Section 65: Appointment of conservator

65. Appointment of conservator Where the central bank deems it necessary in order to protect the assets of a financial institution for the benefit of its depositors and other creditors, it may appoint a conservator, which may be the central bank or any other person directed by the central bank to be conservator, if the central bank has reasonable cause to believe that— (a) the capital of the financial institution is impaired or there is a threat of such impairment; or (b) the financial institution has, or its directors have— (i) engaged in practices detrimental to the interests of its depositors; (ii) knowingly or negligently permitted its chief executive officer, any of its other managers, officers or employees or agents to violate the banking laws, any enactment relating to anti-money laundering or prevention of terrorism or guidelines and instructions issued by the central bank; or (c) actions or violations referred to in paragraph (b) (ii) are about to occur, or the assets of the financial institution are not sufficient to give adequate protection to the bank’s depositors or creditors. (S. 65 came into operation on 1 June 2007.)