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ORDINANCE XLVII OF 2001 BANKING COMPANIES (AMENDMENT) ORDINANCE 2001 ORDINANCE XLVII OF 2001 An Ordinance further to amend the Banking Companies Ordinance, 1962 [Gazette of Pakistan, Extraordinary, Part I, 30th August, 2001] F.No.2(1)/2001-Pub., dated 30-8-2001.---The following Ordinance promulgated by the President is hereby published for general information:-- 6. Substitution of section 58, Ordinance LVII of 1962.--In the said Ordinance, for section 58 the following shall be substituted, namely:-- "58. Priority payments to depositors.-(1) In every proceeding for winding up of a banking company where a winding up order has been made, within ninety days from the date of the winding up order or where the winding up order has been made before the 1st day of August, 2001, within ninety days therefrom, the payments referred to in subsection (2) shall be made by the official liquidator or adequate provision for such payments shall be made by him. (2) Subject to subsection (3), there shall be paid within the period of ninety days as specified in subsection (1), in the first place, to every depositor of a banking company a sum of one hundred thousand rupees or the balance at this credit whichever is less. (3) The total amount paid under subsection (2) shall not exceed a sum of one hundred thousand rupees-- (i) where a depositor is maintaining more than one account with a banking company; and (ii) in the case of joint account holders of an account. (4) Where within the period of ninety days as specified in subsection (1), full payments cannot be made of the amounts required to be paid under subsection (2) with the assets in cash, the official liquidator shall pay within that period to every depositor on a pro rata basis so much of the amount due to every depositor as the official liquidator is able to pay with those assets, and shall pay the rest of that amount to every depositor as and when sufficient assets are collected by the official liquidation in cash. (5) After payments have been made first to depositors in accordance with the foregoing provisions, the remaining assets of a banking company available for payment shall be utilised according to the following order or priority, namely:-- (a) Firstly, for payment of balance due to depositors in accordance with a scheme to be prepared by the State Bank; (b) after payments have been made to depositors in accordance with clause (a), secondly, for payment on a pro rata basis to every claimant entitled to preferential payment under section 405 of the Companies Ordinance, 1984 (LXVII of 1984); and (c) after payments have been made in full in accordance with clauses (a) and (b), thirdly., for payment on a pro rata basis of the debts of the general creditors. (6) For the purposes of this section, banking companies, financial institutions specified in subsection (1) of section 3A, leasing companies and modaraba companies shall be treated as general creditors and not depositors. (7) Subject to subsection (8), in order to enable the official liquidator to have in his custody or under his control in cash as much of the assets of a banking company as possible, the securities given to every secured creditor may be redeemed by the official liquidator-- (a) where the amount due to a creditor is more than the value of the securities as assessed by him or, as the case may be, assessed by the official liquidator, on payment of such value; and (b) where the amount due to the creditor is equal to or less than the value of the securities as so assessed, on payment of the amount due. (8) Where the official liquidator is not satisfied with the valuation made by a creditor, he may apply to the High Court for making a valuation. (9) When any depositor, claimant or creditor to whom any payment is to be made in accordance with the foregoing provisions, cannot be found or is not readily traceable, adequate measures shall be taken by the official liquidator of such payment. (10) For the purposes of this section the payments specified in each of the following clauses shall be treated as payments of a different class, namely:-- (a) Payments to depositors pursuant to sub-sections (2) and (4); (b) payments to, depositors pursuant to clause (a) of subsection (5); (c) payments to preferential claimants pursuant to clause (b) of subsection (5); and (d) payments to the general creditors pursuant to clause' (c) of subsection (5). (11) The payments to persons in each different class as specified in subsection (10) shall rank equally among themselves and be paid in full unless the assets are insufficient to meet them, in which case they shall abate in equal proportion."