ECCB 2016/2017 Annual Report

ECCB ANNUAL REPORT 2016/2017

153

Eastern Caribbean Central Bank Notes to the Financial Statements March 31, 2017 (expressed in Eastern Caribbean dollars)

EASTERN CARIBBEAN CENTRAL BANK NOTES TO THE FINANCIAL STATEMENTS

(expressed in Eastern Caribbean dollars)

March 31, 2017

23. Contingencies and commitments ...continued Pending litigation ...continued

(6) Claim No. AXA/HCV2017/0017 Between National Bank of Anguilla (Private Banking & Trust) (in administration); Caribbean Commercial Investment Bank Ltd (in administration) (Intended Applicants) and Chief Minister of Anguilla; Attorney General of Anguilla; Gary Moving (as Receiver of the National Bank of Anguilla and Caribbean Commercial Bank); Eastern Caribbean Central Bank (Intended Respondents). The Intended Applicants have filed application for leave to apply for judicial review of various "decisions" made by the Intended Respondents concerning the implementation of the resolution strategy in respect of National Bank of Anguilla (NBA) and Caribbean Commercial Bank (CCB) including the appointment of the Receiver and the Receiver's actions including his transfer of certain assets and liabilities of NBA and CCB to National Commercial Bank of Anguilla. The application is scheduled to be heard on 18 May 2017. Eastern Caribbean Securities Exchange Limited During the year, the Bank has given the following undertaking and guarantee in respect of the Eastern Caribbean Securities Exchange Limited ( “ ECSE ” ), a public limited company registered under the Laws of St. Christopher and Nevis: - An undertaking to postpone all claims in respect of present and future funds advanced to the Eastern Caribbean Securities Exchange Limited and its wholly-owned subsidiary companies by the Bank up to the year ending March 31, 2017. At the year end, the total funds advanced amounted to $2,874,845 (2016: $2,874,845). The last advance was during the financial year ended March 31, 2005. - Guarantee cover in the event of a budgeted shortfall in respect of the ECSE and its wholly-owned subsidiary companies for the fiscal year ending March 31, 2017 in an amount not expected to exceed $2,000,000 (2016: $2,000,000). The above undertaking and guarantee will be reviewed on March 31, 2018 and are irrevocable before this date. Contractual obligation The Bank contracted the services of De La Rue (DLR) Cash Systems Inc. to supply onsite labour equipment maintenance and corrective equipment maintenance to keep the CPS 1200 System in good working order or to restore it to good working order as necessary. The total contract is US$600,000 and extends for a period of 120 months effective March 2008. As at March 31, 2017, the commitment of the Bank was $162,000 (2016: $324,000).