4420 NEW ZEALAND GAZETTE No. 135

(4) In this Order, unless the context otherwise requires:

‘Accounting Period’ has the meaning set out in the Companies Act 1993.

‘Act’ means the Reserve Bank of New Zealand Act 1989.

‘Address for Service’ in relation to:

(a) an individual, means the address of their usual place of business in New Zealand or, if no such address exists the address of their usual place of business outside New Zealand;

(b) a company within the meaning of section 2(1) of the Companies Act 1993, means the address for service adopted by the company under section 192 of that Act;

(c) a company registered under the Companies Act 1955, means the address of its registered office;

(d) any other entity, means the address of its principal office or principal place of business in New Zealand or, if no such address exists, its principal office or principal place of business outside New Zealand.

‘Asset Acquired Through the Enforcement of Security’ means any asset which is legally owned as the result of enforcing security, other than a building occupied by the Registered Bank or a member of the Banking Group.

‘Balance Date’ means the last day of an Accounting Period or Interim Accounting Period.

‘Bank’ means a Registered Bank or an Overseas Bank.

‘Banking Group’ means the Financial Reporting Group but where the Reserve Bank has, by notice in writing to the Registered Bank, after consultation with the Registered Bank, agreed to or required the inclusion or exclusion of any entity or any part of any entity, means the Financial Reporting Group including or 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 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 Overseas 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—Overseas 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 which would be included in the group as that term is defined in section 2(1) of the Financial Reporting Act 1993 if the Registered Bank was subject to that Act.

‘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