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Tyree’s Banking Law in New Zealand , 3rd Edition

28 April 2014

Reviewed by Richard Scragg

This is the first new edition of Tyree’s Banking Law in New Zealand since 2003. Significant changes have taken place in the intervening years in terms of the way in which we undertake banking transactions and the legislative environment in which financial transactions are conducted. These changes are all reflected in the new edition of Tyree which has not just been updated in terms of the law but restructured in terms of content.

The new edition has seven authors as against six in the second edition. The 16 chapters (552 pages) of the second edition have become 13 (520 pages) in the third.

Chapter 1 establishes the environment of banking in New Zealand under the title Statutory Regulation of Financial Institutions and, significantly, this has grown from 40 pages in the second edition to 79 in the new edition. This is an extremely valuable chapter. As well as dealing with the Reserve Bank of New Zealand’s role, it addresses the regulation of money laundering and the attempt to combat the financing of terrorism. It deals comprehensively with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. This is particularly significant for law practitioners, currently covered by the Financial Transactions Reporting Act 1996, as the intention is that the 2009 Act is to be extended to cover them. Practising lawyers will need to be very clear about their obligations concerning the carrying out of due diligence with regard to their clients and reporting suspicious transactions, quite apart from advising their own clients who are affected by the legislation with regard to these same matters. The chapter also deals, briefly, with the Criminal Proceeds (Recovery) Act 2009.

The six chapters on cheques in the second edition have been condensed into three and there are new chapters on secured transactions, documentary credits and payment systems. The shrinking of “cheques” and the addition of a chapter on payment systems reflect changes in customers’ banking habits and techniques consequent upon technological developments in the nature of ATMs, EFTPOS, credit cards and electronic credits. The authors tell us (page 191) that over $35 billion goes through New Zealand’s payment systems each day – roughly equivalent to New Zealand’s GDP each working week. Change is also reflected in the addition of a section on the Financial Service Providers (Registration and Dispute Resolution) Act 2008 in chapter 2: Regulation Protecting Consumers of Bank Products and Services.

The chapter on Securities (secured transactions) addresses security interests in both real and personal property but as the author tells us: “It is not a comprehensive statement of the law. It is a first introduction …” It presents a clear but brief statement of the fundamental principles governing security interests in real and personal property but does not attempt to examine the case law and, having introduced the reader to the underlying concepts, leaves the reader to refer to the other published works on these subjects for detailed analysis. This chapter incorporates the “Banker’s lien”, formerly a chapter in its own right.

The book is clearly written and gives a highly accessible account of the law, which is stated as at 30 June 2013.

It may be that it should be given a new title. This turns on what you understand Banking Law to mean. The key to a new title may be found in the name of chapter 1: Statutory Regulation of Financial Institutions. Perhaps The Law of Financial Institutions would be a more appropriate title for future editions. Be that as it may, the new Tyree’s Banking Law in New Zealand is a valuable addition to the practising lawyer’s library and deserves to be widely read.

Richard Scragg is a Teaching Fellow at the University of Auckland, an enrolled Barrister and Solicitor of the High Court and contributing author to LexisNexis: Commercial Law in New Zealand.

Butterworths Student Companion, Family Law, 2nd Edition

By Ruth Ballantyne

This is current as at 1 January 2014 but it includes discussion of some of the impacts of the major changes to the Family Court which came into force on 31 March 2014. The book summarises and discusses 164 decisions on the various facets of family law. LexisNexis NZ Ltd, March 2013, 978-1-927227-86-2, 475 pages, paperback, $70.00 (GST included, p&h excluded).

Got a Kindle?

The Legal 500 Client’s Guide to the New Zealand Law Market can be downloaded from Amazon for Kindles at a cost of $3.46. With 112 pages, the guide is taken from the 2014 edition of the Asia Pacific Legal 500. The guide is also available on .epub format, which means it can be downloaded for most readers on Android or iPad devices.

There are few other New Zealand law books available for purchase for Kindle. Those which are include Reconstituting the Constitution (by Caroline Morris, Jonathan Boston and Petra Butler, $151.20), Applied Paramedic Law & Ethics: Australia and New Zealand (by Ruth Townsend and Morgan Luck, $52.19), A Simple Nullity? The Wi Parata Case in New Zealand Law and History (by David V Williams, $14.79) and From “Real Rape” to Real Justice (by Elisabeth McDonald and Yvette Tinsley, $19.25).

Last updated on the 17th March 2016