Liquidator of Choice Bank Limited
FREQUENTLY ASKED QUESTIONS
1. What is the situation at Choice Bank Limited?
On 29 June 2018, the international banking licence for Choice Bank Limited was revoked on the recommendation of the Central Bank of Belize. Choice Bank Limited is therefore prohibited from carrying on international banking business.
On the same day, the Central Bank of Belize appointed a Liquidator for Choice Bank Limited.
2. What is the effect of the appointment of a liquidator?
The Liquidator is now the sole legal representative of Choice Bank Limited.
The Liquidator now has the powers of the shareholders, directors and officers responsible for the management of Choice Bank Limited. The powers of the shareholders, directors and officers are terminated during the liquidation of the bank.
Similarly, the persons who, before the appointment of the Liquidator, had financial responsibility for Choice Bank Limited or authority to give instructions on behalf of the bank with respect to the payment or transfer of assets, or assets owned or managed by Choice Bank Limited are no longer so responsible or authorized.
3. What are the duties and functions of a liquidator?
The duties and functions of a liquidator are mainly provided for in Part XI of the Domestic Banks and Financial Institutions Act, 2012. This Act is publicly available on the website of the Central Bank of Belize, www.centralbank.org.bz > Laws & Regulations> Domestic Banks & Financial Institutions Act
The duties and functions of the Liquidator for Choice Bank Limited include the following:
1.) the sale of assets for maximum value;
2.) receiving and determining claims filed by depositors and other creditors;
3.) distribution of funds according to the priorities provided for by law.
The liquidator will also have full power and authority over the administrative and managerial operations of Choice Bank Limited.
4. Who is the Liquidator for Choice Bank Limited?
On July 2018, the Central Bank of Belize appointed Mr. Cedric Flowers, a Certified Public Accountant as liquidator for Choice Bank Limited. Mr. Flowers replaces Mr. Henry Hazel who was appointed as liquidator of Choice Bank Limited with effect from 29 June 2018 to 3 July 2018.
5. How do I contact the Liquidator?
The Liquidator for Choice Bank Limited may contacted via e-mail at firstname.lastname@example.org.
The Liquidator acknowledges that direct communication during the initial phase of the liquidation was not always timely due to the many matters that required the Liquidator’s urgent attention.
However, the Liquidator recognizes the importance of communicating with interested persons and will endeavor to either respond to e-mails and queries directly or by posting responses to Frequently Asked Questions and Public Notices on the website of Choice Bank Limited (www.choicebankltd.com).
6. What is the next step? What am I required to do to get my funds?
Section 107(4) of the Domestic Banks and Financial Institutions Act requires the Liquidator to issue a Notice, by 29 August 2018, to all depositors, creditors and lessees of the Choice Bank Limited to file a claim with the Liquidator. The Notice will inform creditors of the procedure and deadline for filing a Claim.
The Liquidator intends to issue this Notice before 29 August 2018.
By law, the Liquidator must allow creditors a minimum of sixty (60) days from the date of the Notice to file a claim.
7. How long will the liquidation process take? When will I be given my funds?
The Domestic Banks and Financial Institutions Act provides a timeline for the Liquidator to take certain actions with respect to the determination of claims and the distribution of funds. The Liquidator must adhere to the following timelines:
. Publish or deliver a Notice for Filing a Claim within 60 days of appointment of Liquidator (by 29 August 2018)
. Allow 60 days after the Notice for depositors and creditors to file a claim (by 29 October 2018)
. Within 90 days of the deadline for the filing a claim (by 29 January 2019) –
(a) determine claims;
(b) prepare a Schedule of proposed actions; and
(c) notify each person whose claim is allowed in full
. File a Schedule of Proposed Actions to be taken for the winding-up of Choice Bank Limited with the Central Bank of Belize and commence partial distribution (by 28 February 2019)
. Deadline to make objection to Schedule of proposed actions to the Central Bank of Belize (by 20 March 2019)
Please note that the Liquidator will endeavor to complete the steps in the liquidation process before the maximum deadline provided for by law with a view to distributing funds to depositors and creditors as soon as possible.