Deposit Takers (Classification of Loans Made Against More Than One Form of Security) Exemption Notice 2011

  • revoked
  • Deposit Takers (Classification of Loans Made Against More Than One Form of Security) Exemption Notice 2011: revoked, on 1 March 2013, by regulation 3 of the Deposit Takers (Classification of Loans Made Against More Than One Form of Security) Exemption Revocation Notice 2013 (SR 2013/13).

Reprint
as at 1 March 2013

Coat of Arms of New Zealand

Deposit Takers (Classification of Loans Made Against More Than One Form of Security) Exemption Notice 2011

(SR 2011/272)

  • Deposit Takers (Classification of Loans Made Against More Than One Form of Security) Exemption Notice 2011: revoked, on 1 March 2013, by clause 3 of the Deposit Takers (Classification of Loans Made Against More Than One Form of Security) Exemption Revocation Notice 2013 (SR 2013/13).


Note

Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.

A general outline of these changes is set out in the notes at the end of this reprint, together with other explanatory material about this reprint.

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


Pursuant to section 157G of the Reserve Bank of New Zealand Act 1989, the Reserve Bank of New Zealand gives the following notice (to which is appended a statement of reasons of the Bank).

Notice

1 Title
  • This notice is the Deposit Takers (Classification of Loans Made Against More Than One Form of Security) Exemption Notice 2011.

2 Commencement
  • This notice comes into force on the day after the date of its notification in the Gazette.

3 Expiry
  • This notice expires on the close of 30 June 2013.

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

6 Condition of exemption
  • The exemption in clause 5 is subject to the condition that the exempt loan must be classified into class 25 or class 26 of table 1 of the Schedule of the Regulations, as applicable.


Schedule
Specified deposit takers

cl 4(1)

Heartland Building Society

PGG Wrightson Finance Limited

Dated at Wellington this 8th day of August 2011.

Grant Spencer,
Deputy Governor.


Statement of reasons

This notice comes into force on the day after the date of its notification in the Gazette and expires on 30 June 2013.

This notice allows certain deposit takers, when calculating their risk-weighted amount for credit risk, to give a different risk weighting to certain loans with 2 sorts of securities, namely a first mortgage over land or buildings (or both) and one or more secondary securities.

The Reserve Bank of New Zealand, after taking into account the principles set out in section 157F of the Reserve Bank of New Zealand Act 1989 and satisfying itself as to the matters set out in section 157G(2) of that Act, considers it is appropriate to grant the exemption because—

  • compliance by certain deposit takers with the specific requirements as to capital adequacy calculations that are set out in regulation 13(2) of the Deposit Takers (Credit Ratings, Capital Ratios, and Related Party Exposures) Regulations 2010 would be unduly onerous or burdensome in the circumstances. The circumstances are that these deposit takers take secondary security over the loans that they make, and that the more appropriate risk weight is that of the first ranking security, rather than the secondary security. This exemption allows the capital position of these deposit takers to be more accurately reflected:

  • exempting these deposit takers from these specific requirements of the capital adequacy calculations is consistent with the maintenance of a sound and efficient financial system for the reasons stated above:

  • the condition attached to this exemption ensures that the exemption is not broader than is reasonably necessary to address the matters that gave rise to the exemption.


Issued under the authority of the Acts and Regulations Publication Act 1989.

Date of notification in Gazette: 11 August 2011.


Contents

  • 1General

  • 2Status of reprints

  • 3How reprints are prepared

  • 4Changes made under section 17C of the Acts and Regulations Publication Act 1989

  • 5List of amendments incorporated in this reprint (most recent first)


Notes
1 General
  • This is a reprint of the Deposit Takers (Classification of Loans Made Against More Than One Form of Security) Exemption Notice 2011. The reprint incorporates all the amendments to the notice as at 1 March 2013, as specified in the list of amendments at the end of these notes.

    Relevant provisions of any amending enactments that contain transitional, savings, or application provisions that cannot be compiled in the reprint are also included, after the principal enactment, in chronological order. For more information, see http://www.pco.parliament.govt.nz/reprints/ .

2 Status of reprints
  • Under section 16D of the Acts and Regulations Publication Act 1989, reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by the amendments to that enactment. This presumption applies even though editorial changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in the reprint.

    This presumption may be rebutted by producing the official volumes of statutes or statutory regulations in which the principal enactment and its amendments are contained.

3 How reprints are prepared
  • A number of editorial conventions are followed in the preparation of reprints. For example, the enacting words are not included in Acts, and provisions that are repealed or revoked are omitted. For a detailed list of the editorial conventions, see http://www.pco.parliament.govt.nz/editorial-conventions/ or Part 8 of the Tables of New Zealand Acts and Ordinances and Statutory Regulations and Deemed Regulations in Force.

4 Changes made under section 17C of the Acts and Regulations Publication Act 1989
  • Section 17C of the Acts and Regulations Publication Act 1989 authorises the making of editorial changes in a reprint as set out in sections 17D and 17E of that Act so that, to the extent permitted, the format and style of the reprinted enactment is consistent with current legislative drafting practice. Changes that would alter the effect of the legislation are not permitted.

    A new format of legislation was introduced on 1 January 2000. Changes to legislative drafting style have also been made since 1997, and are ongoing. To the extent permitted by section 17C of the Acts and Regulations Publication Act 1989, all legislation reprinted after 1 January 2000 is in the new format for legislation and reflects current drafting practice at the time of the reprint.

    In outline, the editorial changes made in reprints under the authority of section 17C of the Acts and Regulations Publication Act 1989 are set out below, and they have been applied, where relevant, in the preparation of this reprint:

    • omission of unnecessary referential words (such as of this section and of this Act)

    • typeface and type size (Times Roman, generally in 11.5 point)

    • layout of provisions, including:

      • indentation

      • position of section headings (eg, the number and heading now appear above the section)

    • format of definitions (eg, the defined term now appears in bold type, without quotation marks)

    • format of dates (eg, a date formerly expressed as the 1st day of January 1999 is now expressed as 1 January 1999)

    • position of the date of assent (it now appears on the front page of each Act)

    • punctuation (eg, colons are not used after definitions)

    • Parts numbered with roman numerals are replaced with arabic numerals, and all cross-references are changed accordingly

    • case and appearance of letters and words, including:

      • format of headings (eg, headings where each word formerly appeared with an initial capital letter followed by small capital letters are amended so that the heading appears in bold, with only the first word (and any proper nouns) appearing with an initial capital letter)

      • small capital letters in section and subsection references are now capital letters

    • schedules are renumbered (eg, Schedule 1 replaces First Schedule), and all cross-references are changed accordingly

    • running heads (the information that appears at the top of each page)

    • format of two-column schedules of consequential amendments, and schedules of repeals (eg, they are rearranged into alphabetical order, rather than chronological).

5 List of amendments incorporated in this reprint (most recent first)