17 NOVEMBER NEW ZEALAND GAZETTE 4397

excluding that entity or that part of that entity, as the case may be.

‘Capital’ in relation to:

(a) an Overseas Bank or Overseas Banking Group, means the amount of capital held by the Overseas Bank or Overseas Banking Group, determined in accordance with the requirements of the authority having the power to impose minimum capital requirements on that Overseas Bank or Overseas Banking Group in its country of domicile;

(b) a Banking Group, means the amount of capital held by the Banking Group, determined in accordance with the Conditions of Registration.

‘Class’ means a category of assets or liabilities which have a similar nature or function in the operations of the Registered Bank or Banking Group.

‘Commodity Instrument’ means any contract that provides for settlement only by receipt or delivery of a physical asset.

‘Company’ has the same meaning as in section 2 of the Companies Act 1955 or section 2 of the Companies Act 1993 as appropriate, and includes an overseas company within the meaning of section 2 of the Companies Act 1993.

‘Conditions of Registration’ in relation to a Registered Bank means the conditions of registration imposed on that Registered Bank by the Reserve Bank pursuant to section 74 of the Act.

‘Connected Person’ has the same meaning as in the Conditions of Registration.

‘Counterparty’ means any other party to a contract with the Registered Bank or a member of the Banking Group.

‘Credit Exposure’ means the amount of the maximum loss that a party to a contract could incur as a result of the Counterparty to that contract failing to discharge its obligations, without taking into account the value of collateral, guarantees, indemnities, other support arrangements, and any potential recoveries, where the maximum loss in relation to:

(a) a market related contract means the credit equivalent amount of the contract determined in accordance with the Reserve Bank document entitled “Capital Adequacy Framework” (BS2) as amended from time to time;

(b) any other contract means the full value of the contract;

provided that, for the purposes of this definition, a Financial Liability may be offset against any such loss if to do so would accord with generally accepted accounting practice as defined in the Financial Reporting Act 1993.

‘Credit Risk’ means the risk of loss arising from one party to a contract failing to discharge its obligations under that contract.

‘Currency Risk’ means the risk arising from changes in exchange rates or in the prices of foreign currency.

‘Debt Security’, in relation to a Registered Bank, means any interest in or right to be paid money that is, or is to be, deposited with, lent to, or otherwise owing by, that Registered Bank (whether or not the interest or right is secured by a charge over any property).

‘Director’ means a person holding office as a director of the Registered Bank.

‘Disclosure Statement’, in relation to a Registered Bank, means a document Published by that Registered Bank in terms of the Registered Bank Disclosure Statement (Full and Half-Year—New Zealand Incorporated Registered Banks) Order 1995.

‘Equity’ has the same meaning as in the New Zealand Society of Accountants Statement of Concepts for General Purpose Financial Reporting.

‘Equity Risk’ means the risk arising from changes in the prices of equity instruments.

‘Fair Value’ has the same meaning as in FRS-31.

‘Financial Asset’ has the same meaning as in FRS-31.

‘Financial Instrument’ has the same meaning as in FRS-31.

‘Financial Liability’ has the same meaning as in FRS-31.

‘Financial Reporting Group’ means a Registered Bank (as reporting entity) and all other entities included in the group as that term is defined in section 2(1) of the Financial Reporting Act 1993.

‘First Quarter Accounting Period’ means the first three month period of an Accounting Period.

‘General Provision’ means an amount that has been created to meet unidentified credit losses.

‘General Short Form Disclosure Statement’ means that part of a Short Form Disclosure Statement which contains the information prescribed in Part III and Part IV of this Order.

‘Group of Closely Related Counterparties’ means a group of legal or natural persons one or more of which is a Counterparty that are related in such a way that:

(a) the financial soundness of any one of them may Materially affect the financial soundness of the other;

(b) one has the power to control the other; or

(c) one has the capacity to exercise significant influence over the other.

‘Immediate Relative’, in relation to any person, means their spouse or any person who lives with that person as their spouse, whether or not married, and any parent, brother, sister or child, in each case whether or not adopted, of that person or of their spouse or person who lives with that person as their spouse.

‘Impaired Asset’ means a Non-Accrual Asset, a Restructured Asset, or an Asset Acquired Through the Enforcement of Security.

‘Interest Rate Risk’ means the risk arising from changes in interest rates.

‘Interim Accounting Period’ means the first six month period of an Accounting Period.

‘Investment Security’ means a security which is intended to be held for the long term or to maturity.

‘Issuer’ has the same meaning as in the Financial Reporting Act 1993.

‘Key Information Summary’ means that part of a Short Form Disclosure Statement which contains the information prescribed in Part II of this Order.

‘Material’ has the meaning given to it by generally accepted accounting practice, or, where generally accepted accounting practice does not apply, means a statement, fact, or item which is of such a nature or amount that its inclusion or omission, or the method of treating its disclosure, would be likely to influence a reasonable user of the Short Form Disclosure Statement.