Section 40: Termination of Rights.

(1) This section applies to a contract where one of the parties is-
(a) a bank that is the subject or proposed subject of a resolution measure; or
(b) an entity that is part of the same group of companies as that of a bank where-
(i) the bank is the subject or proposed subject of a resolution measure,
(ii) the contract has a termination right that is exercisable if the bank becomes insolvent or is in a certain financial condition, and
(iii) the obligations of the entity under the contract are guaranteed or otherwise supported by the bank.
(2) The Bank may, by notice in writing signed by of the Governor, suspend the exercise of any termination right in a contract to which subsection (1) applies for a specified period.
(3) A notice pursuant to subsection (2) may-
(a) relate to all or a class only of the contracts to which subsection (1) applies;
(b) make different provisions for different classes of contracts to which subsection (1) applies; and
(c) be of general or specific application.
(4) When exercising a power under subsection (2), the Bank shall have regard to its impact on the safe and orderly functioning of the financial market and financial market infrastructures operating in Nigeria.
(5) A suspension by notice under this section takes effect from, and including the time of publication of the notice.
(6) During the period of suspension of a termination right under a contract, and despite any provision of a written law or contract, any purported exercise of that right has no effect.
(7) A person whose termination right under a contract is suspended shall not, without the prior written consent of the Bank, exercise that right before the expiry of the suspension.
(8) On the expiry of the suspension period of a termination right under a contract, the person who holds that right may exercise the right in accordance with the terms of the contract, but not-
(a) on a resolution measure taken in relation to the bank;
(b) on the occurrence of an event directly linked to such resolution measure; or
(c) if the contract forms part of any business of the bank that has been transferred to another person under this Act.