Section 6: Seizure of assets

6. Seizure of assets.___(1) If the 1[Federal Government] after considering such explanation as the Bank concerned may have given, the information secured by any action taken under sub-sections (2) and (3) of Section 4 and such further enquiry as it may deem necessary, is satisfied that the Bank has wrongfully withheld payment of a cheque wholly or partially or the delivery of anything held in deposit or safe custody, the 1[Federal Government] may order the Bank to make payment of the cheque to such extent as in the opinion of the 1[Federal Government] payment has been wrongfully withheld, or make delivery of the thing held in deposit or safe custody as the case may be, by a specified date to the person named in the order. (2) If the Bank fails to comply with the order made under sub-section (1) the 1[Federal Government] may as the case may be order___ (a) the seizing of the thing held in safe custody and its transfer to the person named in the order, 1Subs. by F.A.O., 1975, Art. 2 and Table. 2Omitted by A.O., 1961, Art. 2 and Sch., (with effect from the 23rd March, 1956. (b) the seizing of assets of the Bank sufficient to cover the amount of the Bank’s liability as determined under sub-section (1) and the transfer to the person named in the order under sub-section (1) of such part of these assets or so much of their value on realization as will discharge the Bank’s liability to him. (3) If after discharging the liability of the Bank referred to in sub-section (2) above there is a surplus it shall be returned to the Bank after deducting such incidental expenses as may have been incurred by the 2[Federal Government].

Effective date: 1947-01-01

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