Section 88K: Actions Prior to the Commencement of the Action Relating to Resolution to be Inactive

1) The Special Administration Team can inactivate the transaction which affects the properties of the commercial bank or financial institution, or the transfer related to the third party, in the following conditions:

(a) The transactions carried out or agreements forged before the commencement of the process of resolution may become against the welfare of the depositors or creditors of the commercial banks or financial institutions concerned.

(b) Any transfers made for any shareholders, Directors, lien on posts or their relatives by the commercial bank or financial institution without any price until within five years before the date of the commencement of the process of resolution,

(c) Any transfers made for any third party by the commercial bank or financial institution without any price before three years from the date of the commencement of the process of resolution,

(d) The transactions concluded in such a way as to receive a lesser outcome by the commercial bank or financial institution or provide a more favourable outcome to the other party, compared to the period of three years before the date of the commencement of the process of resolution.

(e) Any acts done to become against the welfare or affect the rights of the depositors of the commercial bank or financial institution, for a period of five years before the date of the commencement of the process of resolution,

(f) Transfer of property having on the name of creditor with the purpose of giving benefit to any person for the loan to be paid by the commercial bank or financial institution concerned or with the purpose to increase the amount to be received by the creditor in the process of liquidation until six months before, from the date of the commencement of the process of resolution.

Provided that, the provision of this Section shall not be applicable regarding the payment for the deposit made not exceeding the amount covered by each deposit insurance and security.

2) Special Administration Team can revoke the transaction made with the director, lien on post of the commercial bank or financial institution or his/her close relative, till one year before the date of the commencement of the process of resolution, so as to become against the welfare of the depositor and the creditor of the institution or can recover the amount for this.

3) Notwithstanding whatever matters have been written in sub-sections (1) and (2), the Special Administration Team shall not revoke the transaction, which was made by the commercial bank or financial institution in course of its general transaction or in which appropriate and sufficient price was exchanged, or on which payment was not made until before such an institution underwent resolution.

4) The person who obtains property from the transaction or transfer as per sub-sections (1) and (2) shall have to return such property immediately. If the person who has obtained the property no longer possesses such property, they shall have to deposit the amount equal to the price of such property in the commercial bank or financial institution concerned. In connection with the person who carries out such a transaction with any wrong intention, who does not immediately return the property or the price equal to it to the commercial bank or financial institution concerned after the transaction has been revoked, a claim shall be fixed upon him/her equal to that of the secured creditor.

5) In connection with any property which has been unnaturally transferred to any person for less than the market price from the commercial bank or the financial institution concerned, and which has been assigned to a third person, even from such a person, the Special Administration Team can take it back by paying the investment cost of it.

6) While operating the resolution process, the Special Administration Team can send a written request to the relevant body to transfer any movable or immovable property or rights. When the Special Administration Team sends instructions in writing, the body concerned shall have to alienate or transfer movable or immovable property or rights in the name of the commercial bank or financial institution.

7) When the Special Administration Team is in the process upon being formed for the sake of resolution for any commercial bank or financial institution, no one is supposed to interrupt or get other goods and services such as electricity, water, telephone, house and land, means of vehicle provided prior to this interruption, simply because of not obtaining the amount for such goods and service. In connection with the payment for the goods and services received, the Special Administration Team shall pay the service provider concerned for the arrears fixed before undertaking the process of resolution.