Section 86: Priority of claims

86. Priority of claims (1) Notwithstanding any other enactment, including the Code Civil Mauricien, claims as set out hereunder against the general assets of a financial institution, shall be settled in the following order of priority— (a) necessary and reasonable costs, charges and expenses incurred by the receiver, including his remuneration, in application of this Part; continued on page B3 – 59 B3 – 58 (1) [Issue 7] Revised Laws of Mauritius (b) wages and salaries of officers and employees of the financial institution in liquidation for the 3 month period preceding the taking possession of the financial institution; (c) taxes, rates and deposits owed to the Government of Mauritius; (d) savings and time deposits not exceeding in amount 100,000 rupees per account; (e) other deposits; (f) other liabilities. (2) In the event of the winding up of a financial institution holding a banking licence, section 91 shall apply. (3) After payment of all other claims filed, with interest thereon at a rate to be fixed by the receiver with the approval of the Bankruptcy Court, any remaining claims which were not filed within the prescribed time shall be paid. (4) Where the amount available for any class is insufficient to provide payment in full, the amount shall be distributed pro rata among the members of that class. (5) Any assets remaining after all claims have been paid shall be distributed among all the shareholders in proportion to their participation. (6) Unclaimed funds remaining after the final distribution shall be deposited by the receiver in the central bank or in such depository as the central bank may direct and shall be kept for 10 years, unless claimed by the owner before the expiration of that period. (7) On the expiration of the period specified in subsection (6), any funds or property remaining unclaimed shall be presumed to be abandoned funds or property and shall be dealt with as determined by the Board. (S. 86 came into operation on 1 June 2007.)