CP-2.3 CP-2.3 Procedures for Making Claims under the Scheme
CP-2.3.1
Upon the convening of the Board in accordance with Section CP-1.2 above, the Board will calculate the total amount of compensation to be paid under the Scheme in the case of the relevant bank, as well as the amount of compensation payable under the Scheme to each eligible depositor of such relevant bank. In addition, one or more of the contributing banks will be appointed by the Board to act as the mandated bank(s) (the 'mandated bank(s)') for the purpose of the operation of the Scheme for the relevant bank.
October 07CP-2.3.2
Following the completion of the calculations referred to in Paragraph CP-2.3.1 above, the total amount of compensation due to be paid under the Scheme in the case of the relevant bank should be paid by the mandated bank into a special account to be held by itself. In the event that there is more than one mandated bank, the total amount of compensation due to be paid should be paid by the mandated banks into a special account to be held by one of the mandated banks so designated by the Board (such bank being herein referred to as the 'lead mandated Bank'. In either case, such account should be entitled 'The Central Bank of Bahrain – Deposit Protection Board'.
October 07CP-2.3.3
At the same time as the mandated Bank(s) is/are carrying out the action referred to in Paragraph CP-2.3.2 above, each of the contributing banks (other than the (lead) mandated Bank) should execute in favour of such (lead) mandated bank an indemnity in form and substance to be agreed between the Board and the contributing banks.
October 07CP-2.3.4
The proportion of the total amounts referred to in Paragraph CP-2.3.2 above to be paid by each of the contributing banks should be calculated in accordance with a formula determined by the Board, which formula will take into account the relative size of each such bank's
deposit base.October 07CP-2.3.5
Upon receipt by the Board of confirmation, in form and substance satisfactory to it, from the (lead) mandated bank that the actions referred to in Paragraph CP-2.3.2 and Paragraph CP-2.3.3 above have been completed, each eligible depositor should be sent a certificate in duplicate (in the form, or substantially in the form, of the Schedule attached in Appendix CP-1) by the Board informing such eligible depositor of the amount of compensation payable to him/her under the Scheme in respect of his/her eligible
deposit (s) with the relevant bank.October 07CP-2.3.6
The certificate referred to in Paragraph CP-2.3.5 above should also contain instructions as to the method by which, and time within which, the compensatory amount referred to therein may be collected by the eligible depositor from the (lead) mandated bank. No amounts of compensation should be payable under the scheme after the expiry of the period referred to in such certificate, which period should not be less than 12 months.
October 07CP-2.3.7
When the duplicate copy of the certificate referred to in Paragraph CP-2.3.5 above is signed by an eligible depositor, it should constitute an assignment by such eligible depositor in favour of the (lead) mandated bank, of all rights and benefits in relation to that proportion of any claim which he/she would otherwise have in the liquidation of the relevant bank which is represented by the compensatory amount which he/she has received under the Scheme. Such assignment should be made to the (lead) mandated bank on its own behalf and as agent on behalf of the other contributing banks to the Scheme in the case of the relevant bank. Upon receipt of the signed duplicate copy of the certificate from an eligible depositor, the (lead) mandated bank should pay the amount referred to in the certificate to such eligible depositor.
October 07CP-2.3.8
At the end of such periods as will be determined between the Board and the (lead) mandated bank, each of the contributing banks (other than the mandated bank (s)) should pay to the (lead) mandated bank that portion of its contributory share of the total amount referred to in Paragraph CP-2.3.1 above (such contributory share being determined in accordance with the formula to be determined by the Board pursuant to Paragraph CP-2.3.4 above and being notified to each contributing bank by the Board) which the (lead) mandated bank has paid to eligible depositors under the Scheme in the case of the relevant bank in the immediately preceding period.
October 07CP-2.3.9
The (lead) mandated bank should be entitled to claim as an ordinary creditor, on its own behalf and as agent for and on behalf of the other contributing banks, in the liquidation of the relevant bank for that proportion of the total amounts referred to in Paragraph CP-2.3.1 above which has been paid out to eligible depositors under the Scheme at the end of the period referred to in Paragraph CP-2.3.6 above.
October 07CP-2.3.10
Any amount received by the (lead) mandated bank in the liquidation of the relevant bank should be reimbursed to the contributing banks pro-rata to such contributing banks' contributions to the amounts paid out under the Scheme in the case of the relevant bank.
October 07CP-2.3.11
The liquidator of the relevant bank should, in making any payments to eligible depositors thereof in the liquidation of such relevant bank, take such steps as are necessary to ensure that eligible depositors must not receive any payment in the liquidation of the relevant bank for amounts already paid out under the Scheme to such eligible depositors.
October 07
