117. Preferential right

The Central Bank shall have the first priority and an unconditional preferential right against all other claims to satisfy each of its claims arising from the discharge of its functions from any cash balances, securities and other assets that it holds for the account of the debtor concerned, whether as collateral to secure its claims or otherwise, at the time such claim becomes due and payable.

The Central Bank may exercise its preferential right only by appropriating the cash balances by way of compensation and by selling securities and other assets without undue delay in a commercially reasonable manner and paying itself from the proceeds of the sale after deducting therefrom the costs associated with the sale.

No action from any court of law or from any public entity shall be required for the Central Bank to exercise its preferential right under subsection (2), and no other claim shall be permitted to delay the exercise by the Central Bank of its preferential right in accordance with subsection (2).