FAILED BANKS (RECOVERY OF DEBTS) AND FINANCIAL MALPRACTICES IN BANKS ACT

Section 8: Debtor to appear before Court to show cause

1994Section 8 of 24Federal Republic of Nigeria

(1) The Court shall on the return date and on receipt of a reply to the notice of an application made under section 7 (1) of this Act, if the debtor admits the debt, enter judgment and ask the debtor to appear before it to show cause why the Court should not invoke its powers under this Act to recover the outstanding debt.
(2) The Court shall, if satisfied with the explanation of the debtor, give the debtor not later than 30 days to pay to the Receiver or Liquidator the outstanding loan and interest thereon.
(3) If a debtor pays the outstanding loan and interest within the period specified under subsection (2) of this section, the Court shall-
(a) issue to the debtor a certificate of clearance; and
[FORM F.]
(b) order that all the documents and properties pledged as security for the loan be released to the debtor.
[Form G.]

Cite this section

Section 8, FAILED BANKS (RECOVERY OF DEBTS) AND FINANCIAL MALPRACTICES IN BANKS ACT (1994).

https://repo.podus.ai/laws/failed-banks-recovery-of-debts-and-financial-malpractices-in-banks-act/section/8/