New Zealand Legislation: Regulations

28 Termination of participation in mortgage diversion facility

• (1) This regulation applies if—

  • (a) a provider of a KiwiSaver scheme or a mortgagee decides to terminate participation in the mortgage diversion facility in respect of all or any members (whether the termination is in respect of members who are already having contributions diverted under the facility or other members); or

  • (b) the member of a KiwiSaver scheme who participates in the mortgage diversion facility in respect of a mortgage—

    • (i) pays the total amount secured by the mortgage; or

    • (ii) chooses to cease participation in the mortgage diversion facility; or

    • (iii) ceases to be a member of the relevant KiwiSaver scheme; or

  • (c) the mortgage is discharged.

  (2) The provider must stop forwarding contributions to the mortgagee in respect of the member and must retain the KiwiSaver contributions in the member’s accounts.

  (3) The person whose act caused this regulation to apply must give notice to the other 2 participants in the mortgage diversion facility.

  Regulation 28: added, on 1 July 2007, by regulation 4 of the KiwiSaver Amendment Regulations 2007 (SR 2007/152).