ADVOKS GLOBAL · KENYA
The Central Bank of Kenya (Mortgage Refinance Companies) Regulations, 2019
56. Power to intervene in management
Edition: 2022-12-31 · In force
56. Power to intervene in management
(1)The Bank may intervene in the management of a mortgage refinance company in any the following circumstances—(a)if the mortgage refinance company fails to meet any financial obligation, when it falls due including an obligation to pay any creditor;(b)if a petition is filed, or a resolution proposed, for the winding up of the mortgage refinance company or if any receiver or receiver and manager or similar officer is appointed in respect of the mortgage refinance company or in respect of all or any part of its assets;(c)if the auditor of a mortgage refinance company makes a report to the Bank that a mortgage refinance company has violated the law in a serious manner or conducts its business in a detrimental way;(d)if the Bank discovers (whether on an inspection or otherwise) or becomes aware of any fact or circumstance which, in the opinion of the Central Bank, warrants the exercise of the relevant power in the interests of the mortgage refinance company or its creditors;(e)if the mortgage refinance company is significantly undercapitalized; or(f)if the mortgage refinance company fails—(i)to submit a capital restoration plan or a plan to resolve all deficiencies as directed by the Bank; or(ii)to add more capital, and it fails, neglects or refuses to comply, with an order to implement a plan of correction.(2)The Bank shall take over the management of a mortgage refinance company and may appoint an officer of the Bank or any other person to manage the mortgage refinance company in such manner, for such purpose and for such period as may be determined in the guidelines.