Regulatory Alerts2002-09-24 | CD-SIBOIF-218-1-SEPT3-2002Added · Updated
Norm on Extension of the Liquidation Period of a Bank
This regulation restricts the Superintendent of Banks from extending a bank's liquidation period beyond the initial six months mandated by law, except when the privileged creditor, the Central Bank of Nicaragua, specifically requests the delivery of the bank's assets to offset its credit. The rule applies when the book value of the liquidating bank's assets is insufficient to pay this privileged debt. The resolution becomes effective upon notification, with publication in the Official Gazette.
Norm on Extension of the Liquidation Period of a Bank Superintendence of Banks and Other Financial Institutions – Nicaragua 1
NORM ON EXTENSION OF THE LIQUIDATION PERIOD OF A BANK (CD-SIBOIF-218-1-SEPT3-2002)
Article 1. When the Superintendent of Banks determines that the gross book value of the assets of a bank in liquidation is insufficient to pay the debt to the Central Bank of Nicaragua in its capacity as a privileged creditor, in accordance with the order of precedence established in the General Law of Banks, Non-Bank Financial Institutions, and Financial Groups, and if said privileged creditor has requested the respective Liquidating Board to deliver the bank's assets in satisfaction of its credit, the Superintendent may not extend the liquidation period beyond the first six months established in said Law, except in response to a request from said creditor.
Article 2. This Resolution shall enter into force upon its notification, without prejudice to its publication in La Gaceta, Official Gazette.
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