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NEW ZEALAND GAZETTE, No. 21

23 FEBRUARY 2007

Part I

Preliminary

2. Interpretation—(1) Any term or expression used in this Order that is not defined in this Order:

(a) which is defined in the Act shall, unless the context otherwise requires, have the meaning given to it by the Act;

(b) which is not defined in the Act and which is defined in the Conditions of Registration shall, unless the context otherwise requires, have the meaning given to it by the Conditions of Registration; and

(c) which is not defined in the Act or in the Conditions of Registration shall, unless the context otherwise requires, be interpreted in compliance with generally accepted accounting practice (as that term is defined in section 3 of the Financial Reporting Act 1993).

(2) References in this Order to the singular include the plural and vice versa.

(3) In this Order a reference to an ‘FRS’ is a reference to a Financial Reporting Standard approved, or given authoritative support from time to time, by the Accounting Standards Review Board pursuant to the Financial Reporting Act 1993.

(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) 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.

“Affiliated Insurance Entity” has the same meaning as in the Reserve Bank document entitled Capital Adequacy Framework (BS2), as amended from time to time.

“Affiliated Insurance Group” has the same meaning as in the Reserve Bank document entitled Capital Adequacy Framework (BS2), as amended from time to time.

“Aggregate Equity Exposure” means the aggregate amount of Equity Exposure to all currencies.

“Aggregate Foreign Currency Exposure” means the aggregate amount of Foreign Currency Exposure to all currencies other than New Zealand dollars.

“Aggregate Interest Rate Exposure” means the aggregate amount of Interest Rate Exposure to all currencies.

“Aggregate Market Risk Exposure” means exposure to all, or any, of Aggregate Equity Exposure, Aggregate Foreign Currency Exposure and Aggregate Interest Rate Exposure.

“Applicable Financial Reporting Standard” has the same meaning as in section 2 of the Financial Reporting Act 1993.

“Approved Financial Reporting Standard” has the same meaning as in section 2 of the Financial Reporting Act 1993.

“Asset Acquired Through the Enforcement of Security” has the same meaning as in FRS-33, as amended from time to time.

“Balance Date” means the last day of an 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;

(c) a Registered Bank, means the amount of capital held by the Registered Bank determined in accordance with the Reserve Bank document entitled Capital Adequacy Framework (BS2) as amended from time to time.

“Commodity Instrument” has the same meaning as in FRS-33, as amended from time to time.

“Company” has the same meaning as in section 2 of the Companies Act 1993, 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 current 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” has the same meaning as in FRS-33, as amended from time to time.

“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: