Appointment of statutory administrator

(1) The Central Bank may, with the prior written approval of the Minister, appoint a statutory administrator for a licensee in any of the following circumstances– (a) the Central Bank is of the opinion that the licensee has engaged in any unsafe and unsound practice, in such a manner as to weaken the bank’s condition, seriously threaten the interests of depositors, or dissipate the bank’s assets; (b) a final judgment has been obtained against the licensee or its executive officers for a criminal act; (c) the licensee, by resolution of its directors or shareholders, requests the appointment of a (d) the licensee’s capital and reserves fall below 50 per cent of the minimum capital requirements pursuant to section 36 (2); (e) the capital and the value of the assets of the licensee have, in the opinion of the Central Bank, reached a level or are eroding in a manner that may detrimentally affect its depositors or creditors, with no reasonable prospects of timely restoration of such capital and value; (f) the Central Bank is of the opinion that the realizable value of the assets of the licensee is 152 not sufficient to give adequate protection to the depositors and creditors of the licensee, or is less than its liabilities, or the licensee’s financial condition suggests that it will shortly be in that circumstance; (g) the Central Bank is of the opinion that the licensee is likely to be unable to meet its liabilities and other obligations as they mature or become due, or pay its depositors’ demands in the normal course of business; or (h) the licensee has refused to submit to audit or examination of its records or operations by an auditor appointed under section 75 or an examiner appointed under section 80 or section 82. (2) The decision by the Central Bank to appoint a statutory administrator shall be promptly notified to the subject licensee in writing and shall specify the grounds upon which such a statutory administrator is appointed. The appointment shall be effective immediately upon the licensee’s receipt of notice unless the decision by the Central Bank specifies the effective time of the decision. Notice of the appointment of such person by the Central Bank shall also be simultaneously published in the Gazette and in a newspaper of general circulation in Belize. (3) The statutory administrator shall be appointed by the Central Bank for a term not exceeding six months, as specified by the decision in sub-section (2). The term of appointment may be extended by the Central Bank only twice, for a period not exceeding, in each case, three months. (4) The statutory administrator shall be a person from the private sector or an officer of the Central Bank who meets such qualifications as may be prescribed by the Central Bank. 153 (5) Section 48 shall apply to a statutory administrator as though a reference to a director or officer were a reference to a statutory administrator and a reference to any obligation to disclose to the board of directors were a reference to an obligation to disclose to the Central Bank. Any transaction involving the licensee in statutory administration in which the statutory administrator has a material interest or relationship in the matter shall be engaged in only with the prior approval of