Section 49-56 Nigerian BOFIA 2020

Section 49-56 BOFIA 2020

Section 49, 50, 51, 52, 53, 54, 55, and 56 of the Bank and Other Financial Institutions Act 2020 is under Part VI (MISCELLANEOUS MATTERS) of the Act.

Section 49 BOFIA 2020

Offences by Directors and Managers of banks

Any person, being a director, manager or officer of a bank, who fails to —
(a) take all reasonable steps to secure compliance by the bank with the requirements of this Act; or
(b) take all reasonable steps to secure the correctness of any statement submitted under the provisions of this Act, is guilty of an offence and liable on conviction to a fine not less than N2, 000,000 or imprisonment for a term of not less than 3 years or to both such fine and imprisonment and in addition the Governor may suspend or
remove from office or blacklist any such officer, manager or director.

Section 50 BOFIA 2020

Penalties for offences not otherwise provided for

See also  Section 113-123 Nigerian BOFIA 2020

Any bank, specialised bank, other financial institution, or any person who contravenes or fails to comply with any of the provisions of this Act or any regulations made thereunder for which an offence or penalty is not expressly provided is guilty of an infraction and liable to a fine or penalty of not less than N2,000,000.

Section 51 BOFIA 2020

Protection against adverse claims

Neither the Federal Government nor the Bank nor any officer of the Federal Government or the Bank, shall be subject to any action, claim or demand by or liability to any person in respect of anything done or omitted to be done in good faith in pursuance or in execution of, or in connection with the execution or intended execution of any power conferred upon that Government, the Bank or such officer, by or under this Act or the CBN Act or any rules, regulations, guidelines or directives
issued thereunder or pursuant to any other relevant laws.

Section 52 BOFIA 2020

Jurisdiction of the Federal High Court

Notwithstanding the provisions of this Act or of any law, the Federal High Court shall have jurisdiction to try any offence under this Act and to impose the full penalty prescribed thereof.

Section 53 BOFIA 2020

Application of Companies and Allied Matters Act, etc.

(1) The provisions of this Act shall apply notwithstanding the provisions of the Companies and Allied Matters Act, the Nigeria Deposit Insurance Corporation Act, Federal Competition and Consumer Protection Act, Nigerian Financial Intelligence Unit Act, Federal Mortgage Bank of Nigeria Act, Mortgage Institutions Act, Nigerian Export-Import Bank Act and other applicable laws, in so far as they relate to banks, other financial institutions and specialised banks.

(2) Where any of the provisions of the Acts mentioned in subsection (1) of this section or any other law or enactment is inconsistent with any of the provisions of this Act, the provisions of this Act shall prevail.

See also  Section 23-33 Nigerian BOFIA 2020

Section 54 BOFIA 2020

Netting

(1) Notwithstanding the provisions of this Act or anything to the contrary in the Companies and Allied Matters Act, any other law, subsidiary legislation, rule, procedure or practice, where the licence of a bank or other financial institution is
revoked pursuant to the provisions of this Act or is wound up by an order of a court of competent jurisdiction, or a liquidator is appointed for the bank or other financial institution, any provision contained in a written netting agreement to which the bank or other financial institution is a party, or any netting rule or practice applicable to the bank or other financial institution, shall be binding upon the liquidator in respect of –
(a) any payment or settlement instruction which has been delivered to another bank or other financial institution, a service provider or to the Bank prior to the revocation, winding up order, or appointment of the liquidator and
which instruction –
(i) is subject to calculation and determination through clearing or netting; or
(ii) may result in a payment or settlement obligation, which obligation is to be discharged on or after the date of the revocation, the winding-up order, or appointment of the liquidator, or the discharge of which was overdue on the date of the winding-up order, or appointment of the liquidator, as the case may be;
or
(b) any payment or settlement obligation –
(i) which has been determined through netting prior to the revocation, the issue of the winding-up order or
appointment of the liquidator; or
(ii) which is to be discharged on or after the date of the revocation, the winding-up order, appointment of the liquidator, or the discharge of which was overdue on the date of the winding-up order, appointment of the liquidator.

See also  Section 74-84 Nigerian BOFIA 2020

(2) Notwithstanding anything to the contrary in the Companies and Allied Matters, any other law, subsidiary legislation, rule, procedure or practice, any asset of a bank or other financial institution which the bank or other financial institution, prior to the revocation or issue of its winding-up order, has provided –
(a) to the Bank or any other bank, other financial institution or any person as security for a loan in respect of its settlement obligation, may be utilised by the Bank to the extent required for the discharge of that settlement obligation; or
(b) in terms of a written agreement with a service provider, to the service provider as security in respect of its payment obligation, may be utilised by the service provider to the extent required for the discharge of that
payment obligation.

Section 55 BOFIA 2020

Priority of deposit liabilities

Where a bank is unable to meet its obligations or suspends payment or where its management and control has been taken over by the Bank or where its licence has been revoked pursuant to the provisions of this Act, the assets of the bank shall be
available to meet all the deposit liabilities of the bank and such deposit liabilities shall have priority over all other liabilities of the bank.

Section 56 BOFIA 2020

Power to make regulations

(1) The Governor may make regulations, published in the Gazette or in any other medium, pursuant to the objects and objectives of this Act.

(2) Without prejudice to the provisions of subsection (1) of this section, the Governor may make rules and regulations for the operation and control of all institutions under the supervision of the Bank.

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