Asset Covered Securities Act, 2001

Termination of appointment of cover-assets monitor by designated credit institution.

63.—(1) A designated credit institution may terminate the appointment of its cover-assets monitor only with the written consent of the Authority.

(2) The Authority may, by notice in writing given to the institution and cover-assets monitor concerned, direct a designated credit institution to terminate the appointment of the cover-assets monitor appointed in respect of the institution and to appoint another qualified person in place of that monitor. The notice must specify the reasons for giving the direction. Subject to subsection (4), the institution is required to comply with such a direction.

(3) If the Authority issues a notice under subsection (2), the designated credit institution or cover-assets monitor concerned may, within 7 days of receiving the notice, appeal to the High Court against the giving of the direction.

(4) On the hearing of an appeal under subsection (3), the High Court may—

(a) make an order confirming the decision of the Authority, or

(b) make an order quashing the direction of the Authority or, if the direction has been implemented, order that the cover-assets monitor concerned be reinstated on the same terms and conditions as those applicable immediately before the implementation of the direction.

The High Court may make such ancillary orders as it thinks appropriate.