FINANCIAL INSTITUTIONS LAW ( PART 36)

Article 114
Nomination of the Supervisory Commission

1. When any of the situations referred to in article 109 or in number 2 of article 111 of this law occur, the Supervisory Entity may, together with or separately from the nomination of the provisional administrators, nominate a supervisory
commission.

2. The following will be members of the supervisory commission:

a) one person nominated by the Supervisory Entity who shall preside over the commission;
b) one person nominated by the general assembly;
c) one independent chartered accountant nominated by the body representing accountants and chartered accountants, in accordance with the Supervisory Entity.

3. The failure to nominate the person referred to in line b) above does not prevent the supervisory commission from executing its duties.

4. The supervisory commission shall exercise their duties for a period determined by the Supervisory Entity, up to a maximum of one year, which may be extended once for a similar period.

5. The supervisory commission has the powers and duties conferred by law and statute to the fiscal council or accounts auditor, according to the structure of the company, the later remaining suspended for the duration of the commissions’ activity.

6. Payment to the members of the supervisory commission is determined by the Supervisory Entity and falls to the responsibility of the institution in question.

Article 115
Other measures

1. When nominating the provisional administrators, the supervisory entity may determine the following extraordinary measures:

a) temporary suspension of compliance with standards of prudence or monetary policy;
b) temporary suspension of timely compliance with previously accepted obligations;
c) temporary closure of branches and other premises where public transactions take place.

2. The provision of line b) above does not affect the preservation of all the rights of credit against guarantors or those who are jointly liable.

3. The measures referred to in this article shall be applicable for a maximum of one year, extendable once only for a similar further period.

Article 116
Duration of extraordinary measures

The extraordinary measures provided for in this chapter shall remain in force only as long as the situation, which led to their imposition, continues.

Article 117
Suspension of execution and deadlines

When the extraordinary measure of nominating provisional administrators is adopted, and while it lasts, all executions, including fiscal executions, against the institution or executions affecting its assets, not excepting those which are reserved for collection of preferred or secured credits, and deadlines for forfeiture or expiry that may be opposed by the institution are suspended.

Article 118
Appeals

In any appeal of decisions taken by the Supervisory Entity in the context of measures regulated by this chapter, it is presumed, until the contrary is proven, that the suspension of effectiveness constitutes serious damage to public interest.

Article 119
Application of sanctions

The adoption of extraordinary corrective measures does not prevent, in the case of any infraction, the application of sanctions as provided for by law.

Article 120
Liquidation procedure

1. If it is ascertained that, even with the adoption of extraordinary measures, it is not possible to save the institution, and while the law on intervention and extra-judicial liquidation of financial institutions is not approved, the Supervisory Entity shall revoke the authorization for the exercise of activity and request the Attorney General to require the declaration of bankruptcy.

2. The judge of the Provincial circumscription where the headquarters of the financial institution are located shall appoint the trustee, by proposal of the Supervisory Entity.

3. The personal patrimony of managers that are considered to blame, either by gross fault or felonious act, for the bankruptcy, shall respond in its totality for the payments of the institution debts.

Article 121
Branch Offices

The provisions of this chapter are applicable, with the appropriate adaptations, to the branch offices of foreign financial institutions.

Disclaimer:

The information contains in this web-site is prepared for educational purpose. This site may be used by the students, faculties, independent learners and the learned advocates of all over the world. Researchers all over the world have the access to upload their writes up in this site. In consideration of the people’s participation in the Web Page, the individual, group, organization, business, spectator, or other, does hereby release and forever discharge the Lawyers & Jurists, and its officers, board, and employees, jointly and severally from any and all actions, causes of actions, claims and demands for, upon or by reason of any damage, loss or injury, which hereafter may be sustained by participating their work in the Web Page. This release extends and applies to, and also covers and includes, all unknown, unforeseen, unanticipated and unsuspected injuries, damages, loss and liability and the consequences thereof, as well as those now disclosed and known to exist.  The provisions of any state’s law providing substance that releases shall not extend to claims, demands, injuries, or damages which are known or unsuspected to exist at this time, to the person executing such release, are hereby expressly waived. However the Lawyers & Jurists makes no warranty expressed or implied or assumes any legal liability or responsibility for the accuracy, completeness or usefulness of any information, apparatus, product or process disclosed or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product process or service by trade name, trade mark, manufacturer or otherwise, does not necessarily constitute or imply its endorsement, recommendation or favouring by the Lawyers & Jurists. The views and opinions of the authors expressed in the Web site do not necessarily state or reflect those of the Lawyers & Jurists. Above all, if there is any complaint drop by any independent user to the admin for any contents of this site, the Lawyers & Jurists would remove this immediately from its site.