Lane Neave helps form NZ’s largest credit union

by Sol Dolor31 Aug 2019

Lane Neave has advised the majority of entities that came together to form the largest credit union in New Zealand.

The top firm said that the merger combines Credit Union Baywide, Credit Union South, Credit Union Central, and Aotearoa Credit Union following member approval of the transaction under the Friendly Societies and Credit Unions Act 1982.

The union now has more than 64,000 members and total assets of about $550m. It is the eighth-largest non-bank deposit taker in the country.

Partner Gerard Dale headed the Lane Neave team, together with partners Claire Evans, Joelle Grace and Evelyn Jones.

“The deal involved complex issues related to the nature of the Friendly Societies and Credit Unions Act 1982, Non Bank Deposit Takers Act 2013 and all applicable consumer credit legislation. Our team’s involvement also extended to the novation of Credit Union South’s securitisation programme to the merged entity and the transfer of all existing registered securities to the merged entity,” Dale said. “We are pleased to help all entities reach a great outcome for their members.”

The merger is expected to help with growth opportunities, increase access to better resources, offer scale efficiencies, and provide a competitive banking alternative New Zealand member owners, Lane Neave said.