ADVOKS GLOBAL · KENYA
Kenya Deposit Insurance Act
46. Actions against the Corporation
Edition: 2022-12-31 · In force
46. Actions against the Corporation
(1)Where the Corporation or the appointed person, as the case may be, has assumed control of an institution under section 44(2)(b)—(a)no injunction may be brought or any other action or civil proceeding commenced against the Corporation or the appointed person in respect of the assumption of control;(b)no creditor has any right of set-off against the institution, which for greater certainty, does not include the consolidation of accounts maintained in the normal course for the purpose of providing clearing and settlement services or other services referred to in section 48; and(c)no person may terminate or amend any agreement with the institution or claim an accelerated payment under any such agreement with the institution by reason only of—(i)the insolvency of the institution;(ii)a default, before the assumption of control under section 44(2)(b) by the Corporation or the appointed person, as the case may be, takes effect, by the institution in the performance of its obligations under the agreement; or(iii)assumption of control under section 44(2)(b) by the Corporation or the appointed person, as the case may be, as from the date of the assumption of control of the institution.(2)Subsection (1) shall not prevent any person who sustains losses from any action of the Corporation or the appointed person from instituting an action for damages for the losses suffered by such person.(3)Notwithstanding any action instituted pursuant to subsection (2), the Corporation or the appointed person shall continue to exercise any or all of its powers under this Act.