(1) A bank or financial institution that has been subjected to mandatory liquidation shall pay its liabilities in the following order of priority:-
a. Expenses incurred for mandatory liquidation,
b. An amount upto the amount paid for deposits insurance security made under the prevailing laws not exceeding the limitation of total approved claimed amount of the depositor or an equivalent amount, if payment has been made to a deposit insurance security organization incorporated under the prevailing laws for security of deposit,
c. The deposits remaining after payment made pursuant to Clause (b),
d. Salary, allowances and amounts for other liabilities payable to the employees of the bank or financial institution,
e. Amount payable to the Government of Nepal, local bodies, or the Rastra Bank,
f. Outstanding amounts payable to other banks or financial institutions as fees or valuation amount,
g. Amounts payable to other creditors and other claims;
h. Shareholders according to the prevailing laws.
(2) Notwithstanding anything contained elsewhere in this Chapter, in case where a creditor submits an application agreeing to accept any of the assets that was not sold while auctioning pursuant to Section 91 in lieu of the amount which the bank or financial institution has to pay him/her, the Liquidator may transfer such assets to such a creditor according to the value of the asset as fixed by the Rastra Bank in its criteria.
(3) Notwithstanding anything contained elsewhere in this Chapter, in cases where any asset has been pledged as security for the secured creditors, such asset shall be used only for fulfilling the liability towards them.