Section 92: Priority of deposit and other liabilities in case of winding up of a bank

92. Priority of deposit and other liabilities in case of winding up of a bank and non-bank deposit taking institution (1) Notwithstanding any other enactment, in the event of a winding up of a bank and non-bank deposit taking institution, the deposit liabilities of the bank and non-bank deposit taking institution shall be settled in the manner specified in subsection (2). (2) All assets of the bank and non-bank deposit taking institution shall be available to meet all deposit liabilities of the bank and non-bank deposit taking institution in the following order of priority— (a) deposit liabilities incurred by the bank and non-bank deposit taking institution with non-bank customers; (b) deposit liabilities incurred by the bank and non-bank deposit taking institution with other banks; (c) other liabilities of the bank and non-bank deposit taking institution. [Issue 3] B3 – 60 Revised Laws of Mauritius (3) The deposit or other liabilities in each class specified in subsection (2) shall rank in the order specified in that subsection but as between deposit or other liabilities of the same class shall rank equally between themselves and shall be paid in full unless the assets of the financial institution are insufficient to meet them in which case they shall be settled in equal proportions between themselves. (4) For the purposes of section 91 and this section, “deposit liabilities” means sums of money paid on terms— (a) under which they shall be repaid, with or without interest or at a premium, and either on demand or at a time or in circumstances agreed by or on behalf of the persons making the payments and the bank and non-bank deposit taking institution receiving them; (b) which are not referable to the provisions of property or services or to the giving of security. (5) For the purposes of subsection (4), money shall be paid on terms which are referable to the provisions of property or services or to the giving of security only where— (a) it is paid by way of advance or part-payment for the sale, hire or other provision of property or services of any kind and shall be repayable only in the event that the property or services is or are not in fact sold, hired or otherwise provided; (b) it is paid by way of security for payment for the provision of property or services of any kind provided or to be provided by the bank and non-bank deposit taking institution by whom or on whose behalf the money is accepted; or (c) it is paid by way of security for the delivery or return of any property, whether in a particular state of repair or otherwise. [S. 92 amended by s. 3 (g) of Act 14 of 2009 w.e.f. 30 July 2009.] PART XIII – MISCELLANEOUS