Cap. 618 Art. 13Effectsofadeposit liability transfer.

(1) A deposit liability transfer instrument shall, as from the transfer date, and unless the Authority in the deposit liability transfer instrument otherwise determines, have the effect of:

(a) discharging the transferring institution of the obligation of repayment of any transferred deposit liability towards a transferred depositor;

(b) transferring the obligation of repayment of any transferred deposit liability to the Fund, that shall assume all such repayment obligations;

(c) creating the right of the transferred depositor in relation to a transferred deposit liability that shall be repaid by the Fund in accordance with the provisions of this Act and terminating, with immediate effect, any right of repayment of the said transferred depositor against the transferring institution;

(d) terminating all rights of action of a transferred depositor of a transferred deposit liability against the transferring institution, except for rights accruing to such a transferred depositor up to the transfer date which, notwithstanding any provision of this Act, shall not be transferred to and assumed by the Fund; and

(e) terminating the right of transferred depositors to receive interest accruing on transferred deposit liabilities.

(2) Any claims accruing to any third party before the transfer date:

(a) against the transferring institution shall remain valid and effective against the transferring institution, notwithstanding the transfer of any relevant deposit liability to which the claim may relate, and such claims shall be exercisable by the third party against the transferring institution;

(b) with respect to a deposit which is the subject of a deposit liability transfer instrument shall remain valid and effective over such deposit, notwithstanding the transfer of the deposit liability to the Fund, and such claims shall be exercisable by the third party against the Fund:

Provided that there can be no claim against the Fund in excess of the deposit assets transferred to the Fund in connection with the deposit liabilities in relation to which a claim is being made. For any such excess, the claim shall be exercisable against the transferring institution.