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srilawsby aturio
As enacted
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Part V · Winding Up of Licensed Bank

85. Priority of claims for the distribution of assets in winding up

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

The liquidator shall distribute the assets of a licensed bank subject to winding up in accordance with the priority of claims specified in subsection (2).

(2)

The assets of a licensed bank subject to winding up shall be distributed in the following order of priority: -

(a)

all reasonable costs and expenses incurred by the liquidator on account of the administration of the insolvency;

(b)

unpaid premium due to the Deposit Insurance Fund;

(c)

insured deposits and claims of the Deposit Insurance

Fund arising from subrogation of the rights of insured depositors under section 45 as a result of compensation or resolution financing provided under subsection (3) of section 51;

(d)

deposits over the insured limit determined by the

Central Bank under section 44;

(e)

salaries and wages of officers and other employees of the licensed bank, as accrued to the date of the winding up order made under subsection (6) of section 67;

(f)

sums owed to the Government for the financing of resolution under this Act;

(g)

taxes, rates, and deposits owed to the Government and local authorities by the licensed bank which were due over a period of not more than one year preceding the date of the winding up order made under subsection (6) of section 67;

(h)

industrial court awards and any other statutory dues payable to, or on account of, any officer or other employee of the licensed bank;

(i)

liabilities of the licensed bank on account of resolution and any other liabilities due and owing to the Central Bank and the Deposit Insurance Fund;

(j)

claims of unsecured creditors other than depositors;

(k)

any other claim not paid under paragraphs (a) to (j)

of this subsection.

Read on from s 86

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