New Zealand Credit Contracts and Consumer Finance Act 2003 107A-107E: Pecuniary penalties: no indemnity and no insurance for penalties or defence costs where the breach is established

What does 107A-107E require?

The court may order a person who has breached the lender responsibility principles, the publication duties, the disclosure, fee, interest, high-cost, hardship or repossession provisions or an FMA order to pay a pecuniary penalty up to the maximum section 107A sets (the greater of the statutory amount, three times the gain or, for a body corporate, the turnover-based figure the section states), with proceedings and the relationship to criminal liability governed by sections 107B and 107C. A company may not indemnify any current or former director, employee or agent against a pecuniary penalty or for the costs of defending proceedings in which a penalty is imposed, and must not insure or pay the premium for such cover; an indemnity or insurance given in breach is void.