Act No. 156 / 1994 Coll.
Act amending and supplementing Act No. 21 / 1992 Coll., on Banks, as amended, supplements Act No. 513 / 1991 Coll., Commercial Code, as amended, and Act No. 328 / 1991 Coll., on bankruptcy and settlement, as amended
Valid
Law
Effective from 29.07.1994
156
THE LAW
of 8 July 1994
amending and supplementing Act No. 21 / 1992 Coll., on Banks, as amended, supplemented by Act No. 513 / 1991 Coll., Commercial Code, as amended, and Act No. 328 / 1991 Coll., on bankruptcy and settlement, as amended
Parliament has decided on this law of the Czech Republic:
Act No. 21 / 1992 Coll., on Banks, as amended by Act No. 264 / 1992 Coll. and Act No. 292 / 1993 Coll., is amended as follows:
1.
(1) If the Czech National Bank finds deficiencies in the activities of a bank or branch of a foreign bank, it is entitled to the extent of the deficiency found
(a) require that a bank or branch of a foreign bank, within the prescribed period, rectify, in particular limit certain authorised activities or cease unauthorised activities, exchange persons in the management of a bank or branch of a foreign bank, establish an adequate amount of adjustments and provisions, or reduce the capital to the extent specified;
(b) amend the authorisation to act as a bank by excluding or restricting certain activities referred to in Paragraph 1 (3);
(c) establish compulsory administration;
d) impose a fine up to 50 000 000 CZK,
(e) reduce the bank's capital by an amount corresponding to the loss after its settlement with reserves and other funds, provided that the loss exceeds 20% of the bank's equity.
(2) The procedure referred to in paragraph 1 (b) to (e) shall apply in the event of non-compliance with the requirement laid down in paragraph 1 (a); according to the nature of the deficiency found, in particular if it does not accept the matter of deferral, this procedure may be applied without prior requirement under paragraph 1 (a). The procedure referred to in paragraph 1 (c) shall not apply to a branch of a foreign bank.
(3) A lack of activity means:
(a) breach of the conditions laid down in the authorisation to act as a bank;
(b) infringement of this law, special laws, regulations and measures issued by the Czech National Bank;
(c) the conduct of business by the Bank in a way that damages the interests of its depositors or threatens the security and stability of the banking system;
(d) the management of the bank by persons who do not have sufficient professional competence or are not civil servants;
(e) where the total reserves and adjustments generated by the bank are not sufficient to cover the risks arising from the bank's reported volume of classified assets.
(4) The procedure for amending the authorisation to act as a bank, the introduction of forced administration, the termination of forced administration, the imposition of a fine and the reduction of the capital carried out outside the compulsory administration scheme shall be governed by the administrative provisions, save as otherwise provided in this Law.
(5) Only the bank concerned is a party to the proceedings.
(6) The procedure may also be initiated by service of the decision.
(7) Service to your own hands will be carried out by the Czech National Bank by the transfer of a decision to a member of the Board of Directors of the Bank or to a member of the Supervisory Board of the Bank or to a person entrusted with the management of a bank or branch of a foreign bank. If one of these persons refuses to take a decision, it shall be served at the time of such refusal.
(8) Decomposition may be brought against the decision. The decomposition does not have suspensory effect. The Banking Board of the Czech National Bank decides on the decomposition.
(9) The time limit for fulfilling the decision notified is at least 24 hours.
(10) The Czech National Bank may also impose a fine under paragraph 1 (d) on persons who have infringed § 2 or § 3.
(11) The imposition of a fine under paragraph 1 (d) shall be without prejudice to liability under other legislation.
(12) The fine referred to in paragraph 1 (d) shall constitute the revenue of the State budget. This fine may be imposed within one year of the finding of a deficiency but no later than 10 years from the date on which the deficiency arose. '
2.
The decision establishing forced administration shall include:
(a) the reasons for introducing forced administration;
(b) the name, surname and birth number of the administrator;
(c) any restriction or prohibition on the receipt of deposits, credit or other activities;
(d) any partial or total suspension of the disposal of depositors of their deposits in the bank. "
3.
(1) The administrator appoints and rescues the Banking Board of the Czech National Bank, which also determines the amount of its remuneration for the performance of the compulsory administration. The administrator is an employee of the Czech National Bank.
(2) The Trustee is entitled to receive additional persons to perform the forced administration of the Bank. These persons are entitled to be familiar with matters which are the subject of banking secrecy in the relevant bank. They are also obliged to remain silent on these matters. '
4. Paragraph 29, including footnote 7, reads as follows:
(1) At the time of receipt of the written copy of the decision to impose the compulsory administration, the performance of the duties of all the authorities of the Bank is suspended. At this point, this decision is effective against everyone. The status of the statutory body shall be with the administrator who shall convene and have the right to participate in the general meeting.
(2) Matters within the scope of the general meeting shall be decided by the administrator, with the exception of the decision to cancel the bank. The decision on matters within the competence of the General Assembly is taken with the prior approval of the Czech National Bank. A decision by the General Assembly to cancel the Bank may be taken only after written approval by the trustee.
(3) If the situation of the bank so requires, the administrator may, with the prior approval of the Czech National Bank in agreement with the Ministry of Finance, partially or completely suspend the disposal of depositors with their deposits in the bank.
(4) With the prior approval of the General Meeting, the administrator may submit a request for compensation. 7)
(5) If the bank is overindebted, the bank is entitled to submit an application for bankruptcy with the prior approval of the Czech National Bank.
7) § 46 et seq. of Act No. 328 / 1991 Coll., on bankruptcy and settlement, as amended. '
5.
Forced administration shall be entered in the Commercial Register. 7a) The Czech National Bank makes proposals for compulsory administration entries.
7a) § 27 et seq. of the Commercial Code. '.
6.
Forced administration ends
(a) by service of the decision of the Czech National Bank on the termination of the compulsory administration,
(b) a declaration of bankruptcy; or
(c) 24 months after the introduction of the compulsory administration. "
7. In Article 35 (1), the words after the semicolon "this date must be preceded by the publication of the decision of the Czechoslovak State Bank in the Commercial Bulletin, (1) in addition to the branch of the foreign bank, the notification" shall be replaced by the words "the decision shall be published in the Commercial Bulletin, the branch of the foreign bank shall also be notified."
8. In Paragraph 38 (2), the following sentence is added as the current text: "The exchange of information between the Czech National Bank and the banking supervisory authorities and similar institutions of other States shall not be regarded as a breach of banking secrecy if the exchange is the subject of information on entities acting or intending to operate in the territory of the competent State."
9. after Paragraph 41, the ninth part, including the title and notes 12) and 13) is inserted:
INSURANCE OF INVESTMENTS OF PHYSICAL PERSONS
(1) This Act establishes the Deposit Guarantee Fund (hereinafter referred to as the Fund), which is a legal person. The Fund shall be entered in the Commercial Register.
(2) The Fund is not a State Fund within the meaning of the Special Act. 12) Special insurance provisions shall not apply to deposit insurance.
(3) All banks and branches of foreign banks (hereinafter referred to as "banks") are obliged to participate in the deposit guarantee scheme of natural persons and to contribute to the Fund within the scope of this Act.
(4) The resources of the Fund are contributions from banks, proceeds from the investment of funds, repayable financial assistance, interest-free loans and proceeds from winding-up insolvency and liquidation proceedings.
(5) The Fund may be used only for compensation to the holders of deposits which are only natural persons (hereinafter referred to as the depositor), granted under the conditions laid down by this Law and for repayments of repayable financial assistance and interest-free loans. The cost of the Fund's activities shall be borne by the proceeds of the investment of funds.
12) Act ČNR No. 576 / 1990 Coll., on the Rules of Management of the Budget Funds of the Czech Republic and the Municipality of the Czech Republic (Budget Rules of the Republic), as amended.
(1) The Fund is managed by a five-member Management Board.
(2) The President, the Vice-President and the other members of the Management Board of the Fund shall be appointed and removed by the Minister for Finance.
(3) The members of the Management Board are appointed by the Minister for Finance for a period of five years, including repeatedly. A member shall be appointed each year. A member of the Management Board shall not be remunerated.
(4) At least one member of the Board of Directors shall be appointed from among the staff of the Czech National Bank on a proposal from the Czech National Bank. At least two members of the Board of Directors shall be appointed from among the board of directors of the banks. A member of the Management Board shall be entitled to reimbursement of the costs incurred in carrying out his duties.
(5) The details of the activities and competences of the Fund shall be laid down in the Statute of the Fund, to be issued by the Management Board after prior approval by the Ministry of Finance.
(1) The Bank's annual contribution to the Fund is 0,5% of the amount of deposits made by natural persons in Czech crowns in the name, surname, address and date of birth of the depositor (hereinafter referred to as "insured deposits") on 31 December of the previous year, including interest to which the depositor was entitled on the same date. The purchase of a security issued by a bank (e.g. deposit certificate, deposit note or other bond) is not an insured deposit.
(2) The contribution to the Fund shall be payable by the Bank for the preceding calendar year by 31 January of the current year at the latest.
(1) Compensation for the insured deposit is granted to depositors from the Fund if the Fund receives a written notification from the Czech National Bank in an agreement with the Ministry of Finance on the bank's inability to comply with obligations towards the depositor under legal and contractual conditions.
(2) The Fund, in agreement with the Ministry of Finance and the Czech National Bank, provides for the starting date of the Fund's payments and publishes them accordingly.
(3) The reason for the payment of the compensation from the Fund is not to suspend the disposal of depositors of their deposits in the context of the compulsory administration pursuant to Article 27 or Article 29 (3) if it does not last more than 90 days.
(1) For the calculation of the refund, all insured customer deposits with the bank, including its shares in accounts held for two or more co-owners, shall be aggregated. The share of the co-owner of the account shall be equal to the fraction in which the total amount in the account and in the denominator is the number of co-owners. The depositors' payable liabilities in Czech crowns against the bank shall be deducted from the resulting amount. The insured deposit shall include interest calculated on the date of commencement of payments.
(2) A refund to the depositor shall be granted at the rate of 80% of the amount calculated in accordance with paragraph 1, but not more than CZK 100 000 for one depositor at one bank.
(1) The funds of natural persons deposited in an official deposit13) and deposited in one account for the purposes of this Act shall be considered as deposits of natural persons.
(2) When creating this account, or at the earliest available with an account already existing, the depositor shall notify the bank in writing that the funds of natural persons are stored in the account. From the time of such notification, the bank shall treat the deposit in this account as any other insured deposit.
(3) For the purposes of calculating the compensation from the Fund for the deposit in this account, the depositor shall submit to the Fund the breakdown of the deposits by person and by amount attributable to each of them and demonstrate the veracity of the data. It shall transmit the data to the Fund.
(4) Compensation for the deposit is granted at the same rate as would have been granted if each of those persons had the funds deposited in their own account.
13) Article 568 of the Civil Code.
(1) The Fund provides for the payment of compensation from the Fund in agreement with the Ministry of Finance and the Czech National Bank.
(2) The Fund, in cooperation with the Ministry of Finance, shall ensure appropriate information to the public on the facts referred to in paragraph 1.
(1) At the start of the payments, the depositor's claim on the bank shall be reduced by an amount equal to his right to reimbursement from the Fund.
(2) The Fund shall become a creditor of the Bank on the date referred to in paragraph 1 in the amount of the bank's depositors' rights to the performance of the Fund.
(3) The right of the depositor to benefit from the Fund shall be limited by a period of five years from the date fixed as the starting date of payments.
In the event that the Fund's funds are not sufficient to pay the legal compensation, 50% of the necessary funds to the Fund shall be granted by the State in the form of repayable financial assistance and 50% of the necessary funds by the Czech National Bank in the form of interest-free credit.
(1) The Fund may invest funds in:
(a) State securities;
(b) securities guaranteed by the State;
(c) Czech National Bank voucher.
(2) The Fund can also deposit the funds without interest with the Czech National Bank.
In the event that the Fund has been granted repayable financial assistance and interest-free credit pursuant to § 41i, the contribution of the banks to the Fund shall be increased from the year following the granting of the loan at twice the percentage referred to in § 41c (1). In the year following the repayment of the repayable financial assistance and interest-free credit under § 41i, the contribution shall be reduced to the percentage referred to in § 41c (1). '
10. the following Section 44a is inserted after Section 44:
The State is liable for the liabilities of the Consolidated Bank, the State Money Institute. '
11. The current part nine is renumbered as part ten.
Transitional provisions
1. Within one month of the date of registration of the Fund in the Commercial Register, banks and branches of foreign banks shall be required to pay half of the anticipated contribution for 1994 to the Fund's account. On 31 January 1995, the contribution shall be settled between the Bank and the Fund for the amount of the contribution calculated in accordance with Paragraph 41c (1).
2. When appointing the members of the Board of Directors of the Fund, the Minister of Finance shall appoint one member for one year, one member for two years, one member for three years, one member for four years and one member for five years.
3. The provisions of this Act shall also apply to forced administration established before its effect.
4. For deposits of natural persons at České spořitelna, a. s., the State is liable for six months from the date of entry into force of this Act.
Efficacy
This Act shall take effect on the day of its publication.
Uhde v. r.
Havel v. r.
Klaus v. r.
Sign in for notes, favorites and notifications
Regulation Information
| Citation | Act No. 156 / 1994 Coll., amending and supplementing Act No. 21 / 1992 Coll., on Banks, as amended, complements Act No. 513 / 1991 Coll., Commercial Code, as amended, and Act No. 328 / 1991 Coll., on bankruptcy and settlement, as amended |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 29.07.1994 |
|---|---|
| Effective from | 29.07.1994 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
Comments 0