(1) The court may issue an order to the Rastra Bank to make recommendation for appointment of a liquidator for initiating process of mandatory liquidation of any bank or financial institution.
(2) In cases where the court issues an order pursuant to Sub-Section (1), the Rastra Bank shall recommend the names of at least three persons for appointment to the Liquidator within fifteen days.
(3) While making recommendation to the court by the Rastra Bank pursuant to Sub-Section (2), it will make recommendations from among persons having experience in the banking and financial sector and having a license to act as insolvency practitioners according to the prevailing laws.
(4) The court may appoint one of the three persons recommended pursuant to Sub-Section (2) as liquidator.
(5) After a Liquidator has been appropriated pursuant to Sub-Section (4), the Board of Directors of such bank or financial institution shall be deemed to have been ipso facto dissolved and unless otherwise ordered by the Liquidator, services of the entire office-bearers and employees appointed by the bank or financial institution shall ipso facto be terminated.
(6) If the Liquidator appointed pursuant to Sub-Section (4) tenders his or her resignation, dies or the Rastra Bank deems that he/she is incompetent to perform the prescribed functions, the Rastra Bank shall file an application to the court according to this Section to appoint another Liquidator by removing such a liquidator.
(7) The remuneration and terms and conditions of services of a liquidator shall be as prescribed by the court on the recommendation of the Rastra Bank.