Regulatory Alerts2011-09-20 | 24099Added · Updated
Central Bank (Amendment) Act No. 18 of 2011
This Act amends the Central Bank Act by inserting definitions for terms such as claim, creditor, secured creditor, security agreement, and security interest into Section 44C. It modifies Section 44E to impose a stay of proceedings, prohibiting creditors, shareholders, depositors, and policyholders from commencing or continuing legal actions or enforcing judgments against regulated institutions or the Bank until a notification under Section 44G(1) is published. The amendment also invalidates contractual provisions that trigger rights to acquire assets or alter priorities upon insolvency or change of control during this stay period. Additionally, the Bank is required to report quarterly to the High Court on restructuring proposals and progress until the stay is lifted.