ASSET MANAGEMENT CORPORATION OF NIGERIA ACT 2010

ASSET MANAGEMENT CORPORATION OF NIGERIA ACT

2010

 

AN ACT TO ESTABLISH THE ASSET MANAGEMENT CORPORATION OF NIGERIA FOR THE PURPOSE OF EFFICIENTLY RESOLVING THE NON-PERFORMING LOAN ASSETS OF BANKS IN NIGERIA; AND FOR RELATED MATTERS

[19th Day of July, 2010] [Commencement]

Enacted by the National Assembly of the Federal Republic of Nigeria-

AN ACT TO AMEND THE ASSET MANAGMENT CORPORATION OF NIGERIA ACT; AND FOR RELATED MATTERS.
[26th Day of May,2015] Commencement.

Enacted by the National Assembly of the Federal Republic of Nigeria-

 

1. (1) There is estabiished the Asset Management Corporation of Nigeria (in this Act referred to as “the Corporation”).

(2) The Corporation-

(a) shall be a body corporate with a common seal, perpetual succession ; and

(b) may sue and be sued in its corporate name.

(3) Subject to the limitations contained in this Act, the corporation may acquire, hold and dispose of movable and immovable property for the purpose of its functions and objects.

Establishment of the Corporation.
2. (1) The authorised capital of the Corporation may be 10 billion Naira, which shall be fully subscribed to by the Federal Government and held in trust by the Central Bank of Nigeria and the Ministry of Finance incorporated in equal proportion of fifty percent each.

(2) The authorised capital of the Corporation may be increased by such amount as the Board may, from time to time, determine, with the concurrence of the Board of the Central Bank of Nigeria and the approval of the President and shall, when so increased, be subscribed to by the Federal Government and such other subscribers as may be approved by the President on the recommendation of the Central Bank of Nigeria and Ministry of Finance.

(3)

Deleted

Authorised Capital (amended by Section 1 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
3. The Corporation shall have its Head office in Abuja and may open branches in any part of Nigeria and appoint agents and correspondents as may be approved by the Board.Head Office of the Corporation.
4. The objects of the Corporation shall be to-

(a) assist eligible financial institutions to efficiently dispose of eligible bank assets in accordance with the provisions of this Act ;

(b) efficiently manage and dispose of eligible bank assets acquired by the Corporation in accordance with the provisions of this Act ; and

(c) obtain the best achievable financial returns on eligible bank assets or other assets acquired by it in pursuance of the provisions of this Act having regard to- (i) the need to protect or otherwise enhance the long-term economic value of those assets. (ii) the cost of acquiring and dealing with those assets, (iii) the Corporation’s cost of capital and other costs, (iv) any guidelines or directions issued by the Central Bank of Nigeria in pursuance of the provisions of this Act ; and (v) any other factor which the Corporation considers relevant to the achievement of its objects.

Objects of the Corporation.
5. The functions of the Corporation shall be to-

(a) acquire eligible bank assets from eligible financial institutions in accordance with the provisions of this Act ;

(b) purchase or otherwise invest in eligible equities on such terms and conditions as the Corporation, with the approval of the Board of the Central Bank of Nigeria, may deem fit;

(c) hold, manage, realise and dispose of eligible bank assets (including the collection of interest, principal and capital due and the taking over of collateral securing such assets) in accordance with the provisions of this Act ;

(d) pay coupons on, and redeem at maturity, bonds and debt securities issued by the Corporation as consideration for the acquisition of eligible bank assets in accordance with the provisions of this Act ;

(e) perform such other functions, directly related to the management or the realisation of eligible bank assets that the Corporation has acquired, including managing and disposing assets acquired with the proceeds derived by the Corporation from managing or disposing of eligible bank assets acquired by it ;

(f) take all steps necessary or expedient to protect, enhance or realise the value of the eligible bank assets that the Corporation has acquired, including- (i) the disposal of eligible bank assets or portfolios of eligible bank assets in the market at the best achievable price, (ii) the securitization or refinancing of portfolios of eligible bank assets, and (iii) holding, realising and disposing of collateral securing eligible bank assets ; and

(g) perform such other activities and carry out such other functions which in the opinion of the Board are necessary, incidental or conducive to the attainment of the objects of the Corporation.

Functions of the Corporation.
6. (1) The Corporation shall have powers to-

(a) issue bonds or other debt instruments as consideration for the acquisition of eligible bank assets ;

(b) maintain a portfolio of diverse assets including equities, fixed income bonds and real estate ;

(c) provide equity capital on such terms and conditions as the Corporation may deem fit;

(d) borrow or raise money, with or without the guarantee of the Central Bank of Nigeria (including money in a currency other than the Naira) or secure the payment of money in any manner, including issuing debentures, debenture stocks, bonds, obligations and debt securities of any kind, and charge and secure any instrument so issued by trust deed or otherwise on the undertaking of the Corporation or on any particular property and rights, present or future, of the Corporation or in any other manner;

(e) initiate or participate in any enforcement, restructuring, re-organisation, programme of arrangement or other compromise;

(f) enter into contract options and other derivative financial instruments (including in currencies other than the Naira) for purposes which include- (i) eliminating or reducing the risk of loss arising from changes in interest rates, currency exchange rates or other factors of similar nature, (ii) eliminating or reducing the costs of raising funds or borrowing or the cost of other transactions carried out in the ordinary course of business, or (iii) increasing return on investment;

(g) guarantee, with or without security, the indebtedness and performance of obligations of other entities (provided that the Corporation receives valuable and commensurate consideration for, or direct or indirect advantage from, the giving of the guarantee):

(h) draw, accept and negotiate negotiable instruments ;

(i) accept any security, guarantee, indemnity or surety ;

(j) enter into contracts of insurance with respect to any of its activities and property;

(k) enforce any security, guarantee or indemnity;

(l) compromise any claim or forgive or forebear any debt or other obligation owed to the Corporation in respect of a specified class of eligible bank assets ;

(m) open and maintain bank accounts, including accounts in currencies other than the Naira, and carry out necessary banking transactions ;

(n) form or acquire a wholly owned subsidiary or form or acquire an interest in a holding company for the purpose of performing any of its functions;

(o) give security for any debt, obligation or liability of any company referrred to in paragraph (n);

(p) enter into a partnership or joint venture for the purpose of performing any of its functions;

(q) establish a trust or participate in a trust as trustee or beneficiary ;

(r) borrow or lend debt securities, including but not limited to, equity and debt instruments;

(s) invest its funds as the Board may, from time to time, determine ;

(t) sell or dispose of the whole or any part of the property or investments of the Corporation, either together or in portions, for such consideration and on such terms as the Board may approve;

(u) engage on competitive basis, from time to time, such consultants and advisers and other service providers as are necessary or expedient for the performance of its functions; and

(v) do all such things as the Board considers incidental to or conducive to the attainment of any of the Corporation’s functions under this Act.

(2) The Corporation may carry out any of its functions and exercise any of its powers-

(a) within or anywhere outside Nigeria;

(b) alone or in conjunction with others; and

(c) by or through an agent, a wholly owned subsidiary of the Corporation, contractors, factor or trustee.

(3) Except as otherwise provided in this Act the Corporation may carry out any of its functions without the consent or approval of any other person or authority.

(4) For the purpose of subsection (1) (g) of this section, “other entities” means subsidiaries or special purpose vehicle set up by the Corporation.

(5) The power of the Corporation to compromise any claim or forgive or forebear any debt or other obligation owed to the Corporation in respect of a specified class of eligible bank assets shall, where such compromise, forgiveness or forebearance will result in a failure to recover the price paid by the Corporation for the acquisition of the eligible bank asset, only be exercisable with the approval of the Minister of Finance acting on the recommendation of the Central Bank of Nigeria that it is in the public interest so to forebear of forgive.

Powers of the Corporation.
7. Notwithstanding anything to the contrary contained in this Act, the Corporation may appoint, on selective competitive basis-

(a) asset managers to manage assets as may be specified by the Board ; and

(b) recovery agents for the purpose of recovering debts due to the Corporation or debt arising from acquisition of eligible bank assets as may be specified by the Board.

Appointment of Asset Managers.
8. The Central Bank of Nigeria, in consultation with the Federal Ministry of Finance may issue guidelines and directions in writing to the Corporation in connection with the performance of any of the Corporation’s functions under this Act.Powers of the Central Bank of Nigeria to Issue Guidelines and Directions.
9. (1) There is established for the Corporation the Board of Directors (in this Act referred to as “the Board”) which shall be responsible for-

(a) the attainment of the objects of the Corporation;

(b) the policy and general supervision of the affairs of the corporation; and

(c) such other functions conferred upon it by any other provision of this Act.

(2) The Board may delegate any part of its responsibilities under subsection (1) of this section and under any other provision of this Act as it may deem fit.

Establishment and Responsibility of the Board.
10. (1) The Board shall consist of the following members to be appointed by the President subject to the confirmation of the Senate-

(a) a part-time Chairman who shall be a nominee of the Federal Ministry of Finance in consultation with the Minister;

(b) a Managing Director who shall be the Chief Executive Officer of the Corporation nominated by the Central Bank of Nigeria ;

(c) 3 Executive Directors who shall be nominated by the Central Bank of Nigeria in consultation with the Minister; and

(d) 5 other Non-Executive Directors, 2 to be nominated by the Federal Ministry of Finance, 2 by the Central Bank of Nigeria and one by the Nigeria Deposit Insurance Corporation.

(2) A person shall not be appointed as a member of the Board unless such a person possesses 10 years cognate financial experience at a senior management level or such other relevant experience as may be prescribed by the Central Bank of Nigeria.

(3) A member of the Board appointed pursuant to this section-

(a) shall hold office for a term of five years ; and

(b) may be eligible for reappointment for another term of five years and no more.

(4) The provisions contained in the Schedule to this Act, shall have effect with respect to the proceedings of the Board and the other matters contained therein.

Composition and Tenure of the Board.
11. In the discharge of their responsibilities, members of the Board shall act in utmost good faith, with care, skill and diligence.Members of the Board to Act in Good Faith.
12. Members of the Board shall be paid such renumerations and allowances as the Central Bank of Nigeria may, from time to time, determine and subject to the approval of the Minister.Renumerations of Board Members.
13. A person shall not be appointed or remain a member of the Board if he is-

(a) adjudged bankrupt or suspends payment to, or compounds or makes an arrangement with his creditors ;

(b) found guilty of misconduct in relation to his duties;

(c) convicted of an offence involving fraud or dishonesty or other offence the maximum penalty for which exceeds imprisonment for 6 months;

(d) a debtor to an eligible financial institution and the debt owed qualifies as an eligible bank asset;

(e) disqualified or suspended from practising his profession in Nigeria by order of a competent authority made in respect of him personally; or

(f) disqualified or restricted from being a director of a financial institution.

Disqualification and Cessation of Office.
14. (1) A member of the Board may at any time resign his office by giving at least one month’s notice in writing to the President through the Governor of his intention to do so.

(2) The President upon the recommendation of the Governor, may remove a member at any time from membership of the Board if-

(a) the member is disqualified on any of the grounds specified in section 13 of this Act :

(b) the member- (i) has become incapable through illness or injury of performing his functions ; or (ii) has contravened the provisions of this Act ;

(c) a conflict of interest has arisen in relation to the member ; or

(d) his removal appears to be necessary or expedient for the effective performance of the functions of the Corporation.

Resignation and Removal of Board Members.
15. If a member of the Board dies, resigns, retires, becomes disqualified or is removed from office, the Federal Ministry of Finance, the Central Bank of Nigeria (CBN ) or the Nigeria Deposit Insurance Corporation (NDIC), as may be applicable, shall nominate a person to fill the vacancy so occasioned and the person so nominated shall be appointed by the President for the remainder of the term of office of the member whose death, resignation, retirement, disqualification or removal occasioned the vacancy.Filling of Casual Vacancy.
16. (1) All members of the Board shall, before assumption of duty, declare in writing to the Board their personal debt and pecuniary obligatioans to eligible financial institutions as well as those of their family members or those of their close business associates known to them or any company or firm in which they own such significant shareholding as may be prescribed by the Central Bank of Nigeria.

(2) If a member of the Board has pecuniary interest or other beneficial interest in, and material to, a matter that falls to be considered by the Board, he shall-

(a) disclose to the other members of the Board the nature of his interest in advance of any consideration of the matter ;

(b) not influence nor seek to influence a decision to be made in relation to the matter ;

(c) take no part in any consideration of the matter;

(d) absent himself from the meeting or that part of the meeting during which the matter is discussed ; and

(e) not vote or otherwise act on a decision relating to the matter.

(3) lf a member declares an obligation or discloses an interest pursuant to subsection (1) or (2) of this section, the declaration or disclosure shall be recorded in the minutes of the meeting of the Board or otherwise duly recorded.

(4) All employees of the Corporation shall, within one month of employment, declare in writing to the Corporation their personal debt and pecuniary obligations (interests) to eligible financial institutions as well as those of their family members or close business associates known to them, any company or firm in which they own such significant shareholding as may be prescribed by the Central Bank of Nigeria.

(5)

A Member of the Board or any employee of the corporation shall not either directly or indirectly be involved in the purchase of assets acquired by the corporation as part of, or in pursuance of, the acquisition of an eligible bank asset or the enforcement or realisation of any right relating to an eligible bank asset acquired by the Corporation.

Declaration of Debt Obligations and Disclosure of Interest. (amended by Section 2 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
17. (1) The Managing Director shall have responsibility for the day-to-day management of the affairs of the Corporation.

(2) The Managing Director shall be reponsible to the Board for the performance of his functions and the implementation of the Corporation’s strategic plans and objectives.

(3) The functions of the Managing Director shall be performed during his absence by one of the Executive Directors designated by him for that purpose.

(4) The terms and conditions of service of the Managing Director and the Executive Directors shall be determined by the Board from time to time, subject to the approval of the Central Bank of Nigeria.

Management of the Corporation.
18. (1) The Board may appoint such number of persons as staff of the Corporation on such terms and conditions of service as may be determined by the Board, from time to time.

(2) There shall be appointed for the Corporation by the Board a Secrerary who shall be a legal practitioner who has been so qualified for not less than 10 years.

(3) The Secretary shall-

(a) issue notices of meetings of the Board ;

(b) keep records of the proceedings of the Board ; and

(c) carry out such duties as the Managing Director or the Board may, from time to time, direct.

Appointment of other Staff.
19. (1) There shall be established for the Corporation a Fund which shall consist of-

(a) authorised capital provided by the subscribers to the capital of the Corporation ;

(b) income from the management and disposal of eligible bank assets acquired by the Corporation ;

(c) investment income of the Corporation ;

(d) moneys borrowed from any source in accordance with the provisions of this Act with the approval of the Board ; and

(e) moneys from any other sources as may be approved by the Board.

(2) There shall be chargeable to the Fund-

(a) amounts payable to the members of the Board;

(b) remunerations and other costs of employment of staff of the Corporation ;

(c) all expenses incurred on behalf of the Corporation ;

(d) interest on the payment of moneys borrowed on behalf of the Corporation ;

(e) amounts payable for the redemption of bonds and debt securities issued by the Corporation ;

(f) commission or fees payable to any agent or consultant engaged by the Corporation ; and

(g) any other payment for anything incidental to or in connection with the functions of the Corporation under this Act.

Funds, Finances, Accounts, Audit, Etc. of the Corporation.
20. (1) The Corporation shall cause to be kept proper books of accounts with respect to all the transactions of the Corporation in such form and in compliance with such accounting standard as the Central Bank of Nigeria may specify by regulations.

(2) For the purpose of subsection (1) of this section, proper books of accounts shall be deemed to be kept with respect to all transactions if such books as are necessary to explain such transactions and give a true and fair view of the state of affairs of the Corporation are kept by the Corporation in compliance with the relevant accounting Standard as may be prescribed by the Central Bank of Nigeria.

(3) The Corporation shall keep, in the form that the Central Bank of Nigeria may direct, proper and usual accounts of money received and expended by it and of all financial transactions undertaken in the performance of its functions.

Books of Accounts.
21. (1) Not later than 3 months after the end of each financial year, beginning with the financial year ending 2010, the Corporation shall submit a report (in this Act referred to as an “annual report”) to the Ministry of Finance and the Central Bank of Nigeria of its activities during the financial year concerned.

(2) An annual report shall be in such form, and shall include such information, as may be specified by the Central Bank of Nigeria.

(3) The financial year of the Corporation shall begin on the 1st day of January and end on the 31st day of December or as may be determined by the Board with the approval of the Central Bank of Nigeria.

Annual Report.
22. (1) The Ministry of Finance or the Central Bank of Nigeria may require the Corporation to report to it at any time and in any format that the Ministry of Finance or the Central Bank of Nigeria may direct on any matter, including the performance of its functions under this Act and any information or statistics relating thereto.

(2)

The corporation shall submit within every financial year, a quarterly report of its operations, including the Resolution Cost Fund, as at when due, to both Houses of the National Assembly through the relevant Standing
Committees of the National Assembly.

Report to Central Bank of Nigeria, Etc. (amended by Section 3 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
23. (1) The Corporation shall submit its accounts for audit within 4 months after the end of each financial year to such independent firm of auditors from a list of auditors approved by the Auditor-General for the Federation.

(2) The Corporation shall, within 6 months after the end of each financial year, publish in widely available media and present a copy of the accounts as audited to the National Assembly, the Ministry of Finance and the Central Bank of Nigeria.

Audited Accounts.
24. The Central Bank of Nigeria may designate through guidelines any class of bank assets as eligible bank assets.Designation of Eligible Bank Assets.
25. (1) The Corporation may, subject to the provisions of this Act, within 3 months of the designation of any asset as eligible bank asset in pursuance of section 24, specifying a class of bank assets as an eligible class of bank assets, purchase, on a voluntary basis, eligible bank assets from any eligible financial institution desirous of disposing of such eligible bank assets at a value and price to be determined in accordance with the provisions of section 28 of this Act provided that the Central Bank of Nigeria may extend the period specified in this section for a further period not exceeding 3 years.

(2) The Central bank of Nigeria shall by regulation prescribe the maximum percentage of eligible class of bank assets which an eligible financial institution may retain in its books and any eligible bank assets above the prescribed threshold shall be offered to the Corporation for acquisition.

Purchase of Eligible Bank Assets by the Corporation.
26. (1) The consideration to be furnished by the Corporation for an eligible bank asset shall be 7 years bonds or such other debt securities of such other tenor as the Central Bank of Nigeria may prescribe, issued by the Corporation and guaranteed by the Federal Government of Nigeria or such other form of consideration as may be approved by the Central Bank of Nigieria.

(2) Bonds or other debt securities issued by the Corporation in pursuance of subsection (1) of this section, shall qualify-

(a) as an instrument in which the Central Bank of Nigeria may invest under the Central Bank of Nigeria Act ;

(b) as an instrument in which pension funds may be invested under the Pension Reform Act, 2004; and

(c) as an instrument for the purposes of section 28 of the Central Bank of Nigeria Act.

Consideration for Purchase of Eligible Bank Assets.
27. Bonds or other debt securities issued by the Corporation in pursuance of sections 6 (1) and 26 of this Act shall be deemed to qualify for the grant of guarantee under section 47 of Fiscal Responsibility Act, 2007, and shall accordingly be guaranteed by the Federal Government of Nigeria.Guarantee of Corporation’s Bonds by Federal Government of Nigeria.
28. The valuation of and purchase price of eligible bank assets shall be determined in accordance with guidelines issued from time to time by the Central Bank of Nigeria: Provided that in prescribing parameters for the valuation of, and purchase price of, eligible bank assets, the Central Bank of Nigeria shall obtain and be guided by independent advice, publish and make widely available the valuation basis and ensure consistent application of the valuation parameters.Valuation and Purchase Price of Eligible Bank Asset.
29. An eligible financial institution desirous of disposing of its eligible bank assets to the Corporation shall-

(a) apply to the Corporation in such form and manner as the Corporation may, by regulation, prescribe ;

(b) provide the Corporation with information, warranties, representations and indemnities in such form and in such manner as may be required by the Corporation about the eligible bank assets and disclose in utmost good faith, all matters and circumstances in relation to the eligible bank asset that may materially affect either the Corporation’s decision to acquire the eligible bank asset or the value that the Corporation may place on the asset ; and

(c) produce to the Corporation for inspection the credit facility documentation, books and records kept in connection with the eligible bank asset.

Procedure to be Followed by Eligible Financial Institution.
30. The Corporation may acquire an interest in an eligible bank asset of an eligible financial institution if the Corporation considers it necessary or desirable to do so and shall acquire any eligible bank asset if so requested by the Nigerian Deposit Insurance Corporation acting in consultation with the Central Bank of Nigeria in pursuance of section 38(2) (d) of the Nigerian Deposite Insurance Corporation Act.Corporation not Bound to Purchase Eligible Bank Asset.
31. Where the Corporation has acquired an eligible bank asset, the eligible financial institution from which the eligible bank asset was acquired shall deliver to the Corporation or its nominee all its books and records in relation to the eligible bank asset concerned and any document of title that the eligible financial institution holds in respect of any property that is subject to a security which is part of the eligible bank asset and execute all such instruments necessary to properly document the acquisition.Delivery of Books, Records, etc. to the Corporation upon Purchase.
32. An eligible financial institution from which the Corporation has acquired an eligible bank asset shall enter into a purchase agreement with the Corporation in connection with the eligible bank asset acquired and the eligible financial institution shall, under the purchase agreement, indemnify the Corporation for any loss suffered in the event that the collateral turns out to be invalid or otherwise unenforceable.Purchase Agreement Indemnity, etc.
33. (1) As soon as possible, after the acquisition of an eligible bank asset from an eligible financial institution, the eligible financial institution shall notify the relevant debtor, associated debtor and guarantor or surety of the debtor and any other person that the Corporation directs of the acquisition of the eligible bank asset by the Corporation.

(2) The Corporation shall not be liable for any failure or delay in notifying any person under subsection (1) of this section and such failure or delay shall not invalidate the eligible bank asset concerned.

Notice to Debtors, etc. of Acquisition of Eligible Bank Assets.
34. (1)

Subject to the provisions of the Land Use Act and section 36 of this Act, where the Corporation acquires an eligible bank asset, such eligible bank asset shall become vested in the Corporation and the Corporation shall exercise, all the rights and obligations of the eligible financial institution from which the eligible bank asset was acquired in relation to the bank asset, the debtor concerned and any guarantor, surety or receiver, liquidator, examiner or any other person concerned and the eligible financial institution shall cease to have those rights and obligations.

(2) Subject to the provisions of the Land Use Act and section 36 of this Act, the vesting of an eligible bank asset in the Corporation and the assignment of every relevant contract relating to an eligible bank asset in the Corporation upon the acquisition of an eligible bank asset by the Corporation as contemplated in subsection (1) of this section shall take effect and be effective notwithstanding any-

(a) contractual restriction on the acquisition, assignment or transfer of the bank asset or any part thereof or any contract relating thereto ; or

(b) requirernent for a consent, notification, registration, authorization or licence (by whatever name and however described).

(c)

the pendency of an action before a court of law in respect of the eligible bank asset, except where there is in force and subsisting, a valid order of court, made after due notice to the eligible financial institution from which the eligible bank asset is to be acquired, expressly restraining such acquisition.

 

(3) Without prejudice to the provisions of subsections (1) and (2) of this section, the Corporation may direct an eligible financial institution to hold an eligible bank asset or relevant contract deemed vested in, or assigned to the Corporation by the provisions of subsection (1) of this section and exercise any such right or power in relation thereto ; and when so directed, the eligible financial institution shall hold the eligible bank asset and exercise such rights and powers in the relevant contract at the direction of the Corporation for the sole benefit of the Corporation and shall, in relation thereto be subject to the duties, obligations and liabilities as nearly as possible corresponding to those of a trustee in relation to the eligible bank assets and any relevant contracts deemed assigned by the provisions of this subsection (1) of this section.

(4) Any property, money or other pecuniary benefit received by an eligible financial institution in the course of holding any eligible bank asset acquired by the Corporation or any relevant contract thereto or in exercisng any right pursuant to subsection (3) of this section shall be held as bare trustee, in trust for and for the sole benefit of the Corporation and turn over to the Corporation and shall not be taken to be an asset of the eligible financial institution, or accounted for such in the books of the eligible financial institution.

Effect of Acquisition of Eligible Bank Asset by the Corporation. (amended by Section 4 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
35. (1) For the avoidance of doubt, after the Corporation has acquired an eligible bank asset and subject to any exclusion stated in the purchase agreement relating thereto, the Corporation shall be entitled to exercise all rights and powers in relation to the eligible bank asset and any security interest connected to the eligible bank asset.

(2) The Corporation shall be entitled to the benefit of any right of set-off held by an eligible financial institution against any person whether under the credit facility relating to the eligible bank asset concerned or any other right of set-off and the Corporation shall be entitled to exercise such right, by directing the eligible financial institution to pay an amount equal to the benefit of the right of set-off to the Corporation to meet any obligation of that other person to the Corporation, whether actual or contigent.

(3) The eligible financial institution shall exercise the right of set-off or combination in this section in trust for and only for the benefit of the Corporation.

(4) Without prejudice to the generality of subsections (1) and (2) of this section, the Corporation may-

(a) take any action, including court action, that the eligible financial institution could have taken to protect, perfect or enforce any security, right, interest, obligation or liability ;

(b) realise any security that the eligible financial institution could have realized;

(c) call up any guarantee that the eligible financial institution could have called up;

(d) participate to the same extent as the eligible financial institution could have participated in any resolution, workout, programme of arrangement and restructuring, re-organisation, or insolvency proceeding in relation to the eligible bank asset ; and

(e) exercise any power conferred by any document that forms part of the eligible bank asset of reviewing or amending any term or condition of any part of the eligible bank asset.

(5)

For the purpose of the provisions of the Limitation Law of a State or the Limitation Act of the Federal Capital Territory, with respect to any debt owed to the Corporation by reason of its acquisition of an eligible bank
asset, time shall begin to run, and the cause of action deemed to arise, from the date of the purchase of the eligible bank asset.

(6)

Where action has already commenced by an eligible financial institution prior to acquisition of the eligible bank asset by the Corporation, the Corporation shall, at any time after the acquisition of the eligible bank asset be entitled to-

(a)

continue with the action in its name or as a third party entitled to any judgment debt, and any liability in respect of the claim or any associated counterclaim or cross claim for which the assignor of the eligible bank asset shall be liable ; or eligible bank asset shall be liable ; or

(b)

discontinue any such pending action relating to the eligible bank asset instituted by the eligible financial institution prior to such acquisition and such discontinuance by the Corporation shall be without prejudice to its right to commence or cause to be commenced a new action in respect of the same subject matter as that discontinue.

Corporation to Have Rights of Creditors after Acquisition of Eligible Bank Asset. (amended by Section 5 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
36. (1) Upon acquisition by the Corporation of an eligible bank asset secured in whole or in part by landed property or by collateral or security interest which restricts the alienation or contract as a matter of law (in this Act referred to as “Restrictive Collateral”), the eligible financial institution from which such Restrictive Collateral is acquired shall hold such Restrictive Collateral, as bare trustee, in trust for and the sole benefit of the Corporation and shall at the sole direction of the Corporation realize or otherwise deal with such Restrictive Collateral as may be directed by the Corporation and shall turn over all proceeds received from such realization or dealing to the Corporation.

(2) Where the Restrictive Collateral contains a power of attorney in favour of the eligible financial institution concerned, such eligible financial institution shall, as an attorney, act at the sole direction of the Corporation and in so acting as attorney shall, if so instructed by the Corporation appoint the Corporation as receiver or receiver-manager over the Restrictive Collateral and such appointment, whether by deed or otherwise, shall, notwithstanding anything in the Restrictive Collateral or any other law, be deemed to be valid and effectual.

Restrictive Collateral to be Held in Trust.
37. (1) Notwithstanding anything to the contrary contained in this Act, where an eligible bank asset acquired by the Corporation falls into any of the categories of ‘tainted eligible bank assets’ listed in subsection (2) of this section-

(a) the borrower or other obligor connected with such tainted eligible asset shall not be entitled to and shall not be granted, any forbearance, waiver, or debt forgiveness by the Corporation ; and

(b) the Corporation shall pursue, to the fullest extent possible, all lawful civil and criminal remedies against any such borrower or other obligor connected with such tainted eligible bank asset.

(2) Any eligible bank asset which falls into any of the following categories shall be deemed to be a tainted eligible bank asset-

(a) loans, credits or other financial accommodation obtained by insiders of, or persons related to or otherwise connected with, the eligible financial institution which granted the loan, credit or other financial accommodation where such loan, credit or financial accommodation was- (i) obtained in breach of the rules and regulations of the eligible financial institution which granted the loan, credit or financial accommodation ; (ii) secured against the shares or other securities of the eligible financial institution which granted the loan, credit or financial accommodation ; or (iii) in breach of rules and regulations of the central Bank of Nigeria.

(b) loans, credits or other financial accommodation obtained or applied by insider of or persons related to, or otherwise connected with the eligible financial institution towards the purchase of the shares of the eligible financial institution which granted the loan, credit or other financial accommodation ; or

(c) loans, credits or other financial accommodation granted or obtained- (i) by insider of, or person related to or otherwise connected with, the eligible financial institution which granted the loan, credit or financial accommodation, in breach of the provision in financial assistance rules under the Companies and Allied Matters Act; (ii) for the purpose of market manipulation and market rigging or for the acquisition of shares in breach of the Investments and Securities Act or rules or regulations made thereunder ; and (iii) in breach of any law, including but not limited to, laws relating to, banking and company.

(3) For the purpose of this section, “insider of, or persons related to or otherwise connected with, an eligible financial institution” includes directors, officers or persons with significant shareholding in the eligible financial institution, their spouses, their children, their children’s spouses, relations or proxies.

Tainted Eligible Bank Asset.
38. Where the Corporation is a party to any legal proceedings affecting an acquired eligible bank asset, the eligible financial institution from which the eligible bank asset was acquired shall, if the Corporation so requests, provide the Corporation with any assistance reasonably required by the Corporation, for the purpose of the proceedings including the-

(a) provision of any documents or information ;

(b) making available of any witnesses ; and

(c) provision of any evidence by way of affidavit or otherwise.

Assistance to Corporation by Eligible Financial Institutions in Legal Proceedings.
39. The Corporation may transfer, assign, sell or otherwise dispose of any acquired eligible bank asset to any person notwithstanding-

(a) a contractual requirement or any requirement under any enactment for the consent of, notice to or document from, any person to the disposal ; or

(b) a provision of any enactment prohibiting or restricting the disposal.

Transfer, Assignment, etc. by Corporation to Override Restriction on Disposal.
40. Where the Corporation has acquired an eligible bank asset that is secured by a pledge or charge, but the pledge or charge is a second or subsequent pledge or charge, the Corporation may, regardless of whether a vesting order has been made in relation to the security, redeem or discharge anyone or more of the prior pledges or charges in accordance with its terms.Power to Discharge Second or Subsequent Pledge.
41. (1) Any instrument under the seal of the Corporation that is expressed to convey any interest in an eligible bank asset to another person shall be taken for all purposes to validly convey the interest so expressed to be conveyed.

(2) An instrument referred to in subsection (1) of this section shall without any further assurance operate to extinguish the interest of any other chargee or pledgee in an eligible bank asset concerned other than a charge or pledge which has priority to the interest of the Corporation and has not been redeemed or discharged under section 39 of this Act.

Validity of Transfer of Interest by Document under Corporation’s Seal.
42. Where in relation to an eligible bank asset acquired by the Corporation, an eligible financial institution fails to-

(a) disclose to the Corporation any representation or obligation which the eligible financial institution made or undertook in favour of a debtor or any other person which would affect the creditors’ rights in relation to the eligible bank asset ; or

(b) record a note or memorandum specifying the consideration paid in respect of such representation or obligation that representation or obligation may be enforceable only in damages by the debtor or any other person only against the eligible financial institution and not the Corporation.

Undisclosed Representation , Undertakings and Obligations to Debtors Unenforceable against the Corporation.
43. (1) Nothing in this Act shall-

(a) render the Corporation or any person acting on its behalf or through it liable for any breach of contract, misrepresentation, breach of duty, breach of trust or other legal or equitable wrong committed by an eligible financial institution ; and

(b) deprive any person of any remedy against an eligible financial institution in respect of a legal or equitable wrong referred to in paragraph (a) of this section.

(2) An action shall not be brought or commenced against the Corporation until after the expiration of 30 days notice in writing to the Corporation giving details of the alleged wrong date and remedy sought.

(3) If, after the expiration of the 30 days notice stated in subsection (2) of this section, the Corporation has not responded, the party concerned may issue a writ or other originating process against the Corporation provided always that action shall not be commenced or maintained against the Corporation or any of its shareholders, officers and directors for anything done intended to be done or purported to be done in good faith in the execution of duties, powers and obligation imposed on the Corporation or any of its shareholders, directors, or office.

Limitation on Liability of Corporation.
44. If the Corporation so directs, an eligible financial institution from which the Corporation has acquired an eligible bank asset shall indemnify the Corporation and its officers against any liabitity or loss-

(a) arising from any error, omission or mis-statement in any information or certificate provided to the Corporation by or on behalf of the eligible financial institution ; or

(b) in respect of any claim, award, payment or damages which the corporation becomes liable to pay to any person where the liability arises in connection with a cause of action occurring prior to the date of transfer or as the case may be any proportion of such liability is attributable to a period prior to the date of transfer.

Indemnification of Corporation by Eligible Financial Institution.
45. Where an eligible bank asset has been acquired by the Corporation notwithstanding anything contained in any law, the Corporation shall not be required to become registerd as owner of any security that is part of the eligible bank asset acquired by it and shall nonetheless have powers and rights of a registered owner of such security under any law for the time being in force: Provided that the Corporation may, at its discretion, elect to register any interest capable of registration.Corporation not Required to be Registered as Owner of Security.
46. (1) The Corporation may, from time to time, after consultation with the Minister and Governor, redeem and cancel debt securities issued by the Corporation under this Act.

(2) The Corporation shall create a sinking fund or any other fund, for the purposes of covering any shortfall that may be required to meet its obligations to redeem its debt securities, in such manner as may be jointly specified by the Federal Ministry of Finance and the Central Bank of Nigeria.

Redemption of Debt Securities Issued by the Corporation.
47. The assets of the Corporation remaining after the redemption of all debt securities and discharge of all payment or repayment obligations shall at its eventual dissolution be transferred to the Fund of the Corporation and distributed by the Governor between the subscribers to the capital of the Corporation in proportion to their respective stake in the authorized capital of the Corporation.Treatment of Assets upon Dissolution of Corporation.
48. (1) The Corporation shall have power to act as, or appoint a receiver for, a debtor company whose assets have been charged, mortgaged or pledged as security for an eligible bank asset acquired by the Corporation.

(2) A receiver under this Act shall have power to-

(a) realize the assets of the debtor company ;

(b) enforce the individual liability of the shareholders and directors of the debtor company; and

(c) manage the affairs of the debtor company.

(3)

The powers of a receiver acting under the provisions of this section, shall be exercisable over all the assets and entire undertaking of the debtor company notwithstanding that only a part of the assets of the debtor or part was charged, mortgaged or pledged as security in relation to the eligible bank asset acquired by the Corporation :
Provided that such exercise of power shall be without prejudice to the existing rights of secured creditors or third parties in such assets.

(4)

Where a receiver under this section elects to manage the affairs of a debtor company or other debtor entity, under section 48(2)(c), it shall give notice of its election by publication in at least two newspapers with nationwide circulation.

(5)

A receiver under this section approved to manage the affairs of a debtor company or debtor entity, shall, on the publication of the notice referred to in section 48(4) become entitled to take over the management of the affairs of the debtor company or debtor entity in the name, and on behatf of the debtor company or debtor entity, for the benefit of the debtor company or debtor entity and the general body of creditors of the debtor company or debtor entity for the period specified in the notice.

(6)

A receiver managing the affairs of a debtor company or debtor entity under the provisions of this section shall be deemed to be a fiduciary of the debtor company or debtor entity and all its creditors; and shall in paying off any debts owed by the debtor-company or debtor entity strictly adhere to debt priority ranking prescribed under section 494 of the Companies and Allied Matters Act.

(7)

Subject to Section 48(9) of this Act and on the publication of the notice referred to Section 48(4) thereof, all judgments, claims, debt enforcement procedures existing or being pursued before the publication of the notice shall stand automatically suspended and be unenforceable against the debtor company for the shorter of a period of 1 year from the date of the publication of the notice or the period that the receiver continues to manage the affairs of the debtor company :
Provided that claims relating to wages and other entitlements of existing staff of the debtor company or debtor entity and professional advisers shall not be so suspended.

(8)

A receiver acting under section 48(2) (c) shall within 30 days of the publication of the notice referred to in section 48(4) cause to be prepared a detailed and comprehensive plan for the rehabilitation ofthe debtor-company or debtor entity.

(9) Where a receiver acting under section 48(2)(c) fails to comply with the provisions of section 48(8), the provisions of section 48(7) shall cease to apply.

Powers of the Corporation to act as or Appoint a Receiver for a Debtor Company. (amended by Section 6 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
49. (1) Where the Corporation has reasonable cause to believe that a debtor or debtor company is the bonafide owner of any movable or immovable property, it may apply to the Court by motion ex-parte for an order granting possession of the property to the Corporation.

(2) The Corporation shall serve a certified true copy of the order of the Court issued pursuant to subsection (1) of this section on the debtor or debtor company.

(3) The Corporation shall commence debt recovery action against the debtor or debtor company in respect of whose property an order subsists pursuant to subsection (1) of this section within 14 days from the date of the order, failing which the order shall lapse.

Custody and Possession of Debtor’s Property.
50. (1) Where the Corporation has reasonable cause to believe that a debtor or debtor company has funds in any account with any eligible financial institution, it may apply to the Court by motion ex-parte for an order freezing the debtor or debtor company’s account.

(2) The Corporation shall commence debt recovery action against a debtor or debtor company whose account has been frozen by a Court order issued under subsection (1) of this section within 14 days from the date of the order, failing which the order shall lapse.

Attachment and Freezing of Debtor’s Bank Account.
51. (1) Where the Court gives decision against a debtor in a debt recovery action under this Act requiring the debtor to pay any sum to the Corporation and such sum is not liquidated or paid over to the Corporation within 30 days from the date of the order for payment thereof, the Corporation may apply to the Court to issue a receiving order against the debtor.

(2) Subject to subsection (1) of this section, it shall not be necessary for the debtor to commit an act of bankruptcy or for the Corporation to file a bankruptcy petition or for any of the conditions precedent for the grant of a receiving order specified under the Bankruptcy Act to be satisfied before the court grants a receiving order against the debtor.

(3) Notwithstanding the provisions of the Bankruptcy Act, where a receiving order is made against a debtor under this Act. The court may adjudge the debtor bankrupt.

(4) Where a debtor is adjudged bankrupt under this Act, the court may, on the application of the Corporation, appoint the official receiver or authorise the Corporation to assume the office of trustee of the property of the debtor.

(5) A trustee appointed under this Act shall have all the powers of a trustee of an adjudged bankrupt under the Bankruptcy Act and shall perform his duties in accordance with that Act.

(6) An act, thing, directive or permission authorised or required to be done or given by the Committee of Inspection or by the creditors under the Bankruptcy Act may be done or given by the Court on the application of the trustee.

(7) Any person adjudged a bankrupt under this Act shall be deemed adjudged a bankrupt under the Bankruptcy Act which shall have effect with such modifications as are contained in this Act and a trustee appointed under this Act may seek the directive of the court in respect of any act or thing to be done by anyone under the Bankruptcy Act.

Special Powers in Bankruptcy Proceedings.
52. (1) Where the Court gives a decision against a body corporate in a debt recovery action under this Act, requiring the debtor company to pay any sum to the Corporation and such sum is not liquidated or paid over to the Corporation within 90 days from the date of the order for payment, the Corporation may apply to the court to issue a winding-up order against the debtor company.

(2) Where a winding-up order is made, the court may, on the application of the Corporation, appoint the official receiver or some other fit person to assume the office of a liquidator to wind-up the affairs of the debtor company.

(3) Any liquidator appointed pursuant to this Act shall have all the powers of a liquidator under the Companies and Allied Matters Act and shall perform his duties in accordance with that Act.

(4) An act, thing, directive or permission authorised or required to be done or given by the committee of inspection or by the creditors under the Companies and Allied Matters Act may be done or given by the court on the application of the Liquidator.

(5) Any winding-up order made against any debtor company under this Act shall be deemed to have been made under the Companies and Allied Matters Act and the provisions of the Companies and Allied Matters Act shall have effect with such modifications as are contained in this Act.

Special Powers in Winding-Up Proceeding.
53. The Chief Judge of the Federal High Court may designate any Judge of the Federal High Court to hear matters for the recovery of the debts owed by the Corporation or an eligible financial institution and other matters arising from the provisions of this Act to the exclusion of any other matter for such period as may be determined by the Chief Judge.Designation of a Judge to Hear Matters.
54. (1) A person who-

(a) makes any false claim in any material respect in relation to any movable or immovable property used as collateral for any loan with a view to defeating the realization of the debt commits an offence and is liable on conviction to a fine of not less than 5 Million Naira or imprisonment for a term not less than 3 years or to both such fine and imprisonment ;

(b) is charged with an offence under this Act but the evidence establishes an attempt to commit the offence may be convicted of attempt to commit that offence, although the attempt is not separately charged and punished as provided under this Act; or

(c) is charged with an offence under this Act but the evidence establishes the commission of a lesser offence under this Act, the offender shall be convicted of that lesser offence and punished as provided under this Act ; and

(d) aids, abets, counsels, procures or conspires with any other person to commit an offence under this Act, commits any offence and is liable on conviction to a fine not less than 5 Million Naira or imprisonment for a term not less than 3 years or to both such fine and imprisonment.

(2) A person who, being indebted to or being a customer of an eligible financial institution or otherwise connected to the debt, negligently, willfully or recklessly makes a statement or gives any information knowing it to be false in relation to a loan, an advance, a guarantee or any other credit facility commits an offence under this Act and is liable on conviction to a fine not less than 5 Million Naira or to imprisonment for a term not less than 3 years or to both such fine and imprisonment.

(3) Where a person referred to in subsection (1) or (2) of this section is a body corporate, any of its directors, managers, officers, employees or partners who is responsible or is in any way connected with the doing of any of the acts referred to in those subsections is guilty of the same offence under this Act and liable on conviction to the same punishment.

(4) The conviction of a body corporate for any of the offences under subsection (1) or (2) of this section shall be a ground for winding up of the affairs of that body corporate.

(5) Save as otherwise specifically provided under the provisions of this Act, any person who contravenes or attempts to contravene or aids or abets the contravention of the provisions of this Act or in any way obstructs the implementation of the provisions of this Act commits an offence and is liable on conviction to a fine not less than 3 Million Naira or to imprisonment for a term not less than 2 years or to both such fine and imprisonment.

(6) In this section, reference to eligible financial institution includes the Corporation.

Offences and Penalties.
55. Prosecution of offences under this Act shall be by the Attorney-General of the Federation or his officers or any other legal practitioner with the consent of the Attorney-General of the Federation.Prosecution of Offences.
56. (1) The Corporation shall prepare codes of practice for approval by the Central Bank of Nigeria to govern-

(a) the conduct of officers of the Corporation ;

(b) servicing standards for acquired eligible bank assets ;

(c) risk management ;

(d) Custodial services for eligible bank assets ; and

(e) any other matter as may be directed by the Governor.

(2) If, in the opinion of the Governor, adequate provision has not been made in a code of practice drawn up by the Corporation under subsection (1) of this section, the Governor may require modifications to be made to the code of practice.

(3) The Corporation shall publish the code of practice, issued under this section as approved by the Central Bank of Nigeria, in the official Gazette.

Code of Practice.
57. The Central Bank of Nigeria may make regulations to give effect to the provisions of this Act.Power to Make Regulations.
58. The Central Bank of Nigeria shall have power to supervise and regulate the activities and functions of the Corporation and may in this regard appoint examiners and any other person to carry out special or routine examination of the books and affairs of the Corporation.Power of the Central Bank to Supervise and Regulate the Corporation.
59. Nothing in this Act shall be construed as a waiver of any regulatory or statutory power or function of the Central Bank of Nigeria and the Govenor in relation to any eligible financial institution.Regulatory Powers and Functions of Governor not Affected
60. (1)

Without prejudice to the provisions of Section 19 of this Act, there is established, for the purposes specified in section 65 of this Act, a fund to be known as the Banking Sector Resolution Cost Fund (in this Act referred to as the “Resolution Cost Fund”) which shall be domiciled with the Central Bank of Nigeria, and into which shall be paid-

(a)

all contributions and levies imposed under this Part ; and

(b)

the sums vested in the Resolution Cost Fund by Section 64 of this Act.

 

(2)

The Resolution Cost Fund shall be tax neutral and accordingly, all moneys accruing to, payments made from, and instruments and transactions relating to, the Resolution Cost Fund shall be exempted from all forms of taxes, levies, duties, charges or imposition however described.

Establishment of the Banking Sector Resolution Cost Fund (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. (1)

On or before the first business day in each calendar year, starting from the 2011 calendar year and up to the end of the tenor, the Central Bank of Nigeria shall pay into the Resolution Cost Fund the sum of N50,000,000,000 (Fifty Billion Naira) upon the approval of the National Assembly.

(2)

For the purposes of making the payment required under sub-section (1), the Central Bank of Nigeria shall appropriate the said sum of N50,000,000,000 (Fifty Billion Naira) or such higher sum determined by the relevant committee of the National Assembly under sub-section (1) of this section, from the general reserves or other funds of the Central Bank of Nigeria, and cause the sum so appropriated to be paid into the Resolution cost Fund in immediately available funds.

Contribution by the Central Bank of Nigeria. (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. (1)

There is imposed on each Eligible Financial Institution, an Annual Levy, in an amount equivalent to fifty (50) basis points (or such higher basis points as may from time to time be determined by the Central Bank of Nigeria)of its total assets as at the date of its audited financial statements for the immediately preceding financial year published under the Banks and other Financial Institutions Act, and which shall be payable on or before the 30th day of April in each calendar year commencing in the 2014 calendar year, and for every calendar year during the tenor.

(2)

In relation to the 2014 calendar year, the reference to immediately preceding financial year in sub-section (1) of this section shall be deemed to mean the end of the 2013 calendar year, and each eligible financial institution shall be liable to pay the annual levy imposed under sub-section (1) of this section as it applies to its total assets as at the end of the 2013 calendar year.

Provided that where an Eligible Financial Institution has already made a contribution under the voluntary contractual arrangements referred to in Section 64 of this Act on its total assets as at a date after 31st April 2013, then the levy imposed under sub-section (1) of this section shall not apply as it relates to the total assets of such eligible financial institution as at the end of the 2013 calendar year.

(3)

Each eligible financial institution shall not later than 10 business days from the 31st day of March of every calendar year during the period referred to in subsection (1) of this section-

(a)

carry out a self-assessment of the amount it is liable to pay into the Resolution Cost Fund for the relevant calendar year in pursuance of the levy imposed under section 1 of this section using the assessment parameters specified in section 1(1) of this section ; and

(b)

submit to the Board of Trustees, its detailed computations of its self assessment, together with any supporting documentation relating thereto.

 

(4)

Where an eligible financial institution fails or otherwise neglects to comply with the requirement of subsection (3) of this section, or where in the opinion of the Board of Trustees, the self-assessrnent submitted by an eligible financial institution under subsection (3) of this section is incorrect, or otherwise understated, the Board of Trustees shall assess and determine the amount to which the concerned eligible financial institution is liable.

Provided that where a representative of an eligible financial institution whose liability is to be assessed and determined under this subsection is a member of the Board of Trustees, such representative shall not participate in, or be otherwise involved in, any such assessment and determination by the Board of Trustees.

(5)

An assessment and determination made by the Board of Trustees under subsection (4) of this section shall, except for manifest error, be final and conclusive of the amount which the concerned eligible financial institution is liable to pay into the Resolution Cost Fund.

(6)

The Central Bank of Nigeria shall be authorised to debit, for the benefit of the Resolution Cost Fund, the account of any eligible financial institution which fails to pay the levy imposed under this Act within the time limit specified in this Act to the tune of the amount so unpaid by the eligible financlal institution, and to pay into the Resolution Cost Fund any moneys of the eligible financial institution in its custody or over which it has control, in satisfaction of the liability of the eligible financial institution under this Act.

Levy on eligible Financial Institution (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. 

On the commencement of this Act, all funds standing to the credit of the account maintained with the Central Bank of Nigeria for the receipt of contributions made by eligible financial institutions and the Central Bank of Nigeria to meet banking sector resolution costs under a memorandum of understanding dated 14 January 2010 among the eligible financial institutions and the Central Bank of Nigeria shall be transferred to, and be vested in the Resolution Cost Fund; and the said memorandum of understanding shall, without any other assurance other than this provision, be deemed terminated.

Vesting of certain Funds in the Resolution Cost Fund (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. (1)

subject to sub-section (2) of this section, the Resolution cost Fund shall be utilised exclusively for the following purposes-

(a)

meeting the obligations of the Corporation arising from debt securities issued by the corporation under this Act, if the corporation is unable to meet its obligations as and when due from its resources including the proceeds of sale and management of eligible Bank Assets it acquires from eligible financial institutions;

(b)

meeting expenses specifically incurred in respect of or incidental to the purposes specified in paragraph (a) of this sub-section; and

(c)

meeting expenses and costs specifically and incurred for the administration and management of the Resolution Cost Fund, up to an annual limit of an amount equivalent to 0.5 per cent of the total amount paid into the Resolution cost Fund for the calendar year in which the expense or cost is incurred.

 

(2)

where any sums standing to the credit of the Resolution cost Funds are utilised to meet the purposes specified in subsection (1)(a) and (b) of this section, the corporation shall refund any sums so utilised to the Resolution cost Fund as soon as the corporation becomes able to effect such refund out of its general revenue and assets.

Purpose of Resolution Cost Fund (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. (1)

on an annual basis during the tenor, the Board of Trustees in conjunction with the central Bank of Nigeria and the corporation shall determine whether the aggregate of the contribution of the Central Bank of Nigeria to the Resolution cost Fund at the level prescribed in, or under, subsection (1) of section 608 of this Act; and the proceeds of the annual levy imposed on eligible financial institutions at the level prescribed in, or under, sub-section (1) of section 60C of this Act, over th course of the tenor, “Total Funding” will be sufficient to meet, over the course of the tenor, the obligations of the corporation arising from debt securities issued by the corporation under this Act, which the corporation, based on its funding model, wiil be unable to meet or, whether the Total Funding will, over the course of the tenor, be in excess of the amount required to meet the said obligations of the corporation.

(2)

where, under section 60F of this Act, a determination is made that the Total Funding will be insufficient; the Governor shall be mandatorily required to adjust upward the number of basis points prescribed in, or under subsection (1) of section 60C of this Act, to such level as is necessary to ensure that the Total Funding is sufficient over the course of the tenor, to meet the obligations of the corporation arising from debt securities issued by the corporation in pursuance of this Act, which the corporation will, based on its funding model, be unable to meet from its own resources.

(3)

Where,under section 60F(1) of this section,a determination is made that the Total Funding will be in excess of the amount required; the Governor shall be mandatorily required to adjust downward the number of basis points prescribed in, or under section 60E (1) to such level as is necessary to eliminate the excess.

(4)

An adjustment made by the Governor under section 60F(3)and(4) shall be published in the Gazette, and shall come into effect at the beginning of the financial year immediately following the year in which a determination is made under section 60F(1).

Adjustments to levy to meet deficiency or eliminate excess (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. 

Any annual levy paid by an eligible financial institution under this Act, and all contributions made by an eligible financial institution referred to in section 60F of this Act, shall be deductible for the purposes of the companies’ income tax of the paying eligible financial institution, under the Companies Income Tax Act.

Tax deductability of annual levy and vested contributions (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. 

An eligible financial institution that is in default of payment of the levy imposed under this Act or any part thereof is prohibited from paying dividends or other like distribution to its shareholders, and from paying any bonuses however to its directors or employees, while such payment default continues.

Prohibition on payment of dividend and bonuses by defaulting eligible financial institutions (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. (1)

There is established for the Resolution Cost Fund, a Board of Trustees which shall consist of-

(a)

2 representatives of the Central Bank of Nigeria, who shall be appointed by the Central Bank of Nigeria from among its Deputy govemors, other than the Deputy-governor in charge of Financial system stability, one of whom shall be appointed by the Governor as the Chairman;

(b)

4 representatives of eligible financial institutions to be appointed by the eligible financial institutions from among officers of four of the eligible financial institutions not below the level of a director, on a 2 year rotational basis; and

(c)

3 ex-officio members one each to be nominated by the Federal Ministry of Finance, Nigerian Deposit Insurance Corporation and the Asset Management Corporation of Nigeria, from among their representative officers not below the level of a director.

Establishment and composiotion of Board of Trustees (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. (1)

The Board of Trustees shall have responsibility for the supervision, administration and management of the Resolution cost Fund and shall, in addition to such other duties specified in part IX of this Act, have and discharge the following duties-

(a)

collection of the contributions and levies levied under this Act and as and when due;

(b)

disbursement of moneys standing to the credit of the Resolution cost Fund to meet the obligations specified in section 60E of this Act;

(c)

formulating investment policies for the Resolution Cost Fund and causing moneys standing to the credit of the Resolution cost Fund to be invested in accordance with the provision of this Act;

(d)

formulating policies for running the secretariat; and

(e)

performing other functions that are consistent with the purpose of the Resolution cost Fund as specified in section 60E of this Act.

 

(2)

The Board of Trustees may delegate any part of its resporrsibilities under this Act as it may deem fit and mayappoint independent service providers, professional advisers and consultants for the performance of any of its functions and for running the Secretariat.

(3)

ln the discharge of their responsibilities and duties, members of the Board of Trustees shall be deemed to stand in a fiduciary relationship with the corporation and shall act with due care and skill, in utmost good faith and in the best interest of the Corporation.

Duties of the Board of Trustees (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. (1)

Subject to sub-section (2) of this section, members of the Board of Trustees, except the members nominated by eligible financial institutions who shall only hold office for a term of two years, shall hold office for as long as they continue to hold the office by virtue of which they were appointed to the Board of Trustees.

(2)

A member of the Board of Trustees shall, cease to horl office as a member if he ceases for any reason howsoever to hold the office by reason of which he holds membership of the Board of Trutees.

(3)

where a vacancy occurs as a result of the death, resignation, retirement, disqualification or removal of a member of the Board of Trustees, the parastatal or eligible financial institution that the member represents on the Board of Trustees shall nominate another of its members to fiIl the vacancy so occasioned, for the remainder of the term of office of the member whose death, resignation, retirement, disqualification or removal occasioned the vacancy.

Tenure, cessation of membership and casual vacancy (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. 

The Board of Trustees shall meet for the conduct of its business at the Secretariat or such other place at such times and on such days as the chairman may decide; and the Board shall, subject to the provisions of this Act, have power to regulate its proceedings.

Proceedings of the Board of Trustees (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. 

No remuneration shall be payable to members of the Board of Trustees, except the sitting allowances as the Governor may from time to time determine.

Provided that members of the Board of Trustees shall be entitled to be reimbursed in full for all reasonable expenses incurred in pursuit of the business of the Board of Trustees and in the discharge of their functions.

No remuneration (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. (1)

There is hereby established for the Board of Trustees, a Secretariat which shall be situate at the head office of the central Bank of Nigeria, or such other place as the central Bank of Nigeria may determine, and shall be staffed by such number of persons to be seconded from all or any of the central Bank of Nigeria, the Federal Ministry of Finance, the Nigeria Deposit Insurance Corporation and an eligible financial institution as the Board of Trustees may from time to time determine, and Secretariat shall have such functions as are, from time to time, prescribed by the Board of Trustees.

(2)

Persons seconded to the Secretariat shall during the period of the secondment remain employees of the seconding institutions and the seconding institutions shall continue to be responsible for the remuneration of such employee.

Secretariat of the Board of Trustees (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. (1)

All moneys standing to the credit of, or other assets of the Resolution cost Fund shall be held by the central Bank of Nigeria or, at the instance of the Central Bank of Nigeria, by custodians appointed by the Board of Trustees for that purpose in accordance with a written custodial services agreement entered into between the Resolution Cost Fund and the custodian in form and substance satisfactory to the Board of Trustees.

(2)

A prospective custodian shall be engaged by the Board of Trustees through open and competitive selection procedures, and to qualify for appointment, the prospective custodian shall-

(a)

be a limited liability company duly incorporated in accordance with the laws of the Federal Republic of Nigeria;

(b)

be a licensed financial institution or be.wholly orjointly owned by a licensed financial institution with a combined minimum networth of N25 billion unimpaired by losses;

(c)

have, or its parent company or companies, have a combined total balance sheet of at least N 125 billion;

(d)

be a reputable custodian company with excellent track record;

(e)

have the professional and technical capacity to provide custodial services as contemplated under this Act;

(f)

have never been a custodian of any assets which was mismanaged or has been in distress due to any fault, either fully or partially by the custodian;

(g)

have never been nor is a debtor of the Corporation or the obligor whether directly or indirectly or in relation to an eligible bank asset;

(h)

possess appropriate information and communication technology that can adequately cater for online real-time transactions and for keeping proper accounting records;

(i)

have a system of internal controls which ensures that the assets under its custody are safeguarded and segregated and records adequately reflect the information they purport to present;

(j)

be capable of providing a guarantee, either by itself or through its parent company or companies, to the full sum and value of assets held or to be held by it, in bank deposits and other liquid assets;

(k)

not be an entity or company in which any fund manager appointed by the Board of Trustees in relation to the Resolution Cost Fund, or any of the subsidiaries of such fund manager has an aggregate shareholding exceeding 5% of its issued and paid capital; and

(l)

meet such other additional requirements or conditions as may be prescribed from time to time by the Board of Trustees.

 

(3)

ln addition to meeting the criteria stipulated in sub-section (2) of this section an applicant shall only be appointed as a fund manager if it procures, to the reasonable satisfaction of the Board of Trustees, loss insurance cover and fidelity bond in such amount as the Board of Trustees may stipulate from time to time.

Custody of moneys and appointment of Custodians (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. (1)

All moneys standing to the credit of the Resolution Cost Fund which are not immediately required to be utilised shall be invested in any of the following-

(a)

debt securities issued or which are guaranteed by the Federal Government of Nigeria or the Central Bank of Nigeria;

(b)

with the prior written consent of Central Bank of Nigera, debt securities issued, or which are guaranteed by the central government of a sovereign country;

(c)

with the prior written consent of central Bank of Nigeria, debt securities issued, or which are guaranteed by an international financial institution of which Nigeria is a member;

(d)

debt securities issued by the Corporation;

(e)

repurchase agreements fully collaterised by debt securities of the governments and institutions mentioned in section 76(1),(a)-(c), with a maximum maturity of 30 days; and

(f)

Such other debt securities or instruments that the Board of Trustees may with the approval of The Central Bank of Nigeria, from time to time designate;

Provided always that in the case of paragraphs (b). (c), and (e) above, such debt securities or instruments shall be freely tradable securities.

 

(2)

All bonuses, profits and other returns which accrue on investments made under sub-section (1) of this section shall form part of the Resolution cost Fund and may be re-invested in accordance with sub-section (1) of this
section.

Investment of Resolution Cost fund (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. (1)

For the purposes of managing and investing moneys standing to the credit of the Resolution cost Fund as required under sub-section (1) of section 76, the Board of Trustees shall appoint independent third party professional fund managers who shall act on behalf of the Board of Trustees to administer and manage the Resolution Cost Fund and invest or re-invest moneys standing to the credit of the Resolution Cost Fund and accretions thereto in accordance with the provisions of this Act and fund management guidelines to be issued from time to time by the Board of Trustees.

(2)

A prospective fund manager shall be appointed by the Board of Trustees through open and competitive selection procedures, and to qualify for appointment, the prospective fund manager shall-

(a)

be a limited liability company duly incorporated in accordance with the laws of Federal Republic of Nigeria-

(b)

have a minimum paid up share capital of N 150,000,000 or such higher sum as may be prescribed, from time to time by the Board of Trustees;

(c)

be duly registered with the Securities and Exchange Commission as a portfolio/fund manager and be in good standing with the Securities and Exchange Commission;

(d)

possess a proven track record of managing funds amounting to N 10,000,000,000 or more (or such other amount as may be from time to time be prescribed by the Board of Trustees) in Nigeria;

(e)

not be engaged in any business other than the management of funds and assets;

(f)

not have compounded its debt or failed to honour its lawful obligations;

(g)

have never been a manager or administrator of any funds or assets which were mismanaged or has been in distress due to any fault, either fully or partially, of the prospective fund manager or any of its subscribers, director or officers;

(h)

have never been nor is a debtor of the Corporation or the obligor whether directly or indirectly in relation to an eligible Bank Asset;

(i)

have a management team comprising at least two sponsored individuals duly registered with the Securities and Exchange Commission;

(j)

possess appropriate information and communication technology to adequately cater for online real-time transactions and for keeping proper accounting records; and

(k)

meet such other additional requirements or conditions as may be prescribed from time to time by the Board of Trustees.

 

(3)

In addition to meeting the criteria stipulated in sub-section (2) of this section, an applicant shall only be appointed as a fund manager if it procures, to the reasonable satisfaction of the Board of Trustees, loss insurance cover and fidelity bond in such amount as the Board of Trustees may stipulate from time to time.

(4)

The appointment of a fund manager in pursuance of the provisions of this section, and the terms of such appointment, shall be documented in a written contract, between the Resolution Cost Fund and the fund manager to be known as the Fund Management Contract.

(5)

No fund manager appointed in pursuance of this section shall directly or indirectly have or keep custody of any or maintain any settlement accounts in relation thereto.

Appointment of Fund managers (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. (1)

At the end of the tenor, the Resolution Cost Fund shall stand dissolved and the Board of Trustees shall appoint on such terms as it deems fit, one or more liquidators to wind up the affairs of the Resolution Cost Fund; realise all assets of the Resolution Cost Fund and to distribute, in accordance with sub-section (5) of this section, the proceeds of realisation and all moneys then standing to the credit of the Resolution Cost Fund.

(2)

The following persons shall not be eligible to be appointed as a liquidator of the Resolution Cost Fund-

(a)

an infant;

(b)

a person of unsound mind;

(c)

a body corporate;

(d)

an undischarged bankrupt;

(e)

an employee or officer of an eligible financial institution;

(f)

a member of the Board of Trustees;

(g)

any person convicted of any offence involving fraud, dishonesty, official cbrruption or moral turpitude; and

(h)

person who is a debtor of the Corporation or the obligor whether directly or indirectly in relation to an eligible Bank Asset;

 

(3)

Upon the appointment of a Iiquidator under sub-section (1) of this section, all powers of the Board of Trustees shall cease except so far as is necessary to consider, and if thought fit, approve the account for the winding up prepared by the liquidator in pursuance of subsection(4)of this section.

(4)

As soon as the affairs of the Resolution Cost Fund are fully wound up, the liquidator shall prepare an account of the winding up, showing how the winding up has been conducted and lay same before the Board of Trustees.

(5)

Subject to sub-section (6) of this section, all moneys standing to the credit of the Resolution cost Fund over and above that required for the purposes specified under section 65 of this Act, shall after the dissolution and winding up of the affairs of the Resolution Cost Fund be deemed to be held in trust for the benefit of the central Bank of Nigeria and the eligible financial institutions and shall be distributed by the liquidator amongst the Central Bank of Nigeria and the eligible financial institutions on a pro rata basis.

(6)

All costs, charges and expenses properly incurred in the winding up of the Resolution Cost Fund, including the remuneration of the liquidator, shall be payable out of the moneys standing to the credit of the Resolution Cost Fund and assets of the Resolution Cost Fund.

Dissolution of Resolution Cost Fund (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. 

The Board of Trustees shall cause to be kept, for the Resolution Cost Fund, proper books of accounts with respect to all annual banking sector, Resolution Cost levies and contributions made to the Reso|ution Cost Fund, all the transactions and investments of the Resolution Cost Fund and give a true and fair view of the state of affairs of the Resolution Cost Fund in such form and in compliance with accounting standards as may be prescribed by the Central Bank of Nigeria.

Books of account (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. (1)

The Board of Trustees shall cause the accounts of the Resolution Cost Fund to be submitted for audit within six weeks after the end of each financial year to such independent firm of auditors as the Board of Trustees may appoint, to qualify for such appointment, such independent firm of auditors shall-

(a)

be a member of one of the professional bodies recognized in Nigeria; and

(b)

be resident in Nigeria and carry on in Nigeria professional practice as accountant and auditor.

 

(2)

The Board of Trustees shall cause a copy of the accounts of the Resolution cost Fund as audited to be submitted to the Governor, each eligible financial institution and both Houses of the National Assembly, through the relevant Standing Committees of the National Assembly within twelve weeks after the end of the financial year to which such account relates.

Audit of Resolution Cost Fund (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. 

The Board of Trustees shall, not rater than 3 months after the end of each-financial year, beginning with the financial year ending 2014, submit a report in such form and with such information as may be specified by the Central Bank of Nigeria (in this Act referred to as an “annual report”) to the President, the Minister, the Governor, both Houses of the National Assembly and each eligible financial institution, of its activities during the financial year concerned;

Provided that the audited accounts of the Corporation for the relevant year, and failing that, the management accounts of the Corporation, shall be included in the annual report.

Annual report of Resolution Cost Fund (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. 

The financial year of the Resolution Cost Fund shall begin on the 1st day of January and end on the 31st day of December.

Financial year of Resolution Cost Fund (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. (1)

without prejudice to the provisions of section 54 of this Act, any eligible financial institution which fails to comply with any of the povisions of Part IX of this Act shail be guilty of an offence and shall on conviction be liable to a fine of N 1,000,000,000 for each incidence of non-compliance.

(2)

where an eligible financial institution commits an offence under section 60W(1), every director and management staff of such eligible financial institution shall also be severally guilty of that offence and liable to be prosecuted, convicted and punished for the offence in like manner as if he had himself committed the offence, unless he proves that at the relevant time, he demanded of the board of directors of the eligible financial institution, in writing that the eligible financial institution complies with the provisions of this Act and delivered a copy of such demand to the Board of Trustees.

(3)

A person, who being a director or an employee of an eligible financial institution, knowingly or recklessly makes a false claim or representation in any material respect in relation to the ascertainment of the amount of the banking sector resolution cost which an eligible financial institution is liable to pay under this Act shall be guilty of an offence and shall on conviction be liable to a fine of N10,000,000 or imprisonment for a term of two years or both.

(4)

Subject to the provisions of section 60W (3) if the annual levy to which an eligible financial institution is liable under this Act, or any part thereof is not paid within the time specified in this Act, the eligible financial institution that so fails to pay the annual levy or any part thereof shall be liable, in addition to annual levy or any part thereof due, an additional sum amounting to ten times the annual levy or part thereof so unpaid for every month that annual levy or part thereof remains unpaid.

Provided always that the Board of Trustees may remit in whole or in part the additional sum imposed by the provisions of sub-section (4) of this section.

Offence in relation to Resolution Cost Fund (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. (1)

Without prejudice to sub-section (3) of this section-

(a)

no suit shall lie or be instituted against the Resolution cost Fund, a member of the Board of Trustees or any person acting on behalf of the Resolution Cost Fund for any act done under or in execution of this Act unless it is commenced within 3 months after the act, neglect or default complained of, or in the case of a continuing act, neglect or default, within 3 months after the ceasing thereof; and

(b)

no suit shall be commenced against the Resolution Cost Fund, a member of the Board of Trustees or any person acting on behalf of the Resolution Cost Fund before the expiration of 1 month after written notice of intention to commence the suit shall have been served on the Resolution Cost Fund by the intending plaintiff or his agent; and the notice shall clearly and explicitly state the cause of action, the particulars of the claim, the name and place of abode of the intending plaintiff and the relief which he claims.

 

(2)

In any action or suit relating to the Resolution Cost Fund no injunction or order in the nature thereof shall be issued against the Resolution Cost Fund or any asset of the Resolution Cost Fund; and no execution or attachment or processes in the nature thereof shall be issued against moneys standing to the credit of the Resolution Cost Fund but any sums of money which may, by the judgement of a court be awarded against the Resolution Cost Fund, shall, subject to any directions given by the court where notice of appeal has been given by the Resolution Cost Fund, be paid from moneys standing to the credit of the Resolution Cost Fund.

(3)

Neither the Resolution Cost Fund, nor the Board of Trustees nor any person engaged by the Resolution Cost Fund or the Board of Trustees in connection with the performance of the functions of the Board of Trustees or the business of the Resolution Cost Fund, shall be subject to any action,claim or demand by or liability to any person in respect of anything done or omitted to be done in good faith in pursuance or in execution of or in connection with the execution or intended execution of any power or function conferred on the Board of Trustees.

(4)

Every member of the Board of Trustees or agent for the time being of the Resolution Cost Fund shall be indemnified out of the assets of the Resolution Cost Fund against any liability incurred by him in defending any civil proceedings, if such proceeding is brought against him in his capacity as a member or agent:

Provided that nothing in this subsection shall be construed as entitling a member of the Board of Trustees to be indemnified against liability arising from the breach of the fiduciary or other duties imposed by section 60J (3) of this Act.

Limitation of action in relation to Resolution Cost Fund (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. 

Without prejudice to the powers of the Central Bank of Nigeria to make regulations and to issue guidelines and direction under this Act, the Central Bank of Nigeria shall have power to make rules and regulations for giving effect to the provisions of this Part of this Act and without limitation, for regulating the management and operations of the Fund, and the proceedings of the Board of Trustees.

Rules and regulations in respect of Resolution Cost Fund (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. 

Where any other enactment or law is inconsistent with the provisions of this Act, the provisions of this Act shall prevail.

Other inconsistent Acts or Laws (amended by Section 8 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
60. (1)

The Corporation shall be exempted from the provisions of –

(a)

Capital Gains Tax Act or such other law of the National Assembly on capital gains;

(b)

the Companies lncomes Tax Act ; and

(c)

Investments and Securities Act

Exemptions granted to the Corporation(amended by Section 7 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
61. 

In this Act-

“Board of the Bank” means the Board of Directors of the Central Bank of Nigeria;

“Corporation” means the Asset Management Corporation of Nigeria established pursuant to section 1 of this Act;

“court” means the Federal High Court;

“days” means working days;

“debt” means any credit facility, loan, risk asset, whether performing or non-performing, including interest thereon;

“debtor” or debtor company” means any borrower, beneficiary of an eligible bank asset and includes a guarantor of a debtor, guarantor or director of a debtor company;

“eligible bank assets” means assets of eligible financial institutions specified by the Governor as being eligible for acquisition by the Corporation pursuant to section 24 of this Act;

“eligible equity” means shares, stock or other interest in the equity or share capital of an eligible financial institution;

“eligible financial institution” means a bank duly licensed by the Central Bank of Nigeria to carry on the business of banking in Nigeria under the Banks and Other Financial Institutions Act ; and shall include a bank or other financial institution, whose banking license has been revoked by the Central Bank of Nigeria, pursuant to the Banks and Other Financial Institutions Act;

“Governor” means the Governor of the Central Bank of Nigeria;

“hours” means working hours;

“Minister” means the Minister charged with responsibility for finance;

“tenor” when used in Part lX of this Act means a period of 10 years from the calendar year 2010 but may be extended by not more than a maximum of 5 years by the National Assembly; and

“total assets” when used in Part IX of this Act means all assets of an eligible financial institution above and/or below the balance sheet line whether contingent or otherwise.

Interpretation (amended by Section 9 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)
62. This Act may be cited as the Asset Management Corporation of Nigeria Act, 2010.Citation (amended by Section 10 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015)