FINANCIAL INSTITUTIONS LAW ( PART 34)

Chapter IX
Corrective measures

Article 108
Objective of corrective provisions

1. With a view to protecting the interests of its depositors, investors and other creditors, and to safeguard the normal functioning of the monetary, financial and foreign exchange markets, the Supervisory Entity may, in relation to financial institutions with registered office in Angola, adopt the extraordinary measures referred to in this chapter.

2. The general provisions, stipulated in the Commercial Code, for preventive measures for declaration of bankruptcy do not apply to financial institutions.

Article 109
Obligation to communicate

1. When a financial institution finds itself unable to meet its obligations, or at risk of becoming unable to do so, the administrative and supervisory bodies should immediately communicate the fact to the Supervisory Entity.

2. Members of the administrative and supervisory bodies are individually obliged to make the communication referred to in the previous number, doing so on their own initiative if the body to which they belong fails to do so or
delays doing so.

3. The communication should be accompanied or followed at the shortest possible interval by a summary of the salient facts of the situation and a list of creditors, with their respective contact addresses.

Article 110
Extraordinary corrective measures

When a financial institution finds itself in a situation of financial imbalance, as shown in a reduction of its own funds to a level lower than the legal minimum, or incompliance with the ratios of solvency or liquidity, the Supervisory Entity may decide, within a period defined by itself, on the application of some or all of the following corrective measures:

a) presentation, by the institution in question, of a recovery and corrective plan, under the terms of next article of this law;
b) restrictions on credit granted and to the application of funds in certain types of assets, particularly those regarding operations with an affiliate, or with a parent company, or with an affiliate of a parent company;
c) imposition of special provisions;
d) suspending or prohibiting the distribution of dividends;
e) subjecting certain operations or acts to prior approval of the Supervisory Entity.

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