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Equitable Mortgages - Repayment Information for Depositors
Retail Deposit Guarantee Scheme

Page updated 30 Nov 2011

Equitable Mortgages was placed into receivership on 26 November 2010, triggering the Crown guarantee. Eligible depositors holding eligible debt securities issued by Equitable Mortgages will be repaid under the terms of the Extended Crown guarantee.

Disclaimer: The information on this web page is provided for general guidance only. The full terms of the relevant deed signed by Equitable Mortgages Limited (not the terms of these guidance notes) are the rules that govern the Crown's guarantee and its obligations to eligible depositors.

Deadline for Repayments

Claims for repayment from depositors with Equitable Mortgages must be made by the end of this year. Any claims made after 31 December 2011 will not be considered.

So far, the Treasury has paid more than $170 million to more than 3,700 eligible depositors with Equitable Mortgages, representing about 97% of depositors and amounts owing.

Summary of the Repayment Process

The Treasury has sent claim forms to depositors who are on the register of holders of eligible Equitable Mortgages debt securities.

  1. To be considered for payment under the terms of the Crown guarantee, depositors must complete their claim forms and return them along with copies of any supporting documentation. There are different types of claim forms (individual, individual via Power of Attorney, joint, trust, corporate, partnership, and deceased estate etc). If a different claim form is required, please contact the Equitable Mortgages helpline noted below.
  2. The claims forms will tell you what supporting documentation you need to provide. Supporting documents typically are documents that prove depositors’ identity or prove that depositors are tax resident, a bank account number for the Treasury to make payment into, and IRD details so that the Treasury can pay resident withholding tax on behalf of depositors. Please don't send originals of supporting documentation; please send copies and keep your original documentation in a safe place.
  3. Claim forms sent back to the Treasury are assessed, first to ensure that all the required information has been provided, and then to see if the depositor is eligible for repayment. If the forms returned to the Treasury are not complete, or if the required supporting documentation is not provided, we will not assess the claim but will instead send everything back to the depositor and ask again for complete forms and copies of all the documents we need.
  4. Eligible depositors are typically repaid within a few weeks of the Treasury receiving a properly completed claim form. Complex claims may take longer to assess and repay.

Equitable Mortgages Classic Debentures

Equitable Mortgages Classic Debentures are not eligible for repayment under the Crown guarantee. The Classic Debentures are excluded securities under the terms of the Crown guarantee. They were issued without a Crown guarantee and will not be repaid by the Crown.

Questions and Answers

For comprehensive guidance about how the Crown guarantee may apply to your situation, please read the Questions and Answers on the Treasury website.

Who can I contact if I have questions about the claim forms or claim process?

You can contact the Equitable Mortgages helpline by:

  • emailing equitable@dgs.treasury.govt.nz
  • telephoning 0800 650 034 toll-free from within New Zealand. No charges or fees apply.
  • telephoning +649 488 8700 from outside New Zealand. The information service is free but your telephone service provider’s calling charges will apply.

What do I need to do to get my money back? Are there forms to fill in?

Each depositor has been sent a claim form. To be considered for payment under the terms of the Crown guarantee, depositors need to complete the claim form and return it. There are different types of claim forms (individual, individual via Power of Attorney, joint, trust, corporate, partnership, and deceased estate etc). If a different claim form is required, please contact the Equitable Mortgages helpline noted above.

What deposits are covered by the Crown guarantee?

Deposits made with Equitable Mortgages before the Extended Retail Deposit Guarantee Scheme was in place are being repaid according to the terms of the extended guarantee.

Equitable Mortgages had accepted non-guaranteed deposits that it marketed as "Classic Debentures". The Equitable Mortgages "Classic Debentures" are not covered by the Crown guarantee. Holders of Equitable Mortgages "Classic Debentures" are not entitled to repayment under the terms of the Crown guarantee.

For more guidance about eligibility for payment, please read the Am I covered by the Crown guarantee? Questions and Answers on the Treasury website.

Am I still covered if my deposit matured and was reinvested before Equitable Mortgages defaulted?

You are eligible to claim repayment only if your money was reinvested in a Crown guaranteed deposit. Some deposits were reinvested without a Crown guarantee and are not eligible for repayment by the Government. If you hold a deposit that isn’t eligible for the Crown guarantee, you can contact the Equitable Mortgages receiver for more information about your rights as a depositor - telephone (09) 307 7865 or email eml@kordamentha.com.

When will I be repaid?

All claims for repayment must be made before the end of 2011. Any claims made after 31 December 2011 will not be considered but will instead be referred to the receivers of Equitable Mortgages. Payment to eligible depositors will be made as soon as practicable once the Treasury receives a correctly completed notice of claim and supporting documents, and has assessed your eligibility and the proper amount to pay.

How much money will I get back?

If you are an eligible depositor, you will be repaid all the money you are owed by Equitable Mortgages up to the date of the receivership, including both principal and interest, to a maximum payment of $250,000 per depositor. No interest accrued after the date of receivership will be paid by the Crown under the terms of the Extended Retail Deposit Guarantee.

For guidance about the maximum amount payable, please read Question and Answer 1.8 on the Treasury website.

Do I need to send my debenture certificate or bond to prove I should be repaid?

No, you don’t need to send your debenture certificate or bond to be repaid. The Treasury has access to accurate records about depositors and amounts deposited.

Does it cost anything to be repaid under the Crown guarantee?

You do not need to pay the Treasury to be repaid under the terms of the Crown guarantee.

Why do I need to provide personal details and other information when I make a claim?

Depositors are asking us to hand over large amounts of taxpayers' money, so it is important to ensure that we pay the right amounts to the right people and that they are entitled to receive payment.

The Crown and the deposit-taking companies don't hold all the necessary information prior to receivership. The information we seek, and copies of supporting documents that we ask for as part of the claim process, are essential to establishing each depositor's identity, their eligibility for payment, and the correct details for payment.

Is my family trust or my business covered by the Crown guarantee?

For guidance about trusts, please read the What information do trusts and trustees need to know? Questions and Answers on the Treasury website.

For guidance about businesses, please read Question and Answer 1.7 on the Treasury website.

There have been several guarantees over the past two years, so what guarantee applies now?

The terms of the Crown Deed of Guarantee (447 KB) issued under the Extended Retail Deposit Guarantee Scheme, the Supplemental Deed (69 KB) to the Extended Crown Guarantee, and the 14 October 2010 Nomination relating to Deceased Estates (105 KB) are the rules that govern all arrangements and obligations that bind Equitable Mortgages Limited and the Crown.

The rules and terms contained in deeds, waivers, nominations or other documents from the original Retail Deposit Guarantee Scheme do not apply. The terms of the previous Crown guarantee deeds expired on 12 October 2010, when the original Retail Deposit Guarantee Scheme ended.

I will be away from home. Can you email me forms or use a different address?

If you can't promptly complete paperwork for any reason (such as overseas travel or other commitments) you may choose to appoint someone with power of attorney to manage your claim for you. Appointing someone else to manage your claim could allow us to continue processing your claim in your absence. If you choose to have someone act on your behalf, that person will need to have access to the same paperwork that you would access when making your claim, such as passports or birth certificates etc to prove your identity and your citizenship or tax residency status.

Documents

See the Equitable Mortgages listing in the list of Approved Institutions, for access to the deeds and other documents relating to Equitable Mortgages’ participation in the Extended Crown Retail Deposit Guarantee Scheme.

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