Division, amalgamation, compromise, etc

44 AK. Division, amalgamation, compromise, etc. –

1. (1) No order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction or of division or transfer of assets and liabilities of a Cooperative Bank shall be made without the pervious sanction in writhing of the Reserve Bank.
2. (2) Where an order of moratorium has been made by the Central Government under sub- section
3. (2) of section 45 of the Banking Regulation Act, 1949(10 of 1949) in respect of a Cooperative Bank, the Registrar, with the previous approval of the Reserve Bank in writing nay during the period of moratorium, prepare a scheme,-
   • (i) for the re-construction of the Cooperative Bank; or
   • (ii) for its amalgamation with any other Cooperative Bank (herein referred to as the transferee Bank).
4. (3) Notwithstanding anything to the contrary to the contrary contained in this Act where a Cooperative Bank being an insured bank within the meaning of the Deposit Insurance Corporation Act, 1961(47 of 1961) is amalgamated or in respect of which a scheme of compromise or arrangement or of reconstruction has been sanctioned and the Deposit Insurance Corporation has become liable to pay to the depositors of the insured bank, under sub-section
5. (2) of section 16 of the Act, the bank with which such insured bank is amalgamated or, the mew Cooperative Bank formed after such amalgamation or, as the case may be, the insured bank or the transferee bank shall be under an obligation to repay the Deposit Insurance Corporation in the circumstances, to the extent and in the manner referred to in section 21 of that Act.