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(2) Subject to subsection (3), the administrator shall, pursuant to a scheme of resolution,
make special provisions for the repayment of depositors in whole or in part.
(3) Provision under subsection (2) may be made⎯
(a) to repay deposits in cash over a period of up to twenty-four months;
(b) to issue shares in the successor financial institution of the troubled financial
institution of a nominal value equivalent to any deposits in exchange for such
deposits;
(c) to issue debentures in the successor financial institution of the troubled financial
institution on the following terms, or on terms not less favourable to the depositors
than the following terms, namely, that each debenture shall⎯
(i) secure a sum equivalent to the money value of the deposit at the date of
administration; and
(ii) bear zero interest or interest at a fixed rate only; and
(iii) be payable to bearer; and
(iv) have a maturity date not exceeding thirty-six months from the date when the
scheme of resolution is approved under section 28, and be fully redeemable
by the successor financial institution on maturity;
(d) to transfer deposits in the troubled financial institution to the successor financial
institution, where such deposits may be frozen for a period not exceeding twentyfour months;
(e) for any combination of the foregoing, and for the differential treatment of depositors
according to the size and nature of their deposits.
(4) No repayment of a deposit with a troubled financial institution under this section shall
be made to a depositor who is a specified person in relation to that institution.
(5) Repayment in whole or in part of a speculative investment shall only be made, if at
all, after provision has been made for the repayment in full of all the depositors of the
troubled financial institution in which the speculative investment was made.
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Approval of scheme of resolution
(1) No later than two months after the commencement of the administration the
administrator shall produce a provisional scheme of resolution providing for any of the
matters specified in section 26 and present it to a joint meeting of creditors and members.
(2) The administrator may vary the provisional scheme of resolution in accordance with
the opinions and wishes of the creditors and members expressed at the meeting referred to in
subsection (1).
(3) As soon as possible after the meeting referred to in subsection (1) the administrator
shall submit the provisional scheme of resolution, with variations, if any, to the Reserve
Bank, together with a report summarising the opinions and wishes of the creditors and
members in relation to it.
(4) The Reserve Bank may, after considering the provisional scheme of resolution and
the report referred to in subsection (3), approve the scheme or approve it subject to such
variations as it may direct, whereupon it shall become the final scheme of resolution.
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