Section 37: Tainted Eligible Bank Asset.

(1) Notwithstanding anything to the contrary contained in this Act, where an eligible bank asset acquired by the Corporation falls into any of the categories of 'tainted eligible bank assets' listed in subsection (2) of this section-
(a) the borrower or other obligor connected with such tainted eligible asset shall not be entitled to and shall not be granted, any forbearance, waiver, or debt forgiveness by the Corporation ; and
(b) the Corporation shall pursue, to the fullest extent possible, all lawful civil and criminal remedies against any such borrower or other obligor connected with such tainted eligible bank asset.
(2) Any eligible bank asset which falls into any of the following categories shall be deemed to be a tainted eligible bank asset-
(a) loans, credits or other financial accommodation obtained by insiders of, or persons related to or otherwise connected with, the eligible financial institution which granted the loan, credit or other financial accommodation where such loan, credit or financial accommodation was-
(i) obtained in breach of the rules and regulations of the eligible financial institution which granted the loan, credit or financial accommodation ;
(ii) secured against the shares or other securities of the eligible financial institution which granted the loan, credit or financial accommodation ; or
(iii) in breach of rules and regulations of the central Bank of Nigeria.
(b) loans, credits or other financial accommodation obtained or applied by insider of or persons related to, or otherwise connected with the eligible financial institution towards the purchase of the shares of the eligible financial institution which granted the loan, credit or other financial accommodation ; or
(c) loans, credits or other financial accommodation granted or obtained-
(i) by insider of, or person related to or otherwise connected with, the eligible financial institution which granted the loan, credit or financial accommodation, in breach of the provision in financial assistance rules under the Companies and Allied Matters Act;
(ii) for the purpose of market manipulation and market rigging or for the acquisition of shares in breach of the Investments and Securities Act or rules or regulations made thereunder ; and
(iii) in breach of any law, including but not limited to, laws relating to, banking and company.
(3) For the purpose of this section, "insider of, or persons related to or otherwise connected with, an eligible financial institution" includes directors, officers or persons with significant shareholding in the eligible financial institution, their spouses, their children, their children's spouses, relations or proxies.