| (a) | To reimburse the bank in resolution for payments the bank has made while in resolution to depositors in respect of covered deposits; |
| (b) | to reimburse depositors of the bank in resolution in respect of covered deposits; or |
| (c) | to make payments in terms of an agreement related to a transaction referred to in section 166S(1), being an agreement in relation to the covered deposits of the bank in resolution. |
| (2) | An agreement referred to in subsection (1)(c) may include any of the following: |
| (a) | A secured loan to the bank in resolution; |
| (b) | a loss sharing agreement between the Corporation and the bank in resolution or a person assuming liability for covered deposits of the bank in resolution; or |
| (c) | a guarantee in favour of the bank in resolution, the Reserve Bank or another person in respect of the bank’s obligations in relation to the covered deposits of the bank in resolution. |
(3)
| (a) | The Corporation may only enter into an agreement referred to in subsection (1)(c) if the Corporation believes that the agreement will contribute to the orderly resolution of the bank in resolution. |
| (b) | The cost to the Fund in terms of the agreement may not exceed the total amount of covered deposits held by the bank in resolution. |
| (c) | Paragraph (b) does not apply to costs incurred by the Corporation when exercising its functions in terms of section 166AF. |
[Section 166AA inserted by section 51 of the Financial Sector Laws Amendment Act, 2021 (Act No. 23 of 2021), Notice No. 789, GG45825, dated 28 January 2022 - effective 1 April 2024 per Notice No. 4468, GG50372, dated 25 March 2024]
