Financial Sector Regulation Act, 2017 (Act No. 9 of 2017)

Chapter 12A : Resolution of Designated Institutions

Part 5 : Banks in resolution - covered deposits

166AC. Payments made in error or as result of fraud
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If—

(a) the Corporation makes one or more payments out of the Fund as contemplated by section 166AA in respect of a depositor with a bank in resolution;
(b) the total amount paid was more than was permitted by section 166AB; and
(c) the excess amount paid was paid because of—
(i) an error by the Corporation or the bank in resolution, whether before or after the bank was placed in resolution, including a failure of the bank to comply with an obligation to provide information; or
(ii) fraud, except fraud by an official or employee of the Corporation,

the Corporation is entitled to recover the excess amount from the bank in resolution.

 

[Section 166AC 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]