thinks fit.

(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 consideration.

(4) Nothing in this section restricts the operation of the Companies Act 1993.
Compare: 1989 No 11 s 54 Section 138(4): replaced, on 1 July 1994, by section 3 of the Reserve Bank of New Zealand Amend- ment 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 Companies 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) (b) (c) 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 date on which, and the time at which, the liquidation commenced.
114 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 139A (2) Nothing in section 263 of the Companies Act 1993 shall apply to a registered bank by virtue of the application of section 312 of that Act.

(3) To avoid doubt, the reference in section 275(4) of the Companies Act 1993 to clause 1(a) of Schedule 7 of the Companies Act 1993 must be read as a refer- ence to section 148(1) of this Act.
Section 139: replaced, 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 Zea- land 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): replaced, on 26 April 1999, by section 6(2) of the Reserve Bank of New Zealand Amendment Act 1999 (1999 No 22).

Section 139(3): inserted, on 20 September 2007, by section 4(2) of the Reserve Bank of New Zealand Amendment Act 2007 (2007 No 76).

Interpretation relating to covered bonds Heading: inserted, on 10 December 2013, by section 9 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).
139A Interpretation In this section and in sections 139B to 139J, unless the context otherwise re- quires,— cover pool, in relation to a covered bond programme, means assets that— (a) (b) are owned by the relevant covered bond SPV; and secure the obligations of that SPV under the covered bond programme cover pool monitor means a person that meets the requirements of section 139I(1) covered bond means a bond, note, or other debt security that has the following features: (a) (b) (c) it represents an unsecured obligation of the issuer; and the principal and interest owing under the bond, note, or other debt se- curity are guaranteed by a covered bond SPV; and the obligations under that guarantee are secured by assets that are owned by that SPV covered bond programme means any programme of covered bonds under which, on the security of a single cover pool, covered bonds may be issued covered bond SPV has the meaning given to it by section 139B issuer has the meaning given to it by section 139C own includes holding a beneficial, or legal, interest or entitlement, and owned and owner have corresponding meanings 115 Part 5 s 139B Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 registered covered bond programme means a covered bond programme that has been registered under section 139G SPV means a special purpose vehicle.
Section 139A: inserted, on 10 December 2013, by section 9 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).
139B Meaning of covered bond SPV In sections 139A to 139J, covered bond SPV means, in relation to a covered bond programme, a person that— (a) (b) (c) (d) is, or will be, the owner of an asset that has been, or will be, sold, as- signed, or otherwise transferred to it by, or on behalf of, an issuer or an associated person of an issuer; and has granted, or may grant, a security interest in that asset for the benefit of the secured creditors under the covered bond programme; and carries on a business of acting as covered bond guarantor under the covered bond programme (including any business incidental to that pur- pose); and (other than as described in paragraph (c)) does not carry on any other kind of business.
Section 139B: inserted, on 10 December 2013, by section 9 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).
139C Meaning of issuer (1) For the purposes of sections 139A to 139J, issuer— (a) means— (i) (ii) a registered bank that issues or intends to issue covered bonds, or guarantees such covered bonds: an entity, or a member of a class of entities, specified in regula- tions made under section 139F(3)(a) that issues or intends to issue covered bonds, or guarantees such covered bonds; and (b) includes a bank referred to in paragraph (a)(i) that— (i) (ii) has had its registration cancelled under section 77; and has a registered covered bond programme.
(2) However, if an issuer (issuer A) transfers all of the rights and obligations relat- ing to a covered bond programme to another issuer (issuer B), issuer B is, from the time of the transfer, the issuer for the purposes of sections 139A to 139J.

(3) To avoid doubt, subsection (2) does not affect the rights or obligations of issuer A before the transfer.

Section 139C: inserted, on 10 December 2013, by section 9 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).
116 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 139D Registration of covered bond programmes Heading: inserted, on 10 December 2013, by section 9 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).

139D Register of registered covered bond programmes (1) (2) The Bank must keep a public register of registered covered bond programmes.
The Bank— (a) must determine the form and content of the register and may amend that form and content as it considers necessary; and (b) may, based on the assets in, or that may be included in, the relevant cov- er pool, designate registered covered bond programmes to particular classes of registered covered bond programmes, as specified by the Bank.
(3) The Bank must take all reasonable steps to ensure that the information con- tained in the public register is available to members of the public at all reason- able times.

(4) A registered covered bond programme must remain on the register despite— (a) (b) any defects in the registration process; or any failure by an issuer to comply with any of the requirements of sec- tion 139H.
(5) However, despite subsection (4), the Bank may remove a registered covered bond programme from the register— (a) if— (i) (ii) all obligations under that programme have been fulfilled; or the security interest over the cover pool has been enforced; or (iii) the issuer has requested the removal; and (b) if, in all cases, the Bank has received evidence, acceptable to the Bank, that both the relevant bond trustee and security trustee consent to the re- moval.
(6) To avoid doubt,— (a) (b) (c) registration occurs at the time and date that the Bank enters the details relating to the covered bond programme on the register: a defect in the registration process of a covered bond programme does not affect a person’s ability to enforce his, her, or its rights in relation to that covered bond programme or any covered bond issued under that covered bond programme: the failure of an issuer to register a covered bond programme or to com- ply with any requirement under section 139H does not affect any other person’s ability to enforce his, her, or its rights in relation to that covered 117 Part 5 s 139E Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 bond programme or any covered bond issued under that covered bond programme.
Section 139D: inserted, on 10 December 2013, by section 9 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).

139E Requirement, and application, for registration of covered bond programme (1) Only an issuer may apply to the Bank to register a covered bond programme.

(2) An application must be— (a) made in the manner specified by the Bank; and (b) accompanied by a fee (if any), as determined by the Bank and approved by the Minister by notice in the Gazette.
(3) The issuer must provide the Bank with any information that the Bank requires to enable it to determine the application.

(4) An issuer must not issue, or permit the issue of, a covered bond other than under a registered covered bond programme.
(5) An issuer commits an offence if, without lawful justification or excuse, the is- suer— (a) (b) (c) issues a covered bond other than under a registered covered bond pro- gramme; or permits the issue of a covered bond other than under a registered covered bond programme; or provides information for the purposes of an application that is false or misleading in any material particular.

(6) The penalty for an offence against this section is set out in section 156AB.
Section 139E: inserted, on 10 December 2013, by section 9 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).

139F Determination of application for registration of covered bond programme (1) The Bank must not register a covered bond programme unless it is satisfied that the requirements set out in subsection (2) are met.
(2) The requirements are as follows: (a) that the cover pool assets are, or will be, owned by an identified covered bond SPV that— (i) (ii) is a company (within the meaning given in section 2(1) of the Companies Act 1993); or is a person or partnership specified in regulations made under sub- section (3); and (b) (c) that a cover pool monitor has been appointed; and that a register of cover pool assets will be maintained; and 118 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 139G (d) that the covered bond programme specifies, or refers to documents that specify, procedures and internal controls that ensure— (e) (f) (i) (ii) the up-to-date and accurate keeping of that register; and that the assets in the cover pool remain consistent with any asset class designation under section 139D(2)(b); and that the covered bond programme specifies a test, or tests, to determine, in accordance with any procedures specified in that programme, whether the value of the cover pool assets is at least equal to the principal amount outstanding on the covered bonds; and that the covered bond programme provides for the covered bond SPV to perform, or arrange to have performed on its behalf, the requirements of section 139H(1)(a) and (b)(i)— (i) (ii) in the event that any amounts become due and payable by the covered bond SPV under the covered bond programme; and until the security interest over the cover pool assets has been en- forced; and (g) that the issuer is in compliance with all other requirements imposed in relation to covered bonds by, or under,— (i) (ii) section 74; or regulations made under subsection (3).
(3) 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— (a) (b) (c) (d) specifying entities, or classes of entities, for the purposes of section 139C(1)(a)(ii): specifying persons or partnerships, or classes of persons or partnerships, for the purposes of subsection (2)(a)(ii): prescribing additional requirements for the purposes of subsection (2)(g)(ii): prescribing conditions in relation to the entities, persons, or partnerships referred to in paragraphs (a) and (b).
Section 139F: inserted, on 10 December 2013, by section 9 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).

139G Bank must approve or decline application (1) Having considered an application made under section 139E(2), the Bank must either approve or decline the application.

(2) If the Bank is satisfied that an issuer meets the requirements of section 139F(2), the Bank must approve the application and register the covered bond programme.
(3) The Bank must otherwise decline the application.

119 Part 5 s 139H Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (4) If the Bank approves the application, it must give its decision to the issuer— (a) in writing; and (b) within 60 working days after receiving all of the information required by the Bank to determine the application.
(5) If the Bank proposes to decline the application, the Bank must, within 60 work- ing days after receiving all of the information required to determine the appli- cation,— (a) (b) (c) give the issuer notice, in writing, of that proposed decision and the rea- sons for it; and invite the issuer to provide, within 10 working days after the date of the notice, submissions or further information in response to that proposed decision; and take account of any submissions and further information it receives from the issuer; and (d) give its final decision to the issuer— (i) in writing; and (ii) within 5 working days after the expiry of the time specified in paragraph (b) (whether or not the Bank receives any submissions or further information).
(6) Nothing in this section prevents the Bank and the issuer from agreeing to modi- fy the time limits specified in subsections (4) and (5).

Section 139G: inserted, on 10 December 2013, by section 9 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).
139H Requirements relating to registered covered bond programmes (1) Every issuer must, in relation to a registered covered bond programme,— (a) ensure that the test or tests specified in section 139F(2)(e) are carried out at intervals of not more than 12 months and notify the Bank if the result of such test or tests is that the value of the cover pool assets is less than the principal amount outstanding on the covered bonds; and (b) ensure that— (i) (ii) a register of cover pool assets is maintained; and it complies with the procedures and internal controls referred to in section 139F(2)(d); and (c) notify the Bank— (i) (ii) of every covered bond issued; and of any material changes to the registered covered bond pro- gramme that would be likely to result in the registered covered bond programme failing to comply with the requirements of sec- tion 139F(2); and 120 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 139I (iii) if the covered bond programme or the cover pool no longer com- plies with any asset class designation under section 139D(2)(b); and (d) provide the Bank with any further information it requests in relation to the covered bond programme; and (e) ensure that— (i) (ii) the registered covered bond programme complies with the re- quirements of section 139F(2); and the reports referred to in section 139I(1)(c)(ii) are provided to any bond trustee and security trustee appointed under the covered bond programme; and (iii) the Bank is provided with a copy of— (A) (B) every report prepared by the cover pool monitor in accord- ance with section 139I(1)(c)(iii) and (iv); and if requested by the Bank, any other report prepared by the section cover pool monitor 139I(1)(c)(ii).
accordance with in (2) However, if any amounts become due and payable by the covered bond SPV under the covered bond programme,— (a) (b) the issuer is not required to comply with subsection (1); and the covered bond SPV must provide the Bank with any information it re- quests in relation to that covered bond programme.
(3) If an issuer fails to comply with any of the requirements of subsection (1), the Bank may, by notice in writing to the issuer, require the issuer to take such cor- rective action as the Bank may specify in the notice.

(4) An issuer commits an offence if the issuer, without lawful justification or ex- cuse, fails to comply with a notice issued under subsection (3).

(5) The penalty for an offence against this section is set out in section 156AB.
Section 139H: inserted, on 10 December 2013, by section 9 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).

Cover pool monitor Heading: inserted, on 10 December 2013, by section 9 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).
139I Cover pool monitor (1) A cover pool monitor must be— (a) (b) independent of the issuer; and 1 or more of the following: (i) a licensed auditor under the Auditor Regulation Act 2011: 121 Part 5 s 139I Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (ii) (if the issuer ensures that appropriate arrangements are in place to ensure that the functions of the cover pool monitor are performed by, or under the supervision of, a licensed auditor) a registered audit firm under the Auditor Regulation Act 2011: (iii) a member of any other class of persons or firms that has been ap- proved by the Bank; and (c) required, under its contract of appointment, to— (i) assess, at a given point in time, and in accordance with any agreed procedures specified in the covered bond programme,— (A) (B) the arithmetical accuracy of the tests carried out in accord- ance with section 139H(1)(a); and the issuer’s compliance with the requirements of section 139H(1)(b); and provide the issuer with reports on the matters required under para- graph (c)(i) at intervals of not more than 12 months; and provide reports at intervals of not more than 3 months if the cover pool monitor is not satisfied— (A) (B) as to the arithmetical accuracy of the tests carried out in ac- cordance with section 139H(1)(a); or that the issuer has complied with the requirements of sec- tion 139H(1)(b); and if subparagraph (iii) applies, continue to provide 3-monthly re- ports until the cover pool monitor is satisfied that the issuer has remedied those matters; and report on any other matters required by regulations made under subsection (2).
(ii) (iii) (iv) (v) (2) 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 spe- cifying additional matters that the cover pool monitor must be required to re- port on, and the information to be provided with such a report, for the purposes of subsection (1)(c)(v).

(3) For the purposes of this section, independent means independent of both the issuer and any associated person of the issuer.
(4) However, to avoid doubt, a person’s appointment as auditor does not affect his, her, or its independence.

Section 139I: inserted, on 10 December 2013, by section 9 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).

Statutory management, etc, of issuer Heading: inserted, on 10 December 2013, by section 9 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).
122 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 139J 139J Limitation on application of statutory management, etc, provisions to covered bond SPV (1) Subsections (2) and (3) apply in relation to the following provisions: (a) (b) (c) sections 122(1), 126(1), 127(1), and 128(2) of this Act: section 248 of the Companies Act 1993: sections 42(1), 43(1), 44(1), and 45(2) of the Corporations (Investigation and Management) Act 1989.
(2) Nothing in a provision referred to in subsection (1)— (a) (b) (c) (d) (e) prevents the transfer of the legal title to assets in a cover pool from an issuer to a covered bond SPV: prevents the transfer, under a contract, of any documentation or data re- lating to assets in a cover pool from the issuer to a covered bond SPV or a person acting on behalf of that SPV: prevents a covered bond SPV, or a person acting on behalf of that SPV, from exercising a power of attorney granted by the issuer in relation to assets in a cover pool: affects the issuer’s obligation to pay moneys collected on behalf of, and held on trust for, a covered bond SPV, to that SPV: prevents the enforcement of any of the above rights by, or on behalf of, a covered bond SPV.
(3) However, subsection (2) applies only if— (a) (b) the covered bond SPV is the owner of the assets in the cover pool; and the covered bond programme is registered under section 139G.
(4) A covered bond SPV is not— (a) (b) (c) an associated person for the purposes of section 117(1)(a) of this Act, section 38(1)(a) of the Corporations (Investigation and Management) Act 1989, or section 170(1)(b) of the Insurance (Prudential Supervision) Act 2010; or a subsidiary for the purposes of section 117(2) of this Act, section 38(2) of the Corporations (Investigation and Management) Act 1989, or sec- tion 170(2) of the Insurance (Prudential Supervision) Act 2010; or a related company for the purposes of section 271 of the Companies Act 1993.
Section 139J: inserted, on 10 December 2013, by section 9 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).
123 Part 5 s 140 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 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 appointing 2 or more persons as statutory managers of a registered bank, the order shall state wheth- er the powers conferred by this Part shall be exercised by those persons acting together or may be exercised individually.
(2) For the purposes of this Part, unless the context otherwise requires,— (a) references to a statutory manager shall, where 2 or more persons are ap- pointed as statutory managers include references to those statutory man- agers: (b) where an associated person of a registered bank is declared to be subject to statutory management, or a subsidiary of a registered bank becomes subject to statutory management under section 117(2), references in sec- tions 119 to 139 and in sections 141 to 156 to a registered 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 manager of a registered bank that is given in accordance with the recommendation of the Bank, termin- ate the appointment of that statutory manager for inability to perform the func- tions 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 satisfac- torily.
(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, appoint 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 successor is appointed despite— his or her resignation; or his or her period of appointment having expired.
(a) (b) 124 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 143 (5) A registered bank continues to be subject to statutory management under sec- tion 117 even though its statutory manager— (a) (b) (c) (d) has had his or her appointment terminated, or has resigned from office; or has died, or has ceased to hold office because of the expiry of his or her period of appointment.
(6) 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 Section 141(1): replaced, 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): replaced, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 141(5): inserted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 141(6): inserted, 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 di- rections concerning the business or property of the registered bank or the man- agement 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 registered bank, or the management or administration of that business 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 person of a registered bank, becomes subject to statutory management, and that registered bank, sub- sidiary, or associated person is already being wound up or is already in liquid- ation, receivership, or voluntary administration,— 125 Part 5 s 143A Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (a) (b) the winding up, liquidation, receivership, or voluntary administration of that registered bank, subsidiary, or associated person must, for so long as it continues to be subject to statutory management, cease; and the person appointed as liquidator, receiver, or administrator must be dis- charged.
(2) Where the statutory management of any registered bank, subsidiary, or associ- ated 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 receiv- ership or voluntary administration of that registered bank, subsidiary, or associ- ated person shall, unless the Order in Council terminating the statutory man- agement otherwise provides, and subject to such terms and conditions as the order may specify, revive as if it had not ceased by reason of this section.
(3) Where any liquidation, receivership, or voluntary administration 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 per- son 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): replaced, on 1 November 2007, by section 41 of the Companies 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): replaced, on 1 November 2007, by section 41 of the Companies Amendment Act 2006 (2006 No 56).
143A Continuation of statutory management (1) (2) 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 section 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 sub- ject 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).
144 Termination of statutory management (1) The Governor-General may, by Order in Council, on the advice of the Minister given in accordance with a recommendation of the Bank, declare that— (a) (b) (c) any registered bank: any associated person of a registered bank: any subsidiary of a registered bank,— 126 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 144 subject to statutory management, shall cease to be subject to statutory manage- ment.
(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 Council under section 117 may, at any time, request the Bank to make a recommendation under sub- section (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 management at the spe- cified 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 advisory 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) (b) in any case where an Order in Council is made pursuant 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 liq- uidator’s appointment.
(6) Where an Order in Council is made under subsection (1) declaring that a regis- tered bank shall cease to be subject to statutory management,— (a) (b) (c) every subsidiary of that registered bank, except any subsidiary specified in the order, shall cease to be subject to statutory management on the same date as that specified 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 terminate on the date and at the time referred to in paragraph (a).
Compare: 1964 No 134 s 38AJ; 1986 No 131 s 10; 1989 No 11 s 62 Section 144(2): replaced, on 1 July 1994, by section 7(1) of the Reserve Bank of New Zealand Amendment Act 1993 (1993 No 118).

127 Part 5 s 145 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 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): replaced, 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).

145 Obligations incurred by statutory manager (1) Any obligations incurred by a statutory manager of a registered bank in the course of his or her duties as statutory manager are incurred by that statutory manager on behalf of the registered bank, and the statutory manager does not incur personal liability for those obligations.
(2) In the winding up or liquidation of a registered bank or an associated person of a registered bank or a subsidiary of a registered bank, all amounts required to satisfy obligations incurred by the statutory manager on behalf of the registered bank, associated person, or subsidiary must be paid in priority to all other debts.

Section 145: replaced, 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 per- son, or subsidiary, and no director, officer, or employee of a registered bank, associated person, or subsidiary, has a right to be consulted or informed as to the exercise, or possible exercise, of any powers conferred by this Part or to 128 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 149 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 statutory manager or a member of an advisory committee in the exercise of the manager’s or the mem- ber’s functions and powers under this Part (including such remuneration as may be approved by the Bank) shall be payable out of the property of the regis- tered bank or associated person of the registered bank or a subsidiary of the registered bank in respect of which the statutory manager or member is appoin- ted in priority to all other claims.
(2) The statutory manager may, with the approval of the Bank, apportion the costs, charges, and expenses referred to in subsection (1) between the registered bank and any associated person or subsidiary of the registered bank that is also sub- ject to statutory management in the amounts that the statutory manager con- siders just and equitable.

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

Section 148(3): inserted, 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 a 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 Minister 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 a Crown Bank Account.

Compare: 1989 No 11 s 66 Section 149(1): amended, on 25 January 2005, pursuant to section 65R(3) of the Public Finance Act 1989 (1989 No 44).
Section 149(2): amended, on 25 January 2005, pursuant to section 65R(3) of the Public Finance Act 1989 (1989 No 44).
129 Part 5 s 150 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 150 Duty to deliver books and property to statutory manager (1) (2) (3) (4) Every person having possession, custody, or control of any 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, 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 statutory manager may, at any time, certify the failure to the court (whether or not an offence has been committed under subsection (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 statement which may be offered in defence, may punish the offender as if the offender had been guilty of con- tempt 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.

(5) 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): inserted, 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) (b) with intent to defeat the purposes of this Part, destroys, alters, or con- ceals 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, or wilfully gives a false or misleading answer to that question.
(1A) The penalty for an offence against this section is set out in section 156AC.
If, in any prosecution for an offence alleged to have been committed 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 (2) 130 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 152A 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 contravention of this sec- tion 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 (1) (2) The Governor-General 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 Representatives within 12 sit- ting 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.
(3) (4) [Repealed] [Repealed] Compare: 1964 No 134 s 38AM; 1986 No 131 s 10 Section 152(3): repealed, on 1 January 2016, by section 14 of the Legislation (Confirmable Instru- ments) Amendment Act 2015 (2015 No 120).

Section 152(4): repealed, on 1 January 2016, by section 14 of the Legislation (Confirmable Instru- ments) Amendment Act 2015 (2015 No 120).
152A Regulations are confirmable instruments (1) This section applies to regulations made under both of sections 152 and 173, but only if the regulations confer on the Bank, or a statutory manager of a registered bank, ancillary or additional powers necessary or desirable for the purposes of Part 5.
(2) The explanatory note of the regulations must indicate that— (a) (b) (c) they are a confirmable instrument under section 47B of the Legislation Act 2012; and they are revoked at a time stated in the note, unless earlier confirmed by an Act of Parliament; and the stated time is the applicable deadline under section 47C(1)(a) or (b) of that Act.

Section 152A: inserted, on 1 January 2016, by section 14 of the Legislation (Confirmable Instru- ments) Amendment Act 2015 (2015 No 120).
131 Part 5 s 153 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 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 modifications, apply to a registered bank that is a company within the meaning of section 2 of that Act and that is subject to statutory man- agement.
(2) (3) [Repealed] [Repealed] (4) Nothing in sections 120, 207P to 209B, and 214 of the Companies 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 company that is subject to statutory management.
(6) 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 build- ing society within the meaning of section 2 of that Act and that is subject to statutory management.

(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 Governor-General may, from time to time, by Order in Council, on the ad- vice of the Minister given in accordance with the recommendation of the Bank, declare that the provisions of any Act under which any other registered bank that is subject to statutory management is incorporated, constituted, or regis- tered 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 director (within the meaning of section 126 of the Companies 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: replaced, 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 1 April 2014, by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

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).
(8) (9) 132 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 154 Section 153(9): inserted, 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) to be the auditor of that registered bank.
(1A) The person or persons appointed to be the auditor under subsection (1) must be— (a) licensed auditors (within the meaning of section 6(1) of the Auditor Regulation Act 2011); and (b) approved by the Bank.

(2) Every such appointment shall be for a term not exceeding 2 years, but any per- son appointed as auditor shall continue in office until a successor comes into office.

(3) Any person appointed as auditor shall be eligible for reappointment.
(4) Any auditor may be removed from office at any time by the Minister, by notice in writing to the auditor, for inability to perform the functions of the office, bankruptcy, neglect of duty, or misconduct, proved to the satisfaction of the Minister.

(5) (6) 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 and explanations as the auditor thinks necessary for the performance 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): replaced, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 154(1): amended, on 1 April 2014, by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

Section 154(1A): inserted, on 1 April 2014, by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

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): inserted, on 21 August 2003, by section 41 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
133 Part 5 s 155 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 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 manager of a registered bank shall pre- pare the following statements 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: (2) (3) (a) (b) a statement of financial position and statement of financial performance of the registered bank; and a consolidated statement of assets and liabilities and consolidated state- ment of trading of the registered bank and its subsidiaries.
The statement of financial position, and the consolidated statement of assets and liabilities, shall each be signed by the statutory 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).

156 Annual report by statutory manager 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 subsidiaries.
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) (b) (c) 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 society, with the Registrar of Building Societies: in the case of any other body corporate, with the person exercising func- tions corresponding with those of the Registrar of Companies or the Registrar of Building Societies.
Penalties for offences against this Part Heading: inserted, on 21 August 2003, by section 40 of the Reserve Bank of New Zealand Amend- ment Act 2003 (2003 No 46).
(1) (2) (3) 134 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 156AB 156AA Penalty for miscellaneous offences (1) A person who commits an offence under any of the provisions listed in subsec- tion (2) is liable, on 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: (b) in the case of a body corporate, to a fine not exceeding $500,000.
(2) The provisions are— (a) (b) (c) (d) (e) (f) 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): section 98B(2)(a) (which relates to failing to comply with the require- ments notified by the Bank in relation to a home country supervisor): section 98B(2)(b) (which relates to supplying any information or data to a home country supervisor that is false or misleading in a material par- ticular): section 105 (which relates to the misuse of confidential information): section 115 (which relates to the unauthorised disclosure 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).

Section 156AA(1): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
156AB Penalty for offences relating to supply of information, etc (1) A person who commits an offence under any of the provisions listed in subsec- tion (2) is liable, on 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: (b) in the case of a body corporate, to a fine not exceeding $1,000,000.
(2) The provisions are— (a) (b) (c) section 74 (which relates to failing to comply with a condition of regis- tration): 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 pro- visions concerning the supply of information for the purposes of pruden- tial supervision and to supplying information that is false or misleading in a material particular): 135 Part 5 s 156AC Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (d) (e) (f) (g) (h) (i) (j) section 93B (which relates to a person failing, after being 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 comply with provisions concerning the supply of information 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).
section 139E(5)(a) (which relates to issuing a covered bond other than under a registered covered bond programme): section 139E(5)(b) (which relates to permitting the issue of a covered bond other than under a registered covered bond programme): section 139E(5)(c) (which relates to providing false or misleading infor- mation to the Bank in relation to an application to register a covered bond programme): section 139H(4) (which relates to failing to comply with a notice issued by the Bank in relation to the requirements relating to a registered covered bond programme).
Section 156AB: inserted, on 21 August 2003, by section 40 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 156AB(1): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Section 156AB(2)(g): inserted, on 10 December 2013, by section 10 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).
Section 156AB(2)(h): inserted, on 10 December 2013, by section 10 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).

Section 156AB(2)(i): inserted, on 10 December 2013, by section 10 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).

Section 156AB(2)(j): inserted, on 10 December 2013, by section 10 of the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103).
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 subsec- tion (2) is liable, on 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: (b) in the case of a body corporate, to a fine not exceeding $2,000,000.
(2) The provisions are— 136 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5 s 156AC (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) section 70 (which relates to providing false or misleading 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 information or data to a registered bank to enable the registered bank to comply with an Order in Council made under section 81): section 89 (which relates to failing to publish information that is re- quired to be published in a disclosure statement): section 89A (which relates to publishing a disclosure statement that in- cludes information that is false or misleading): section 89C(1)(a) (which relates to failing to publish a disclosure state- ment that does not contain false or misleading information after being required to do so under section 83): section 89C(1)(b) (which relates to failing to publish a disclosure state- ment that contains information that was previously omitted after being required to do so under section 83): section 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 re- quired 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 information that is false or misleading in a material par- ticular): (m) section 103(1) (which relates to hindering, obstructing, or delaying an investigation, etc): (n) (o) (p) (q) section 103(2) (which relates to failing to comply with a requirement of a person appointed to carry out
 an investigation, etc) section 114(1) (which relates to failing to comply with a direction): section 114(2) (which relates to obstructing or hindering, etc, a regis- tered bank from giving effect to a direction): section 126 (which relates to transferring or removing from New Zea- land any property or assets of a registered bank that is subject to statuto- ry management): 137 Part 5A s 156A Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (r) (s) (t) 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 registered bank that is subject to statu- tory management): section 151(1)(b) (which relates to failing or refusing to answer a statu- tory manager’s question about any book, document, etc, relating to a registered bank that is subject 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).

Section 156AC(1): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

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 business of banking.
(2) 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 promissory note that is made payable at that bank and that is presented to it for payment; and may thereafter de- stroy 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.
(3) 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 138 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5A s 156A (ii) in the case of any other document, the period of 7 years beginning with the due date of the document; and (b) 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 transaction to which the voucher relates.
(4) It is sufficient compliance with the duty to retain imposed by subsection (2) if— (a) (b) (c) a copy of the document has been made by the bank on microfilm, micro- fiche, tape, disc, electronic or photographic storage media, or other means; and the copy is able to be reproduced therefrom in a form that can be pro- duced 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.
(5) 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) (b) (c) the paying bank arranges, in accordance with the rules of an inter-bank 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).
(6) No document shall be destroyed pursuant to this section at any time after a de- mand 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 admissible in evidence in legal proceedings to the same extent as the document of which it is a copy would have been admissible.
(8) This section applies to cheques, drafts, bills, and promissory notes received by a bank and vouchers in the possession of a bank either before or after the com- ing into operation of this section.

Section 156A: inserted, on 30 June 1995, by section 2 of the Reserve Bank of New Zealand Amend- ment Act (No 2) 1995 (1995 No 34).

Section 156A(4)(b): amended, on 1 August 2007, by section 216 of the Evidence Act 2006 (2006 No 69).
139 Part 5B s 156B Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 Part 5B Oversight of payment systems Part 5B: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amend- ment Act 2003 (2003 No 46).

Heading: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amend- ment Act 2003 (2003 No 46).
General 156B Exercise of powers under this Part The powers conferred on the Bank by this Part must be exercised for the pur- pose 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 Amend- ment Act 2003 (2003 No 46).
156C Requirement to supply information relating to payment system (1) 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 sys- tem.

(2) A notice may be given to— (a) (b) an operator of a payment system; or any person who is wholly or partly responsible for the operation of a payment system; or (c) a participant in a payment system.
(3) A notice may specify— (a) (b) the periods for which, and the form in which, the information or data must be supplied; and the time by which, and the place in New Zealand at which, the informa- tion or data must be supplied.

(4) 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).
156D Offence to fail to supply information (1) A person commits an offence if the person, without lawful justification or ex- cuse,— (a) 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 140 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5B s 156G (b) supplies information or data in accordance with section 156C that is false or misleading in a material particular.
(2) 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).
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 sup- plied in accordance with section 156C if the Bank has reasonable grounds to believe that the information or data is inadequate or inaccurate.

(2) Every audit must be conducted by a suitably qualified independent 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).

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.

(2) The penalty for an offence against this section is set out in section 156J.
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 Amend- ment Act 2003 (2003 No 46).
156G Disclosure of information (1) The Bank may publish or disclose any information or data supplied in accord- ance with section 156C only if— (a) (b) (c) (d) 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 pur- poses 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 exercis- ing those functions; or 141 Part 5B s 156H Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (e) (f) 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 informa- tion; or the publication or disclosure of the information or data is with the con- sent of the person to whom the information 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 disclose any informa- tion or data supplied in accordance with section 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 officer or employee contravenes this section.

(5) 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, disclos- ure, or use is,— (a) in the case of a publication or disclosure under section 156G(1)(c),— (i) (ii) 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: (b) in the case of a publication or disclosure under section 156G(1)(e),— (i) (ii) 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: (c) in the case of a publication or disclosure under section 156G(1)(f), in ac- cordance with the terms and conditions of the consent referred to in that paragraph.
(2) A person commits an offence if the person contravenes this section.

(3) 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).
142 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5B s 156J 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 publish- ed 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 Amend- ment Act 2003 (2003 No 46).
156J Penalties for offences (1) A person who commits an offence under any of the provisions listed in subsec- tion (2) is liable, on 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 (b) in the case of a body corporate, to a fine not exceeding $500,000.
(2) The provisions are— (a) (b) (c) section 156D (which relates to failing to supply information 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 information supplied in ac- cordance with section 156C): (d) section 156H (which relates to further disclosure of information).

Section 156J: inserted, on 21 August 2003, by section 42 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 156J(1): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Part 5C Designated settlement systems Part 5C: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amend- ment Act 2009 (2009 No 53).

Heading: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amend- ment Act 2009 (2009 No 53).
General 143 Part 5C s 156K Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 156K Exercise of powers under this Part (1) The powers conferred on the Minister and the Bank by this Part must be exer- cised for the purposes of— (a) (b) promoting the maintenance of a sound and efficient financial system; and avoiding significant damage to the financial system that could result from the failure of a participant in a settlement system.
(2) The powers conferred on the Minister responsible for the Financial Markets Conduct Act 2013 and the FMA by this Part must be exercised for the purposes of— (a) (b) promoting the integrity and effectiveness of settlement systems and rela- ted markets in New Zealand; and enhancing the confidence of investors and other market participants in settlement systems and related markets in New Zealand.
(3) The Governor-General must exercise the powers conferred on him or her by this Part for the purposes set out in subsections (1) and (2).

Section 156K: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

Section 156K(2): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
Section 156K(2): amended, on 1 May 2011, by section 84(3) of the Financial Markets Authority Act 2011 (2011 No 5).

156L Limit on FMA’s powers in relation to Bank For the purposes of this Part, the FMA may exercise its powers under subpart 1 of Part 3 of the Financial Markets Authority Act 2011 in relation to the Bank only if, and to the extent that, the Bank is— (a) (b) a participant in a settlement system; or an operator of a settlement system.
Section 156L: replaced, on 1 May 2011, by section 82 of the Financial Markets Authority Act 2011 (2011 No 5).

Designation [Repealed] Heading: repealed, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amend- ment Act 2009 (2009 No 53).
156M Definitions for this Part (1) In this Part, unless the context otherwise requires,— contact person, in relation to a settlement system, means the person specified under section 156N(2)(d) 144 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5C s 156M designated settlement system means a settlement system that is declared to be a designated settlement system under section 156N joint regulators means— (a) (b) the Bank; and the FMA Minister responsible for the Financial Markets Conduct Act 2013 means the 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 admin- istration of the Financial Markets Conduct Act 2013 netted balance means any amount calculated in accordance with the netting provisions of the rules of a designated settlement system as the net debit pay- able by, or on behalf of, a participant in the designated settlement system to, or on behalf of, another participant in that system for all or any claims or obliga- tions 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 participants in a settlement system that results from the issue and receipt of settlement instructions involving 2 or more participants in the settlement system or that is otherwise provided for under the rules of the settlement system,— (a) whether on a bilateral or multilateral basis; and (b) whether or not through the interposition of an operator of the settlement system (whether by novation or otherwise); and (c) whether or not the obligations or claims constitute mutual credits, mutu- al debts, or other mutual dealings; and (d) whether or not the obligations or claims are denominated in New Zea- land currency property means personal property pure payment system means a designated settlement system that is a payment system that is declared to be a pure payment system in accordance with section 156N(3)(d) rules,— (a)
 in relation to a settlement system, means the rules of the settlement sys- tem (whether made under bylaws, agreements, procedures, contracts, or other documents) that are evidenced in writing and that provide, among other things, for— (i) (ii) the basis on which settlement instructions are given or received; and the basis on which settlement obligations are determined and cal- culated (either on a gross basis or using netting); and 145 Part 5C s 156M Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (iii) (iv) 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 settlement system is unable, or likely to become unable, to meet the participant’s obli- gations to any or all of the following: (A) (B) (C) an operator of the settlement system: another participant in the settlement system: any other party to those rules; and (b) in relation to a designated settlement system, means the rules of that settlement system that are contained in documents specified in the desig- nation under section 156N; and includes any amendments to those rules that have— (i) (ii) been notified, not been disallowed, and come into effect in ac- cordance with the processes and the time frames set out in sec- tions 156ZB and 156ZC; or been made pursuant to a variation of a designation under section 156ZD settlement means— (a) the making of a payment or the transfer of the title to, or an interest in, property— (i) that is done in accordance with, or to give effect to, a settlement instruction; and (ii) that is on a gross basis or that uses netting; and (iii) whether by way of book entry on the accounts of a central bank or an operator of a settlement system or otherwise; or (b) any other act that discharges an obligation to make a payment or transfer the title to, or an interest in, property in accordance with the rules of a settlement system settlement instruction means an instruction by a
 participant in, or to an oper- ator of, a settlement system— (a) (b) that is made in accordance with the rules of that settlement system; and that results, or is intended to result, in 1 or more settlements being effec- ted settlement system— (a) means a system or arrangement for effecting settlements or processing settlement instructions in accordance with rules; and (b) includes a payment system specified operator means the operator of a settlement system specified in an Order in Council in accordance with section 156N(2)(c).
146 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5C s 156M (2) In this Part, a participant becomes subject to an insolvency event on the date on which, and (if specified) the time at which,— (a) in the case of a company or other body corporate,— (i) (ii) (iii) (iv) (v) (vi) a liquidator is appointed in respect of a liquidation under Part 16 of the Companies Act 1993 or under any other Act; or an administrator is appointed in respect of a voluntary administra- tion under Part 15A of the Companies Act 1993; or a liquidator is appointed in respect of a liquidation of an overseas company under section 342 of the Companies Act 1993; or a statutory manager is appointed in respect of a statutory manage- ment under Part 3 of the Corporations (Investigation and Manage- ment) Act 1989; or a statutory manager is appointed in respect of a statutory manage- ment under Part 5 of this Act; or a person is appointed in respect of, or another event occurs that in- dicates the start of, a process in New Zealand or in any other country in which the company or other body corporate was in- corporated, created, or established that is similar to those set out in subparagraphs (i) to (v); and (b) in the case of an individual,— (i) (ii) a person is adjudicated bankrupt under the Insolvency Act 2006 or is given, or determined to have, a similar status (whether in New Zealand or in another country); or a person is admitted to the no asset procedure in subpart 4 of Part 5 of the Insolvency Act 2006 or becomes subject to a similar pro- cedure (whether in New Zealand or in another country).
Section 156M: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

Section 156M(1) Commission: repealed, on 1 May 2011, by section 82 of the Financial Markets Au- thority Act 2011 (2011 No 5).

Section 156M(1) joint regulators paragraph (b): amended, on 1 May 2011, by section 84(3) of the Financial Markets Authority Act 2011 (2011 No 5).
Section 156M(1) Minister responsible for the Financial Markets Conduct Act 2013: inserted, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 156M(1) Minister responsible for the Securities Act 1978: repealed, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Heading: inserted, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amend- ment Act 2009 (2009 No 53).
Designation 147 Part 5C s 156N Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 156N Designation of settlement system (1) The Governor-General may, by Order in Council, on the advice of both the Minister and the Minister responsible for the Financial Markets Conduct Act 2013 given in accordance with a joint recommendation of the joint regulators, declare any settlement system to be a designated settlement system.
(2) The order must specify— (a) (b) (c) (d) the settlement system that is the subject of the designation; and the documents that evidence the rules of that settlement system; and which operator of the settlement system is the specified operator; and the name or title of the person to whom notices relating to that settle- ment system must be given (the contact person).
(3) The order may also specify all or any of the following: (a) (b) (c) (d) conditions to which the designation is subject: that a particular operator is a participant in the settlement system that is the subject of the designation: that the operator specified in accordance with subsection (2)(c) is an op- erator to whom section 103A of the Personal Property Securities Act 1999 applies: that the settlement system that is the subject of the designation is a pure payment system.
(4) Both of the joint regulators must, as soon as practicable after a settlement sys- tem has been declared to be a designated settlement system, post on their re- spective Internet sites the contact details and the name or title of the contact person of that designated settlement system.

(5) However, the FMA does not have to comply with subsection (4) if a settlement system is specified to be a pure payment system in accordance with subsection (3)(d).
(6) To avoid doubt,— (a) (b) rules are neither legislative instruments nor disallowable instruments for the purposes of the Legislation Act 2012 (and do not have to be presen- ted to the House of Representatives under section 41 of that Act); and a breach of a condition to which the designation of a settlement system is subject does not affect the application of section 156Q, 156R, 156T, or 156X of this Act or section 103A of the Personal Property Securities Act 1999.
Section 156N: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

Section 156N(1): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

148 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5C s 156P Section 156N(5): amended, on 1 May 2011, by section 84(3) of the Financial Markets Authority Act 2011 (2011 No 5).
Section 156N(6)(a): replaced, on 5 August 2013, by section 77(3) of the Legislation Act 2012 (2012 No 119).

Effect of designation [Repealed] Heading: repealed, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amend- ment Act 2009 (2009 No 53).

156O Joint regulators’ recommendations subject to procedure in sections 156Y to 156ZA The procedure set out in sections 156Y to 156ZA must be followed by the joint regulators when they make a recommendation under section 156N(1).
Section 156O: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

Effect of designation Heading: inserted, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amend- ment Act 2009 (2009 No 53).
156P Application of this Part to pure payment systems (1) If a designated settlement system is specified to be a pure payment system in accordance with section 156N(3)(d), then this Part applies to that designated settlement system as follows: (a) (b) (c) (d) (e) (f) (g) (h) all references to a settlement must be read as if they were references to a settlement as defined in subsection (4); and for the purposes of sections 156K, 156M, and 156ZB to 156ZQ, the Bank is the sole regulator of that settlement system; and all references to the joint regulators in sections 156K, 156M, and 156ZB to 156ZQ must be read as if they were references to the Bank; and anything in sections 156K, 156M, and 156ZB to 156ZQ that may or must be done by both of the joint regulators may or must be done by the Bank alone; and except as set out in subsection (2), in performing its functions and duties and exercising its powers under sections 156K, 156M, and 156ZB to 156ZQ, the Bank does not have to consult with, advise, or give notice to, the FMA; and section 156L does not apply; and the advice of the Minister responsible for the Financial Markets Conduct Act 2013 is not required under section 156ZD or 156ZE; and this Part must be interpreted with all necessary modifications in order to give effect to this section.
149 Part 5C s 156Q Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (2) However, if the Bank intends to recommend, in accordance with section 156ZD (applied as set out in subsection (1)), that a designated settlement sys- tem’s designation is varied so that it is no longer specified to be a pure payment system, the Bank must consult with the FMA before making that recommenda- tion.
(3) This section ceases to apply to a designated settlement system if, in accordance with section 156ZD (applied as set out in subsection (1)), that settlement sys- tem’s designation is varied so that it is no longer specified to be a pure payment system.
(4) For the purposes of subsection (1)(a), settlement means— (a) the making of a payment— (i) that is done in accordance with, or to give effect to, a settlement instruction; and (ii) that is on a gross basis or that uses netting; and (iii) whether by way of book entry on the accounts of a central bank or an operator of a settlement system or otherwise; or (b) any other act that discharges an obligation to make a payment in accord- ance with the rules of a settlement system.
Section 156P: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

Section 156P(1)(e): amended, on 1 May 2011, by section 84(3) of the Financial Markets Authority Act 2011 (2011 No 5).

Section 156P(1)(g): amended, on 1 December 2014, by section 150 of the Financial Markets (Re- peals and Amendments) Act 2013 (2013 No 70).

Section 156P(2): amended, on 1 May 2011, by section 84(3) of the Financial Markets Authority Act 2011 (2011 No 5).
156Q Rules of designated settlement system are valid and enforceable (1) The rules of a designated settlement system are valid and enforceable 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) (d) the basis on which settlement instructions are given or received; and the basis on which settlement obligations are determined and calculated (either on a gross basis or using netting); 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 settlement system is unable, or likely to become unable, to meet the participant’s obliga- tions to any or all of the following: (i) (ii) the specified operator of the designated settlement system: another participant in the designated settlement system: 150 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5C s 156S (iii) any other party to those rules.
Section 156Q: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

156R Settlements must not be reversed, etc (1) A settlement that is effected in accordance with the rules of a designated settle- ment system must not, whether in whole or in part, be reversed, repaid, recov- ered, or set aside despite any enactment or rule of law to the contrary.
(2) Subsection (1) extends to any application made to a New Zealand court by a foreign court, foreign representative, or foreign creditor to reverse, repay, re- cover, or set aside a settlement (whether in whole or in part) that relates to an insolvency (in any form, whether personal or corporate) that is within the juris- diction of the relevant foreign court, foreign representative, or foreign creditor.
(3) In this section,— foreign court means a judicial or other authority competent to control or super- vise a foreign proceeding foreign proceeding means a collective judicial or administrative proceeding in a foreign jurisdiction, including an interim proceeding, under a law relating to insolvency (in any form, whether personal or corporate), in which proceeding the assets and affairs of the debtor are subject to control or supervision by a foreign court, for the purpose of reorganisation or liquidation foreign representative means a person or body, including one appointed on an interim basis, authorised in a foreign proceeding to administer the reorganisa- tion or the liquidation of the debtor’s assets or affairs or to act as a representa- tive of the foreign proceeding.
Compare: 2006 No 57 Schedule 1 Article 2 Section 156R: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).
156S Limits on application of section 156R(1) (1) Section 156R(1) does not apply to a settlement that is effected in accordance with the rules of a designated settlement system if— (a) (b) a participant in the designated settlement system in respect of whom the settlement is effected becomes subject to an insolvency event (the insol- vent participant); and the settlement is effected after the insolvent participant becomes subject to an insolvency event.
(2) Despite subsection (1), section 156R(1) applies to the settlement if— (a) the settlement is effected within 24 hours after the insolvent participant becomes subject to an insolvency event; or 151 Part 5C s 156T Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (b) the settlement instruction that gives rise to the settlement is duly author- ised on behalf of the insolvent participant after the insolvent participant becomes subject to an insolvency event.
(3) For the purposes of subsection (2), authorised on behalf of the insolvent par- ticipant means authorised (either individually or as part of a broader authorisa- tion) by— (a) (b) (c) (d) (e) (f) (g) a liquidator appointed under Part 16 of the Companies Act 1993 or under any other Act; or an administrator appointed in accordance with subpart 2 of Part 15A of the Companies Act 1993; or a statutory manager appointed in accordance with section 38 of the Cor- porations (Investigation and Management) Act 1989; or a statutory manager appointed in accordance with section 117 of this Act; or a person who performs a role similar to those set out in paragraphs (a) to (d) in respect of a process in New Zealand or in any other country in which the insolvent participant was incorporated, created, or established that is similar to those set out in section 156M(2)(a)(i) to (v); or a person who is authorised to do so under any enactment or rule of law of New Zealand or of any other country in which the insolvent partici- pant was incorporated, created, or established; or the Assignee nominated under section 59 of the Insolvency Act 2006 to be the Assignee of a bankrupt’s property or any person who performs a similar role in respect of a process (whether in New Zealand or in anoth- er country) that is, or is similar to, bankruptcy.
Section 156S: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

156T Netting is valid and enforceable If the rules of a designated settlement system provide for netting, any netting in accordance with those rules is valid and enforceable despite any enactment or rule of law to the contrary.

Section 156T: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).
156U Interrelationship between netting and Companies Act 1993 and Insolvency Act 2006 (1) The following provisions do not apply to any netting in accordance with the rules of a designated settlement system: (a) (b) sections 310 to 310O of the Companies Act 1993: sections 254 to 262 of the Insolvency Act 2006.
(2) However, a netted balance is to be treated as— 152 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5C s 156V (a) (b) an amount to which section 310(1) of the Companies Act 1993 applies if a company that is in liquidation and another party (both of whom are participants in a designated settlement system) also have mutual credits, mutual debts, or other mutual dealings between them that are not netted in accordance with the rules of the designated settlement system; and an amount to which section 254(1) of the Insolvency Act 2006 applies if the bankrupt (as defined in section 3 of that Act) and another party (both of whom are participants in a designated settlement system) also have mutual credits, mutual debts, or other mutual dealings between them that are not netted in accordance with the rules of the designated settlement system.
Section 156U: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

Procedure for making designation [Repealed] Heading: repealed, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amend- ment Act 2009 (2009 No 53).
156V Underlying transactions, settlements, and limits on effect of sections 156Q, 156R, and 156T (1) Nothing in section 156Q, 156R, or 156T prevents— (a) (b) the operation of 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); or any party from taking action against another party that has acted fraudu- lently or dishonestly so long as the remedy sought or obtained in respect of that action does not affect the application of section 156Q, 156R, or 156T.
(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) (b) a participant received value by means of that settlement; and the value received was an element of the underlying transaction.
(3) Nothing in section 292(4A) of the Companies Act 1993 or section 196 of the Insolvency Act 2006 applies to— (a) (b) an underlying transaction; or a settlement that was effected in accordance with the rules of a designa- ted settlement system.
153 Part 5C s 156W Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (4) In this section, underlying transaction— (a) means a transaction that gave rise to— (i) (ii) a settlement; or a settlement obligation; but (b) does not include— (i) (ii) (iii) a settlement instruction; or a settlement that was effected in accordance with the rules of a designated settlement system; or any novation of the obligations of a participant in a designated settlement system that was completed in accordance with the rules of that designated settlement system.
Section 156V: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

156W Interrelationship with other enactments (1) The following enactments prevail over sections 156Q, 156R, and 156T: (a) (b) sections 122(8) and 127(4) of this Act: sections 42(8) and 44(4) of the Corporations (Investigation and Manage- ment) Act 1989.

(2) This Part prevails over the Insolvency (Cross-border) Act 2006.
Section 156W: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

156X Transfer of property in accordance with rules is effective (1) (2) Subsection (2) applies if property is transferred in accordance with the rules of a designated settlement system.

If this subsection applies, no person may refuse to take an action on the ground that the transfer was not effective.
(3) Nothing in this section— (a) (b) affects any right a person has to refuse to take an action on any other ground; or derogates from section 45G(3) of the Reserve Bank of New Zealand Act 1964 (as continued in force by section 84 of the Public Finance Act 1989).

Section 45I of the Reserve Bank of New Zealand Act 1964 (as continued in force by section 84 of the Public Finance Act 1989) must be read subject to this section.
Except as provided in this section, this section has effect despite anything to the contrary in any enactment, rule of law, constitution, deed, or agreement.

(4) (5) 154 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5C s 156Z Section 156X: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).
Procedure for making designation Heading: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amend- ment Act 2009 (2009 No 53).

156Y Application for designation (1) A person who wishes to have a settlement system declared to be a designated settlement system may apply to either of the joint regulators.

(2) A joint regulator must, as soon as practicable, advise the other joint regulator if it receives an application.
(3) An application must— (a) (b) (c) (d) be accompanied by a copy of the rules of the settlement system; and be accompanied by any information required by either or both of the joint regulators; and set out the contact details and the name or title of the person who is pro- posed to act as the contact person of the settlement system; and be accompanied by the application fee (if any) that is jointly determined by the joint regulators and approved by both the Minister and the Minis- ter responsible for the Financial Markets Conduct Act 2013 by notice in the Gazette.
(4) The joint regulators may, together, produce guidelines relating to the applica- tion procedure.

Section 156Y: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

Section 156Y(3)(d): amended, on 1 December 2014, by section 150 of the Financial Markets (Re- peals and Amendments) Act 2013 (2013 No 70).

156Z Consideration of application (1) (2) Both of the joint regulators must consider any application made in accordance with section 156Y.
In considering an application, each of the joint regulators may have regard to any or all of the following matters: (a) (b) (c) (d) the purpose and scope of the settlement system: the rules of the settlement system: any laws or regulatory requirements relating to the operation of the settlement system and the extent to which the settlement system com- plies with those laws or regulatory requirements: relevant international standards concerning clearing and settlement sys- tems, to the extent that they are relevant in the circumstances: (e) the capability and capacity of the operators of the settlement system: 155 Part 5C s 156ZA Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (f) (g) (h) the financial resources of the settlement system: the importance of the settlement system to the financial system: the impact on creditors of participants in the settlement system of speci- fying that an operator of the settlement system is an operator to whom section 103A of the Personal Property Securities Act 1999 applies: (i) any other matters that the regulator considers appropriate.
(3) (4) In considering an application, each of the joint regulators must consider wheth- er the settlement system should be specified to be a pure payment system.

In considering an application, each of the joint regulators may have regard, or refer, to, and may rely upon, any relevant information, work, or matter held, or produced, by the other joint regulator.

Section 156Z: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).
156ZA Decision on application (1) After considering an application, the joint regulators must, together, either— (a) make a joint recommendation to both the Minister and the Minister re- sponsible for the Financial Markets Conduct Act 2013 that the settle- ment system to which the application relates be declared to be a designa- ted settlement system under section 156N; or (b) refuse to make that recommendation.
(2) If subsection (1)(b) applies, the joint regulators must together give notice in writing to the applicant stating— (a) that the joint regulators refuse to make a recommendation that the settle- ment system to which the application relates be declared to be a designa- ted settlement system under section 156N; and (b) the reasons for the joint regulators’ refusal.

Section 156ZA: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).
Section 156ZA(1)(a): amended, on 1 December 2014, by section 150 of the Financial Markets (Re- peals and Amendments) Act 2013 (2013 No 70).

Amendments to rules Heading: inserted, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amend- ment Act 2009 (2009 No 53).
156ZB Joint regulators must be notified of proposed amendments to rules (1) The specified operator of a designated settlement system must, as soon as prac- ticable, notify either of the joint regulators of any amendment that is proposed to be made to the rules of that designated settlement system.
156 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5C s 156ZD (2) A joint regulator must, as soon as practicable, advise the other joint regulator if it receives notice of a proposed amendment to the rules of a designated settle- ment system.

Section 156ZB: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).
156ZC Proposed amendments to rules may be disallowed (1) The joint regulators may disallow any amendment that is proposed to be made to the rules of a designated settlement system by giving notice to that effect to the contact person of that designated settlement system on or before the day that is 20 working days after the date on which either of the joint regulators first received notice of the proposed amendment under section 156ZB(1).
(2) If the joint regulators disallow a proposed amendment in accordance with sub- section (1),— (a) (b) the proposed amendment does not come into effect; and the rules of the designated settlement system continue to apply as they did before the amendment was proposed.
(3) If the joint regulators do not disallow a proposed amendment in accordance with subsection (1), the proposed amendment comes into effect on— (a) the earlier of— (i) (ii) the day after the date on which the contact person of the designa- ted settlement system receives notice from the joint regulators that they have decided not to disallow the proposed amendment; or the day that is 21 working days after the date on which either of the joint regulators first received notice of the proposed amend- ment under section 156ZB(1); or (b) any later date that is specified as part of the proposed amendment.
Section 156ZC: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

Variation and revocation of designation Heading: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amend- ment Act 2009 (2009 No 53).
156ZD Variation of designation The Governor-General may, by Order in Council, on the advice of both the Minister and the Minister responsible for the Financial Markets Conduct Act 2013 given in accordance with a joint recommendation of the joint regulators, vary any designation made under section 156N— (a) by amending any of the matters referred to in section 156N(2)(b) to (d) and (3)(b) to (d); or 157 Part 5C s 156ZE Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (b) (c) by making the designation subject to a requirement that an amendment be made to the documents that evidence the rules of the settlement sys- tem that is the subject of the designation; or by revoking or amending any condition to which the designation is sub- ject; or (d) by making the designation subject to a new condition.
Section 156ZD: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

Section 156ZD: amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
156ZE Revocation of designation The Governor-General may, by Order in Council, on the advice of both the Minister and the Minister responsible for the Financial Markets Conduct Act 2013 given in accordance with a joint recommendation of the joint regulators, revoke any designation made under section 156N.

Section 156ZE: replaced, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).
Section 156ZE: amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

156ZF Settlement and netting not affected by variation or revocation of designation The variation or revocation of a designation made under section 156N does not affect the application of sections 156Q, 156R, and 156T to settlements that were effected, and netting that took place, before the variation or revocation.
Section 156ZF: inserted, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

156ZG Application for variation or revocation of designation (1) A person who wishes to have the designation made under section 156N for a designated settlement system varied or revoked may apply to either of the joint regulators.

(2) A joint regulator must, as soon as practicable, advise the other joint regulator if it receives an application.
(3) An application must be accompanied by the application fee (if any) that is jointly determined by the joint regulators and approved by both the Minister and the Minister responsible for the Financial Markets Conduct Act 2013 by notice in the Gazette.

Section 156ZG: inserted, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).
Section 156ZG(3): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
158 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5C s 156ZI 156ZH Either joint regulator may independently begin review of designation (1) Either of the joint regulators may, independently of the other joint regulator and without having received an application under section 156ZG, begin a review to determine whether to recommend a variation or revocation of a designation made under section 156N.
(2) A joint regulator must, as soon as practicable, advise the other joint regulator if it begins a review to determine whether to recommend a variation or revocation of a designation made under section 156N.

(3) No fee can be charged if a joint regulator begins a review under subsection (1).

Section 156ZH: inserted, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).
156ZI Matters joint regulators may have regard to in recommending variation or revocation of designation (1) In determining whether to make a recommendation that any designation made under section 156N be varied or revoked, each of the joint regulators may have regard to any or all of the following matters: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) the purpose and scope of the designated settlement system: the rules of the designated settlement system: any laws or regulatory requirements relating to the operation of the des- ignated settlement system and the extent to which the designated settle- ment system complies with those laws or regulatory requirements: relevant international standards concerning clearing and settlement sys- tems, to the extent that they are relevant in the circumstances: the capability and capacity of the operators of the settlement system: the financial resources of the settlement system: the importance of the designated settlement system to the financial sys- tem: the impact on creditors of participants in the settlement system of speci- fying, or no longer specifying, that an operator of the settlement system is an operator to whom section 103A of the Personal Property Securities Act 1999 applies: any failure to comply with any condition to which the designation is sub- ject: any failure to comply with the requirements of this Act: any other matters that the joint regulator considers appropriate.
(2) In determining whether to make a recommendation that any designation made under section 156N be varied or revoked, each of the joint regulators may have regard, or refer, to, and may rely upon, any relevant information, work, or matter held, or produced, by the other joint regulator.

159 Part 5C s 156ZJ Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 Section 156ZI: inserted, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).
156ZJ Procedure for variation or revocation of designation (1) Before making a recommendation that any designation made under section 156N be varied or revoked, the joint regulators must together— (a) give the contact person notice of— (i) (ii) the reasons for proposing to vary or revoke the designation; and the fact that the contact person may make submissions to the joint regulators in relation to the proposed variation or revocation; and (b) (c) give the contact person an opportunity to make those submissions within a time period that the joint regulators consider reasonable in the circum- stances; and consider any submissions made by the contact person during that time period.
(2) The notice referred to in subsection (1)(a) may be given either in writing or orally depending on the circumstances of the particular case.

Section 156ZJ: inserted, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

Obligations to give notice and supply information Heading: inserted, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amend- ment Act 2009 (2009 No 53).
156ZK Contact person must be notified of insolvency event (1) This section applies if— (a) (b) a participant in a designated settlement system (participant A) becomes subject to an insolvency event: any other participant whose settlements are effected by participant A in accordance with the rules of that designated settlement system becomes subject to an insolvency event.
If this section applies, participant A must, as soon as practicable after becom- ing aware of the insolvency event, notify that fact to the contact person of that designated settlement system.
It is sufficient compliance with the requirement to notify the contact person under subsection (2) if— (a) (b) participant A takes all reasonable steps to comply with that requirement; or the contact person was already aware of the insolvency event by the time participant A had to notify the contact person under that subsection.

Section 156ZK: inserted, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).
(2) (3) 160 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5C s 156ZM 156ZL Supply of information relating to designated settlement system (1) The joint regulators may, by notice in writing, require any or all of the follow- ing persons to supply the joint regulators with any information relating to any designated settlement system: (a) (b) (c) the specified operator of the designated settlement system: a participant in the designated settlement system: the contact person of the designated settlement system.
(2) The joint regulators may exercise the power conferred by subsection (1) only if the joint regulators consider that the information is reasonably required to enable them to perform their functions and duties, or exercise their powers, under this Part.

(3) A notice under subsection (1) may specify— (a) the periods for which, and the form in which, the information must be supplied; and (b) the manner in which the information must be verified.
(4) A person commits an offence if the person, without lawful justification or ex- cuse, fails to supply information in accordance with this section.

(5) The penalty for an offence against this section is set out in section 156ZQ.

Section 156ZL: inserted, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

Disclosure of information Heading: inserted, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amend- ment Act 2009 (2009 No 53).
156ZM Disclosure of information between joint regulators (1) No obligation as to secrecy or other restriction upon the disclosure of informa- tion, whether imposed by an enactment or otherwise, prevents the disclosure of information between either of the following persons: (a) (b) the Bank; and the FMA.
(2) Subsection (1) only applies to information— (a) (b) obtained for the purposes of the administration of this Part, whether under sections 156Z(4), 156ZI(2), or 156ZL or otherwise; and that is disclosed by the Bank or the FMA in order to enable them to per- form their functions and duties, or exercise their powers, under this Part.

Section 156ZM: inserted, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).
Section 156ZM(1)(b): amended, on 1 May 2011, by section 84(3) of the Financial Markets Authority Act 2011 (2011 No 5).

161 Part 5C s 156ZN Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 Section 156ZM(2)(b): amended, on 1 May 2011, by section 84(3) of the Financial Markets Authority Act 2011 (2011 No 5).
156ZN Disclosure of information to third parties (1) The joint regulators may publish or disclose any information or data supplied in accordance with section 156Y(3)(b) or 156ZL 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 pur- poses 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 performs functions and duties that correspond with, or are similar to, those conferred on the joint regulators under this Part, and the joint regulators are satisfied that the information or data will be used by that central bank, authority, or body for the purpose of performing those functions or duties; or the publication or disclosure of the information or data is to any person who the joint regulators are satisfied has a proper interest in receiving the information; or the publication or disclosure of the information or data is with the con- sent of the person to whom the information relates or of the person to whom the information is confidential.
(2) The joint regulators must not publish or disclose information or data under sub- section (1)(d) or (e) unless the joint regulators are satisfied that satisfactory provision exists to protect the confidentiality of that information or data.
(3) An officer or employee of either of the joint regulators must not publish or dis- close any information or data supplied in accordance with section 156Y(3)(b) or 156ZL except for the purposes of, or in connection with, the exercise of powers conferred by this Act.

(4) An officer or employee of either of the joint regulators commits an offence if the officer or employee contravenes this section.

(5) The penalty for an offence against this section is set out in section 156ZQ.
Section 156ZN: inserted, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).
156ZO 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, disclos- ure, or use is,— (a) in the case of a publication or disclosure under section 156ZN(1)(c),— 162 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5C s 156ZQ (i) (ii) 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 joint regulators: (b) in the case of a publication or disclosure under section 156ZN(1)(e),— (i) (ii) authorised by the joint regulators and in accordance with any con- ditions that may be imposed by the joint regulators; or necessary or desirable for the performance of any function or duty, or the exercise of any power, conferred by any enactment: (c) in the case of a publication or disclosure under section 156ZN(1)(f), in accordance with the terms and conditions (if any) of the consent referred to in that paragraph.
(2) A person commits an offence if the person contravenes this section.

(3) The penalty for an offence against this section is set out in section 156ZQ.

Section 156ZO: inserted, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).
156ZP Application of other enactments to information published or disclosed under section 156ZN Nothing in any Act, other than this Act or the Official Information Act 1982, requires the joint regulators or any person to whom information or data has been published or disclosed under section 156ZN to make that information or data available to any other person.

Section 156ZP: inserted, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).
Penalties for offences against this Part Heading: inserted, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amend- ment Act 2009 (2009 No 53).

156ZQ Penalties for offences (1) A person who commits an offence under any of the provisions listed in subsec- tion (2) is liable, on 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 (b) in the case of a body corporate, to a fine not exceeding $750,000.
(2) The provisions are— (a) (b) section 156ZL (which relates to failing to supply information relating to a designated settlement system): section 156ZN (which relates to disclosure of information supplied in accordance with section 156ZL to third parties): 163 Part 5D s 157A Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (c) section 156ZO (which relates to limits on further disclosure of informa- tion).
Section 156ZQ: inserted, on 24 November 2009, by section 6 of the Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53).

Section 156ZQ(1): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Part 5D Deposit takers [Repealed] Part 5D: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
Preliminary provisions [Repealed] Heading: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157A Exercise of powers under this Part [Repealed] Section 157A: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157B Interpretation [Repealed] Section 157B: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157C Deposit taker defined [Repealed] Section 157C: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157D Application of Part [Repealed] Section 157D: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157E Bank to consult before recommending making of regulations under this Part [Repealed] Section 157E: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
164 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5D s 157L 157F Principles to be taken into account under this Part [Repealed] Section 157F: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157G Exemptions from Part [Repealed] Section 157G: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157H Effect of exemption [Repealed] Section 157H: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Credit ratings [Repealed] Heading: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157I Deposit taker must have current credit rating [Repealed] Section 157I: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157J Bank may approve rating agencies [Repealed] Section 157J: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157K Regulations relating to credit ratings [Repealed] Section 157K: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Governance requirements [Repealed] Heading: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157L Governance requirements [Repealed] Section 157L: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

165 Part 5D s 157M Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 Risk management [Repealed] Heading: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157M Deposit taker must have and comply with risk management programme [Repealed] Section 157M: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157N Risk management programme must be provided to trustee and must be amended if required by trustee [Repealed] Section 157N: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157O Trustee may require deposit taker to have risk management programme audited [Repealed] Section 157O: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Minimum capital requirement [Repealed] Heading: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157P Regulations may impose requirement that trust deed sets out minimum capital that deposit taker is required to maintain [Repealed] Section 157P: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157Q Deposit takers and trustees must ensure trust deed sets out minimum capital deposit taker is required to maintain [Repealed] Section 157Q: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157R Deposit taker must maintain not less than minimum capital prescribed [Repealed] Section 157R: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

166 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5D s 157X Capital ratio requirement [Repealed] Heading: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157S Regulations may impose requirement that trust deed includes capital ratio [Repealed] Section 157S: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157T Deposit takers and trustees must ensure capital ratio included in trust deed [Repealed] Section 157T: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157U Deposit taker must maintain capital ratio required to be included in trust deed [Repealed] Section 157U: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Restrictions on related party exposures [Repealed] Heading: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157V Regulations may impose requirement that trust deed includes maximum limit on exposures to related parties [Repealed] Section 157V: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157W Regulations may incorporate by reference framework for calculation of maximum limit on exposures to related parties [Repealed] Section 157W: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157X Deposit takers and trustees must ensure maximum limit on exposures to related parties is included in trust deed [Repealed] Section 157X: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
167 Part 5D s 157Y Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 157Y Deposit taker must not exceed maximum limit on related party exposures [Repealed] Section 157Y: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Liquidity requirements [Repealed] Heading: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157Z Regulations may impose requirement that liquidity requirements be included in trust deed [Repealed] Section 157Z: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157ZA Deposit takers and trustees must ensure liquidity requirements are included in trust deeds [Repealed] Section 157ZA: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157ZB Deposit takers must comply with liquidity requirements in trust deeds [Repealed] Section 157ZB: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Other matters relating to trust deeds [Repealed] Heading: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157ZC Amendment to trust deed must be treated as if authorised to be made [Repealed] Section 157ZC: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157ZD Trustee may execute amendment to trust deed [Repealed] Section 157ZD: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
168 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5D s 157ZJ Obligations of trustees to Bank [Repealed] Heading: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157ZE Bank may require trustee to attest as to deposit taker’s compliance with requirements [Repealed] Section 157ZE: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157ZF Trustee must report to Bank non-compliance or likely non-compliance by deposit taker [Repealed] Section 157ZF: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157ZG Obligation on trustees to disclose information to Bank in certain circumstances [Repealed] Section 157ZG: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157ZH Protection of trustees [Repealed] Section 157ZH: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Investigation and enforcement powers of Bank [Repealed] Heading: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157ZI Bank may require report relating to deposit taker [Repealed] Section 157ZI: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157ZJ Power to obtain information and documents [Repealed] Section 157ZJ: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

169 Part 5D s 157ZK Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 157ZK Limitation on information to be provided [Repealed] Section 157ZK: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157ZL Limitations on entering and searching place [Repealed] Section 157ZL: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157ZM Search warrant may be issued [Repealed] Section 157ZM: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157ZN Privileges [Repealed] Section 157ZN: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
Confidentiality of information [Repealed] Heading: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157ZO Confidentiality of information [Repealed] Section 157ZO: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157ZP Person who does not comply with section 157ZO commits offence [Repealed] Section 157ZP: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157ZQ Application of Official Information Act 1982, etc [Repealed] Section 157ZQ: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Offences and penalties [Repealed] Heading: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
170 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 5D s 157ZY 157ZR Offences by deposit takers against this Part [Repealed] Section 157ZR: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157ZS Other offences by deposit takers against this Part [Repealed] Section 157ZS: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157ZT Defence for deposit takers charged with offences against this Part [Repealed] Section 157ZT: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157ZU Power of court to discharge deposit taker [Repealed] Section 157ZU: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
157ZV Liability of directors [Repealed] Section 157ZV: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157ZW Offences by trustees against this Part [Repealed] Section 157ZW: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157ZX Penalties for offences [Repealed] Section 157ZX: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
Miscellaneous [Repealed] Heading: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

157ZY Matters relating to regulation-making powers under this Part [Repealed] Section 157ZY: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
171 Part 5D s 157ZZ Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 157ZZ Bank must review and report on operation of this Part [Repealed] Section 157ZZ: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Part 6 Financial and accountability matters Part 6 heading: replaced, 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 Government’s financial year ends.

Section 157: replaced, 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 agreement that speci- fies 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— (a) (b) (c) (d) Part 2 (except sections 16, 32, 34, and 35): Parts 3 to 5: Part 5B: Part 5C: (da) [Repealed] (e) sections 163, 166, 167, and 190: (ea) the Non-bank Deposit Takers Act 2013: (f) (g) if the Minister and the Governor agree, any other provision of this Act: any other Act.
(2) There shall be a funding agreement applying for every financial year and each funding agreement shall apply to a period that comprises 5 consecutive finan- cial years.

(3) The Minister and the Governor may, from time to time, by agreement— 172 Reprinted as at 1 January 2016 (a) (b) Reserve Bank of New Zealand Act 1989 Part 6 s 162 vary the provisions of a funding agreement; or terminate a funding agreement and enter into a new funding agreement.
Section 159(1): replaced, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).

Section 159(1)(da): repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Section 159(1)(ea): inserted, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
160 Contents of funding agreements Every funding agreement shall be in writing and— (a) (b) 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 accordance with generally accepted accounting practice, properly be taken into account in deter- mining the operating expenses applicable to those functions and powers: (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 ex- penses to be redetermined between the Governor and the Minister: (d) may make provision for such other matters, not being matters that are in- consistent 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 a copy of the agreement or the vari- ation before the House of Representatives.

(2) No funding agreement, and no variation of a funding agreement, shall be ef- fective for the purposes of this Act unless it is ratified by a resolution of the House of Representatives.
162 Determination of annual dividend (1) The Bank must, as soon as practicable after the end of each financial year, rec- ommend to the Minister the amount appropriately payable by the Bank to the Crown as an annual dividend in respect of the financial year.

173 Part 6 s 162AA Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (2) (3) The Bank must determine the amount it recommends to the Minister under sub- section (1) in accordance with the principles 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 financial year having regard to— (a) (b) (c) the recommendation of the Bank; and the views of the Board of the Bank; and any other relevant matters.

(4) The Bank must publish in its annual report— (a) (b) the amount it recommends to the Minister under subsection (1); and the determination made by the Minister under subsection (3).
Section 162: replaced, 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 accountability of the Bank by— (i) (ii) (iii) enabling the Crown to participate in the process of setting the Bank’s medium-term 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) annual report: to— (i) (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 intent; and (iii) ensure the accountability of the Bank for the funds available to it: (c) financial stability report: to— (i) (ii) report on matters relating to the soundness and efficiency of the financial system and other matters associated with the Bank’s stat- utory prudential 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 138 174 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 6 s 162AB 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, Parts 5B and 5C, and under the Non-bank Deposit Takers Act 2013 and the Insurance (Prudential Supervision) Act 2010; and assess the regulatory impacts of the policies adopted and applied under Part 5, Parts 5B and 5C, and under the Non-bank Deposit Takers Act 2013 and the Insurance (Prudential Supervision) Act 2010 at intervals appropriate to the nature of the policy being assessed; and (c) give reports on the assessments to the Minister.
(2) (3) Subsection (1) does not apply in respect of any policy that is of a minor or technical nature.

The Bank may provide reports on the assessments of regulatory impacts to the Minister— (a) (b) as part of an accountability document or other report; or as a stand-alone report prepared following a request by the Minister or on the Bank’s own initiative.

(4) The Bank must publish every report on the assessment of regulatory 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.

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

Section 162AB(1)(a): amended, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Section 162AB(1)(a): amended, on 8 September 2010, by section 241(1) of the Insurance (Prudential Supervision) Act 2010 (2010 No 111).

Section 162AB(1)(b): amended, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
Section 162AB(1)(b): amended, on 8 September 2010, by section 241(1) of the Insurance (Prudential Supervision) Act 2010 (2010 No 111).

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).
175 Part 6 s 162A Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 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 information for the full period to which it relates: (a) (b) (c) (d) key background information about the Bank and its operating environ- ment: 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: how the Bank intends to perform its functions and conduct its operations to achieve those impacts, outcomes, or objectives: (da) if a direction has been given under section 68B, how the Bank has had regard to the direction: (e) (f) (g) (h) (i) (j) the proposed strategies for managing the organisational health and cap- ability of the Bank: a statement of the projected income and expenditure for the first finan- cial 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 non-financial measures and standards 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 under- standing of the Bank’s intentions and direction.
(2) Each statement of intent must be dated and signed by the Governor and the Deputy Chief Executive.

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

Section 162B(1)(c): replaced, on 10 September 2008, by section 24(1) of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
176 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 6 s 162D Section 162B(1)(d): replaced, 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): inserted, on 10 September 2008, by section 24(2) of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
Section 162B(1)(h): inserted, on 10 September 2008, by section 24(2) of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

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

Section 162B(1)(j): inserted, on 10 September 2008, by section 24(2) of the Reserve 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) (b) 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 fi- nancial year.
(2) If the Minister’s comments include comment on the financial 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 com- ments into account in formulating its objectives.

Section 162C: inserted, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 162C(2): inserted, 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 signifi- cantly affect or alter the information contained in the statement that relates to section 162B(1)(b), (d), or (e).
(2) 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 amend- ment to the Minister as soon as practicable.

Section 162D: inserted, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).
177 Part 6 s 162E Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 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 Represen- tatives.

Section 162E: inserted, on 25 January 2005, by section 37(1) of the Public Finance 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 subsidiaries during the fi- nancial year; and audited financial statements for the Bank for the financial year and, if the Bank has any subsidiaries, audited consolidated financial statements for the Bank and its subsidiaries for that year; and (c) the auditor’s report on those financial statements.
(2) 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 (a) information on the remuneration, compensation, and other benefits (in- cluding indemnities and insurance cover) provided or granted, during the financial year, to— (i) (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 dis- closed in the report); and any other matters that the Bank is required, has undertaken, or wishes to report on in its annual report; and if the Board agrees, the Board’s report prepared in accordance with sec- tion 53A; and 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 dur- ing the financial year.
(b) (c) (d) 178 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 6 s 165 (3) The documents delivered to the Minister under subsection (1) stand referred, by virtue of this section, to the House of Representatives.

Section 163: replaced, 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 Reserve Bank of New Zea- land 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 accept- ed accounting practice and shall include— (a) (b) (c) (d) (e) (f) (g) (h) a statement of the Bank’s financial position at its balance date: an operating statement reflecting the revenue and expenses of the Bank for that year by reference to the functions 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 oper- ations 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).
(2) The financial statements shall show separately— (a) (b) any payments made by the Bank under section 21(1); and any payments made by the Minister to the Bank under section 21(2).

165 Management statements (1) The financial statements of the Bank shall be accompanied by a management statement signed by the Governor and the Deputy Chief Executive.
(2) The management statement shall comprise: (a) (b) 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 establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting: 179 Part 6 s 165A Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (c) 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.
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,— (a) (b) deliver a financial stability report to the Minister; and publish the report on an Internet site maintained by, or 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 assessment to be made of the activities undertaken by the Bank to achieve its statutory prudential purposes under this Act and any other enactment.

(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 Auditor-General 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: replaced, 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 persons (whether as individuals or as members from time to time of any firm or firms) to carry out an assessment of the performance by the Bank of its functions and of the exer- cise by the Bank of its powers under this Act.
(2) As soon as practicable after completing an assessment the person appointed shall submit a report to the Minister setting out the results of that assessment.

(3) The report stands referred, by virtue of this section, to the House of Represen- tatives.
180 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 7 s 170 (4) A person appointed to conduct an assessment under this section, for the pur- pose 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 af- fairs: (b) may require any director, officer or employee of the Bank or any other person to answer any question relating 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 posses- sion or under the control 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): replaced, 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 provisions generally ac- cepted as necessary for the fair and proper treatment of employees in all as- pects of their employment, including provisions requiring— (a) (b) (c) (d) 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 individual employees.
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).
181 Part 7 s 171 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 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 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 prevent or excuse that person from com- plying with any provision of this Act or any regulation made under it or with any direction, notice, requirement or condition given or imposed under that provision.
Compare: 1964 No 134 s 49 173 Regulations The Governor-General may from time to time, by Order in Council, make regulations for all or any of the following purposes: (a) (b) (c) (d) (e) 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, permis- sions, 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 production 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 doing so may be to require the furnishing of information, or the production of books or documents, that will reveal the identity or affairs of any par- ticular person); and providing for the verification of any such informa- tion; 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: authorising the Minister or the Bank or any other person to exercise any discretionary power or authority for the purposes of any such regula- tions: providing for the delegation of any of the powers or functions of the Minister (including the power of delegation) or the Bank under any such regulations: 182 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 7 s 174 (f) (fa) (g) (h) (i) (j) providing for and regulating the issue, registration, transfer, control, and redemption of any financial products issued by the Bank: prescribing information for the purposes of section 69(2A)(c): pescribing forms for the purposes of this Act or of any such regulations, in any case where a form is not
 prescribed by this Act: providing for and regulating the giving or service of notices for the pur- poses of this Act or of any such regulations, 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 con- tinued: (k) providing for such matters as are contemplated by or necessary for giv- ing full effect to the provisions of this Act and for its due administration.
Compare: 1964 No 134 s 50; 1977 No 68 s 6 Section 173(f): amended, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 173(fa): inserted, on 4 September 2013, by section 5 of the Reserve Bank of New Zealand Amendment Act 2013 (2013 No 62).
174 Consents under regulations (1) (2) 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, con- sent to the entry into the transaction or the execution of the instrument.
Subject to the terms of the consent, any transaction, or instrument, and any re- lationship, or interests created by it, which would be invalid or unenforceable without that consent, shall, on the giving of that consent, be valid or enforce- able as if the consent had been given before the transaction was entered into or the instrument executed.
(3) Consent may be given— (a) in respect of such transactions, instruments, or persons or classes of transactions, instruments, or persons as the Minister or the Bank may de- termine, 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 3 183 Part 7 s 175 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 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) (ii) 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 purposes of those regulations: (b) (c) resists, obstructs, or deceives any person who is exercising 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, no- tice, 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 self-incrimination no excuse A person is not excused from answering any question, supplying any informa- tion, 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).
175B Admissibility of self-incriminating statements (1) A self-incriminating 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 ex- planation, 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 explanation, or comply with any other requirement may be used in evidence against that person in a pros- ecution for any offence under this Act arising from that refusal or fail- ure: 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 mis- 184 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 7 s 178 leading in a material particular, may be used in evidence against that per- son 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 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: (b) in the case of a body corporate, to a fine not exceeding $25,000.
Compare: 1964 No 134 s 52(1); 1977 No 68 s 7(1) Section 176: amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Section 176: amended, on 24 March 1995, by section 10 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
177 Time for filing charging document Despite anything to the contrary in section 25 of the Criminal Procedure Act 2011, the limitation period in respect of an offence against this Act,— (a) (b) in the case of an offence against section 28 or 30, ends on the date that is 3 years after the date on which the offence was committed; or in any other case, ends on the date that is 6 years after the date on which the offence was committed.
Section 177: replaced, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

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 evidence of the mat- ters stated in it in any proceedings.
(3) Any certificate purporting to have been signed by the Governor shall, in the ab- sence 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 8 185 Part 7 s 179 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 179 Protection from liability (1) This section applies to— (a) (b) (c) 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 (d) every director of the Bank.
(2) No person to whom this section applies is personally liable for an act done or omitted to be done in the exercise or performance in good faith of that person’s functions, duties, or powers under this Act.

Section 179: replaced, 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): inserted, on 1 November 2006, by section 9 of the Reserve Bank of New Zealand Amendment Act 2006 (2006 No 51).

179A Indemnity (1) 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.
(2) The persons are— (a) (b) (c) (d) (e) (f) 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.

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

(5) Within 12 sitting days of the making of any payment under this section, the Minister must present to the House of Representatives a report which contains details of the circumstances giving rise to the liability of the Crown, the amount of the payment, the person to whom the payment was made and any other relevant matters.
186 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 7 s 181 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): inserted, on 1 November 2006, by section 10 of the Reserve Bank of New Zea- land Amendment Act 2006 (2006 No 51).

Section 179A(3): amended, on 25 January 2005, pursuant to section 65R(3) of the Public Finance Act 1989 (1989 No 44).
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) [Repealed] [Expired] [Repealed] [Repealed] [Repealed] [Expired] [Repealed] [Repealed] [Repealed] (10) [Repealed] (11) Section 48 of the Securities Amendment Act 1988 is hereby 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 Securities Amendment Act 1996 (1996 No 100).

187 Part 7 s 182 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 182 Amendments to Superannuation Schemes Act 1989 Amendment(s) incorporated in the Act(s).
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 indica- ted 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 re- voked.

(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 provi- sions of those enactments, and every document or thing subsisting or in force at the commencement of this Act shall continue to have effect as if it had been made or done under this Act.
(4) [Repealed] Section 186(4): repealed, on 1 July 1994, by section 63 of the Companies Amendment Act 1993 (1993 No 108).

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 Zea- land 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 Act, subject to statutory management under that Act, in all respects as if they had not been repealed; and (b) 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 188 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Part 7 s 190 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 statutory management under Reserve Bank of New Zealand Act 1964 (1) The Governor-General may, by Order in Council, on the advice of the Minister given in accordance with a recommendation of the Bank,— (a) (b) declare that any person that is subject to statutory management under the Reserve Bank of New Zealand Act 1964 shall become subject to statuto- ry management under this Act: provide in that order or in any subsequent Order in Council, such transi- tional provisions as are necessary for giving effect to any such declar- ation.
(2) Where any such order is made, the following provisions shall 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 stat- utory 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.
190 Transitional provisions in relation to Part 5A and Part 5C of Reserve Bank of New Zealand Act 1964 (1) 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, notwithstanding 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 be- fore the commencement of this Act shall be determined under this Act.
(3) Nothing in subsection (1) applies to: 189 Part 7 s 191 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (a) (b) a registered bank: a person that is exempted from the application of that subsection by the Bank by notice in the Gazette.
191 Transitional provisions in relation to office holders (1) (2) 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 appointed under section 43 for the balance of the term for which that person was appointed.
(3) Any other person holding office as a director of the Bank immediately 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 sub- section from being appointed under section 54 as a director of the Bank.
192 Transitional provision in relation to accounts of Bank The provisions of sections 40 to 45 and section 46 of the Reserve 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.
190 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Schedule 1 Schedule 1 Enactments amended 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: repealed, on 1 July 2001, by section 25(1)(c) of the Housing Corporation Amendment Act 2001 (2001 No 37).

191 Schedule 2 Reserve Bank of New Zealand Act 1989 Schedule 2 Enactments repealed Reprinted as at 1 January 2016 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) 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) 192 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Schedule 4 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 (SR 1988/77) Reserve Bank of New Zealand Order 1988 (SR 1988/192) Proclamation revoked Decimal Currency (End of Transitional Period) Proclamation 1986 (SR 1968/86) Schedule 3 General provisions relating to material incorporated by reference [Repealed] Schedule 3: repealed, on 1 May 2014, by section 92(1) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
ss 81AA(3), 157S(3), 157W(3) Schedule 4 General provisions relating to search warrants issued under Part 5D [Repealed] Schedule 4: repealed, on 1 October 2012, by section 298(7) of the Search and Surveillance Act 2012 (2012 No 24).
s 157ZM(2) 193 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Amendment Act 1993 Public Act 1993 No 118 Date of assent 28 September 1993 Commencement see section 1(2) 1 (1) 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”).
(2) This Act shall come into force on 1 July 1994.
5 Transitional provisions Nothing in section 4 applies to or affects— (a) (b) a registered bank that was subject to statutory management under the principal Act immediately before the commencement of this Act: any transaction entered into by a registered bank or anything done by any person before the commencement of this Act— 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) (d) (e) 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 man- agement was the date of the commencement of the winding up.
194 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Reserve Bank of New Zealand Amendment Act 2003 Public Act 2003 No 46 Date of assent 20 August 2003 Commencement see section 2 1 (1) (2) 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”.

2 Commencement This Act comes into force on the day after the date on which it receives the Royal assent.
Part 3 Miscellaneous Transitional provisions 50 Savings relating to authorisations or consents under Part 4 of principal Act Any authorisations or consents relating to the use of a restricted word that were granted under section 65 of the principal Act before the commencement of this Act remain in force.
51 (1) Temporary exemption from Part 4 of principal Act This section applies to any person who,— (a) (b) 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 lawfully use that name or title.
(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 com- mencing on the date of commencement of this Act.
52 Existing applications An application for registration as a registered bank under the principal Act that has been made, but not determined or withdrawn, before the date of com- mencement of this Act must continue to be dealt with in accordance with the 195 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 principal Act and any regulations made under that Act as if this Act had not been enacted.
196 Reprinted as at 1 January 2016 Reserve Bank of New Zealand Act 1989 Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 Public Act 2013 No 103 Date of assent 3 December 2013 Commencement see section 2 1 2 3 11 (1) Title This Act is the Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013.

Commencement This Act comes into force on the 7th day after the date on which it receives the Royal assent.
Principal Act This Act amends the Reserve Bank of New Zealand Act 1989 (the principal Act).

Part 2 Transitional provisions and amendments to other Acts Transitional provisions The amendments made by this Act apply in relation to existing covered bond programmes and issuers on and from the date that is 9 months after this Act comes into force.
(2) However, despite subsection (1), an issuer may, in relation to an existing covered bond programme, make an application under section 139E of the prin- cipal Act (as inserted by section 9 of this Act) at any time on or after the date on which this Act comes into force and, in that case,— (a) section 139E(4) and (5)(a) and (b) of the principal Act (as inserted by section 9 of this Act) apply on and from the date on which the applica- tion is approved or declined under section 139G of the principal Act (as inserted by section 9 of this Act); and (b) all other amendments made by this Act apply on and from the date of the application.
(3) To avoid doubt, on and from the date specified in subsection (1),— (a) all amendments made by this Act apply in relation to existing covered bond programmes; and 197 Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 (b) covered bonds must not be issued under an existing covered bond pro- gramme unless the programme is registered under section 139G of the principal Act (as inserted by section 9 of this Act).
(4) In this section, existing covered bond programme means a covered bond pro- gramme that was established before this Act came into force.

198 Reprinted as at 1 January 2016 Reprints notes Reserve Bank of New Zealand Act 1989 Notes 1 2 General This is a reprint of the Reserve Bank of New Zealand Act 1989 that incorpor- ates all the amendments to that Act as at the date of the last amendment to it.
Legal status Reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by any amendments to that enactment.

Section 18 of the Legislation Act 2012 provides that this reprint, published in electronic form, has the status of an official version under section 17 of that Act.

A printed version of the reprint produced directly from this official elec- tronic version also has official status.
3 Editorial and format changes Editorial and format changes to reprints are made using the powers under sec- tions 24 to 26 of the Legislation Act 2012.

See also http://www.pco.parlia- ment.govt.nz/editorial-conventions/.
4 Amendments incorporated in this reprint Legislation (Confirmable Instruments) Amendment Act 2015 (2015 No 120): section 14 Companies Amendment Act 2013 (2013 No 111): section 14 Non-bank Deposit Takers Act 2013 (2013 No 104): section 92(1) Reserve Bank of New Zealand (Covered Bonds) Amendment Act 2013 (2013 No 103) Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102): section 126 Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70): section 150 Reserve Bank of New Zealand Amendment Act 2013 (2013 No 62) Legislation Act 2012 (2012 No 119): section 77(3) Search and Surveillance Act 2012 (2012 No 24): sections 297, 298 Criminal Procedure Act 2011 (2011 No 81): section 413 Financial Markets Authority Act 2011 (2011 No 5): sections 82, 84(3) Insurance (Prudential Supervision) Act 2010 (2010 No 111): section 241(1) Reserve Bank of New Zealand Amendment Act 2009 (2009 No 53) 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 445 199 Notes Reserve Bank of New Zealand Act 1989 Reprinted as at 1 January 2016 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 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) Public Finance Act 1989 (1989 No 44): section 65R(3) Wellington, New Zealand: Published under the authority of the New Zealand Government—2016 200