The following notice is given pursuant to section 50 of the Public Trust Act 2001 (“Act”).

Notice

1. Title and commencement—(1) This notice may be cited as the Public Trust Common Fund Interest Rates Notice 3 May 2016.

(2) Unless otherwise specified, the determinations and revocation in this notice take effect from and including 3 May 2016.

2. Interpretation—(1) Unless the context otherwise requires:

“agency deposit” means a deposit (not being an investment deposit) held as agent or attorney;

“call deposit” means a deposit (not being an agency deposit, an investment deposit, a protection deposit, a special deposit or a trust deposit) held in the ordinary course of administration, and determined by Public Trust to be held at call;

“deposit” means a sum of money held by Public Trust belonging to any estate, which money for the time being forms part of the Common Fund;

“investment deposit” means a deposit held at call or otherwise as an investment under section 51 of the Act;

“protection deposit” means a deposit, held at call, of tuition, boarding, accommodation or other fees by or on behalf of a student enrolled at a Private Training Establishment within the meaning of Part 18 of the Education Act 1989;

“special deposit” means a deposit held other than at call on behalf of the Crown, or any local authority within the meaning of the Local Government Act 1974;

“trust deposit” means a deposit (not being an agency deposit, an investment deposit, a protection deposit or a special deposit) held on trust:

(i) for persons not of full age or capacity; or
(ii) for beneficiaries not entitled to payment at call; or
(iii) otherwise than at call.

(2) Expressions defined in the Act have the same meaning in this notice as they do in the Act.

3. Rates of Common Fund interest—(1) The rate of Common Fund interest on deposits (other than investment deposits repayable at the end of fixed term or protection deposits) shall be that specified in Schedule 1 for the appropriate type of deposits.

(2) The rate of Common Fund interest on each protection deposit associated with a particular Private Training Establishment shall be that specified in Schedule 2.

(3) The rate of Common Fund interest payable on investment deposits repayable at the end of a fixed term shall be that specified in Schedule 3 for the appropriate interest payment frequency, term and dollar range.

(4) Despite subparagraph (1), the rate of Common Fund interest payable on deposits made pursuant to an enactment shall be the rate (if any) specified in the enactment.

(5) Despite subparagraphs (1), (2) and (3), in particular cases or classes of case, Public Trust and the depositor may agree on a rate of interest payable on investment deposits, protection deposits or special deposits that is different from the rate specified in Schedules 1, 2, or 3 and the agreed rate then applies.

4. Revocation of notice and transitional provisions—(1) The Public Trust Common Fund Interest Rates Notice 5 April 2016 is revoked.

(2) Unless otherwise specified, the rates of interest specified in Schedules 1 and 2 to this notice do not apply to any period that ends with 2 May 2016 but otherwise operate as from 3 May 2016.

(3) The rates of interest specified in Schedule 3 to this notice:

(i) do not apply to investment deposits repayable at the end of a fixed term that commenced prior to 3 May 2016; but
(ii) do apply to investment deposits repayable at the end of a fixed term that commenced on or after 3 May 2016.

Schedule 1

Rates of interest payable on deposits (other than investment deposits repayable at the end of fixed term or protection deposits)

Schedule 2

Rates of interest payable on each protection deposit associated with a particular Private Training Establishment

Schedule 3

Rates of interest payable on investment deposits repayable at the end of a fixed term

Interest payable on maturity, monthly or quarterly

Dated at Wellington this 3rd day of May 2016.

MONIQUE TWORT, General Manager, Business Customers.