Chapter Two: Obligations of Banks and Financial Institutions
| No: 42066419 | Date(g): 1/5/2021 | Date(h): 20/9/1442 | Status: In-Force |
Translated Document
Effective from 2021-05-01 - Apr 30 2021
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| 3. | Banks and Financial Institutions, as operators of banking activities or creditors of the debtor, must adhere to the following: | ||
| 3.1 | Facilitate the provision of any information or procedures related to the debtor’s transactions subject to financial reorganization, liquidation, financial reorganization for small debtors, liquidation for small debtors, or administrative liquidation to the trustee or committee, as applicable, through various channels, in accordance with the provisions of Chapter Three of these instructions. | ||
| 3.2 | Adhere to the suspension of claims against the debtor immediately upon receiving proof of a court order from the competent court suspending claims. This should be done through official notification channels, the trustee, or the debtor—whichever is applicable— including debit and transfer orders from bank accounts in accordance with the judgments and decisions issued by the competent courts after the suspension of claims, with the following considerations: | ||
| Adhere to the suspension of claims according to the timeframes specified for each procedure in the Law, or until the bank receives confirmation of the cancellation of the suspension, considering any extensions that may be granted by the competent court. | |||
| The suspension of claims does not extend to attachment and debit orders from bank accounts and prohibitions on transactions based on judgments and decisions issued before the suspension of claims, unless otherwise directed by the competent court. | |||
| Ensure compliance with relevant legal provisions regarding the enforcement on guarantees during the suspension of claims. | |||
| 3.3 | Submit the bank's claims to the trustee or committee—whichever is applicable—within the specified timeframe, detailing their nature and attaching supporting documentation. | ||
| 3.4 | Verify the powers and duties of the trustee, and each trustee individually if there are multiple, based on the competent court's ruling. | ||
| 3.5 | Ensure that employees in the relevant departments and branches are familiar with these instructions. | ||