Section 75: Voluntary Liquidation of Bank or Financial Institution

1) Any bank or financial institution willing to voluntary liquidation shall have to submit an application along with an action plan of voluntary liquidation.

2) In case the Rastra Bank is confident, upon an inquiry on the application submitted pursuant to Sub-Section (1), that such bank or financial institution or a branch or office of a foreign bank or financial institution is fully capable of paying all of its credits and liabilities, the Rastra Bank may grant theoretical consent, along with some terms and conditions, for voluntary liquidation.

3) The bank or financial institution obtaining theoretical approval from the Rastra Bank pursuant to Sub-Section (2) shall have to carry out the following functions:-

(a) To inform the Office of the Companies Registrar about obtaining theoretical approval within seven days from the date of obtaining;

(b) To send notice to all depositors, creditors or concerned persons by fast, efficient and reliable means about obtaining theoretical approval within thirty days from the date of obtaining;

(c) To publish a notice in national newspapers about obtaining theoretical approval within thirty days from the date of obtaining;

(d) To carry out other acts as prescribed by the Rastra Bank.