Section 97, The Banking Act, 2019

(1) A receiver may set aside the following transactionsaffecting the assets of a bank in receivership and recover the assets from the transferee or other beneficiary of the transaction if detrimental to the interest of depositors and other creditors - (a) gratuitous transfers to, or to persons related to, affiliates, insiders or key management personnel of the bank made within 5 years prior to the effective date of the receivership; (b) transactions with affiliates, insiders or key management personnel of the bank conducted within 5 years prior to the effective date of the receivership; (c) gratuitous transfers to third parties made within 3 years prior to the effective date of the receivership; (d) transactions in which the consideration given by the bank considerably exceeded the received consideration, made within 3 years prior to the effective date of the (e) a transaction based on a forged or fraudulent document that the bank has executed to the detriment of creditors; (f) any act done with the intention of all parties involved to withhold assets from bank creditors, or otherwise impair their rights, within 5 years prior to the effective date of the receivership; (g) transfers of property of the bank or financial holding company to, or for the benefit of, a creditor on account of a debt incurred within one year prior to the effective date of the receivership which has the effect of increasing the amount that the creditor would receive in a liquidation of the bank: provided, however, that payment of deposits in an amount equal to or less than an amount to be determined by the Central Bank, in the case of banks per depositor or for such amounts as may be determined in accordance with the Deposit Protection Act shall not be subject to this provision; and (h) any attachment or security interest, except one existing 6 months prior to the effective date of the receivership. Inventory of assets and new financial position. Repudiation of contracts. Avoidance of pre-receivership transfer. 106 107 (2) Any action to set aside a transfer under this section shall be taken by the receiver within one year following the effective date of the receivership. (3) Notwithstanding anything contained in this section, the receiver may not set aside a payment or transfer by a bank in receivership if it was made in the ordinary course of business, or if it was part of a contemporaneous exchange for reasonably equivalent value, or to the extent that following the transfer the recipient extended new unsecured credit to the bank which had not been satisfied by the bank as of the effective date of the receivership. (4) Notwithstanding anything contained in this section, the receiver may not set aside a payment or transfer by a bank in receivership or made pursuant to any power of an official administrator under this Act. (5) A receiver may recover property or the value of property transferred by a bank in receivership from a transferee of an initial transferee only if the second transferee did not give fair value for the property and knew or reasonably should have known that the initial transfer could be set aside under this Act. (6) A receiver may order that notice of an action to set aside a transfer be recorded in the public records for real estate ownership and any other rights in property and a person taking title to or acquiring any security interest or other interest in such property after the filing of such notice takes his title or interest subject to the rights of the bank to recover the property.