Section 8 — BANKING AND FINANCIAL INSTITUTIONS ACT 1989

(a)

that there are grounds on which the Minister's power to revoke a licence are exerciseable under section 7 (1); but

(b)

that the circumstances are not such as to justify revocation, the Minister may, on the recommendation of the Bank, restrict the licence by—

(A)

imposing such limits on its duration as the Minister thinks fit;

(B)

imposing such conditions as the Minister thinks desirable for the protection of the institution's depositors and other customers, or potential depositors and other customers, or its creditors or other persons dealing with it, or likely to become its creditors or deal with it; or

(C)

the imposition of both such limits and conditions.

(2)

A limit on the duration of a licence shall not be such as to allow the licence to continue in force for more than three years from the date on which it is imposed; and such a limit may in particular be imposed in a case where the Bank considers that the institution should be allowed to repay its depositors, other customers, or creditors in an orderly manner.

(3)

The conditions imposed under this section may, in particular—

(a)

require the institution to take certain steps or to refrain from adopting or pursuing a particular course of action or to restrict the scope of its business in a particular way;

(b)

impose limitations on the acceptance of deposits, the giving of credit facilities, or the making of investments;

(c)

prohibit the institution from soliciting deposits, either generally or from persons who are not already depositors;

(d)

prohibit it from entering into any other transaction or class of transactions, or to enter into it subject to such restrictions or conditions as may be specified;

(e)

require the removal of any director, controller or manager;

(f)

specify the requirements to be fulfilled otherwise than by action taken by the institution; or

(g)

specify any other condition, whether similar or not to the conditions mentioned in the foregoing paragraphs, which the Minister considers desirable or expedient to impose.

(4)

Any conditions imposed under this section may be varied or revoked by the Minister on the recommendation of the Bank, and any limit imposed under this section on the duration of the licence may be varied but not so as to allow the licence to continue in force for longer than the period mentioned in subsection (2) from the date on which the limit was first imposed.

(5)

Failure to comply with any condition imposed under this section shall be a ground for the revocation of the licence but shall not invalidate any transaction.

(6)

An institution whose licence is restricted by the imposition of a limit on its duration may apply for a new licence under section 5, and if a new licence is granted under section 6(4), the restricted licence shall cease to have effect.