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(5) In accordance with the instructions given by the Central Bank, the official administrator may approve a restructuring of the licensed financial institution’s or licensed financial holding company’s liabilities through arrangements with the creditors, including a reduction, modification, rescheduling and novation of their claims. (6) In carrying out a transfer of assets and liabilities, where a depositor whose deposit is to be transferred owes the licensed financial institution an amount for a matured or past-due loans, that amount may be set-off against the deposit amount in accordance with prudential standards issued by the Central Bank. On the basis of the report produced under section 130 and with the approval of the Central Bank, the official administrator may restructure the liabilities of the licensed financial institution or licensed financial holding company in accordance with this section without the approval of depositors, creditors or shareholders. (2) The Central Bank may approve mandatory restructuring of liabilities if the Central Bank determines that the restructuring, either alone or combined with recapitalisation or other resolution measures, will restore the licensed financial institution or licensed financial holding company to viability. Mandatory restructuring of liabilities 134. (1)

(3) The official administrator shall not apply mandatory restructuring to secured debt.

(4) The official administrator may restructure liabilities directly or may convert the liabilities to shares.

(5) In the exercise of his powers under this section the official administrator shall act in accordance with Regulations made pursuant to section 183 and prudential

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