Chapter 6 Chapter 6 Procedure for Making Claims
Article 19
1) Upon the Board decision to follow the compensation process in accordance with Article 4 of this Regulation, the Board shall calculate the total amount of compensation payable hereunder to each Eligible Depositor and/or Investor 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 to Eligible Depositors and/or Investors of the defaulting bank.2) In the event of the amounts of the concerned Fund being insufficient to cover the total compensation payable in accordance with this Regulation, the Board may cover the shortfall by borrowing or arranging Sharia'-compliant financing in case of the Islamic Fund (upon such terms and conditions as it considers appropriate) and such borrowings and financing facilities shall be reimbursed by future contributions from the Conventional Banks or Islamic Banks as the case maybe.Article 20
Following the completion of the calculations referred to in Article 19 above, the Lead Mandated Bank and/ or Mandated Bank(s) shall pay, into a special account to be held by it/them, the total amount allocated to compensate the Eligible Depositors and/or Investors with the defaulting bank.
Article 21
1) Upon receipt by the Board of confirmation from the Lead Mandated Bank that the requirements of Articles 19 and 20 of this Regulation have been satisfied, the Board shall send to each Eligible Depositor and/or Investor a certificate in substantially the form set out in the First Schedule appended to this Regulation, informing each Eligible Depositor and/or Investor of the amount of compensation due to him/her hereunder in respect of his/her Eligible Account(s) with the defaulting bank.2) The certificate referred to in sub-Article (1) above, shall 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 and/or Investor 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.Article 22
When the "Customer Acknowledgment and Waiver" referred to in the Second Schedule appended to this Regulation is signed by an Eligible Depositor and/or Investor, it shall constitute 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 to related to that proportion of his claim against the defaulting bank.
Upon receipt of the signed Customer Acknowledgment and Waiver from an Eligible Depositor and/or Investor, the Lead Mandated Bank and/ or the Mandated Bank(s) shall pay the amount referred to in the certificate to such Eligible Depositor and/or Investor.
Article 23
Once an Eligible Depositor and/or Investor 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.
Article 24
The Lead Mandated Bank shall reimburse the concerned Fund for any excess monies it has received during the mandate period.
Article 25
The liquidator of the defaulting bank shall, in making any payments to Eligible Depositors and/or Investors thereof in liquidation of such Bank, be responsible for ensuring that Eligible Depositors and/or Investors 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 this Regulation.
