Section 88C: Function, Duty and Power of Special Administration Team

1) The Special Administration Team shall have the total power, which is allowed to be exercised by the general meeting, the Board of Directors, the Chief Executive Officer, and other people holding posts at the commercial bank or financial institution concerned.

2) By remaining under the sub-section (1), the Special Administration Team shall have the following power regarding managing the movable and immovable assets, to carry out the resolution of any property and liability of the commercial bank or financial institution concerned and to operate such commercial bank and financial institution:

(a) To sell all or a partial share of the commercial bank or financial institution that remains to be sold to a new person,

(b) To allow any institution the responsibility to carry out the operation of a transaction and to carry out particular work that can be operated regularly with a systematic perspective, or to establish a separate bridge institution or unit for some period for the sake of carrying out such operation.

(c) To sell any or all transactions or properties of the commercial bank or financial institution concerned or any subsidiary company of such commercial bank or financial institution,

(d) To sell the properties or rights of the commercial bank or financial institution concerned, which remain under any other persons or institutions.

3) Regarding the commercial bank or financial institution that remains under the process of resolution, the Special Administration Team shall have other powers as follows:

(a) To get the documents, which the Special Administration Team deems necessary to further the act and action of resolution, submitted by the person concerned,

(b) To transfer, or get the ownership of the shares or other instruments issued by the commercial bank or financial institution concerned, transferred,

(c) To transfer certain power, properties or liabilities of the commercial bank or financial institution concerned to another person,

(d) To revoke the shares or other instruments issued by the commercial bank or financial institution concerned,

(e) To alienate the shares issued by the commercial bank or financial institution concerned or the shares or other ownership owned by any or all of its shareholders to the name of any other person on the grounds as prescribed.

(f) To issue preference shares or other instruments relating to capital,

(g) To move all the steps deemed necessary to protect and take care of the properties of the commercial bank or financial institution concerned.

4) While carrying out the work relating to the resolution of the commercial bank or financial institution as per this Section, the Special Administration Team does not need to carry out the following work:

(a) To obtain prior approval from any person in the public or private sectors, including the shareholders, depositors or creditors of the commercial bank or financial institution, which is under the process of resolution,

(b) To notify any person, firm, company or institution except as mentioned otherwise in this Chapter.

5) The Special Administration Team shall have to accomplish within one year of the commencement of the work relating to resolution as per this Act.

Provided that, if any work related to resolution being carried out by the Special Administration Team cannot be accomplished within the stipulated time, the Bank can extend the tenure of the Special Administration Team on the grounds of necessity and justification.

6) The Special Administration Team can carry out any or all of the following works on behalf of the commercial bank or financial institution concerned:

(a) To continue other work and actions being carried out by a commercial bank or a financial institution, except for collecting deposits and providing any credits.

(b) To postpone or halt any work and actions being carried out by the commercial bank or financial institution,

(c) To obtain a loan by mortgaging or not mortgaging property of the commercial bank or financial institution,

(d) To prevent the payment of the liability of the commercial bank or financial institution, or to determine the limit for this,

(e) To appoint or dismiss the lien on the post, the staff or the professional consultants necessary for the sake of a commercial bank or a financial institution,

(f) To summon an assembly of the depositors and creditors for the purpose of holding a discussion and making a decision on the issue deemed necessary by the Special Administration Team,

(g) To make a legal defence on the name of a commercial bank or a financial institution, or

(h) To carry out or get other necessary work related to the resolution carried out.

7) The Special Administration Team shall have full power to access and control the commercial bank or financial institution concerned and its subsidiary company office, account book, record, property and information technology system.

8) If Special Administration Team deems appropriate to merge all or major property of the commercial bank or financial institution, which remains under its control, into any other commercial bank or finance company, or to merge into each other by acquiring the property of any other commercial bank or financial institution, application along with proposal regarding this shall have to be furnished to the Bank as per existing law. After receiving the application along with the proposal, the Bank shall have to make a decision regarding accepting or refusing such an application.

9) By preparing the account of the estimated expenses to be spent on the process of resolution out of the amount available on the ground of financial condition of the commercial bank or financial institution, and the amount that may be needed for the sake of other expenses as per existing law, management should be arranged to return or pay the amount for such liability at a time or on installment out of the amount that can be available to pay for the liability of the deposit that has been matured. While paying as such, the depositors and creditors of the same grade shall have to be treated equally.

10) The procedure relating to the determination of the validity of the claim laid by the depositor and creditor against the commercial bank or financial institution concerned, payment of the claim, determination of liability, and return of the personal property of the client shall be as prescribed.

11) Notwithstanding whatever matter has been written in existing law, while selling the property of the commercial bank or financial institution, the Special Administration Team can sell by adopting transparent and professional perspective with more than one ways of auction, sealed bid, negotiation and so on, after determining minimum price on the ground prescribed.

12) Special Administration Team shall have to submit to the Bank, from time to time as per prescribed, the description along with the financial account of the commercial bank or financial institution, the plan of the sale of the property of such institution and its perspective regarding this, prior estimation of the liability of such institution or the mode of payment of this, actual transfer of the property and estimation of the liability.

13) If the Special Administration Team deems necessary to issue new share of the commercial bank or financial institution concerned, sell the property, unify the properties for the sake of securitisation, to manage to make prior estimation of the liability or to manage such works, Special Administration Team can bestow responsibility to anybody or company, which has been established to carry out works relating to the management of the property as per existing law, to carry out such works. It can also transfer power to such a body or company to sell the passive credit, the property, which is hard to evaluate, and the liability of the commercial bank or financial institution concerned.