New Zealand Legislation: Acts
Acts are laws made by Parliament
(1) In this Act, unless the context otherwise requires,—
bank note or note means any negotiable instrument used or circulated, or intended for use or circulation, as currency
banking group has the meaning given to it in the Orders in Council made under section 81
clearing house means a person that provides clearing or settlement services for a payment system
Deputy Chief Executive means, if 1 person is appointed under this Act as the Deputy Governor of the Bank, that person, and if 2 persons are appointed under this Act as Deputy Governors of the Bank, the Deputy Governor designated by the Board as the Deputy Chief Executive
Deputy Governor means, if 1 person is appointed under this Act as the Deputy Governor of the Bank, that person, and if 2 persons are appointed under this Act as Deputy Governors, each of those persons
designated payment system has the meaning set out in section 156L
director, except in relation to the Bank, means—
(a) a person occupying the position of director by whatever name called:
(b) in the case of an entity that does not have directors as such, any trustee, manager, or other person who acts in relation to that entity in the same or a similar fashion as a director would act were that entity a company incorporated in New Zealand under the Companies Act 1993
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) any writing on any material:
(b) any information recorded or stored by means of any tape-recorder, computer, or other device; and any material subsequently derived from information so recorded or stored:
(c) 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:
(d) any book, map, plan, graph, or drawing:
(e) 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 generality of the foregoing includes—
(a) a life insurance company, being a company as defined in section 2 of the Life Insurance Act 1908; and includes any branch, division, or office of that company; and
(b) a building society as defined in section 2 of the Building Societies Act 1965; and
(c) a registered bank; and
(d) a specified person or class of persons (including a body or bodies of persons, whether incorporated or not) who is or are declared by the Governor-General, by Order in Council, to be a financial institution or institutions for the purposes of this Act
financial year has the meaning given to it by section 157
foreign exchange means—
(a) the bank notes or other currency, postal notes, or money orders of any country other than New Zealand:
(b) promissory notes and bills of exchange payable otherwise than in New Zealand currency:
(c) a right to receive payment in the currency of a country other than New Zealand:
(d) an obligation to make payment in the currency of a country other than New Zealand:
(e) a 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 sections 158 and 158A of the Companies Act 1955 or sections 5 and 6 of the Companies Act 1993, as the case may be
home country supervisor means any central bank, authority, or body in any country other than New Zealand that exercises functions in relation to a parent bank or an overseas incorporated registered bank that correspond with, or are similar to, those conferred on the Bank under Part 5
home jurisdiction means,—
(a) in the case of an overseas person that is a body corporate, the country in which that body is incorporated:
(b) 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 business
Minister means the Treasurer, or other Minister of the Crown who, under the authority of any warrant or with the authority of the Prime Minister, is for the time being responsible for the administration of this Act or particular provisions of this Act
net income, in relation to a financial year, means the total revenue of the Bank reported in its statement of financial performance for that year calculated after deducting all expenses incurred by the Bank in that year
New Zealand chief executive officer, in relation to an overseas incorporated registered bank, means—
(a) the most senior officer of that bank who is ordinarily resident in New Zealand; or
(b) another person who may be nominated by that bank and agreed to in writing by the Bank; or
(c) if section 82(3) applies, an employee of that bank who has been specified 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) interest, foreign exchange losses, and losses (or provision for losses) on financial instruments or revaluation of financial instruments; or
(ii) any payments made to the Crown under section 21; or
(iii) any expenses agreed by the Minister and the Bank not to be operating expenses
operator, in relation to a payment system, means—
(a) a clearing house; or
(b) a settlement agent; or
(c) any other person that provides clearing, settlement, or processing services to participants in that payment system
overseas bank means any person that is formed, licensed, or registered as a bank in any country other than New Zealand
overseas person means—
(a) a body corporate incorporated outside New Zealand; or
(b) 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 a payment system,—
(a) means a person that participates in the payment system in accordance with the rules of that payment system; and
(b) in the case of a designated payment system, includes an operator of the designated payment system if the designation under section 156M so provides
payment system—
(a) means a system or arrangement for—
(i) the clearing or settlement of payment obligations; or
(ii) 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) the legal or beneficial ownership of the specified security; or
(b) the power to exercise, or control the exercise of, any voting right attached to the specified security; or
(c) the power to acquire or dispose of the specified security; or
(d) the power to control the acquisition or disposition of the specified security by another person; or
(e) the powers referred to in paragraphs (b) to (d) under, or by virtue of, any trust, agreement, arrangement, or understanding relating to the specified security
Registered bank means a person whose name is entered in the register maintained under section 69 or who continues to be a registered bank by virtue of the provisions of section 76
Reserve Bank or the Bank means the Reserve Bank of New Zealand constituted under this Act
restricted word—
(a) means the words “bank”, “banker”, and “banking”; and
(b) includes—
(i) any of those words as part of any other word:
(ii) a translation of those words into another language (whether or not the translation of those words is part of any other word)
Security has the same meaning as in section 2 of the Securities Act 1978
significant influence, in relation to a registered bank, means—
(a) 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
(b) a direct or indirect qualifying interest in 10% or more of the voting securities issued or allotted by the registered bank
specified security has the meaning given to security in section 6(1) of the Overseas Investment Act 2005
subsidiary means a subsidiary within the meaning of section 158(1)(a)(ii) and (b) of the Companies Act 1955 or section 5(1)(a)(iii) and (b) of the Companies Act 1993, as the case may be
trade mark has the meaning given to it by section 5(1) of the Trade Marks Act 2002
voting right, in relation to any body,—
(a) means a currently exercisable right to cast a vote at meetings of shareholders or members of that body; but
(b) does not include a right to vote that is exercisable only in 1 or more of the following circumstances:
(i) 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:
(ii) on a proposal that affects rights attached to the security that confers the voting right:
(iii) on a proposal to put the body into liquidation or voluntary administration:
(iv) on a proposal for the disposal of the whole, or a material part, of the property, business, or undertaking of the body:
(v) 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, immaterial, 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) that person directly or indirectly controls the management of the financial institution or registered bank; or
(b) 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
(c) that financial institution or registered bank directly or indirectly controls the management of that person; or
(d) that financial institution or registered bank has a direct or indirect qualifying interest in 20% or more of the voting or non-voting securities issued by that person.
(3) For the purposes of section 77A, transaction includes the—
(a) sale or transfer of property or securities; and
(b) issue or allotment of securities; and
(c) entering into, or giving effect to a provision in, a contract or arrangement; 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 substantial interest in a body if—
(a) that holding company directly or indirectly controls the management of that body; or
(b) 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: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) designated payment system: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) director: 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) disclosure statement: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) financial institution paragraph (d): amended, on 1 November 2006, by section 4 of the Reserve Bank of New Zealand Amendment Act 2006 (2006 No 51).
Section 2(1) financial year: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) holding company: inserted, on 24 March 1995, by section 2 of the Reserve Bank of New Zealand Amendment Act 1995 (1995 No 5).
Section 2(1) home country supervisor: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) home jurisdiction: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) Minister: substituted, on 25 June 1997, by section 2 of the Treasurer (Statutory References) Act 1997 (1997 No 20).
Section 2(1) net income: inserted, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).
Section 2(1) New Zealand chief executive officer: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) 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 Finance 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): added, on 10 September 2008, by section 6 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).
Section 2(1) operator: 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 bank: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) overseas person: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) parent bank: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) participant: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) payment system: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) qualifying interest: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) restricted word: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) significant influence: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) specified security: substituted, on 25 August 2005, by section 75 of the Overseas Investment Act 2005 (2005 No 82).
Section 2(1) subsidiary: substituted, 1 July 1994, by section 2 of the Company Law Reform (Transitional Provisions) Act 1994 (1994 No 16).
Section 2(1) trade mark: inserted, 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: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(1) voting right paragraph (b)(iii): amended, on 1 November 2007, by section 41 of the Companies Amendment Act 2006 (2006 No 56).
Section 2(1) voting right paragraph (b)(v): amended, on 1 November 2007, by section 41 of the Companies Amendment Act 2006 (2006 No 56).
Section 2(1) voting security: inserted, on 21 August 2003, by section 3(1) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(2): substituted, on 21 August 2003, by section 3(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(3): added, on 21 August 2003, by section 3(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).
Section 2(4): added, on 21 August 2003, by section 3(2) of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).