By YINKA KOLAWOLE

The Nigeria Deposit Insurance Corporation (NDIC) has concluded arrangements to settle claims of depositors and creditors of the 24 primary mortgage banks (PMBs) whose licences were recently revoked by the Central Bank of Nigeria (CBN).

A statement from the office of the Director, Claims Resolution Department of NDIC noted that it has completed arrangement to commence the verification and payment of depositors creditors the mortgage banks from 6thAugust, 2012.

“Members of the public are requested to note that most of the closed PMIs had long ceased to render service to their affected customers and could not forward the statutory monthly reports to the supervisory authorities despite repeated demands including paid newspaper advertisements by the CBN. As a result of those infractions, the CBN recently revoked their licenses consequent upon which the NDIC commenced the process of settling the claims of the depositors and creditors of the banks.

“In pursuance to the above, all depositors and creditors of the 24 under-listed closed PMIs are required to present evidence of their deposit claims at any NDIC office for processing. These include savings passbooks, withdrawal slips, cheque books, fixed/term deposit certificates, statements of accounts and other relevant documents as proof of account ownership or any

creditors’ claim against the closed PMIs. For those who wish to collect deposits on behalf of individuals and corporate bodies, proper written authorisation and identification will be required which must be endorsed by signatories to the account,” the statement added.

The mortgage banks involved include: Accalaim Homes and Loans; Allwell Savings and Loans; CB Homes Savings and Loans; Coastal Homes Savings and Loans; Credence Savings and Loans; Crest Mortgage Savings and Loans; Estaport Building Society; Future View Mortgages; Guardian Trust Savings and Loans; Home Trust Savings And Loans and; Horizon Building Society.

Others are: ImaniSavings and Loans; Mars Home Investment Savings and Loans; Melrose Savings and Loans; New Capital Savings and Loans; Niger House Building Society; Omono Building Society; Owners Home Savings and Loans; Perennial Building Society; Primrose Savings and Loans; Sakkwato Savings and Loans; Secure Savings and Loans; Urban Shelter Savings and Loans and; Peak Savings and Loans.

It would be recalled that the CBN said the licences of the mortgage banks were revoked because they have effectively closed shops, having ceased to carry on the business for which they were licensed for a continuous period of six months. This, according to the apex bank, is in contravention of Section 12 of the Banks and Other Financial Institutions Act of 1991 and Section 20(iii) of the Guidelines for Primary Mortgage Banks in Nigeria.

Specifically, they were said to have failed to meet CBN’s stipulated 30-days deadline to show proof of their existence and/or evidence of operations in the immediate past one year. “In the course of the recent examination of all licensed PMBs carried out by the CBN, most were not found at their last known addresses. In addition, these institutions have failed to render monthly returns to the CBN for at least six consecutive months, in contravention of Section 58 (1) and (4) of the BOFIA, 1991.”