Banks that fail may be placed under external administration to eventually be liquidated. Bank liquidation is the last resort for creditors to reclaim their funds. Local insolvency law governs the asset collection and repayment procedures. However, due to the international complexity of bank liquidation, the process needs a strict and accurate execution.
Creditors can experience a (partial) write-off of assets as part of a bank liquidation procedure. The liquidator must ensure that the correct claimants are paid accordingly. As a condition for protecting the position of the failed financial institution and, of course, the legitimate creditors, a liquidator must receive documentation of ownership and proof of debt from these very creditors.
With the documentation presented by a claimant, the liquidator can approve or reject a claim for reimbursement. Failure to present such evidence ultimately results in creditor disqualification. It is therefore mission critical to submit the correct documents upon request. Under normal circumstances there are no second chances for resubmission and incomplete consignments, late filings and mistakes are often ignored. As such, claimants must pay close attention to the requirements of the claim filing procedure.
A claim submission that can be taken into consideration by the liquidator provides evidence of the size of the claim and confirms the claimant as the account holder. For private claimants claim filing includes the verification of the account balance, a certified copy of the account holders passport, a payment instruction to the account of the account holder at a different financial institution, and evidence that the receiving account belongs to the account holder. For corporate claims, the proof of debt contains a completed claim form, recent bank statement to confirm the account balance, recent authorized company documents that confirm the director, shareholder and beneficiary (which mostly comes in the form of a certificate of incorporation, certificate of good standing, and certificate of incumbency), a certified passport copy of the corporate beneficiary as known in the records of the bank, and the payment instruction to the account of the account holder at a different financial institution, complemented by evidence that the receiving account belongs to the account holder.