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(5) The Reserve Bank may appeal to the Supreme Court against any setting aside or
amendment or variation of a declaration under subsection (3), and where such appeal is made
the declaration shall continue to have effect until the appeal is determined.
PART IV
OBJECTS OF ADMINISTRATION AND FUNCTIONS OF ADMINISTRATOR
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Object of administration
The object of administration is to safeguard the interests of the depositors, creditors and
members of a troubled financial institution by restoring the troubled financial institution to a
sound financial condition or, if it cannot be so restored, to safeguard the interests of the
depositors, creditors and members by any one or more of the following modes of resolution—
(a) reconstructing the troubled financial institution with a view to securing the
registration of a successor financial institution that will succeed to the banking or
other business undertaken by the troubled financial institution and to such of its
assets and liabilities as remain after the administration; or
(b) amalgamating the troubled financial institution or any part of its banking or other
business with one or more other troubled financial institutions and securing the
registration of a successor financial institution that will succeed to the assets,
liabilities and banking or other business undertaken by the amalgamated financial
institutions; or
(c) transferring all or any part of the banking or other business of the troubled financial
institution to any other financial institution together with all or part of the assets and
liabilities of the troubled financial institution which remain after the administration;
or
(d) winding up the troubled financial institution in accordance with section 57 of the
Banking Act, if any of the foregoing options are not, in the opinion of the
administrator, feasible.
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General powers of administrator in relation to troubled financial
institution
(1) The administrator shall have all the powers of a curator under section 55 of the
Banking Act, and in addition the following powers, which he or she may exercise without the
authority of the directors or shareholders of the troubled financial institution, but subject to
any directions of the Reserve Bank—
(a) to carry on or discontinue any part of the business of the troubled financial
institution;
(b) to freeze all or any class of deposits placed with the troubled financial institution
indefinitely or for a fixed period;
(c) to stop or limit the payment of any obligation, including interest;
(d) to set aside any disposition of the property of the financial institution or of any
specified person in terms of section 13;
(e) to operate every account with a financial institution operated by the troubled
financial institution immediately before the commencement of the administration;