CP-2.4 CP-2.4 Procedures for Making Claims Under the Scheme
CP-2.4.1
Upon the Board following the compensation process in accordance with Article 4 of the Regulation, the Board calculates the total amount of compensation payable thereunder to each
Eligible account holder of the defaulting bank. The total amount of compensation payable shall be remitted to the Bank(s) designated by the Board to act as a Lead Mandated Bank and/or Mandated Bank(s) for processing compensation payments toEligible account holders of the defaulting bank.October 2012CP-2.4.2
For the purposes of this Module, Lead Mandated Bank means the bank appointed by the Deposits and Unrestricted Investment Accounts Protection Board to administer the procedures to make compensation payments.
October 2012CP-2.4.3
For the purposes of this Module, Mandated Bank(s) means such other banks mandated by the Lead Mandated Bank to assist and/or participate in the processing of compensation payments.
October 2012CP-2.4.4
In the event of the amounts of the Islamic Fund being insufficient to cover the total compensation payable in accordance with the Regulation, the Board may cover the shortfall by borrowing (upon such terms and conditions as it considers appropriate) and such borrowings shall be reimbursed by future contributions from the Islamic retail bank licensees as the case may be.
October 2012CP-2.4.5
Following the completion of the calculation referred to in Paragraph CP-2.4.1, the Lead Mandated Bank and/or Mandated Bank(s) pays, into a special account to be held by it/them, the total amount allocated to compensate the
Eligible account holders with the defaulting bank.October 2012CP-2.4.6
Upon receipt by the Board of confirmation from the Lead Mandated Bank that the requirements of Paragraphs CP-2.4.1 to CP-2.4.3 have been satisfied, the Board sends to each
Eligible account holder a certificate in the form set out in Appendix CP-1A, informing eachEligible account holder of the amount of compensation due to him/her hereunder in respect of his/herEligible Account(s) with the defaulting bank.October 2012CP-2.4.7
Appendix CP-1A contains instructions as to the method by which, and time within which, the compensatory amount referred to therein may be collected by the
Eligible account holder from the Lead Mandated Bank or Mandated Bank(s). No amounts of compensation shall be payable hereunder after the expiry of the period referred to in such certificate, which period shall not be more than 12 months.October 2012CP-2.4.8
Appendix CP-1B, "Customer Acknowledgment and Waiver" form is signed by an
Eligible account holder , and constitutes a waiver of any claims he (or his successors or assigns) may wish to make against the Lead Mandated Bank and/or the Mandated Bank(s) and/or the Board in the future in respect of the amount being paid to him, and, a waiver to the Board of all his rights and interests related to that proportion of his claim against the defaulting bank.October 2012CP-2.4.9
Upon receipt of the signed Customer Acknowledgment and Waiver from an
Eligible account holder , the Lead Mandated Bank and/or the Mandated Bank(s) shall pay the amount referred to in the certificate to suchEligible account holder .October 2012CP-2.4.10
Once an
Eligible account holder has waived his right to claim against the defaulting bank to the Board (pursuant to the Customer Acknowledgment and Waiver referred to above), no bank may deny the rights of the Board to recover the debt so waived by way of action against the bank in liquidation.October 2012CP-2.4.11
The Lead Mandated Bank must reimburse the Islamic Fund for any excess monies it has received during the mandate period.
October 2012CP-2.4.12
The liquidator of the defaulting bank must, in making any payments to
Eligible account holders thereof in liquidation of such bank, be responsible for ensuring thatEligible account holders shall not receive any payments in liquidation for any amount that constitutes a duplicate reimbursement that they have been compensated in accordance with the terms of the Regulation.October 2012
