Section 66: Powers and duties of conservator

66. Powers and duties of conservator (1) The conservator shall take charge of the financial institution and all of its property, books, records and effects and shall exercise all powers necessary to preserve, protect and recover any of the assets of the financial institution, collect all monies and debts due to it, assert causes of action belonging to the financial institution and file, prosecute and defend suits on its behalf. [Issue 9] B3 – 50 Revised Laws of Mauritius (2) The conservator may— (a) overrule or revoke actions of the board of directors and management of the financial institution; or (b) suspend the powers of the board of directors of the financial institution during the period of the conservatorship. (3) The conservator may— (a) subject to subsection (4), suspend, in whole or in part, the repayment or withdrawal of deposits and other liabilities of the financial institution; (b) subject to subsection (5), disaffirm or repudiate any contract or lease to which the financial institution is a party other than a financial contract such as a securities contract, forward contract, repurchase agreement, swap agreement or other similar agreement that the Board determines to be a financial contract for the purposes of this provision; or (c) enforce any contract, other than a financial contract, entered into by the financial institution, notwithstanding any provision of the contract providing for termination, default or acceleration by reason of insolvency or the appointment of a conservator. (4) Any deposit and other credits received while the financial institution is under conservatorship shall not be subject to any limitation as to repayment or withdrawal but shall be segregated and not used to liquidate any indebtedness of the financial institution existing at the time the conservator was appointed or subsequent indebtedness incurred in order to discharge such indebtedness. (5) The conservator may disaffirm or repudiate a financial contract that, in his opinion, is fraudulent. (6) The conservator, where it is not the central bank itself, shall report to and be responsible to the Board. (S. 66 came into operation on 1 June 2007.) continued on page B3 (cid:177)(cid:3)(cid:24)(cid:20)(cid:3) B3 – 50 (1) [Issue 9] Revised Laws of Mauritius