Section 85-94 Nigerian BOFIA 2020

Section 85-94 BOFIA 2020

Section 85 to 94 of the Bank and Other Financial Institutions Act 2020 is part of Part IX (RESOLUTION FUND AND RESOLUTION TOOLS) of the Act.

Section 85 BOFIA 2020

Proceedings of the Board of Trustees

The Board of Trustees shall meet for the conduct of its business at the Secretariat or such other place at such times and on such days as the Chairman of the Board of Trustees may decide; and the Board of Trustees shall, subject to the provisions of
this Act, have power to regulate its proceedings.

Section 86 BOFIA 2020

Non Remuneration for Members of Board of Trustees

No remuneration shall be payable to members of the Board of Trustees, save such sitting allowances as the Governor may from time to time determine. Provided that members of the Board of Trustees shall be entitled to be reimbursed in full for all
reasonable expenses incurred in pursuit of the business of the Board of Trustees and in the discharge of their functions.

Section 87 BOFIA 2020

Investment of Resolution Fund

(1) All moneys standing to the credit of the Resolution Fund which are not immediately required to be utilised shall be invested in any of the following –
(a) debt securities issued, or which are guaranteed by the Federal Government of Nigeria or the Bank;
(b) with the prior written consent of the Bank, debt securities issued, or which are guaranteed by the central government of a sovereign country;
(c) with the prior written consent of the Bank, debt securities issued, or which are guaranteed by an international financial institution of which Nigeria is a member;
(d) repurchase agreements fully collaterised by debt securities of the governments and institutions mentioned in paragraphs (a)-(c) of this subsection (1), with a maximum maturity of 30 days; and
(e) such other debt securities or instruments that the Board of Trustees may with the approval of the Bank from time to time, designate; Provided always that in the case of paragraphs (b), (c), and (d) above, such debt securities or instruments shall be freely tradable securities.

SEE ALSO  Section 34-42 Nigerian BOFIA 2020

(2) All bonuses, profits and other returns which accrue on investments made in pursuance of subsection (1) of this section shall form part of the Resolution Fund and may be re-invested in accordance with subsection (1) of this section.

Section 88 BOFIA 2020

Dissolution of Resolution Fund

At the dissolution date of the Resolution Fund prescribed by the Bank, the Resolution Fund shall stand dissolved and the Board of Trustees shall appoint on such terms as it deems fit, one or more liquidators to wind up the affairs of the Resolution Fund, realise all assets of the Resolution Fund and, distribute, in accordance with such directions as may be issued by the Bank, the proceeds of realisation and all moneys then standing to the credit of the Resolution Fund.

Section 89 BOFIA 2020

Books of Accounts

The Board of Trustees shall cause to be kept, for the Resolution Fund, proper books of accounts with respect to all levies and contributions paid to the Resolution Fund, and all the transactions and investments of the Resolution Fund, which shall give a
true and fair view of the state of affairs of the Resolution Fund in such form and in compliance with such accounting standards as may be prescribed by the Bank.

Section 90 BOFIA 2020

Audit of Resolution Fund

(1) The Board of Trustees shall cause the accounts of the Resolution Fund to be submitted for audit within six weeks after the end of each financial year to such independent firm of auditors as the Board of Trustees may appoint. To qualify for such appointment, such independent firm of auditors shall –
(a) be a member of one of the professional bodies recognised in Nigeria; and
(b) be resident in Nigeria and carry on in Nigeria, professional practice as an accountant and auditor.

(2) The Board of Trustees shall cause the audited accounts of the Resolution Fund to be submitted to the Governor, Corporation and each bank, specialised bank and other financial institution, within twelve weeks after the end of the
financial year to which such account relates.

SEE ALSO  Section 49-56 Nigerian BOFIA 2020

Section 91 BOFIA 2020

Annual Report of Resolution Fund

The Board of Trustees shall, not later than three months after the end of each financial year, beginning with the financial year following the commencement date, submit a report of its activities during the financial year concerned in such form and
with such information as may be specified by the Bank (in this Act referred to as an “annual report”) to the Governor, the Corporation, and each bank, specialised bank and other financial institution to which the levy imposed under section 77 of this Act applies.

Section 92 BOFIA 2020

Financial year of Resolution Fund

The financial year of the Resolution Fund shall begin on the 1st day of January and end on the 31st day of December.

Section 93 BOFIA 2020

Limitation of action in relation to Resolution Fund, Etc.

(1) Without prejudice to sub-section (3) of this section –
(a) no suit shall lie or be instituted against the Resolution Fund, a member of the Board of Trustees of the Resolution Fund or any person acting on behalf of the Resolution Fund for any act done or omitted to be in pursuance or execution or intended execution of this Act unless it is commenced within three months after the
act, neglect or default complained of, or in the case of a continuing act, neglect or default, within three months after the ceasing thereof; and

(b) no suit shall be commenced against the Resolution Fund, a member of the Board of Trustees or any person acting on behalf of the Resolution Fund before the expiration of one month after written notice of intention to commence the suit shall have been served upon the Board of Trustees by the intending plaintiff or his agent;
and the notice shall clearly and explicitly state the cause of action, the particulars of the claim, the name and place of abode of the intending plaintiff and the relief which the intending plaintiff claims.

(2) In any action or suit relating to the Resolution Fund no injunction or order in the nature thereof shall be issued against the Resolution Fund or any asset of the Resolution Fund; and no execution or attachment or processes in the nature thereof shall be issued against moneys standing to the credit of the Resolution Fund but any sums of money which may, by the judgment of a court, be awarded against the Resolution Fund, shall, subject to any directions given by the court where notice of appeal has been given by the Resolution Fund, be paid from moneys standing to the credit of the Resolution Fund.

SEE ALSO  Section 43-48 Nigerian BOFIA 2020

(3) Neither the Resolution Fund, nor the Board of Trustees, nor any person engaged by the Resolution Fund or the Board of Trustees in connection with the performance of the functions of the Board of Trustees or the business of the Resolution Fund, 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 or function conferred upon the Board of Trustees.

(4) Every member of the Board of Trustees or agent for the time being of the Resolution Fund shall be indemnified out of the assets of the Resolution Fund against any liability incurred by him in defending any civil proceedings, if such proceeding is brought against him in his capacity as such member or agent. Provided that nothing in this Act shall be construed as entitling a member of the Board of Trustees to be indemnified against liability arising from the breach of the fiduciary or other duties imposed by the law.

Section 94 BOFIA 2020

Regulation of Resolution Fund

Without prejudice to the powers of the Bank to make regulations and to issue guidelines and directions under this Act, the Bank shall have power to make rules and regulations for giving effect to the provisions of this Part and without limitation, for regulating the management and operations of the Resolution Fund, and the proceedings of the Board of Trustees.

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Inioluwa Olaposi

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