IMPORTANT NOTICES:

Prospective investors are advised that BSDS,

in making this offer of debt securities, is not
subject to the normal offer document and
independent supervisor requirements under
the Securities Act 1978. This is because a
general exemption from those requirements
has been granted to all charities.Accordingly,
the information required to be disclosed
in respect of this offer is less than the
information that would normally be
disclosed in a registered prospectus and an
investment statement.
Also, there is no independent supervision
of your money, and the normal mechanism
for redress if you encounter difculties in
securing repayment of your money is not
available.
The Financial Markets Authority has not
examined or approved this particular offer.
The general exemption was granted on the
basis that prospective investors in charities
are not necessarily seeking a commercial
investment opportunity, but instead wish
to support the charitable purpose of the
charity. The particular charitable and
religious purposes of BSDS are discussed
below.
If the return sought and/or security of your
investment is important to you, you should
consider seeking independent investment
advice. The FMA website maintains a list of
authorized nancial advisers that you could
consult; see www.fma.govt.nz.
WHO IS THE ISSUER?
The New Zealand Baptist Savings &
Development Society Inc. (BSDS) is the
issuer. The BSDS address is: PO Box 12738,
Penrose, Auckland 1642; Level 1, 477 Great
South Road, Penrose, Auckland 1061.
BSDS is incorporated under the Incorporated
Societies Act 1908 and has carried on
business as a Development Society since
1962. BSDS is a religious organisation within
the denition of the Securities Act (Charity
Debt Securities) Exemption Notice 2013 and
the Deposit Takers (Charitable and Religious
Organisations) Exemption Notice 2010.
WHAT SORT OF INVESTMENT IS THIS?
BSDS Call and Term deposits are
unsecured interest bearing investments
and denominated in New Zealand dollars.
Fixed term investments have a xed rate of
interest payable to you by BSDS. The interest
rate on call deposits is subject to change
at any time, or after provision of an agreed
notice period.
FOR WHAT PURPOSE WILL MY
INVESTMENT BE USED?
The rules of the BSDS only allow money
to be lent to Christian organisations
recognised by the Baptist Union of New
Zealand. BSDS provides low cost nance and
grants to Christian organisations throughout
New Zealand. The funds deposited are
utilised to satisfy the charitable purposes
of the Society, such as building facilities
and providing better resources for Christian
organisations, who in turn carry out
benevolent and charitable works in local
communities. Deposits held on reserve
may be invested with nancial institutions
or investment companies that have an
investment grade credit rating.
No member of the BSDS staff or any Board
director may use depositors money for their
own purposes, and there are strict provisions
against private pecuniary gain in the Rules
of the Society.
The BSDS obtains the majority of its funds
from churches, individuals, companies and
trusts associated with those churches.
WHAT RETURNS WILL I GET?
You are entitled to:
the repayment of the principal; and
the payment of interest on the
principal amount of the deposit.
Interest will be paid or compounded on
Term Deposits, with the frequency and on
the dates as specied on any application
form relating to the term deposit, or
as agreed with the BSDS at the time of
investment.
Resident Withholding Tax will be deducted
from interest payments to New Zealand
resident investors unless the depositor
provides a Certicate of Exemption as
issued by the Inland Revenue Department.
For non-resident investors; Non Resident
Withholding Tax will be deducted at the
appropriate rate from interest payments.
The BSDS does not charge Account Fees,
Establishment Fees, Maintenance Fees or
Transaction fees on Deposits.
WHAT ARE MY RISKS?
The main risk is not being paid on time or in
full should the BSDS become insolvent or go
into liquidation or statutory management.
This could occur if borrowers from the BSDS
or if nancial institutions or investment
companies holding funds from the BSDS
failed to repay on time or in full.
Should this occur:
you may not recover all of your principal
investment or receive the agreed interest
in full.
you will not be obliged to pay any more
than your investments with the BSDS.
Consequences of Insolvency:
If the BSDS becomes insolvent and is wound
up, you will rank equally with all other
unsecured creditors of the BSDS and behind
all secured creditors and preferred claims.
The BSDS has not given any securities to
any person/ organisation that rank prior to
unsecured creditors.
The BSDS has the right to combine deposit
accounts and may set off any credit funds
against debts owed by a depositor to the
BSDS. Loans are fully secured by registered
First Mortgages over land and buildings. All
term loans are repayable on demand except
in cases where a xed interest rate loan is
involved.
BSDS is temporarily exempted until 1 May
2015 from the following sections of the
Reserve Bank of New Zealand Act 1989:
to have a credit rating in section 157I
the governance requirements in section
157L.
BSDS is also exempted until 30 November
2016 from the following sections of the
Reserve Bank of New Zealand Act 1989:
the capital requirements in sections 157T
and 157U
the related party exposures requirement
in sections 157X and 157Y
the liquidity requirement in sections
157ZA and 157ZB
WHAT ARE THE TERMS AND CONDITIONS
OF THE OFFER?
Minimum account balances for deposits are:
$500 on Fixed Term deposits;
$100 on Call;
The minimum transaction amount on
savings accounts is $20.
Payment or delivery of investment money
can be made by cash, by cheque payable
to the New Zealand Baptist Savings &
Development Society Inc, by automatic
payment, by ordinary deposit to the BSDS
bank account or by another electronic
delivery mechanism.
No notice is required for withdrawal of
Call deposits.
Usually your term deposit is not repayable
until maturity. Should a term deposit be
repaid at your request prior to maturity
date, the interest rate may be adjusted
and the principal amount repayable
may be reduced to offset interest
payments (calculated at the rate prior to
adjustment) which you may have received
during the term of the investment.
Holding of Investment money: Money
lodged with the BSDS will be deposited in
accordance with your instructions to your
nominated account or investment. The
money will be held according to the usual
terms and conditions applying and so held
until disbursed in accordance with your
instructions.
WHAT FEES DO YOU CHARGE?
No charges apply for term or call deposit
accounts, but adjustment may be made to
the interest rate if the deposit is terminated
or partially withdrawn prior to maturity
date.
RECORD KEEPING
Any money deposited with the BSDS will be
allocated an account number. The BSDS will
keep adequate records of deposits and all
withdrawals and dealings with such money
using the account number allocated to your
investment. You may have access to those
records upon request.
ARE YOUR FINANCIAL STATEMENTS
AUDITED?
The BSDS systems and operations are
audited during each nancial year and the
nancial statements are audited annually.
It is a requirement of this investment that
all current depositors and prospective
depositors are entitled to a free copy of
the Societys most recent audited nancial
statements within ve working days of
receiving the request.
DOES BSDS HAVE PROFESSIONAL
INDEMNITY INSURANCE?
BSDS maintains a delity insurance policy
with a cover of $2,000,000.
WHAT DISPUTE RESOLUTION FACILITIES
ARE AVAILABLE?
BSDS endeavours to maintain very good
relations with all its investors. In cases
where there is a need for a formal dispute
resolution process, BSDS will refer the
matter to the Chairman and then to
Financial Services Complaints Limited
as required under the Financial Services
Providers (Registration and Dispute
Resolution) Act 2008.
Dated 1 March 2014
New Zealand Baptist
Savings & Development
Society Incorporated
Disclosure Statement
Required for the purposes of the Securities Act
1978 and the Securities Act (Charitable and
Religious Purposes) Exemption Notice 2013
and the Deposit Takers ((Charitable and
Religious Organisations) Exemption Notice 2010.