What is Full text of Act No. 296 / 2006 Coll.?

Full version of Act No. 296 / 2006 Coll., Act No. 87 / 1995 Coll., on savings and credit cooperatives and certain related measures and on the addition of the Czech National Council Act No. 586 / 1992 Coll., on income taxes, (Act on savings and credit cooperatives and certain related measures), as resulting from subsequent amendments — Full text of Act No. 87 / 1995 Coll., on savings and credit cooperatives and certain related measures and on the addition of Act No. 586 / 1992 Coll., on Income Taxes, (Act on Savings and Credit Cooperatives and certain related measures), as resulting from subsequent amendments.

When it became Full text of Act No. 296 / 2006 Coll. effectiveness?

Full text of Act No. 296 / 2006 Coll. became effective date not available.

Is Full text of Act No. 296 / 2006 Coll. still valid?

Yes, Full text of Act No. 296 / 2006 Coll. is still valid and effective.

Full text of Act No. 296 / 2006 Coll. - Full text of Act No. 87 / 1995 Coll., on...

296

PRESIDENT OF THE GOVERNMENT

Announces

The full text of Act No. 87 / 1995 Coll., on savings and credit cooperatives and certain measures related thereto and on the addition of Act No. 586 / 1992 Coll., on Income Taxes, (Act on Savings and Credit Cooperatives and certain measures related thereto), as follows from the amendments made by Act No. 100 / 2000 Coll., Act No. 406 / 2001 Coll., Act No. 212 / 2002 Coll., Act No. 257 / 2004 Coll., Act No. 280 / 2004 Coll., Act No. 377 / 2005 Coll., Act No. 413 / 2005 Coll., Act No. 56 / 2006 Coll., Act No. 57 / 2006 Coll.

THE LAW

on savings and credit cooperatives

Parliament has decided on this law of the Czech Republic:

ČÁST I

§ 1

General provisions

(1) This law regulates certain relationships related to the creation, business and disappearance of savings and credit cooperatives ("cooperative reserve '). This law also regulates supervision of cooperative reserves carried out by the Czech National Bank and deposit insurance in cooperative reserves.

(2) The cooperative reserve is a legal person whose status is subject to the provisions of a special law governing the status of cooperatives (1), unless otherwise provided for in that law.

(3) The cooperative reserve is a cooperative that carries out financial activities to support the management of its members, which means, in particular, the taking of deposits and the provision of loans, guarantees and cash services in various forms.

(4) A commercial firm (hereinafter referred to as "the firm") must bear the designation "savings and credit cooperatives" or "cooperative" or "savings cooperatives" or "credit cooperatives"; that designation is only authorised by a legal person established under this law.

(5) The cooperative reserve is not a bank under a special law and its business is not considered as a business operation (3).

(6) Collaborative bookmark

(a) be entitled only to carry out the activities provided for by this Act, within the scope of the authorisation to act as a cooperative reserve pursuant to Article 2a (hereinafter referred to as "the permit");

(b) be obliged to act with caution and due care in its business, in particular in a manner which does not jeopardise the return on its members' deposits and its security and stability;

(c) may not enter into contracts under appreciably unfavourable conditions for a cooperative advance, in particular those which bind the cooperative advance to an economically unjustifiable performance or to an appreciably inadequate consideration; a breach of this condition constitutes the nullity of the contract, which is assessed in accordance with the provisions of the Commercial Code governing commercial obligations contracts.

(7) Approved Financial Statements (3a), Annual Report, Copy of Permit and Report for Members whose content and manner of updating are determined by the Czech National Bank's measures; it must be published in a place open to the public at the head office of the cooperative reserve, its branches, exposures and management.

(8) The cessation of an undertaking by a cooperative reserve or parts thereof shall not be allowed.

(9) A cooperative reserve shall not be entitled to acquire a direct or indirect share of the capital of a legal person, to become a member, a member, a shareholder, a shareholder of a legal person, or to otherwise have an influence on the management of a legal person.

(10) For the purposes of this Act, close links shall mean:

(a) a relationship between two or more persons in which one person has a direct or indirect share of the capital, the sum of which is at least 20%;

(b) the relationship between two or more persons in which one person has a direct or indirect interest in voting rights, the sum of which shall be at least 20%;

(c) the relationship between two or more persons in which one person controls the other; or

(d) the relationship between two or more persons controlled by the same person.

(11) The provisions of this law applicable to the Member States of the European Union shall also apply to other States of the European Economic Area where this results from an international treaty approved by Parliament, ratified and declared by the Czech Republic, or from a similar international agreement which entered into force before 1 January 1993.

§ 1a

(1) For the purposes of this Act:

(a) by a credit institution, the person whose activity or business consists in receiving deposits or other repayable funds from the public and providing loans for his own account, and the person whose activity or business consists in issuing electronic funds, all including foreign persons with similar activity;

(b) a financial institution is a person different from a credit institution which acquires or holds shares in legal entities as a decisive or material activity or carries on one or more activities carried out by credit institutions as a decisive or material activity, with the exception of the acceptance of deposits or other repayable funds from the public, all including foreign persons with similar activities;

(c) the associated person is not only a temporary person whose purpose is to participate in the business of that person, the person in which the other person exercises a significant influence, which means such a significant influence on the management or operation of the undertaking of that person, which is not a control; the direct or indirect share assessed separately or their sum representing at least 20% of the capital or voting rights shall always be considered as a material influence, unless control is involved;

(d) a mixed financial holding person controlling a person who is not a regulated person and who, together with its controlled persons, is at least one regulated person3b) based on the territory of a Member State (point (m)), and other persons constitute a financial conglomerate in accordance with the specific legislation3b);

(e) the controlling person is the person to whom the controlled persons or associated persons are credit institutions, financial institutions or ancillary banking services undertakings or insurance or reinsurance undertakings or securities dealers;

(f) the financial holding person controlling the person who:

1. is a financial institution other than an insurance or reinsurance undertaking;

2. is not a mixed financial holding person under a specific legal act on the supplementary supervision of financial conglomerates (3b); and

3. controls solely or principally credit institutions or financial institutions, at least one controlled entity being a credit institution;

(g) a mixed holding person controlling a person who is not a credit institution, a financial holding person or a mixed financial holding person pursuant to a specific legislation on the supplementary supervision of financial conglomerates (3b), at least one of which is controlled by a bank;

(h) the group controlling the credit institution, the group consisting of the credit institution, its controlled entities and associated entities;

(i) the group controlling the financial institution, the group comprising the financial institution, its controlled persons and associated persons;

(j) a group of financial holding persons, a group of financial holding persons, controlled persons and associated persons;

(k) a consolidation group controlling credit institutions or a group of financial holding persons or a group of mixed holding persons, comprising at least two persons;

(l) supplementary supervision of the supervision carried out under special legislation 3b) of financial conglomerates;

(m) a Member State of the European Union or another State constituting the European Economic Area.

(2) In cases where the links of persons within a consolidation entity are such that it is not possible to clearly identify the controlling entity or its type, the Czech National Bank shall be entitled to designate the consolidating entity or its type in agreement with the competent supervisory authority of credit institutions or financial institutions.

Some provisions on the establishment and establishment of a cooperative reserve

§ 2

(1) The cooperative reserve must have at least 30 members.

(2) The registered capital must be at least CZK 500,000.

(3) Prior to the application for authorisation (§ 2a), an amount of at least CZK 35 000 000 must be paid, representing the capital, risk fund and reserve, if any, when the cooperative reserve is established.

(4) The representation of persons at the constituent meeting shall be inadmissible.

(5) An authorisation is attached to the application for registration in the Commercial Register. The authorisation, withdrawal and amendment shall form part of the registration.

(6) The seat of the cooperative reserve must be in the Czech Republic.

§ 2a

(1) The creation and business of the cooperative reserve requires authorisation. The permission is granted at the written request of the Board of Directors of the Czech National Bank.

(2) The application for authorisation referred to in paragraph 1 shall specify:

(a) the firm and the seat of the cooperative reserve;

(b) the amount of the share capital and, where appropriate, the amount of the risk fund and the reserve fund, if any, if any;

(c) factual and organisational conditions for the operation of the cooperative reserve;

(d) an overview of the members with qualifying holdings (§ 2b (1));

(e) an overview of the members with a further member contribution if they do not have a qualifying holding (Paragraph 2b (1)).

(3) The application for authorisation referred to in paragraph 1 must be accompanied by:

(a) instruments proving the establishment of the cooperative reserve, the paying-up of the capital, the instruments proving the level of the risk fund and the reserve fund, where they have been created, and instruments proving the repayment of the amount referred to in Article 2 (3), the competence and credibility of the members of the board of directors, the supervisory board and the credit committee of the cooperative reserve, and an overview of the members with qualified participation and of the members with a further member contribution, if they do not have a qualifying holding (Article 2b (1));

(b) the draft business plan of the cooperative reserve for the next 3 years, in the range of the data reported in the publication of the financial statements, including a comment on the assumptions and conditions underlying the business plan, and the impact of the individual activities of the cooperative reserve on the capital of the cooperative reserve, its liquidity and its solvency;

(c) the documents necessary to demonstrate compliance with the conditions laid down in paragraph 6 and the declaration of completeness, accuracy and veracity of the documents submitted signed by at least two members of the Board.

(4) The Czech National Bank shall decide on the application to grant or amend the authorisation, after assessing the conditions for granting or amending the authorisation, within 6 months of the date of the opening of the administrative procedure and shall deliver the decision within that period. If the application was not complete and the Czech National Bank requested its completion, the Czech National Bank shall decide within 12 months of the date of the opening of the administrative procedure and deliver the decision within that period. If the Czech National Bank has been requested to complete the application and the completed application is not complete, or if the applicant does not comply with the deadline set by the Czech National Bank for supplementing it, the Czech National Bank is entitled to suspend the administrative procedure for granting the authorisation. The Czech National Bank will seek the opinion of the Ministry of Finance before issuing a decision to grant or modify a permit. Before making a decision on the application for authorisation, the Czech National Bank shall consult the supervisory authority of the cooperative reserve offices of the relevant State, if required by the international agreement.

(5) The authorisation is granted for an indefinite period. The authorisation shall include a definition of the authorised activities and may include a definition of the scope of the authorised activity, but not in terms of limiting the number of individual commercial cases. In addition, the authorisation may include the setting of conditions which the cooperative guarantee is required to fulfil before any authorised activity begins or to comply with in the performance of any authorised activity. The authorisation shall expire on the date on which the decision to withdraw the authorisation or the date of cancellation of the cooperative reserve becomes final.

(6) The conditions for granting authorisation are:

(a) the competence and credibility of the persons elected as members of the Board of Directors, the Audit Board and the Credit Commission, and of other persons proposed for management functions in the cooperative reserve (hereinafter referred to as "the managing entity"); for the purposes of this Act, the person who carries out the management functions with which the competence and responsibility defined by the statutes of the cooperative reserve is attached shall be considered as the managing person;

(b) the substantive and organisational conditions for the performance of the proposed activities of the cooperative reserve, resulting in particular from the statutes of the cooperative reserve, the design of the management and control system of the cooperative backup including the risk management system and, where appropriate, other internal rules of the cooperative reserve; In particular, for the purposes of this Act, factual and organisational assumptions shall mean the justification for the purpose of setting up a cooperative reserve and the strategic intention of its development on the market, prepared in particular by reference to members of the cooperative reserve, according to the economic sector, region, type and type of service to be provided, the provision of adequate computing, information, accounting and statistical systems of the cooperative reserve, the provision of a sufficient number of employees to ensure the planned activities of the cooperative reserve, and the provision of adequate structure and organisation of the cooperative reserve,

(c) the viability of the business plan and the ability to secure the development of the cooperative reserve with regard to general knowledge and experience;

(d) the eligibility of natural or legal persons with a qualifying holding in a cooperative reserve (§ 2b (1)) and members with another member contribution, if they do not have a qualifying holding (§ 2b (1)), to exercise the rights of a member in relation to the business of the cooperative reserve in accordance with § 1 (6) (b);

(e) the transparent and safe origin of the amount referred to in Article 2 (3) from which the capital, the risk fund and the reserve are created, if any;

(f) repayment of the amount referred to in Article 2 (3);

(g) transparency of a group of persons with close links to the cooperative reserve;

(h) close links within the group referred to in (g) shall not prevent the exercise of supervision;

(i) in the State in whose territory the group referred to in (g) has close links, there shall be no legal or factual barrier to the exercise of supervision.

(7) For the purposes of this Act, a person shall be deemed to be a trusted natural person,

(a) which has not been convicted in the past of a criminal offence of a property nature, of an offence the nature of which relates to the subject of the cooperative reserve business or of another intentional offence;

(b) which has not been fined or liable to make good the damage caused by a serious or repeated infringement of a legal obligation which has led to a significant threat or damage to creditors, clients, shareholders and shareholders of equity investment funds, to breach the integrity or transparency of the financial market or to the misuse of confidential information;

(c) for whose property no bankruptcy has been declared;

(d) which has not been a member of a statutory body or of another body of a legal person in the last five years where a compulsory administration has been established or whose assets have been declared bankrupt, or where the application for a declaration of bankruptcy against such a legal person has been rejected because of a lack of assets.

(8) For the purposes of this Act, a natural person shall also be deemed to be a trusted natural person where the facts referred to in points (c) and (d) of paragraph 7 occur if:

(a) the court has annulled the bankruptcy other than:

1. Order to cancel the insolvency order or because the assets of the bankruptcy are not sufficient to cover the costs of the bankruptcy,

2. by order rejecting the application for bankruptcy for lack of assets,

(b) is a person who has already been elected to office during the bankruptcy of a legal person; or

(c) it is a person who, in proceedings before the court of destination, is competent to perform his previous duties with the care of a proper operator;

(d) it is a liquidator who has fulfilled the legal obligation to apply for bankruptcy for overindebteds3c).

(9) Evidence of compliance with the condition referred to in paragraph 7 (a) shall be provided by an extract from the Register of Penalties which is not more than 1 month old. A person who is a national of the Czech Republic, if he has been continuously present for more than 6 months in another State for the last 3 years, shall also submit a similar extract from the criminal record of that State not earlier than 3 months. A foreign person shall also submit a similar document, no more than 3 months old, issued by the State of which he is a citizen, as well as the States in which he has remained continuously over the last 3 years for more than 6 months.

(10) For the purposes of this Act, a person who is competent shall be considered to be:

(a) has completed full secondary education and at least 5 years of experience in the field related to the activities referred to in § 3 (1) or § 3 (2) (a), (b), (d), (e); or

(b) has completed higher education and at least 2 years of experience in the field related to the activities referred to in § 3 (1) or § 3 (2) (a), (b), (d) and (e).

(11) By decree, the Czech National Bank sets out the list of documents and their requirements for proving

(a) the professional competence and credibility of persons elected to the function of members of the Board of Directors, the Audit Board and the Credit Commission and other persons proposed for management functions in the cooperative reserve referred to in paragraph 6 (a);

(b) the eligibility of natural or legal persons with a qualifying participation in the cooperative reserve and members with another member contribution to exercise the rights of a member in accordance with paragraph 6 (d).

(12) The Czech National Bank will decide on the change of authorisation at the written request of the cooperative bank. The Czech National Bank shall proceed in the same way as in the decision to grant authorisation when deciding to change the authorisation. This provision does not apply to decisions of the Czech National Bank under § 28. When deciding to modify an authorisation, the conditions laid down in paragraph 6 (e) and (f) shall not apply. The Czech National Bank will reject the application for a change of authorisation whenever the capital of the cooperative reserve is below at least CZK 35,000.

(13) The Czech National Bank is entitled to request a copy of the Register of Penalties for natural persons who are the founders of the cooperative reserve, members of the cooperative reserve body or are proposed as managers.

§ 2b

(1) Qualified participation of a natural or legal person in a cooperative advance shall mean, for the purposes of this Act, a direct or indirect share or their sum, representing at least a 10% share of the capital or voting rights in the cooperative advance or the possibility of exercising a significant influence on the management of the cooperative advance. Indirect holdings shall mean shares held through the person or persons under control.

(2) Under this law, the person who is in relation to that person is in control of the person.

(3) A natural or legal person wishing to acquire or increase a qualifying participation in a cooperative advance payment by reaching at least 20%, 33% or 50% of the capital or voting rights, or otherwise to become a person controlling the cooperative reserve, is required to seek the prior approval of the Czech National Bank. In order to reach a higher limit than previously granted consent, new consent is needed. The same obligation shall apply to the person acting in agreement. A natural or legal person intending to acquire or increase qualified participation in a cooperative advance office or persons acting in agreement (hereinafter referred to as "the person concerned ') shall at the same time be required to demonstrate the eligibility under Paragraph 2a (6) (d). The instruments proving such competence shall be annexed to the application. The decision on the application shall be taken by the Czech National Bank within 90 days of the date of receipt of the complete application. If the Czech National Bank has not issued at least a decision at first instance within this period, consent shall be granted. In the decision on prior consent, the Czech National Bank may set a time limit within which the person concerned is entitled to qualify. The Czech National Bank will also not give its consent if the qualifying participation of the person concerned would be contrary to the provisions of Paragraph 1 (6) (b). All parties concerned shall be parties to the proceedings. A person who intends to reduce his or her qualifying participation in a cooperative reserve which represents at least 50%, 33%, 20% or 10% of the capital or voting rights below these limits, or otherwise the position of the person controlling the cooperative reserve, is obliged to notify the Czech National Bank without delay. The same obligation shall apply to persons acting in agreement.

(4) The consent or notification referred to in paragraph 3 shall not be required if it is necessary to increase or reduce the qualifying participation referred to in paragraph 3, other than on the basis of the conduct of the person concerned.

(5) If the Czech National Bank finds that the action of the person concerned with a qualifying holding in a cooperative advance office is contrary to Article 1 (6) (b), or the person concerned has acquired a qualified participation or increased the qualifying participation in the cooperative advance without prior agreement over the limits referred to in paragraph 3, if the increase in such a qualifying holding does not result in an increase in such a qualifying holding, it shall be entitled to decide to suspend the right of the person concerned to participate in and vote in the member meeting, the right to call for a member meeting and the right of the court to make an application for annulment of the resolution of the member meeting. Only the exercise of all the above rights may be suspended. The party to the proceedings shall be the only person concerned with a qualifying holding and a cooperative reserve. The decomposition does not have suspensory effect.

(6) The cooperative reserve shall not allow the participation of a person who has been suspended by the Czech National Bank under paragraph 5 in a member meeting. When assessing the competence of a member meeting of a cooperative reserve to decide and voting at a member meeting, the votes of members whose rights to participate in a member meeting have been suspended shall not be taken into account. The suspension of rights under paragraph 5 shall be lifted by the Czech National Bank if the reason for its extradition has been waived.

(7) The cooperative reserve shall inform the Czech National Bank in writing of the acquisition or change in the qualifying participation of persons in the cooperative reserve, provided that such changes, as well as the conduct of other members, exceed or reduce the limits referred to in paragraph 3 within 5 working days of the determination of the relevant facts.

§ 2c

Collaborative reserves located in the territory of the Czech Republic (hereinafter referred to as the "home State ') may, within the scope of the authorisation, operate in the territories of other Member States of the European Union (hereinafter referred to as the" host State'). The cooperative reserves shall be entitled to establish branches in its territory for the purpose of business within the territory of the host State.

§ 2d

(1) The cooperative reserves located in the territory of the home State are entitled to establish branches in the territory of the host State only with the approval of the Czech National Bank.

(2) In the application for approval to establish a branch referred to in paragraph 1, the cooperative reserve shall indicate in particular:

(a) the designation of the host State within the territory of which it intends to establish a branch;

(b) the business plan of the branch listing the activities envisaged;

(c) the organisational structure of the branch;

(d) the address of the branch in the host State at which the necessary documents can be obtained;

(e) data enabling the persons responsible for the management of the branch to be clearly identified, which are the names, names and surnames, residence, birth number, if not assigned, date of birth;

(f) the amount of the capital of the cooperative reserve on the last day of the month preceding the application;

(g) the level of solvency of the cooperative reserve on the last day of the month preceding the application.

(3) The Czech National Bank will decide on a request for approval to establish a branch of the cooperative reserve in the territory of the host State within 2 months of the date of receipt of the complete application. If the Czech National Bank grants its consent, it shall, within 14 days of the date on which the decision on the application to the host State's supervisory authority is taken, send the information referred to in paragraph 2. The conditions for granting consent are:

(a) economic stability of the cooperative reserve;

(b) the organisational structure of the cooperative reserve allowing the cooperative reserve to be run in accordance with § 1 (6) (b).

(4) The Czech National Bank shall notify the cooperative advance delivery of the information referred to in paragraph 3 within 14 days of receipt of the acknowledgement of receipt, but not later than 30 days after dispatch.

§ 2e

(1) The cooperative reserve shall be entitled to establish a branch and to conduct business in the territory of the host State under the conditions laid down by the law of the host State and after the conditions of the supervisory authority of that State for the establishment of a branch and business. If the cooperative does not receive the conditions referred to in the first sentence within two months of the date of receipt of the information to the supervisory authority of the host State pursuant to Article 2d (3) and (4), the cooperative shall be entitled to set up a branch and to start operating with the expiry of that period.

(2) In order to make changes to the facts referred to in § 2d (2) (b) to (e), the cooperative must notify the Czech National Bank and the supervisory authority of the host State at least 1 month before they are implemented. Changes in the facts referred to in § 2d (2) (b) to (e) shall be subject to the approval of the Czech National Bank and, where appropriate, to the notification or establishment of the terms and conditions by the supervisory authority of the host State referred to in paragraph 1, unless otherwise provided for in this law. The Czech National Bank shall act in accordance with § 2d (3). The Czech National Bank shall decide on the changes within 30 days of receipt of the full notification of the planned changes by the cooperative reserve.

§ 2f

If the cooperative reserve intends to carry out activities within the territory of the host State within the scope of the authorisation granted by the Czech National Bank without the establishment of a branch, unless their operation is a permanent economic activity, it shall notify the Czech National Bank in writing of its intention to specify the activity carried out at least 60 days before the start of that activity. The Czech National Bank shall notify the supervisory authority of the host State of the intention of the cooperative reserve to operate on its territory within 30 days of the date of receipt of the full notification of the cooperative reserve.

§ 2g

(1) Supervision of the branch of the cooperative reserve office in the host State is carried out by the Czech National Bank. The supervision of the liquidity of the branch of the cooperative reserve shall also be exercised by the supervisory authority of the host State. The branch shall be subject to measures taken by the host State in its monetary policy; in the case of States which have introduced the euro as their currency, by a measure adopted by the European Central Bank.

(2) The cooperative reserve shall, upon request, provide information and periodic reports to the host State in the form of statistics on the business of its branch in the territory of the host State to the extent that such data are provided by cooperative reserves located in its territory.

(3) If the supervisory authority of the host State finds that the cooperative reserve or its branch within its territory is in breach of the provisions of the law in the areas falling within the jurisdiction of the host State and the cooperative reserve, despite a call from the supervisory authority of the host State, does not cease to comply with this unlawful situation, the Czech National Bank shall, at the request of the supervisory authority of the host State, take the necessary measures to ensure the cessation of the illegal situation and inform the supervisory authority of the host State thereof.

§ 2h

(1) The Czech National Bank shall inform the competent supervisory authority of the host State of the decision to prohibit the disposal of depositors of their deposits under this Act in the event that the cooperative reserve in question operates in the territory of that State; it shall provide that information to the competent supervisory authority without undue delay after its issue.

(2) Before deciding to amend or withdraw authorisations, the Czech National Bank shall consult the supervisory authority of that State. The Czech National Bank shall inform the Supervisory Authority of its intention to amend or withdraw the authorisation if it does not accept the postponement. The Czech National Bank shall immediately inform the supervisory authorities of the States in which the cooperative bank operates of the change or withdrawal of authorisation.

(3) The Czech National Bank shall immediately inform the supervisory authority of the host State in which the cooperative reserve was operated of the withdrawal of the authorisation under § 28g.

§ 2i

The holding of cooperative advances, including their branches operating in the territory of the host State, shall be subject to supervision by the Czech National Bank, including on-the-spot checks, after prior notification to the supervisory authority of the host State. The Czech National Bank may request the competent supervisory authority of the host State to carry out a check on the territory of the host State.

§ 2j

Granting permission to the cooperative advance payment in the group

(1) Prior to the granting of an authorisation, the cooperative advance shall be:

(a) a person controlled by another person from another Member State;

(b) a person controlled by another person who is controlled by a person from another Member State; or

(c) controlled by the same person who controls a person from another Member State;

The Czech National Bank shall seek the opinion of the supervisory authorities of the Member States where the controlling party has its registered office or branch, as appropriate.

(2) The competent authorities referred to in paragraph 1 shall, in particular, inform each other when assessing the suitability of the members, the senior management of the supervised entities and, on an ongoing basis, exchange information relevant to the granting of authorisations for the activities and the monitoring of their activities.

§ 3

Subject of business cooperative reserve

(1) The cooperative reserve shall be entitled to carry out the following activities in its business:

(a) taking deposits from members;

(b) granting loans to members;

(c) financial leasing for members;

(d) payment, clearing and issuing and managing the means of payment 3d) for members;

(e) the provision of guarantees for loans and loans to members;

(f) the opening of letters of credit for members;

(g) the provision of direct debits to members;

(h) purchase and sale of foreign currency in cash for members;

(i) the rental of safety deposit boxes to members.

(2) For the sole purpose of ensuring the activities referred to in paragraph 1, the cooperative reserve shall be entitled:

(a) deposit deposits at cooperative banks and banks and at branches of foreign banks;

(b) receive loans from cooperative advances and banks;

(c) acquire and dispose of assets;

(d) trade for own account in exchange rate and interest rate instruments and exchange rate instruments in order to ensure the risks arising from the activities referred to in paragraph 1;

(e) trade on its own account with registered securities, unless otherwise provided for in this law.

(3) Assets other than those authorised under paragraph 2 to be acquired by the cooperative reserve may only be acquired in connection with the provision of its claim for a maximum period of 6 months. In this case, the first sentence of Paragraph 1 (9) shall not apply.

(4) The deposits received shall be held by the cooperative on deposit accounts. Contracts concluded in the course of the activities referred to in paragraphs 1 to 3 shall be in writing.

(5) The exercise of the activities of the cooperative reserve referred to in paragraph 1 for the State and its organisational units, senior local authorities and municipalities, legal entities established by them, or in which the State, higher local authorities or municipalities are exclusive shareholders, and for other public institutions managing public funds shall not be subject to their membership.

Some provisions on membership of the cooperative reserve

§ 4

(1) The cooperative reserve shall inform the candidates for membership of all information relating to membership, in particular the statutes, trade terms, rights and obligations resulting from membership and deposit guarantee conditions, the terms of the granting of loans and other activities of the cooperative reserve which it carries out under the authorisation granted. If changes occur, the cooperative shall inform its members of the changes in time and properly. The cooperative reserve shall provide the information and report to its members in writing in the Czech language and, where appropriate, the languages of the States in whose territory they operate, as referred to in Article 1 (7).

(2) The transfer and transfer of member rights and obligations of a member of the cooperative reserve is inadmissible.

(3) When voting, each member shall have one vote. In addition, the members who made a further Member contribution (§ 4b) shall have one vote for each full multiple of the basic Member contribution. However, no person may exercise the voting rights to an extent exceeding 33% of the votes of all members; Paragraph 1 (9) is without prejudice to this. The decision of the member meeting on the exclusion of a member, the amendment of the statutes, the choice and withdrawal of a member of the Audit Committee, the sale or lease of an undertaking or part of it, other significant assets disposition, merger and division and the other cancellation of the cooperative reserve shall require the consent of the members, without taking into account the votes of other member deposits.

(4) The cooperative reserve is entitled to include its due claims on the debtor against interest on deposits, deposits and interest on settlement (§ 4c), even at the time of the decision to prohibit the disposal of depositors of their deposits. The cooperative reserve shall also be entitled to refuse the payment of interest, deposits or settlement interest to the debtor who is late in making payments or has not settled any other liabilities against the cooperative advance.

(5) The transfer of members' claims on the cooperative reserve resulting from the contributions of members to the cooperative reserve shall be possible only between members of the cooperative reserve.

§ 4a

Reimbursement obligation of a member of the cooperative reserve

(1) The member is obliged to participate in the loss of the cooperative reserve by his / her obligation to pay under this law; Paragraph 9 is without prejudice to this. This obligation shall arise on the date of the clearance of the accounts and by decision of the member meeting referred to in Article 9 (2). The Board of Directors of the cooperative reserve shall calculate and communicate to each member within 15 days of the date on which the proper accounts are cleared the amount to be paid; the payment is due within 30 days of the date of approval of the sound accounts.

(2) The amount of the member's payment obligation shall be determined as the sum of the additional member contribution and twice the basic member contribution. Where the amount of the payment obligation of all members exceeds the loss established by the sound financial statements, the payment obligation shall be reduced in proportion to the amount of each member's payment obligation and share of the loss determined by the sound financial statements to be covered by the payment obligation, in addition to the sum of all the members' payment obligations.

§ 4b

Member deposit

(1) A Member contribution may only be cash. The amount of the basic member contribution shall be the same for each member.

(2) If the statutes so allow and the members' meeting so agrees, the member may add an additional member contribution to the share capital. The amount of the additional member contribution, when added to the capital of the cooperative reserve, must always be five times the total amount of the basic member contribution. A further Member State contribution shall be paid in one lump sum within 90 days of the date on which the agreement is given by the Member States, except in the cases referred to in paragraph 3.

(3) If the contribution of a member to the share capital of a cooperative reserve would result in a member's share in the share capital of a cooperative reserve exceeding 5%, a further member contribution may only be made after the prior approval of the Czech National Bank. An application for consent shall be submitted by a cooperative reserve or a member within 30 days of the date of the meeting which has given its consent to the insertion of the next member contribution. The annex to the application shall consist of the minutes of the membership meeting, the documents certifying the origin of the funds of the member and the documents proving the eligibility of the member to exercise the member's rights in relation to the business of the cooperative reserve in accordance with Article 1 (6) (b). In the decision to grant consent, the Czech National Bank will also set a deadline for the full repayment of the next member deposit. The decision of the Czech National Bank to grant the agreement of effectiveness will cease in vain. The decision shall be taken by the Czech National Bank within 90 days of the date of receipt of the complete application.

(4) The Czech National Bank shall not give its consent in accordance with paragraph 3 unless the origin of the funds of the member is established or the eligibility of the member is demonstrated in accordance with paragraph 3. The party to the proceedings shall be a cooperative reserve and a member who intends to make an additional member contribution to the share capital. In the event that a member acquires a qualifying participation in the cooperative advance payment or increases his or her qualifying participation in the cooperative advance payment by reaching the limits laid down in § 2b (3), the consent of the Czech National Bank shall also be deemed to be an assent under § 2b (3). 3; in that case the parties shall be the cooperative and the person concerned.

(5) A member is entitled to reduce the amount of the additional member contribution by a maximum of 20% of its original amount for every 12 months from the date of its repayment, provided that the additional member contribution remains a integer multiple of the basic member contribution. The reduction in the amount of the additional member contribution shall take place on the date of receipt of the written notification by the member of this fact by the cooperative advance.

(6) Property settlement in the event of a reduction of the next member deposit shall be calculated mutatis mutandis as the share of the settlement. For the purposes of its calculation, only the amount by which the additional Member State contribution is reduced shall be taken into account.

(7) In compliance with the conditions laid down by this Act, a member may obtain more than one additional member deposit.

§ 4c

Settlement interest

(1) The amount of the settlement interest is determined by the ratio of the member's contribution or, where applicable, the reduction of the additional member's contribution in the financial year in which membership has ceased during the financial year in question, to the sum of the sum of the total of all the member's contributions and the reduction of the additional member's contributions relating to the financial year in question, to the total of the financial year in question, to the total of the members' contributions in respect of the financial year in question. The ratio thus obtained shall be multiplied by the amount of equity minus the amount of the risk fund and the amount of the reserve fund. In order to determine the amount of the settlement interest, the relevant equity position after deduction of the risk fund and the reserve shall be in accordance with the sound financial statements for the year in which the membership ceased.

(2) The holding shall be payable within 3 months of the date of approval of the sound accounts for the financial year in which the membership ceased.

(3) The proper accounts of the cooperative reserve shall be submitted to the member meeting for approval within six months of the last day of the accounting year.

§ 5

Statutes

The statutes shall contain:

(a) the company and its registered office;

Citation	Full version of Act No. 296 / 2006 Coll., Act No. 87 / 1995 Coll., on savings and credit cooperatives and certain related measures and on the addition of the Czech National Council Act No. 586 / 1992 Coll., on income taxes, (Act on savings and credit cooperatives and certain related measures), as resulting from subsequent amendments
Regulation Type	Declared full text
Author	-
Collection	Code of Laws

Date of Promulgation	20.06.2006
Effective from	-
Effective until	-
Status	Valid

Full text of Act No. 296 / 2006 Coll.

Full text of Act No. 87 / 1995 Coll., on savings and credit cooperatives and certain related measures and on the addition of Act No. 586 / 1992 Coll., on Income Taxes, (Act on Savings and Credit Cooperatives and certain related measures), as resulting from subsequent amendments

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