(1) A liquidator appointed for the purpose of initiating the process of mandatory liquidation of a bank or financial institution shall, after his/her appointment, carry out the following actions:-
a. To publish a notice in a national level Nepali and English daily newspaper for information of shareholders and other concerned persons of the bank or financial institution within fifteen days of the appointment,
b. To send to the Office of the Company Registrar and the institution established as per the prevailing laws for guarantee of deposits for information with an authenticated copy of the order of mandatory liquidation within fifteen days of the appointment;
c. To post or cause to be posted a copy of such an order in a conspicuous manner at the principal place of business of the bank or financial institution and at each of its offices,
d. To broadcast the notice through a national level television and radio for four weeks at least once in a week after the appointment,
e. To perform such other functions as specified by the Rastra Bank.
(2) After getting information as referred to in Clause (b) of Sub-Section (1), the Office of the Company Registrar shall make in the concerned registration book that an order of initiating the process of mandatory liquidation has been issued.
(3) In addition to the functions, duties and powers as referred to elsewhere in this Act, the other functions, duties and powers of a liquidator shall, subject to the directives of the Rastra Bank, be as follows:-
a. To take custody of the office, books and accounts, records and assets of the bank or financial institution,
b. To carry out most essential regular functions of operation and management of the bank or financial institution,
c. To carry out all the functions to be carried out on behalf of or in the name of the bank or financial institution,
d. To appoint employees to render assistance in its functions,
e. To make the necessary expenses for operation, management and liquidation of the bank or financial institution,
f. To make coordination with institutions established by the prevailing laws for security of deposits,
g. To exercise all the powers to be exercised by the shareholders, General Meeting, Board of Directors and office-bearers of the bank or financial institution,
h. To carry out inquiry into the business and financial status of the bank or financial institution,
i. To merge or transfer the entire or some of the assets and liabilities of the bank or financial institution with another bank or financial institution with the approval of the Rastra Bank,
j. To get credit in mortgaging of the bank or financial institution,
k. If it is felt that it will be beneficial for the bank or financial institution to sell any assets or terminate any contract or liability, to sell such assets or to terminate such contract or liability,
l. To procure services of professional and qualified persons to render assistance in its functions as may be necessary,
m. To hold necessary discussions and enter into compromise with any creditor or borrower of the bank or financial institution,
n. To collect, protect and sell the assets of the bank or financial institution and to distribute according to this Act,
o. To conduct an inquiry into whether or not a Director, office bearer, employee, or any other person has committed fraud, cheating, or misrepresentation against the bank or financial institution or depositors or creditors and to take the necessary legal actions against them or to file any case or initiate a legal action on behalf of the bank or financial institution or to defend on behalf of the bank or financial institution,
p. If anyone has been using any property of the bank or financial institution, to withdraw it or to take legal actions to take such property or cash amount from the transaction which has been declared invalid back,
q. To prepare a report in every three months on the actions taken in the course of liquidation in such format as specified by the Rastra Bank and to submit it to the Court and Rastra Bank,
r. To carry out all other functions as may be required for liquidation of the bank or financial institution,
s. To perform other functions as prescribed by the Rastra Bank.
4. If any difficulty arises in the course of exercising any power or discharging any duty by a Liquidator under this chapter, he/she may file an application to the court to remove such difficulty.
(5) In cases where the reasons stated in the application submitted pursuant to Sub-Section (4) are found to be reasonable, the Court may issue an appropriate order.