Pursuant to the Presidential Decree-Law No. (7) Of 2013, PDIC is the sole liquidator of a failing bank following the issuance of a liquidation decision by the Palestine Monetary Authority.
PDIC shall have the authority to take all legal measures necessary to safeguard the bank’s rights, and conclude the liquidation proceedings. PDIC shall replace depositors, to the extent it will reimburse them, and the reimbursed amounts shall be registered as debts owed to PDIC by the liquidated bank. PDIC shall maintain the right to recover the payout on insured deposits prior to all other shareholders and creditors.
PDIC has full power to take necessary measures to: terminate a bank’s operations, settle bank’s debts, collect its dues and take all necessary measures aimed at: recovering its rights and conducting an inventory of its accounts. Subsequently disposing of the bank’s movable and non-movable assets or part thereof, or take any other action or measure required to conclude the liquidation proceedings in order to pay back depositors and settle its debts.