Section 39: Moratium and Regulations on Bail-in Eligible Instruments.

(1) Subject to any other provision of this Act, all claims, judgment debt enforcement, in respect of an eligible instrument existing or being pursued as of the date on the bail-in certificate, shall automatically be suspended and unenforceable against the bank, specialised bank or other financial institution during the period covered by the bail-in certificate, or any period as may be determined by the Governor by a written notice.
(2) To ensure the effective operation of the provisions of this section, the Bank may make regulations to impose a requirement on a bank, specialised bank or other financial institution to ensure that the contract governing the eligible instrument contains a provision to the effect that the parties to the contract agree for the eligible instrument to be the subject of a bail-in certificate and that the parties agree to be bound by a bail-in certificate issued by the Bank pursuant to sections 37 and 38 of this Act.
(3) The regulations which the Bank is empowered to make under subsection (2) may-
(a) specify the eligible instruments or class of eligible instruments, and banks, specialised banks or other financial institutions to which the requirement applies; and
(b) provide for incidental, consequential or transitional matters.
(4) In exercising any power under this section, the Bank may have regard to the desirability of giving each pre-resolution creditor or pre-resolution shareholder of a financial institution the priority and treatment the pre-resolution creditor or pre-resolution shareholder would have enjoyed had the financial institution been wound up.
(5) In determining whether to exercise its powers in accordance with the priority and treatment a pre-resolution creditor or pre-resolution shareholder of a financial institution would have enjoyed had the financial institution been wound up, the Bank may consider-
(a) any widespread adverse impact that the bank's failure would have on the financial system in Nigeria or the economy of Nigeria, or both;
(b) the need to maximise value for the benefit of all creditors of the bank, specialised bank or other financial institution as a whole;
(c) public interest; and
(d) any other matter that the bank considers relevant.
(6) For the purposes of this Part of this Act, "eligible instrument" means any-
(a) equity instrument or other instrument that confers or represents a legal or beneficial ownership in the bank, except an ordinary share;
(b) unsecured liability or other unsecured debt instrument that is subordinated to unsecured creditors' claims of the bank, specialised bank or other financial institution that are not so subordinated; or
(c) instrument that provides for a right for the instrument to be written down, cancelled, modified, changed in form or converted into shares or another instrument of ownership, when a specified event occurs.
(7) For the purposes of this section, a reference to cancelling an eligible instrument includes cancelling it in whole or in part, and a reference to modifying, converting, or changing the form of an eligible instrument is a reference to-
(a) convening the whole or a part of the eligible instrument from one form or class to another;
(b) replacing the whole or a part of the eligible instrument with another instrument or liability of a different form or class;
(c) creating a new instrument of any form or class or liability in connection with the modification of the eligible instrument; or
(d) converting the whole or a part of the eligible instrument into shares or other similar instruments issued by any resulting bank, specialised bank or other financial institution.