Section 35H: The Examiner is Ineligible

1) A person shall be deemed to be ineligible to be listed as a maintenance examiner in accordance with section 35F:

(a) Non-citizens of Nepal;

(b) Has defaulted in repayment of the loan within Nepal or abroad,

(c) Has not completed at least five years from the date of default in any transaction with a bank or financial institution or co-operative institution within Nepal or abroad,

(d) The director, officer or employee of the indexing institution, regulatory body or research body,

(e) Has a financial interest in, or a stake in, or a personal interest in, any contractual lease;

Provided that for the purposes of this clause, a person who owns less than one per cent of the shares or is a legal adviser or auditor shall not be deemed to have any personal or financial interest.

(f) Non-payment of tax payable in accordance with the prevailing law,

(g) Convicted by a court of law of a crime involving financial investment in the creation and expansion of weapons of mass destruction, terrorist acts, or other serious crimes or heinous crimes,

(h) Imprisonment in accordance with the decision of the court, pending payment of fine.

2) Notwithstanding anything contained in sub-section (1) and section 35G, it shall not be deemed that the Indicating Entity itself or the Regulating Entity has, in special circumstances, prevented any Indicating Entity itself or the Regulating Entity from carrying out or causing to be carried out special maintenance tests or risk assessments by domestic or foreign experts or jointly as may be prescribed by any Indicating Entity in special circumstances.

3) Before conducting the maintenance test of an indicator institution pursuant to section 35E, the maintenance examiner shall conduct an independent review of the risk assessment of such an institution pursuant to section 35F or a Nepalese expert on risk.

Provided that no special reason will prevent the regulatory body from being informed if a foreign expert conducts such a review or maintenance test.