Section 88A: Power of the Bank to Carry Out Work of Resolution

1) On any of the following conditions, the Bank can further the work of resolution by taking up any commercial bank or financial institution under its control:

(a) If its liability of payment cannot be made fully or partially,

(b) If there is a condition of not being able to fulfil the liabilities to be paid, on the ground of supervisory analysis, within ninety days from the date of the completion of the work relating to such analysis,

(c) If liability exceeds the net assets,

(d) If a sustained loss that cannot be covered up even by all kinds of capital and funds prescribed by the Bank,

(e) If the Bank makes a decision to take the process of resolution as per Section 86 G.

2) Only the bank shall have the power to carry out, or get the resolution carried out, of the claim of the depositor and secured creditor remaining upon any commercial bank or financial institution.

3) Total expenses incurred while carrying out work relating to the resolution of the commercial bank or financial institution shall have to be borne out of the amount received after selling out the properties of the commercial bank or financial institution concerned.