Section 82: Functions, Duties and Powers of Liquidator

1) The Liquidator appointed for the purpose of initiating the process of mandatory liquidation of a bank or financial institution shall, after his/her appointment, carry out the following actions:-

(a) To publish a notice in a national level Nepali and English daily newspaper for information of shareholders and other concerned persons of the bank or financial institution within 15 days of the appointment,

(b) To send to the Office of the Company Registrar and the institution established as per the prevailing laws for guarantee of deposits for information with an authenticated copy of the order of mandatory liquidation within 15 days of the appointment;

(c) To post or cause to be posted a copy of such order in a conspicuous manner at the principal place of business of the bank or financial institution and at each of its offices,

(d) To broadcast the notice through national-level television and radio for four weeks, at least once a week after the appointment,

(e) To carry out other works prescribed by the Rastra Bank.

2) After getting information as referred to in Clause (b) of sub-section (1), the Office of the Company Registrar shall make a record on the concerned registration book that the order of initiating the process of mandatory liquidation has been made.

3) In addition to the functions, duties and powers as referred to elsewhere in this Act, the functions, duties and powers of the Liquidator, subject to the directives of the Rastra Bank, shall be as follows:-

(a) To take responsibility for the office, books and accounts, records and assets of the bank or financial institution,

(b) To carry on most essential regular works of operation and management of the bank or financial institution,

(c) To carry on all the functions to be carried out on behalf of or in the name of the bank or financial institution,

(d) To appoint employees to render assistance in their own works,

(e) To make necessary expenses for the operation, management and liquidation of the bank or financial institution,

(f) To make coordinate with institutions established by the prevailing laws for the security of deposits,

(g) To exercise all the powers to be exercised by the shareholders, General Meeting, Board of Directors and officials of the bank or financial institution

(h) To carry out an inquiry into the business and financial status of the bank or financial institution,

(i) To merge or transfer entire or some of the assets and liabilities of the bank or financial institution to another bank or financial institution by getting approval of the Rastra Bank,

(j) To get credit in the security of the assets of the bank or financial institution,

(k) If it is deemed that it will be beneficial for the bank or financial institution to sell any assets or terminate any contract or liability, to sell such assets or to terminate such contract or liability,

(l) To procure services of professional and qualified persons to assist for own functions as may be necessary,

(m) To hold necessary discussions and enter into compromise with any creditor or borrower of the bank or financial institution,

(n) To collect, protect and sell the assets of the bank or financial institution and to distribute according to this Act,

(o) To inquire whether or not a Director, official, employee, or any other person has committed fraud, cheating, or misrepresentation against the bank or financial institution or depositors or creditors and to take necessary legal actions against them or to file any case or initiate legal action on behalf of the bank or financial institution or to defend on behalf of the bank or financial institution,

(p) If anyone has been using the property of the bank or financial institution to withdraw it or to take legal actions to get such property back or cash amount from the transaction which has been declared invalid,

(q) To prepare a report every three months on the actions taken in the course of liquidation in the format as prescribed by Rastra Bank and to submit the report to the Court and Rastra Bank,

(r) To carry out all other functions as required for the liquidation of a bank or financial institution,

(s) To carry out other functions as prescribed by the Rastra Bank.

4) In case any difficulty or hurdle arises while exercising any power by the Liquidator under this chapter, he/she may file an application to the court to remove
such hurdles or difficulties.

5) In case the reasons stated in the application submitted pursuant to sub-section (4) are found to be appropriate, the Court may issue an appropriate order.