Section 28: Payment of insured deposit.

(1) Payments of the insured deposit in an insured institution shall be made by the Corporation-
(a) within 30 days of the Corporation becoming the liquidator of such insured institution where the licence of that institution is revoked; or
(b) with the concurrence of Central Bank of Nigeria, within 30 days, where due to its insolvent status, the insured institution has suspended payment or is otherwise unable to meet its obligation to depositors for a period of 90 days.
(2) The payment in subsection (1) shall be made by-
(a) cash;
(b) negotiable instrument; or
(c) making available to each depositor a transferred deposit in another insured institution in an amount equal to the insured deposit of such depositor:
Provided that where the Corporation is-
(i) liable to make payment under this section, it shall, at its discretion, require proof of claim from all depositors with the insured institution, and
(ii) not satisfied as to the validity of a claim for an insured deposit, it may require the final determination by a court of competent jurisdiction before paying such claim.
(3) The Corporation on the payment of any depositor as provided in subsection (1) shall be subrogated to all rights of the depositor against the failed insured institution to the extent of such payment, and such subrogation shall include the right on the part of the Corporation to receive the same dividends from the proceeds of the assets of such failed insured institution and recoveries on account of shareholder's liabilities as would have been payable to the depositor for any uninsured portion of his deposit.
(4) The right of subrogation conferred on the Corporation under subsection (3) and section 57 (3) (a) of this Act shall be exercisable by the Corporation against a failed insured institution notwithstanding the restoration of the failed insured institution's operating licence or its returning to solvency.
(5) The Corporation, if it finds that it is advisable in the interest of the depositors or the public, shall, shall not later than 30 days after the failure of an insured institution, appoint another insured institution to assume the insured deposits of the failed insured institution.