Section 35B of The Banking Act CAP 488: Power to place institutions in administration in certain circumstances

(1) The Central Bank may appoint the Board as administrator to manage to manage the institution's affairs and property, but only it is satisfied that—
(a) the institution is or is, likely to become unable to pay its debts; and
(b) the administration order is reasonably likely to achieve at least one of the objectives of administration.
(2) For the purpose of subsection (1)(b), the objectives of administration are the following—
(a) to maintain the institution as a going concern;
(b) to achieve a better outcome for the institution's creditors as a whole than would likely to be the case if the institution were liquidated (without first being under administration);
(c) to realise the property of the institution in order to make a distribution to one or more secured or preferential creditors.
(3) The appointment of the Board as administrator of an institution has the same effect as the appointment by the High Court of an administrator of a company under Division 3 of Part VIII of the Insolvency Act (Cap. 53).
(4) A person may not be appointed as administrator of an institution under Part VIII of the Insolvency Act (Cap. 53)—
(a) if the Board has already been appointed as its administrator; or
(b) if the Board has not already been so appointed without the approval of the High Court.
(5) The Court may give approval under subsection (4)(b) only if the Central Bank—
(a) has certified that it does not intend to exercise its powers under this section; or
(b) has failed to exercise its powers within such period, not exceeding three months, as the High Court may specify.
(6) When an administrator (other than the Board) has been appointed in respect of an institution, the Central Bank may, at any time, apply to the High Court for an order that the administrator be removed and the Board be appointed as administrator instead.
(7) If the High Court removes the administrator and appoints the Board instead, the provisions of Part VIII of the Insolvency Act (Cap. 53), apply to an administration by the Board but only to the extent that they are not inconsistent with this Act and any regulations made under it.
(8) A receiver or receiver and manager may not be appointed in respect of an institution and any provision purporting to confer power to appoint such a receiver or a receiver and manager is taken to be a power to appoint an administrator under Part VIII of the Insolvency Act (Cap. 53).
(9) If, before the commencement of the Companies and Insolvency Legislation (Consequential Amendments) Act, a receiver or receiver and manager of an institution has been appointed in respect of an institution, the receiver, or receiver and manager, is taken to be an administrator appointed under Part VIII of the Insolvency Act (Cap. 53).
(10) When the Board is appointed as administrator in respect of an institution are exercisable only if and to the extent authorised by the Central Bank.
(11) The powers of an administrator (other than the Board) appointed or taken to have been appointed in respect of an institution are exercisable only if and to the extent authorised by the High Court.
(12) In the exercise of its powers as an administrator, the Board may, by notice in writing, require a person to whom subsection (13) applies—
(a) to give to the liquidator all reasonable assistance in connection with the administration;
(b) to appear before the Board for examination concerning matters relevant to the administration;
(c) to produce any records or documents that relate to the affairs of the institution under administration.
(13) This subsection applies to the following persons—
(a) any person who is or has at any time been a director, managing director, secretary, principal officer, manager, officer or employee, agent, accountant or auditor of the institution;
(b) any person who has custody of funds or other assets of the institution under administration.
(14) The Cabinet Secretary may make regulations generally for carrying out the administration of an institution under this section, and in doing so may apply relevant provisions of the Insolvency Act (Cap. 53), with or without modifications.

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