30 that section, the person provisionally proves his or her claim to the satisfaction of the administrator or Reserve Bank, as the case may be. 33 Persons employed by troubled financial institution before its administration To the extent that it is possible to do so without prejudicing the viability of the troubled financial institution or the successor financial institution, the administrator and interim board shall endeavour to retain in employment every person, other than a specified person, employed by the institution immediately before the commencement of its administration on terms not less favourable than those enjoyed by him or her immediately prior to the commencement of the administration. 34 Application of assets during administration (1) The administrator or interim board shall not, without the leave of the Reserve Bank, sell or otherwise dispose of any of the assets of a troubled financial institution or successor financial institution except in the ordinary course of the institution’s business. (2) Any moneys of the troubled financial institution which become available to the administrator or an interim board shall be applied by the administrator or interim board towards— (a) paying the costs of the administration; and (b) conducting the institution’s business in accordance with the declaration or scheme of resolution; and (c) so far as circumstances permit, paying the claims of creditors which arose before the commencement of the administration. (3) The costs of the administration and the claims of creditors of the troubled financial institution shall be paid in accordance with the law relating to insolvency as if those costs were costs of the sequestration of an estate and those claims were claims against an insolvent estate. 35 Remuneration of administrator and assistant administrators (1) An administrator and any assistant administrator shall be entitled to such reasonable remuneration for their services as may be fixed by the Reserve Bank from time to time. (2) In fixing the remuneration of an administrator or assistant administrator in terms of subsection (1), the Reserve Bank shall take into account the manner in which the administrator or assistant administrator has performed his or her functions and any recommendation by the members or creditors of the troubled financial institution relating to such remuneration. 36 Liabilities incurred by administrator and interim board to have preference over pre-administration liabilities (1) All liabilities incurred or to be incurred by the administrator or interim board in the conduct of the troubled or successor financial institution’s business shall be paid in preference to all other liabilities not already discharged, exclusive of the costs of the administration, and thereupon all claims based upon such first-mentioned liabilities shall have preference in the

Select target paragraph3

Add to table of contents