Insolvency Amendment Act 2009

1: Title
This Act is the Insolvency Amendment Act 2009.
2: Commencement
1: Section 10 10 March 2009
2: The rest of this Act comes into force on the day after the date on which it receives the Royal assent.
3: Principal Act amended
This Act amends the Insolvency Act 2006 2009-11-17 Insolvency Act 2006 Note that section 10 is deemed to have come into force on 10 March 2009 (see s 2(1)).
1: Amendments to Insolvency Act 2006
Insolvent gifts
4: New sections 204 and 205 substituted
Sections 204 205
204: Insolvent gift within 2 years may be cancelled
A gift by a bankrupt to another person may be cancelled on the Assignee's initiative if the bankrupt made the gift within 2 years immediately before adjudication.
205: Insolvent gift within 2 to 5 years may be cancelled if bankrupt unable to pay debts
1: A gift by a bankrupt to another person may be cancelled on the Assignee's initiative if—
a: the bankrupt made the gift within the period beginning 2 years immediately before adjudication and ending 5 years immediately before adjudication; and
b: the bankrupt was unable to pay his or her debts.
2: A bankrupt is presumed to have been unable to pay his or her debts for the purpose of subsection (1)(b)
5: Limits on recovery
Section 208
b: a reasonable person in A's position would not have suspected, and A did not have reasonable grounds for suspecting, that,—
i: in the case of an insolvent gift, the bankrupt was, or would become, unable to pay his or her debts without the aid of the property that the gift is composed of; or
ii: in the case of any other irregular transaction referred to in section 206(1), the bankrupt was, or would become, unable to pay his or her due debts; and .
6: When Assignee may recover difference
Section 212(b) No asset procedure
7: Criteria for entry to no asset procedure
Section 363(2) , but does include any assets (for example, gifted assets) that might be recoverable by the Assignee if the debtor were adjudicated bankrupt on the date of application for entry to the no asset procedure and if the irregular transaction provisions in subpart 7 of Part 3 applied
8: Effect of termination
Section 375 , and the debtor is liable to pay any penalties and interest that may have accrued
9: Discharge
1: Section 377 Time of discharge
2: Section 377
2: However, a debtor is not automatically discharged if the Assignee—
a: is satisfied that the 12-month period should be extended for the purpose of properly considering whether the debtor's participation in the no asset procedure should be terminated; and
b: sends a written deferral notice to the debtor's last known address before the expiry of the 12-month period.
3: The deferral notice must state an alternative date for automatic discharge, which must be no later than 25 working days after the expiry of the 12-month period.
4: The deferral notice is effective whether or not the debtor receives it.
5: The Assignee must, as soon as practicable, send a written notice of the deferral to each creditor of the debtor known to the Assignee.
6: The debtor is automatically discharged from the no asset procedure on the date stated in the deferral notice.
7: The Assignee may revoke a deferral notice in the same way in which it was sent, in which case, the debtor is automatically discharged from the no asset procedure on—
a: the expiry of the 12-month period in subsection (1), if the notice is revoked before that date; or
b: in other cases, the date of revocation.
10: New section 377A inserted
1: Section 377
2: The following section is inserted after section 377
377A: Effect of discharge
1: On discharge under section 377, the debtor's debts that became unenforceable on the debtor's entry to the no asset procedure are cancelled, and the debtor is not liable to pay any part of the debts, including any penalties and interest that may have accrued.
2: However, subsection (1)
a: any debt or liability incurred by fraud or fraudulent breach of trust to which the debtor was a party:
b: any debt or liability for which the debtor has obtained forbearance through fraud to which the debtor was a party.
3: The debts and liabilities referred to in subsection (2)
11: New section 377B inserted
The following section is inserted after section 377A
377B: Discharge does not release partners and others
A discharge under section 377 does not release any person who, at the date of discharge, was—
a: a business partner of the discharged debtor; or
b: a co-trustee with the discharged debtor; or
c: jointly bound or had made any contract with the discharged debtor; or
d: a guarantor or in the nature of a guarantor of the discharged debtor. Public registers
12: Purposes of public registers
Section 448(3)(a) and persons discharged from that procedure under section 377
13: General information that must be held in public registers
1: Section 449(1) The public registers must contain the following information in respect of a person ( P The public registers must contain the following information in respect of a person ( P
2: Section 449(1)(b) or has been discharged from the no asset procedure under section 377, is currently admitted to the no asset procedure,
3: Section 449(1)
ha: if P is discharged from the no asset procedure under section 377, the date when P was so discharged: .
4: Section 449(3) , and the bankruptcy that was so annulled does not count for the purposes of section 449A
5: Section 449
4A: All information relating to a person who has been admitted to the no asset procedure must be removed from the public register maintained under section 368—
a: 4 years after the date of discharge under section 377; or
b: as soon as practicable after a termination under section 372(a), (c), or (d).
6: Section 368(1) and persons discharged from that procedure under section 377
14: New section 449A inserted
The following section is inserted after section 449
449A: Information kept indefinitely on public register after multiple insolvency events
1: This section applies in the case of a person who—
a: is or has been bankrupt on 2 or more occasions; or
b: is or has been both bankrupt and discharged from the no asset procedure under section 377.
2: Information about the person must not be removed from the public register under this Act and, in particular, section 449(4), (4A)
3: The Assignee must ensure that the public register contains all of the information required by this Act about the person and each insolvency event.
4: Bankruptcies under the Insolvency Act 1967 count for the purposes of subsections (1) and (3)
15: Search criteria
1: Section 453(2)
da: is discharged from the no asset procedure under section 377; or .
2: Section 453(2) ; or
h: is subject to section 449A
16: Search purposes
1: Section 454(b) or is currently admitted to the no asset procedure is currently admitted to the no asset procedure, or is discharged from that procedure under section 377
2: Section 454
e: by any person for the purpose of ascertaining whether section 449A
2: Transitional provisions and amendment to Privacy Act 1993
Insolvent gifts
17: Amendments relating to insolvent gifts apply only to bankruptcies commenced after Act comes into force
The principal Act sections 4 to 6 Which debts are cancelled on discharge from no asset procedure
18: Amendments relating to cancellation of fraudulent debts under no asset procedure
1: Any debt that is cancelled under section 377(2) section 377A of the principal Act by section 10 section 377A(2)
2: In particular, the debtor is liable to repay any part of the debt, including any penalties and interest that may have accrued during the period when the debt was cancelled.
3: Subsection (2) does not limit subsection (1).
4: Any proceedings for enforcement of the debt may be commenced or continued after the enactment of section 377A as if the debt had never been cancelled. Public registers
19: Amendments relating to 4-year period for public registers apply to all debtors admitted to no asset procedure after Act comes into force
The principal Act sections 12 13 15 16
20: Amendments relating to retention of records if multiple insolvency events
1: Section 449A section 14 section 449A(1)
2: As soon as practicable after this section comes into force, the Assignee must ensure that the public register contains all of the information required by the principal Act (as amended by this Act) about any person to whom section 449A
3: To avoid doubt, the requirement in subsection (2) includes a requirement to ensure that the public register contains information about bankruptcies under the Insolvency Act 1967 section 449A Amendment to Privacy Act 1993
21: Schedule 2 of Privacy Act 1993 amended
1: This section amends the Privacy Act 1993
2: The item relating to the Insolvency Act 2006 in Part 1 354, 62, 2009-11-17 Privacy Act 1993


1: Title
This Act is the Reserve Bank of New Zealand Amendment Act 2009.
2: Commencement
This Act comes into force on the day after the date on which it receives the Royal assent.
1: Reserve Bank of New Zealand Act 1989
3: Principal Act amended
This Act Reserve Bank of New Zealand Act 1989 2009-11-24 Reserve Bank of New Zealand Act 1989
4: Interpretation
1: The definition of clearing house section 2(1)
2: Section 2(1) designated payment system designated settlement system section 156M .
3: Section 2(1) operator operator .
4: Section 2(1) participant participant
a: means a person who has agreed to participate in either a settlement system or a payment system in accordance with the rules of that system; and
b: in the case of a designated settlement system, includes an operator of the settlement system if the designation under section 156N(3)(b) .
5: Section 2(1) settlement system section 156M specified operator section 156M .
5: Moratorium
Section 122(8) designated payment system designated settlement system
6: New Part 5C substituted
Part 5C
5C: Designated settlement systems
General
156K: Exercise of powers under this Part
1: The powers conferred on the Minister and the Bank by this Part must be exercised for the purposes of—
a: promoting the maintenance of a sound and efficient financial system; and
b: 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 Securities Act 1978 and the Commission by this Part must be exercised for the purposes of—
a: promoting the integrity and effectiveness of settlement systems and related markets in New Zealand; and
b: 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)
156L: Commission may exercise powers under Securities Act 1978
1: The Commission may exercise any of its powers under the Securities Act 1978 in performing its functions and duties, and exercising its powers, under this Act, and Part 3 of the Securities Act 1978 applies with all necessary modifications to its decisions and proceedings under this Act.
2: However, for the purposes of this Part, the Commission may exercise its powers under sections 67 and 67A of the Securities Act 1978 in relation to the Bank only if, and to the extent that, the Bank is—
a: a participant in a settlement system; or
b: an operator of a settlement system.
156M: Definitions for this Part
1: In this Part, unless the context otherwise requires,— Commission contact person section 156N(2)(d) designated settlement system section 156N joint regulators
a: the Bank; and
b: the Commission Minister responsible for the Securities Act 1978 netted balance netting
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, mutual debts, or other mutual dealings; and
d: whether or not the obligations or claims are denominated in New Zealand currency property pure payment system section 156N(3)(d) rules
a: in relation to a settlement system, means the rules of the settlement system (whether made under bylaws, agreements, procedures, contracts, or other documents) that are evidenced in writing and that provide, among other things, for—
i: the basis on which settlement instructions are given or received; and
ii: the basis on which settlement obligations are determined and calculated (either on a gross basis or using netting); and
iii: the basis on which settlements are effected (either on a gross basis or using netting); and
iv: any action to be taken if a participant in the settlement system is unable, or likely to become unable, to meet the participant's obligations to any or all of the following:
A: an operator of the settlement system:
B: another participant in the settlement system:
C: 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 designation under section 156N
i: been notified, not been disallowed, and come into effect in accordance with the processes and the time frames set out in sections 156ZB and 156ZC
ii: been made pursuant to a variation of a designation under section 156ZD settlement
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
a: that is made in accordance with the rules of that settlement system; and
b: that results, or is intended to result, in 1 or more settlements being effected 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 section 156N(2)(c)
2: In this Part, a participant becomes subject to an insolvency event
a: in the case of a company or other body corporate,—
i: a liquidator is appointed in respect of a liquidation under Part 16 of the Companies Act 1993 or under any other Act; or
ii: an administrator is appointed in respect of a voluntary administration under Part 15A of the Companies Act 1993; or
iii: a liquidator is appointed in respect of a liquidation of an overseas company under section 342 of the Companies Act 1993; or
iv: a statutory manager is appointed in respect of a statutory management under Part 3 of the Corporations (Investigation and Management) Act 1989; or
v: a statutory manager is appointed in respect of a statutory management under Part 5 of this Act; or
vi: a person is appointed in respect of, or another event occurs that indicates the start of, a process in New Zealand or in any other country in which the company or other body corporate was incorporated, created, or established that is similar to those set out in subparagraphs (i) to (v)
b: in the case of an individual,—
i: 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
ii: 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 procedure (whether in New Zealand or in another country). Designation
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 Securities Act 1978 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: the settlement system that is the subject of the designation; and
b: the documents that evidence the rules of that settlement system; and
c: which operator of the settlement system is the specified operator; and
d: the name or title of the person to whom notices relating to that settlement system must be given (the contact person
3: The order may also specify all or any of the following:
a: conditions to which the designation is subject:
b: that a particular operator is a participant in the settlement system that is the subject of the designation:
c: that the operator specified in accordance with subsection (2)(c) section 103A
d: 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 system has been declared to be a designated settlement system, post on their respective Internet sites the contact details and the name or title of the contact person of that designated settlement system.
5: However, the Commission does not have to comply with subsection (4) subsection (3)(d)
6: To avoid doubt,—
a: rules are not regulations for the purposes of the Regulations (Disallowance) Act 1989 and the Acts and Regulations Publication Act 1989; and
b: 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 section 103A
156O: Joint regulators' recommendations subject to procedure in sections 156Y to 156ZA
The procedure set out in sections 156Y to 156ZA section 156N(1) Effect of designation
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)
a: all references to a settlement must be read as if they were references to a settlement as defined in subsection (4)
b: for the purposes of sections 156K, 156M, and 156ZB to 156ZQ
c: all references to the joint regulators in sections 156K, 156M, and 156ZB to 156ZQ
d: anything in sections 156K, 156M, and 156ZB to 156ZQ
e: except as set out in subsection (2) sections 156K, 156M, and 156ZB to 156ZQ
f: section 156L
g: the advice of the Minister responsible for the Securities Act 1978 is not required under section 156ZD or 156ZE
h: this Part must be interpreted with all necessary modifications in order to give effect to this section.
2: However, if the Bank intends to recommend, in accordance with section 156ZD subsection (1)
3: This section ceases to apply to a designated settlement system if, in accordance with section 156ZD subsection (1)
4: For the purposes of subsection (1)(a) settlement
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 accordance with the rules of a settlement system.
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)
a: the basis on which settlement instructions are given or received; and
b: the basis on which settlement obligations are determined and calculated (either on a gross basis or using netting); and
c: the basis on which settlements are effected (either on a gross basis or using netting); and
d: 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 obligations to any or all of the following:
i: the specified operator of the designated settlement system:
ii: another participant in the designated settlement system:
iii: any other party to those rules.
156R: Settlements must not be reversed, etc
1: A settlement that is effected in accordance with the rules of a designated settlement system must not, whether in whole or in part, be reversed, repaid, recovered, or set aside despite any enactment or rule of law to the contrary.
2: Subsection (1)
3: In this section,— foreign court foreign proceeding foreign representative 2006 No 57 Schedule 1 Article 2
156S: Limits on application of section 156R(1)
1: Section 156R(1)
a: a participant in the designated settlement system in respect of whom the settlement is effected becomes subject to an insolvency event (the insolvent participant
b: the settlement is effected after the insolvent participant becomes subject to an insolvency event.
2: Despite subsection (1) section 156R(1)
a: the settlement is effected within 24 hours after the insolvent participant becomes subject to an insolvency event; or
b: the settlement instruction that gives rise to the settlement is duly authorised 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 participant
a: a liquidator appointed under Part 16 of the Companies Act 1993 or under any other Act; or
b: an administrator appointed in accordance with subpart 2 of Part 15A of the Companies Act 1993; or
c: a statutory manager appointed in accordance with section 38 of the Corporations (Investigation and Management) Act 1989; or
d: a statutory manager appointed in accordance with section 117 of this Act; or
e: a person who performs a role similar to those set out in paragraphs (a) to (d) section 156M(2)(a)(i) to (v)
f: 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 participant was incorporated, created, or established; or
g: 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 another country) that is, or is similar to, bankruptcy.
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.
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: sections 310 to 310O of the Companies Act 1993:
b: sections 254 to 262 of the Insolvency Act 2006.
2: However, a netted balance is to be treated as—
a: 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
b: 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.
156V: Underlying transactions, settlements, and limits on effect of sections 156Q, 156R, and 156T
1: Nothing in section 156Q, 156R, or 156T
a: 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
b: any party from taking action against another party that has acted fraudulently 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: a participant received value by means of that settlement; and
b: 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: an underlying transaction; or
b: a settlement that was effected in accordance with the rules of a designated settlement system.
4: In this section, underlying transaction
a: means a transaction that gave rise to—
i: a settlement; or
ii: a settlement obligation; but
b: does not include—
i: a settlement instruction; or
ii: a settlement that was effected in accordance with the rules of a designated settlement system; or
iii: 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.
156W: Interrelationship with other enactments
1: The following enactments prevail over sections 156Q, 156R, and 156T
a: sections 122(8) and 127(4) of this Act:
b: sections 42(8) and 44(4) of the Corporations (Investigation and Management) Act 1989.
2: This Part prevails over the Insolvency (Cross-border) Act 2006.
156X: Transfer of property in accordance with rules is effective
1: Subsection (2)
2: 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: affects any right a person has to refuse to take an action on any other ground; or
b: 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).
4: 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.
5: 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. Procedure for making designation
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: be accompanied by a copy of the rules of the settlement system; and
b: be accompanied by any information required by either or both of the joint regulators; and
c: set out the contact details and the name or title of the person who is proposed to act as the contact person of the settlement system; and
d: 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 Securities Act 1978 by notice in the Gazette
4: The joint regulators may, together, produce guidelines relating to the application procedure.
156Z: Consideration of application
1: Both of the joint regulators must consider any application made in accordance with section 156Y
2: In considering an application, each of the joint regulators may have regard to any or all of the following matters:
a: the purpose and scope of the settlement system:
b: the rules of the settlement system:
c: any laws or regulatory requirements relating to the operation of the settlement system and the extent to which the settlement system complies with those laws or regulatory requirements:
d: relevant international standards concerning clearing and settlement systems, to the extent that they are relevant in the circumstances:
e: the capability and capacity of the operators of the settlement system:
f: the financial resources of the settlement system:
g: the importance of the settlement system to the financial system:
h: the impact on creditors of participants in the settlement system of specifying that an operator of the settlement system is an operator to whom section 103A
i: any other matters that the regulator considers appropriate.
3: In considering an application, each of the joint regulators must consider whether the settlement system should be specified to be a pure payment system.
4: 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.
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 responsible for the Securities Act 1978 that the settlement system to which the application relates be declared to be a designated settlement system under section 156N
b: refuse to make that recommendation.
2: If subsection (1)(b)
a: that the joint regulators refuse to make a recommendation that the settlement system to which the application relates be declared to be a designated settlement system under section 156N
b: the reasons for the joint regulators' refusal. Amendments to rules
156ZB: Joint regulators must be notified of proposed amendments to rules
1: The specified operator of a designated settlement system must, as soon as practicable, notify either of the joint regulators of any amendment that is proposed to be made to the rules of that designated settlement system.
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 settlement system.
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 subsection (1)
a: the proposed amendment does not come into effect; and
b: 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)
a: the earlier of—
i: the day after the date on which the contact person of the designated settlement system receives notice from the joint regulators that they have decided not to disallow the proposed amendment; or
ii: the day that is 21 working days after the date on which either of the joint regulators first received notice of the proposed amendment under section 156ZB(1)
b: any later date that is specified as part of the proposed amendment. Variation and revocation of designation
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 Securities Act 1978 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)
b: by making the designation subject to a requirement that an amendment be made to the documents that evidence the rules of the settlement system that is the subject of the designation; or
c: by revoking or amending any condition to which the designation is subject; or
d: by making the designation subject to a new condition.
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 Securities Act 1978 given in accordance with a joint recommendation of the joint regulators, revoke any designation made under section 156N
156ZF: Settlement and netting not affected by variation or revocation of designation
The variation or revocation of a designation made under section 156N sections 156Q, 156R, and 156T
156ZG: Application for variation or revocation of designation
1: A person who wishes to have the designation made under section 156N
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 Securities Act 1978 by notice in the Gazette
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 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)
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
a: the purpose and scope of the designated settlement system:
b: the rules of the designated settlement system:
c: any laws or regulatory requirements relating to the operation of the designated settlement system and the extent to which the designated settlement system complies with those laws or regulatory requirements:
d: relevant international standards concerning clearing and settlement systems, to the extent that they are relevant in the circumstances:
e: the capability and capacity of the operators of the settlement system:
f: the financial resources of the settlement system:
g: the importance of the designated settlement system to the financial system:
h: the impact on creditors of participants in the settlement system of specifying, or no longer specifying, that an operator of the settlement system is an operator to whom section 103A
i: any failure to comply with any condition to which the designation is subject:
j: any failure to comply with the requirements of this Act:
k: any other matters that the joint regulator considers appropriate.
2: In determining whether to make a recommendation that any designation made under section 156N
156ZJ: Procedure for variation or revocation of designation
1: Before making a recommendation that any designation made under section 156N
a: give the contact person notice of—
i: the reasons for proposing to vary or revoke the designation; and
ii: the fact that the contact person may make submissions to the joint regulators in relation to the proposed variation or revocation; and
b: give the contact person an opportunity to make those submissions within a time period that the joint regulators consider reasonable in the circumstances; and
c: consider any submissions made by the contact person during that time period.
2: The notice referred to in subsection (1)(a) Obligations to give notice and supply information
156ZK: Contact person must be notified of insolvency event
1: This section applies if—
a: a participant in a designated settlement system ( participant A
b: 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.
2: If this section applies, participant A must, as soon as practicable after becoming aware of the insolvency event, notify that fact to the contact person of that designated settlement system.
3: It is sufficient compliance with the requirement to notify the contact person under subsection (2)
a: participant A takes all reasonable steps to comply with that requirement; or
b: the contact person was already aware of the insolvency event by the time participant A had to notify the contact person under that subsection.
156ZL: Supply of information relating to designated settlement system
1: The joint regulators may, by notice in writing, require any or all of the following persons to supply the joint regulators with any information relating to any designated settlement system:
a: the specified operator of the designated settlement system:
b: a participant in the designated settlement system:
c: the contact person of the designated settlement system.
2: The joint regulators may exercise the power conferred by subsection (1)
3: A notice under subsection (1)
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 excuse, fails to supply information in accordance with this section.
5: The penalty for an offence against this section is set out in section 156ZQ Disclosure of information
156ZM: Disclosure of information between joint regulators
1: No obligation as to secrecy or other restriction upon the disclosure of information, whether imposed by an enactment or otherwise, prevents the disclosure of information between either of the following persons:
a: the Bank; and
b: the Commission.
2: Subsection (1)
a: obtained for the purposes of the administration of this Part, whether under sections 156Z(4), 156ZI(2), or 156ZL
b: that is disclosed by the Bank or the Commission in order to enable them to perform their functions and duties, or exercise their powers, under this Part.
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
a: the information or data is available to the public under any Act or is otherwise publicly available information; or
b: the information or data is in a statistical or summary form; or
c: the publication or disclosure of the information or data is for the purposes of, or in connection with, the exercise of powers conferred by this Act; or
d: 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
e: 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
f: the publication or disclosure of the information or data is with the consent 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 subsection (1)(d) or (e)
3: An officer or employee of either of the joint regulators must not publish or disclose any information or data supplied in accordance with section 156Y(3)(b) or 156ZL
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
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, disclosure, or use is,—
a: in the case of a publication or disclosure under section 156ZN(1)(c)
i: for the purposes of, or in connection with, the exercise of powers conferred by this Act; and
ii: 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: authorised by the joint regulators and in accordance with any conditions that may be imposed by the joint regulators; or
ii: 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)
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
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 Penalties for offences against this Part
156ZQ: Penalties for offences
1: A person who commits an offence under any of the provisions listed in subsection (2)
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: section 156ZL
b: section 156ZN section 156ZL
c: section 156ZO
2: Savings provision and amendments to other Acts
Savings provision
7: Amendments do not affect existing designations
1: The amendments to the Reserve Bank of New Zealand Act 1989
a: the designations declared under the Reserve Bank of New Zealand (Designated Payment Systems) Order 2004 Order
b: any variations made to those designations before the date on which this Act came into force.
2: However,—
a: the settlement systems to which the designations declared under the Order apply must be treated as if they have been specified to be pure payment systems in accordance with section 156N(3)(d) section 156P
b: any person who is an operator of any of those settlement systems on the date on which this Act comes into force must be treated as if that person had been specified as the specified operator of the relevant settlement system in accordance with section 156N(2)(c)
c: any amendment to the rules of those settlement systems, or any variation or revocation of the designation of those settlement systems, made after the date on which this Act came into force must be made in accordance with the Reserve Bank of New Zealand Act 1989 section 156N Amendments to Securities Act 1978
8: Amendments to Securities Act 1978
Sections 9 to 11 Securities Act 1978 2009-11-24 Securities Act 1978
9: Functions of Commission
Section 10(1)
da: to keep under review the law and practices relating to settlement systems (as defined in Part 5C section 156N(3)(d) .
10: Issuers to issue certificates evidencing securities
Section 54
3: Nothing in this section applies to an issuer in respect of securities that are approved for transfer under, or in accordance with the rules of, a system that does not require a certificate for the transfer of securities.
4: In this section,— certificate system
a: a system authorised or approved under the Securities Transfer Act 1991:
b: a designated settlement system (as defined in section 156M
11: Schedule 1 amended
Schedule 1 Part 5C Amendments to Corporations (Investigation and Management) Act 1989
12: Amendments to Corporations (Investigation and Management) Act 1989
Sections 13 and 14 Corporations (Investigation and Management) Act 1989 2009-11-24 Corporations (Investigation and Management) Act 1989
13: Moratorium
1: Section 42(8) payment settlement
2: Section 42(9) 156L 156M
14: Statutory manager may suspend payment of money owing
Section 44(4) 156R 156T Amendments to Companies Act 1993
15: Amendments to Companies Act 1993
Sections 16 to 19 Companies Act 1993 2009-11-24 Companies Act 1993
16: Interpretation
Section 2(1) designated settlement system section 156M .
17: Transfer of shares under approved system
1: Section 85
1A: If shares in a company are transferred in accordance with the rules of a designated settlement system, the company may refuse to complete or delay the registration of the transfer of the shares if—
a: the board of the company resolves, within 30 working days of the date on which the settlement was effected, to refuse or delay registration of the transfer, and the resolution sets out in full the reasons for doing so; and
b: notice of the resolution, including those reasons, is sent to the transferor and to the transferee within 5 working days of the resolution being passed by the board; and
c: this Act or the constitution of the company expressly permits the board to refuse or delay registration for the reasons stated.
2: Section 85(2)
a: omitting subsection (1) subsections (1) and (1A)
b: inserting effected in accordance with the rules of a designated settlement system, or transfer of shares
18: Share certificates
Section 95
2: Nothing in subsections (1) or (5) applies in relation to a company the shares in which can be transferred in accordance with the rules of a designated settlement system, or under a system authorised or approved under the Securities Transfer Act 1991, that does not require a share certificate for the transfer of shares.
19: Power to disclaim onerous property
Section 269(2)(b)(iii) payment settlement Amendments to Personal Property Securities Act 1999
20: Amendments to Personal Property Securities Act 1999
Sections 21 and 22 Personal Property Securities Act 1999 2009-11-24 Personal Property Securities Act 1999
21: Priority of purchase money security interest in collateral or its proceeds, other than inventory or intangibles
Section 73
2: However, section 103A
22: New heading and section 103A inserted
The following heading and section are inserted after section 103 Priority of interests of certain operators of designated settlement system
103A: Priority of interests of certain operators of designated settlement system
1: The interest of an operator in personal property has priority over any security interest (including a purchase money security interest) in the same personal property if a participant in a designated settlement system has, in accordance with the rules of that designated settlement system,—
a: either—
i: granted a security interest in that personal property in favour of the operator; or
ii: transferred that personal property, or the operator's interest in that personal property, to the operator; and
b: taken that action for the purpose of, or in connection with, either—
i: effecting a settlement in accordance with the rules of that designated settlement system; or
ii: mitigating a loss that may be incurred by the operator if the participant defaults.
2: Subsection (3)
a: the interest of an operator in personal property has priority under subsection (1)
b: that interest is a security interest; and
c: the relevant participant has defaulted.
3: If this subsection applies, the operator—
a: does not have to comply with section 114(1) in respect of that personal property; and
b: may immediately apply the personal property, in accordance with the rules of the designated settlement system,—
i: to satisfy the participant's obligations in respect of which the participant is in default; or
ii: to mitigate any loss incurred by the operator as a result of the participant's default.
4: Whether a loss has been incurred and whether a participant has defaulted, for the purposes of this section, must be determined by reference to, and in accordance with, the rules of the designated settlement system.
5: This section overrides anything in this Act to the contrary.
6: In this section,— operator section 156N(3)(c) participant
a: means a person who has agreed to participate in a settlement system in accordance with the rules of that system; and
b: includes an operator of a designated settlement system if the designation under section 156N(3)(b) rules paragraph (b) section 156M
7: In this section, designated settlement system settlement 156M


Securities Markets Amendment Act 2009

1: Title
This Act is the Securities Markets Amendment Act 2009.
2: Commencement
This Act comes into force on the day after the date on which it receives the Royal assent.
3: Principal Act amended
This Act amends the Securities Markets Act 1988 2009-11-24 Securities Markets Act 1988
4: Interpretation
1: Section 2(1) business rules business rules
a: business on any securities markets or futures markets operated by the registered exchange:
b: persons authorised to undertake trading activities on any securities markets or futures markets operated by the registered exchange .
2: Section 2(1) conduct rules conduct rules
a: in relation to a securities market, the business rules and listing rules of a registered exchange in relation to the securities market; and
b: in relation to a futures market, the business rules of a registered exchange in relation to the futures market .
3: The definition of futures contract section 2(1) section 37(1) section 37
4: Section 2(1) futures market .
5: The definition of listing rules section 2(1) securities registered
6: The definition of operate section 2(1) or futures market securities market
7: The definition of registered exchange section 2(1)
d: a subsidiary of a registered exchange in respect of futures markets if the subsidiary operates a futures market .
8: The definition of registered exchange's market section 2(1) registered exchange's securities market .
9: The definition of securities exchange section 2(1)
5: Part 2B heading substituted
The heading to Part 2B
2B: Registered exchanges
.
6: Power to exempt securities markets from this Part
1: The heading to section 36E and futures markets securities markets
2: Section 36E
1: The Minister may, by notice in the Gazette
7: New section 36F substituted
Section 36F
36F: Registration of exchanges
1: A body corporate may apply to become a registered exchange—
a: in respect of 1 or more securities markets; or
b: in respect of 1 or more securities markets and 1 or more futures markets; or
c: in respect of 1 or more futures markets, provided that the body corporate is already a registered exchange in respect of 1 or more securities markets.
2: A body corporate may apply to become a registered exchange by delivering to the chief executive—
a: an application for registration in the form, and containing the information, required by the chief executive; and
b: a copy of the proposed conduct rules for the securities markets, securities markets and futures markets, or futures markets to which the application applies; and
c: any fees required by regulations made under section 49D and evidence of payment to the Commission of the fees, charges, or costs required to be paid to it by those regulations.
3: The chief executive must register the body corporate as a registered exchange in respect of the securities markets, securities markets and futures markets, or futures markets to which the application applies, by entering the name of the body corporate in a register, after—
a: receipt of the documents and fees referred to in subsection (2)
b: approval of the proposed conduct rules under section 36O.
8: Registered exchange must operate securities markets with conduct rules that include required matters and have effect
1: The heading to section 36G markets and futures markets in accordance
2: Section 36G(1) and, if registered in respect of futures markets, each of its futures markets securities markets
9: Required matters for conduct rules
Section 36H
2: Conduct rules for a futures market must include rules ( business rules
a: business on that market; and
b: persons authorised to undertake trading activities on that market.
10: Registered exchange must provide proposed new conduct rules and changes to Minister
Section 36J
3: However, subsection (1) does not apply in respect of conduct rules for a futures market unless the registered exchange is registered in respect of both securities markets and futures markets under section 36F
11: Determination on whether or not to apply approval process to proposed conduct rules and changes
1: Section 36N(1)
a: the Minister is satisfied that the proposal relates to a securities market or futures market that is not operated by the registered exchange under its existing conduct rules (a new market .
2: Section 36N
2: Before applying the approval process, the Minister must have regard to—
a: the integrity and effectiveness of securities markets, futures markets, or both (as the case may be) in New Zealand; and
b: the confidence of investors in securities markets, futures markets, or both (as the case may be) in New Zealand; and
c: the extent of the difference between existing markets operated by the registered exchange and the new market; and
d: the extent of the difference between the existing conduct rules and the proposed new conduct rules or changes.
12: Registered exchange must not operate new securities market if proposed conduct rules or changes not approved
1: The heading to section 36P securities
2: Section 36P(1) or futures market securities market
13: Conduct rules must be available for inspection
Section 36Q(1) or futures market securities market
14: Registered exchange must give Commission material information given to market participants
Section 36ZG or futures market securities market
15: Commission may give directions to registered exchanges
Section 36ZO(2)
a: direct a registered exchange to suspend trading of either or both of the following:
i: the securities, or a class of securities, of 1 or more public issuers:
ii: 1 or more futures contracts, or a class of futures contracts, traded on a futures market operated by the registered exchange; or .
16: Grounds for other directions
Section 36ZQ
a: the direction is necessary in the public interest to protect people trading in either or both of the following:
i: the securities, or a class of securities, of 1 or more public issuers:
ii: 1 or more futures contracts, or a class of futures contracts, traded on a futures market operated by the registered exchange; but .
17: Notice, opportunity for exchange to act, and submissions before Commission gives directions
Section 36ZR
1: A direction may be given under section 36ZO only if—
a: the Commission has given written notice to the registered exchange, and in the case of a direction to suspend the trading of securities or a class of securities, the public issuer or issuers concerned, of—
i: its opinion that the requirements of section 36ZP or 36ZQ are satisfied; and
ii: the proposed terms of the direction; and
iii: the reasons for its opinion; and
b: after receiving the Commission's notice, the registered exchange does not take, within the reasonable period stated in the notice,—
i: in the case of a proposed direction to suspend the trading of securities or a class of securities, action to prevent that trading; or
ii: in the case of a proposed direction to suspend the trading of futures contracts, or a class of futures contracts, action to prevent that trading; or
iii: in any other case, any other action that, in the Commission's view, is adequate to assess the situation raised in the notice; and
c: the Commission has had regard to any written submissions made to it by the registered exchange, and in the case of a direction to suspend the trading of securities or a class of securities, the public issuer or issuers concerned, within that notice period; and
d: the Commission still considers that it is appropriate to give the direction to the registered exchange.
18: Notice and opportunity to be heard and represented after Commission gives direction
Section 36ZT(a) the registered exchange and public issuer or issuers concerned the registered exchange, and in the case of a direction to suspend the trading of securities or a class of securities, the public issuer or issuers concerned,
19: Interpretation of terms used in this Part
1: The definition of authorised futures exchange section 37(1)
ab: a body corporate that is a registered exchange in respect of securities markets and futures markets whose conduct rules for futures markets have effect under section 36I: .
2: The definition of authorised futures exchange section 37(1)
c: a subsidiary of a body corporate that is registered in respect of futures markets if the subsidiary's conduct rules for futures markets have effect under section 36I: .
3: The definition of commodity section 37(1) and a financial instrument , a financial instrument, and emissions units
4: Paragraph (e) of the definition of futures contract section 37(1) Act or any to which this
5: Paragraph (f) of the definition of futures contract section 37(1) Act or any to which this
6: Section 37(1) emissions units
a: units as defined in section 4(1) of the Climate Change Response Act 2002; and
b: personal property that—
i: is created by, or in accordance with, any enactment (whether of New Zealand, another country, or any jurisdiction of any country), rule of law, contractual provision, or international treaty or protocol as—
A: one of a fixed number of units issued by reference to a specified amount of greenhouse gas; or
B: evidence of a specified amount of reductions, removals, avoidance, storage, sequestration, or any other form of mitigation of greenhouse gas emissions; and
ii: can be surrendered, retired, cancelled, or otherwise used to—
A: offset greenhouse gas emissions under, or otherwise comply with, any enactment (whether of New Zealand, another country, or any jurisdiction of any country), rule of law, contractual provision, or international treaty or protocol; or
B: enable a person who surrenders, retires, cancels, or otherwise uses it to claim an environmental benefit greenhouse gas .
7: Section 37(2) this Part of
8: Section 37(7) this Part of
20: Dealers in futures contracts to be authorised
1: Section 38
1: No person may carry on the business of dealing in futures contracts unless that person—
a: is, or is a member of a class of persons that is, authorised by the Commission by notice in the Gazette
b: has been approved by an authorised futures exchange under its rules to carry on the business of dealing in futures contracts in accordance with the rules of that exchange.
1A: However, a person who receives approval under subsection (1)(b)
2: Section 38(2) subsection (1) subsection (1)(a)
3: Section 38(3) this section subsection (1)(a)
4: Section 38
4: For the purposes of subsection (1)(b) rules paragraph (ab)
21: Penalties for failing to comply with Part 2B
1: Section 43B(1) securities registered
2: Section 43B(2)(c) markets and futures markets in accordance
3: Section 43B(2)(d) securities
22: Further amendments to principal Act
Each of the provisions of the principal Act specified in Schedule 1 registered exchange's market registered exchange's securities market
23: Amendments to other enactments
1: Each of the provisions of each of the Acts specified in Part 1 of Schedule 2 registered exchange's market registered exchange's securities market 2009-11-24 Chateau Companies Act 1977 Companies Act 1993 Dairy Industry Restructuring Act 2001 Mackelvie Trust Act 1958 Methodist Charitable and Educational Trusts Act 1911 National Heart Foundation of New Zealand Empowering Act 1970 Port Companies Act 1988 Securities Markets Amendment Act 2002 Securities Transfer Act 1991 St John's College Trusts Act 1972 Takeovers Act 1993 Wellington Methodist Charitable and Educational Trusts Act 1916
2: Each of the provisions of each of the regulations specified in Part 2 of Schedule 2 registered exchange's market registered exchange's securities market 2009-11-24 Securities Markets (Market Manipulation) Regulations 2007 Securities Regulations 1983 Takeovers Code Approval Order 2000
3: In its continuing application under section 444 section 72(2)(e) 2009-11-24 Insolvency Act 1967 I think this change has to be made directly to s 72(2)(e) in reading the table in 49.1 of COG, under “references to other Acts/Regulations, though it might pay to check with RU before doing the change.(CB)
4: Clause 28 of the Schedule
1: Subject to subclause (2), an offeror must immediately send a written notice of any variation of the offeror's offer to—
a: every offeree; and
b: the target company; and
c: the Panel; and
d: the registered exchange (if any voting securities of the target company are quoted on the registered exchange's securities market). 2009-11-24 Takeovers Code Approval Order 2000


1: Title
This Act is the Personal Property Securities Amendment Act 2009.
2: Commencement
This Act comes into force on the day after the date on which it receives the Royal assent.
3: Principal Act amended
This Act amends the Personal Property Securities Act 1999 2009-11-24 Personal Property Securities Act 1999
4: Interpretation
1: The definition of emissions unit section 16(1)
2: Section 16(1) emissions units
a: units as defined in section 4(1) of the Climate Change Response Act 2002; and
b: personal property that—
i: is created by, or in accordance with, any enactment (whether of New Zealand, another country, or any jurisdiction of any country), rule of law, contractual provision, or international treaty or protocol as—
A: one of a fixed number of units issued by reference to a specified amount of greenhouse gas; or
B: evidence of a specified amount of reductions, removals, avoidance, storage, sequestration, or any other form of mitigation of greenhouse gas emissions; and
ii: can be surrendered, retired, cancelled, or otherwise used to—
A: offset greenhouse gas emissions under, or otherwise comply with, any enactment (whether of New Zealand, another country, or any jurisdiction of any country), rule of law, contractual provision, or international treaty or protocol; or
B: enable a person who surrenders, retires, cancels, or otherwise uses it to claim an environmental benefit greenhouse gas .
5: Meaning of
possession
1: Section 18
1A: For the purposes of this Act, a person ( person A
a: in the case of an emissions unit that is evidenced by an emissions unit certificate, person A takes physical possession of that certificate:
b: in the case of an emissions unit that is, in the ordinary course of business, traded or settled through a clearing house or securities depository, the clearing house or securities depository, as the case may be, records the interest of person A in the emissions unit:
c: in the case of an emissions unit that is, in the ordinary course of business, held by a nominee, the records of the nominee record the interest of person A in the emissions unit:
d: in the case of an emissions unit that is a unit as defined in section 4(1) of the Climate Change Response Act 2002 and to which neither paragraph (b) nor (c)
e: in the case of an emissions unit that is not a unit as defined in section 4(1) of the Climate Change Response Act 2002 and to which none of paragraphs (a), (b), or (c)
2: Section 18
4: For the purposes of subsection (1A)(a) emissions unit certificate


Securities Amendment Act 2009

1: Title
This Act is the Securities Amendment Act 2009.
2: Commencement
This Act comes into force on the day after the date on which it receives the Royal assent.
3: Principal Act amended
This Act amends the Securities Act 1978 2009-11-24 Securities Act 1978
4: Interpretation
1: The definition of chattel section 2(1) and emissions units livestock
2: Section 2(1) emissions units
a: units as defined in section 4(1) of the Climate Change Response Act 2002; and
b: personal property that—
i: is created by, or in accordance with, any enactment (whether of New Zealand, another country, or any jurisdiction of any country), rule of law, contractual provision, or international treaty or protocol as—
A: one of a fixed number of units issued by reference to a specified amount of greenhouse gas; or
B: evidence of a specified amount of reductions, removals, avoidance, storage, sequestration, or any other form of mitigation of greenhouse gas emissions; and
ii: can be surrendered, retired, cancelled, or otherwise used to—
A: offset greenhouse gas emissions under, or otherwise comply with, any enactment (whether of New Zealand, another country, or any jurisdiction of any country), rule of law, contractual provision, or international treaty or protocol; or
B: enable a person who surrenders, retires, cancels, or otherwise uses it to claim an environmental benefit greenhouse gas .