In case of revocation of the operating license of a bank, its management and control are transferred to the Fund. The Fund requests immediately for the bankruptcy of the bank on behalf of beneficiaries of the deposit and participation funds after paying directly the insured deposit and insured participation fund in the bank, of which management and control are transferred to itself, or via another bank which will be announced by the Fund.
This task and power are exclusively entrusted to the Fund. The sub-clause 2 of article 178 of the Code of Enforcement and Bankruptcy No 2004 and the provisions related to the suspension of bankruptcy of article 179 of the same do not apply to this kind of bankruptcy petition. The provisions of summary procedure of the Code Of Civil Procedure No. 1086 apply to the bankruptcy petition of the Fund and a decision regarding the bankruptcy petition is given within six months at the latest.
In case of order of bankruptcy for the bank of which management and control are transferred to the Fund, the Fund attends the Bankrupt's Estate in the capacity of the privileged creditor, taking place before all privileged creditors at third rank stipulated in article 206 of the Code of Enforcement and Bankruptcy No. 2004 and after creditors of the Government and social security institutions within the scope of the Law No. 6183.
The Fund liquidates the bank under the duties and powers of the bankruptcy office, creditor's meeting and administration of bankruptcy, except for the duties and powers stipulated in articles 166, 218, 219, 223, 234, 236, 249, 251 and 254 of the Code of Enforcement and Bankruptcy No. 2004, limited to enforcement of this Law.
Debts of the bank with order of bankruptcy to the Fund are paid without waiting for finalizing of the priority list stipulated in article 232 of the Code of Enforcement and Bankruptcy No. 2004, according to the cash position of the Bankrupt's Estate.
In the event that the 3-month period stipulated in article 232 of the Code of Enforcement and Bankruptcy No. 2004 is not enough for the arrangement of the creditor’s priority list, three-month additional time may be granted by the Fund upon request of the administration of bankruptcy.
In case of no order of bankruptcy, the voluntary liquidation of the bank is realized by means of assignment of members of the liquidation board by the Fund without seeking for the resolution of the bank general board and not subject to the provisions related to the liquidation and dissolution of the joint stock companies of the Turkish Commercial Code.