On June 4, the Central Bank of Nigeria (CBN) revoked the banking licence of Heritage Bank Plc, raising curious questions about how depositors will retrieve their funds from the bank.
the banking licence of Heritage Bank Plc, raising curious questions about how depositors and shareholders would fare in terms of getting back their funds.
due to failure to meet new capital requirements of N25 billion , after which the bank successfully challenged the closure in court. The CBN reissued the licence as a regional bank in December 2012.Having acquired the banking licence, the new ownership rebranded the bank as Heritage Banking Company Limited and opened for business on March 4, 2013.and the CBN for 100 percent shares in Enterprise Bank Ltd.
According to Section 31 of the NDIC law, after payment of insured deposits, the corporation may make interim dividend payments from proceeds ofIn a statement on June 3, Bashir Nuhu, spokesperson of NDIC, assured that depositors would retrieve their funds, stating the process for such retrieval. “Debtors’ Repayment of Loans: Debtors who have yet to repay loans are advised to contact the Corporation’s Asset Management Department . Visit the NDIC website for more details.”Section 30 of the NDIC Act mandates that a corporation must give depositors at least three months’ notice to pay, either by mailing a copy to their last known address or publishing a general notice in at least two national dailies and electronic media houses, notifying them of the venue and dates for payment.
If the customers fail to claim or arrange to continue their transferred deposit with the new insured institution within six years, all of their rights against Heritage Bank and its shareholders will be reverted to the corporation. According to Section 29 of the NDIC Act, in case of any suit against the corporation, what will be paid to claimants would be limited to the amount of actual loss suffered.
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