E4.58 Bonds

E4.58.1 Objective of bond

Immigration Act 1987 s 14D(6)

For the purposes of temporary entry policy, the objective of a bond (see E4.58.5 below) is to facilitate the entry of visitors:

1. who seek to enter New Zealand for a temporary stay; and
2. who would not otherwise be accepted for temporary entry because of a risk that they might remain in New Zealand after their temporary permit expires.

E4.58.5 Definition of bond

Immigration Act 1987 s 14D(6)

For the purposes of temporary entry policy, a bond means a monetary bond intended to manage the risk of a person remaining in New Zealand after their permit expires.

E4.58.10 Bond may be imposed

Immigration Act 1987 ss 14D(5) and (6), 27(1A)

1. Before issuing a visitor’s visa, it may be necessary to require payment of a bond from a person who applies from outside New Zealand for a visitor’s visa.
2. Because a bond legally is not a fee, a bond may be imposed upon a citizen of a country with which New Zealand has a bilateral fee waiver agreement.

E4.58.15 When bond may be imposed

Immigration Act 1987 s 14DA(5) and (6)

1. A bond may be imposed only in respect of visitors’ visa applications.
2. Normal verification processes must be carried out before a bond can be considered.
3. A bond may be imposed only to manage an identified risk that the applicant may remain in New Zealand after their permit expires. Other risks (e.g. health or character risks) may also be present in the application, but a bond may not be imposed to manage such risks.
4. Bonds should be imposed sparingly.
5. If a person who is outside New Zealand applies in the prescribed manner for a visitor’s visa, a visa officer may impose a bond if and only if the officer:
   1. identifies a risk in the particular case that the applicant may remain in New Zealand after their permit expires; and
   2. considers that to manage that risk in the particular case, imposing the bond is:
      • necessary (i.e. without the bond a visa could not be issued); and
      • sufficient (i.e. a bond can manage the identified risk.

E4.58.20 When bond may not be imposed

Immigration Act 1987 ss 14DA(4), 148B(14)
Immigration Regulations 1999 reg 47(2)

1. No bond of any kind may be imposed on a refugee status claimant for any matter relating to refugee status.
2. A bond may not be imposed upon a person who is to be issued a limited purpose visa.
3. No bond may be imposed upon a person who is a citizen of Samoa.
4. No bond may be imposed in respect of a dependent child of an adult applicant for a visitor’s visa who is included in that adult applicant’s application.
5. For the purposes of E4.58.20(d), a dependent child is an unmarried child under 20 years of age who is dependent on the adult applicant.
6. No bond may be imposed in respect of a visitor’s visa application made outside New Zealand if:
   1. the application can be approved under normal visitor’s visa policy; or
   2. imposing a bond cannot manage the risk that the applicant may remain in New Zealand after their permit expires.

E4.58.25 Conditions of bond

Immigration Act 1987 s 148B(4)

1. The conditions under which a bond is imposed must be based on or relate to requirements and obligations imposed by or under the Immigration Act 1987, including conditions attached to the relevant permit.
2. A bond must specify:
   1. the conditions under which it is imposed; and
   2. the situations in which it may be refunded or forfeited, whether in whole or in part.
3. The conditions which policy currently recognises as available for a bond are those set out in E4.58.55 and these are reflected in the approved form letter to be given to, and signed by, the applicant.

E4.58.30 Amount of bond

Immigration Act 1987 148B(3)
Immigration Regulations 1999 Schedule 4

1. Different levels of bond are set in respect of different classes of people. People are classed according to the different regions of the world in which their country of origin or nationality is situated and the costs of travel or repatriation to such regions or countries.
2. If a bond is imposed in relation to an application, a bond will be imposed upon each individual applicant, except dependent children(see E4.58.20(c)).
3. The maximum bond per individual applicant is NZ $5,000.
4. The maximum bond per application is NZ $10,000.
5. For the actual bond levels, see the Immigration Regulations 1999, Schedule 4.

E4.58.35 Acceptance of conditions of bond

Immigration Act 1987 s 14D(5) and (6)
Immigration Regulations 1999 reg 48(1)

1. If a visa officer intends to impose a bond in respect of an application for a visitor’s visa made outside New Zealand, the officer must advise the applicant of that intention by the approved letter.
2. If more than one applicant is to be offered a visitor’s visa subject to payment of a bond, the offer must be made to each such applicant individually.
3. The applicant and (if different) the person who pays the bond must signify their acceptance of the bond conditions by completing and signing the approved form setting out those conditions.
4. If the bond is not paid, the visa officer will make a decision on the visa application based on the available information.

E4.58.40 Payment of bond

Immigration Act 1987 s 148B(9) and (10)

1. A bond imposed in respect of an application for a visitor’s visa made outside New Zealand:
   1. must be paid before a visa is issued; and
   2. is payable in addition to any other amount payable in respect of the application or of the issue of a visa.
2. A bond is to be paid in New Zealand dollars and will be held in a trust account administered by INZ until refunded or forfeited.
3. No interest is payable on a bond to the person who paid it.
4. The NZIS may apply any interest earned on the money paid towards the cost of administering the bond system, and any surplus interest must be paid into the Crown Bank Account.

E4.58.45 Refund of bond

Immigration Act 1987 s 148B(8), (11), (12) and (14)
Immigration Regulations 1999 reg 49

1. A person who is eligible for the refund of a bond must apply for the refund within 12 months of one of the following time frames:
   1. if the bonded person remains in New Zealand lawfully at all times, as soon as the bonded person either:
      • leaves New Zealand; or
      • is granted a residence permit.
   2. if the bonded person remains unlawfully in New Zealand after their permit expires, when they first become unlawfully in New Zealand.

      Note: the person who is eligible for the refund of a bond does not need to apply for the refund if the bonded person gains recognition as a refugee in New Zealand because the bond will be automatically refunded in such a case.

2. A bond may be refunded in full or in part, depending on the actions of the bonded person, or not at all, depending on the actions of the bonded person and/or the person paying the bond (if different).
3. A bond is refundable in full only if the bonded person:
   1. remains in New Zealand lawfully at all times; and
      • leaves New Zealand while still holding a permit; or
      • is granted a residence permit; or
   2. gains recognition as a refugee in New Zealand.
4. A bond is refundable only in part (subject to special circumstances justifying the full refund of the bond) if the bonded person, having remained in New Zealand after their permit expires, remains unlawfully in New Zealand for less than 6 consecutive months before they:
   1. leave New Zealand voluntarily; or
   2. are granted a residence permit otherwise than following recognition as a refugee in New Zealand.
5. A bond is not refundable at all (i.e. forfeited in whole) in the circumstances set out in E4.58.55.
6. An application for the refund of a bond:
   1. must be made in writing; and
   2. must be tendered to a visa officer or immigration officer; and
   3. must include the name and passport number of the bonded person; and
   4. must be signed by the person who paid the bond; and
   5. may direct that the refund of the bond or any part of it be paid to a third person.
7. A refund of a bond will be paid either:
   1. to the person who paid it; or
   2. to a person authorised in writing by that person to receive it.
8. To receive a refund, the person who paid the bond, at the time of completing the approved form, must stipulate how they wish to receive the refund, by either:
   1. a bank draft to an address which they give at the time they complete the approved form; or
   2. a telegraphic transfer to a bank account of which they give the details at the time they complete the approved form.
9. The bond will be repaid in New Zealand dollars.
10. The person who paid the bond must bear the risk of any monetary losses resulting from currency exchange rate movements during the period that the bond is held.
11. No refund may be made until the bonded person:
    1. is no longer in New Zealand; or
    2. (in the case of a temporary permit holder) is granted a residence permit; or
    3. is recognised as a refugee in New Zealand.
12. Any bond imposed upon a person before they became a refugee status claimant must be refunded if they are later recognised as a refugee (see E4.58.60).

E4.58.50 Forfeiture of bond

Immigration Act 1987 ss 27(1C), 148B(7)

1. Except where a person entitled to a refund of a bond fails to apply for the refund within the appropriate time limits (see E4.58.45(a)), in which case the bond is forfeited in whole by law, forfeiture of a bond is at the discretion of the Minister or a visa or immigration officer, who must exercise the discretion by taking into account:
   1. the reason why the bond was imposed; and
   2. the extent to which the conditions of the bond have been met or breached; and
   3. any explanation given about the breach of the bond conditions; and
   4. the estimated cost to the Crown of the breach.
2. If all or any part of a bond is forfeited, the amount forfeited must be paid into the Crown Bank Account.
3. The forfeiture of a bond in whole or in part does not affect any other action taken, or that may be taken, in relation to a breaching a condition of a temporary permit, including revoking of a permit.

E4.58.55 When bond may be forfeited

Immigration Act 1987 s 148B(8), (11), (12) and (14)

1. Unless the bonded person shows good cause why their bond should not be forfeited, NZ $1,000 of a bond will be forfeited if the bonded person remains in New Zealand after their permit expires.
2. Unless the bonded person shows good cause why their bond should not be forfeited, a bond will be forfeited in whole if:
   1. the bonded person, being unlawfully in New Zealand, is removed from New Zealand at any time; or
   2. the bonded person remains unlawfully in New Zealand for more than 6 consecutive months.
3. A bond will be forfeited in whole if the person who is eligible to have it refunded fails to apply for the refund within 12 months of the time frames in E4.58.45(a), even if the bonded person fulfills all the conditions of the bond.
4. E4.58.55(a) to (c) do not apply if the bonded person gains recognition as a refugee in New Zealand.

E4.58.60 Bonds and refugee status claimants

Immigration Act 1987 s 148B(14)

1. No bond of any kind may be imposed on a refugee status claimant for any matter relating to refugee status.
2. Any bond imposed upon a person before that person became a refugee status claimant must be refunded if that person is later recognised as a refugee. No application is required for such a refund.
3. If that person is not subsequently later recognised as a refugee, the bond is to be refunded or forfeited under E4.58.45 or E4.58.55 above.

Effective 01/11/1999