ADVOKS GLOBAL · KENYA
The Banking (Deposit Protection Fund) Regulations
10. Liability of insolvent institution to the Board
Edition: 2022-12-31 · In force
10. Liability of insolvent institution to the Board
(1)Subject to the Act and these Regulations, where a contributory institution is insolvent and the Board has made or is under a liability to make an insolvency payment to a depositor, the institution shall become liable to the Board, as in respect of contractual debt incurred immediately before the institution became insolvent, for an amount equal to the Board’s liability.(2)In all cases, no payment shall be made by the insolvent institution to a depositor unless full satisfaction has been given to the Board in respect of all moneys paid by the Board to the depositor.(3)The liability of the insolvent contributory institution to a depositor shall be reduced by an amount equal to insolvency payment made or to be made by the Board to the depositor.