Credit Institutions (Stabilisation) Act 2010
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Direction orders. |
9.— (1) As soon as may be after completion in relation to a proposed direction order of the procedures required by section 7 , the Minister shall apply ex parte to the Court for an order (in this Act called a “direction order”) in the terms of the relevant proposed direction order. | |
(2) The Court, when hearing an ex parte application under subsection (1), shall, if satisfied that the requirements of section 7 have been complied with and that the opinion of the Minister under that section was reasonable and was not vitiated by any error of law, make a direction order in the terms of the proposed direction order (or those terms as varied after consideration of any submission referred to in section 7 (4)(c)). | ||
(3) If in a proposed direction order the Minister has declared the intention of preserving or restoring the financial position of a credit institution, and the Court is satisfied that the Minister made the proposed direction order or part of it with that intention, the Court shall declare in the relevant direction order that the direction order or the relevant part of it is a reorganisation measure for the purposes of the CIWUD Directive. | ||
(4) A report prepared by the Bank (whether or not prepared specifically for the purpose of the application) in relation to matters within the Governor’s or the Bank’s responsibilities, including the financial position of the relevant institution, is admissible in evidence at the hearing of the application. | ||
(5) The Court may make a direction order in terms varied or amended from those in the proposed direction order only if the Court is satisfied that— | ||
(a) there has been non-compliance with any of the requirements of section 7 or that the opinion of the Minister under section 7 (2) was unreasonable or vitiated by an error of law, | ||
(b) it would be appropriate to do so, having regard to any report referred to in subsection (4), and | ||
(c) to do so is necessary for the purpose specified in the proposed direction order or any other purpose of this Act. | ||
(6) The Court may give a direction, as it thinks appropriate, in relation to the publication of a direction order. | ||
(7) Subject to subsection (8), a direction order has effect— | ||
(a) if an application is made under section 11 , in accordance with that section, and | ||
(b) if no such application is made, 5 working days after the making of the order. | ||
(8) The Court shall order that a direction order or a term of a direction order has effect immediately where the Court is satisfied that the purpose of the order or term is— | ||
(a) to ensure the immediate and effective issuance of additional share capital in the relevant institution concerned by issuing shares to the Minister or his or her nominee— | ||
(i) to prevent or remedy an imminent breach of the regulatory capital requirements applicable to the relevant institution, or | ||
(ii) to enable the relevant institution immediately to meet regulatory capital targets set by the Bank, | ||
(b) to address an imminent threat to the financial stability of the relevant institution concerned, or | ||
(c) to address an imminent threat to the stability of the financial system in the State. | ||
(9) The Court may order in a direction order that action taken by a relevant institution in accordance with section 8 shall be taken to have been taken in compliance with the direction order. |