Section 71: Provisions concerning Valuation of Assets and Liabilities

1) Upon obtaining theoretical approval of merger of bank/s or financial institution/s pursuant to Section 70, such bank/s or financial institution/s shall have to appoint, on mutual consent a person, firm, company or institution that is at least capable for auditing of bank for valuation of their respective assets, liabilities, and transactions and information thereof must be furnished before the Rastra Bank.

Provided that, the bank or financial institutions may carry out such valuation to be conducted before submitting application to the Rastra Bank.

2) Upon obtaining theoretical approval to acquire a bank or financial institution pursuant to Section 70, the target institution shall have to get the auditing of its assets, liabilities and transactions through an auditor appointed by the General Meeting or by the Board of Directors under the authority of the General Meeting.

3) The acquiring institution may also conduct comprehensive valuation of the assets and liabilities of the target institution.

4) In case the Rastra Bank does not find actions of the Valuator appointed pursuant to sub-section (1) or (2) credible, it may remove him/her and order to concerned bank or financial institution to appoint another valuator.

5) The terms and conditions of services of the valuator shall be as determined by the concerned bank or financial institution.

6) While valuating the assets, liabilities, net worth, and overall transaction by the valuator, it has to be carried out according to the established norms, bases and procedures.

7) The Rastra Bank may issue necessary directives as to the methods of valuation, bases of valuation and scope thereof.