(1) Notwithstanding anything contained elsewhere in this Act, any licensed institution violates this Act or the National Bank Act or the rules or regulations made thereunder or the orders or instructions issued thereunder or the licensed institution fails to comply with the inspection and supervision report of the National Bank. If the National Bank is convinced that it has not been able to fulfill its obligations or is likely to be unable to, or that the bank or financial institution is not operating smoothly or has acted to the detriment of shareholders or depositors, the National Bank may suspend the board of directors of such licensed institution for a maximum period of three years and take such licensed institution under its control. (2) After the National Bank has taken control of a licensed organization in accordance with sub-section (1), the National Bank may appoint the management of such licensed organization itself or a suitable person, firm, company or organization to do so. 2) The financial and management examination of the concerned licensed institution shall be conducted or publicly published within one year of the management by himself or through any other person, firm, company or organization. (4) The related license from the report under subsection (3) If the National Bank is confident that the acquired organization is capable of fulfilling its obligations or has reached a state of smooth operation, the National Bank may do the following:- (a) The suspension of the board of directors of the licensed organization as per sub-section (1) shall be released and reinstated. To entrust the management of the organization to the board of directors, or (b) dismiss the suspended board of directors of the licensed organization in accordance with sub-section (1) and form a new board of directors from among the shareholders of the licensed organization and entrust the management of that organization, or (c) call a general meeting of the licensed organization Management of the organization by forming a new board of directors from the meeting(d) take any other action deemed appropriate by the National Bank. (5) The National Bank is convinced that the relevant licensed institution is unable to fulfill its obligations or is unable to operate smoothly from the report as per sub-section (3). If so, the National Bank may take any of the following two actions in relation to such licensed institution:-(a) Initiate the process of compulsory revocation in accordance with the provision made in Chapter-12 of this Act, or (b) proceed with the procedure of modification in accordance with the National Bank Act. 6) Before the National Bank takes control of the licensed institution according to sub-section (1), the relevant licensed institution shall be given an opportunity to present its justification within fifteen days after considering the situation. The entire cost of the proceedings shall be borne by the concerned licensed institution. (8) The National Bank shall inform the Government of Nepal, the Ministry of Finance that it has taken control of any licensed institution in accordance with sub-section (1).