What is Full text of Act No. 526 / 2004 Coll.?

Full text of Act No. 526 / 2004 Coll., Act No. 87 / 1995 Coll., on savings and credit cooperatives and certain measures related thereto and on the addition of the Act No. 586 / 1992 Coll., on Income Tax, as amended, as the result of subsequent amendments — Full version 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, as amended.

When it became Full text of Act No. 526 / 2004 Coll. effectiveness?

Full text of Act No. 526 / 2004 Coll. became effective date not available.

Is Full text of Act No. 526 / 2004 Coll. still valid?

Yes, Full text of Act No. 526 / 2004 Coll. is still valid and effective.

Full text of Act No. 526 / 2004 Coll. - Full version of Act No. 87 / 1995 Coll.,...

526

PRESIDENT OF THE GOVERNMENT

Announces

full version 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, as amended, as follows by Act No. 100 / 2000 Coll., Act No. 406 / 2001 Coll., Act No. 212 / 2002 Coll., Act No. 257 / 2004 Coll. and Act No. 280 / 2004 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 '). The Act also provides for the supervision of cooperative reserves, which is carried out by the Office for the supervision of cooperative advances (hereinafter" the Office'), and deposit guarantees in cooperative advances.

(2) The cooperative reserve is a legal person whose status is subject to the provisions of a special law governing the status of cooperative, (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 the special legislation2) and its business is not considered to be 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) be obliged in particular to comply with the obligations imposed on it by law and decisions under this law;

(d) may not conclude 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 accounts, (3a) the annual report, a copy of the permit and a report for members whose content and manner of updating is laid down in the decree; 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 award of a procure and the cessation of an undertaking or part thereof is inadmissible.

(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. The co-operative shall not be a person controlled or controlled.

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 authorisation shall be granted by the Office at the written request of the Board of Directors.

(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 Office shall decide on the application for or amendment of an authorisation, after assessing the conditions for granting or amending an authorisation, within 3 months of the date of the initiation of the administrative procedure and shall deliver the decision within that period. If the application has not been complete and the Office has requested its addition, the Office shall, within six months of the date of initiation of the administrative procedure and shall deliver the decision within that period. Where the Authority has been requested to supplement the application, the additional application being incomplete or if the applicant has not complied with the deadline set by the Office for supplementing it, the Office shall be entitled to suspend the administrative procedure for granting the authorisation.

(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) the transparency of a group with close links to which the founder has a qualifying holding (§ 2b (1)) in 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, or of which the conviction for such offences has been destroyed or otherwise viewed as not being convicted;

(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 other body of a legal person whose assets have been declared bankrupt in the last five years or where the application for bankruptcy against such a legal person has been rejected for 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, has been able to perform his previous duties with the care of a proper operator.

(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) The amendment of the authorisation shall be decided by the Office on the basis of a written request from the cooperative reserve. When deciding to modify an authorisation, the Authority shall proceed mutatis mutandis to the decision granting the authorisation. This provision shall not apply to decisions of the Office under Paragraph 28. When deciding to modify an authorisation, the conditions laid down in paragraph 6 (e) and (f) shall not apply. The Office will reject the application for a change of permit whenever the capital of the cooperative reserve is below at least CZK 35,000 000.

§ 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 shall be required to seek the prior approval of the Office by reaching at least 20% or 33% of the capital or voting rights. 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 Office within 60 days of the date of receipt of the complete application. If the Authority has not taken a decision within that period, consent shall be granted. In the decision on prior consent, the Office may set a time limit within which the person concerned is entitled to obtain qualified participation. The Office shall not give its consent if the qualifying participation of the person concerned would be contrary to the provisions of Paragraph 1 (6) (b). The parties to the proceedings shall be all persons concerned and the cooperative reserve. A person wishing to reduce his qualifying participation in a cooperative advance payment representing at least 33%, 20% or 10% of the capital or voting rights below those limits shall immediately notify the Office thereof. 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) Where the Office 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 qualifying 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 other than by virtue of the conduct of that person, or a breach of the second sentence of Article 1 (9) has occurred, it shall be entitled to decide to suspend or vote on the right of the person concerned to participate in a member meeting. The party to the proceedings shall be the only person concerned with a qualifying holding and a cooperative reserve. The appeal lodged shall not have suspensory effect.

(6) The cooperative reserve shall not allow the participation of a person who has been suspended by the Office from attending a member meeting and voting at 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 the right to attend and vote in a member meeting shall be cancelled by the Office if the reason for its publication has been waived.

(7) The cooperative reserve shall inform the Office in writing of the acquisition or changes in the qualifying participation of persons in the cooperative advance where such changes are subject to the procedure referred to in paragraph 3 within 5 working days of the finding 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) Collaborative advances located in the territory of the home State shall be entitled to establish branches in the territory of the host State only with the agreement of the Office.

(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 managing the branch to be clearly identified; the second sentence of Article 17a (1) shall apply to the demonstration of such data;

(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 Office shall 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 Authority 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 Office shall notify the cooperative advance notification referred to in paragraph 3 within 14 days of the date 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) Where a cooperative advance intends to make changes to the facts referred to in Article 2d (2) (b) to (e), it is required to notify it at least 1 month before they are implemented by the Office and the supervisory authority of the host State. Changes to the facts referred to in Article 2d (2) (b) to (e) shall be subject to the agreement of the Office and, where appropriate, to the communication or establishment of the terms and conditions by the supervisory authority of the host State in accordance with paragraph 1, unless otherwise provided for by this law. When deciding to grant consent, the Office shall proceed in accordance with Article 2d (3). The Office shall decide on the amendments within 30 days of the date of receipt of the full notification of the proposed amendments by the cooperative reserve.

§ 2f

If the cooperative reserve intends to engage in business in the territory of the host State within the scope of the authorisation granted by the Office without the establishment of a branch, it shall notify its intention with a specification of the activity carried out before the start of that activity by the Office. The Office shall notify the supervisory authority of the host State of the intention of the cooperative back-up undertaking within its territory within 30 days of receipt of the full notification of the cooperative back-up.

§ 2g

(1) The Office shall supervise the branch of the cooperative reserve in the territory of the host State. 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) Where the supervisory authority of the host State finds that a cooperative reserve or its branch within its territory is in breach of the provisions of law in 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 Office 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 Office 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 concerned operates in the territory of that State; it shall provide that information to the competent supervisory authority without undue delay after its issue.

(2) The Office shall consult the supervisory authority of that State before deciding to amend or withdraw the authorisation. The Authority shall inform the supervisory authority of its intention to amend or withdraw the authorisation if it does not accept the matter of suspension. The Authority shall without delay inform the supervisory authorities of the States in which the cooperative reserve operates of the modification or withdrawal of the authorisation.

(3) The Office shall immediately inform the supervisory authority of the host State in which the co-operative was active of the withdrawal of the authorisation under Paragraph 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 Office, including on-the-spot checks, after prior notification by the supervisory authority of the host State. The Authority may request the competent supervisory authority of the host State to carry out an inspection on the territory of the host State.

§ 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 3b) 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) exchange activities for members following the grant of a licence under special legislation, 3c)

(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.

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 advance would result in a member's share in the share capital of a cooperative advance exceeding 5%, a further member contribution may be made only after the prior agreement of the Office. 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). At the same time, in the decision granting consent, the Office shall set a time limit for the full repayment of the additional Member State contribution. The decision of the Office to grant its consent to its effectiveness shall cease to be in vain at the end of the period.

(4) The Office shall not give its consent pursuant to paragraph 3 unless the origin of the funds of a member is established or the eligibility of a 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, by introducing a further Member contribution, a member acquires a qualifying participation in a cooperative advance or increases his or her qualifying participation in a cooperative advance by reaching the limits laid down in Article 2b (3), the agreement of the Office shall also be deemed to be an agreement under Article 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;

(b) the subject matter of the business;

(c) the creation, demise and conditions of membership, the fundamental rights and obligations of members to the cooperative reserve and the cooperative reserve to the members;

(d) the amount of the basic member contribution and the method of its repayment and, where appropriate, the amount of the input contribution;

(e) the authorities of the cooperative and the number of its members, the length of their term of office, the method of establishment, the scope, the manner in which they are convened and the negotiations and the time limits within which they meet;

(f) the way in which profits are used and the way in which any losses are paid;

(g) the amount of the registered capital;

(h) the period for the termination of membership in the performance of a member,

(i) the possibility of placing other member deposits;

(j) the powers and responsibilities of the managing persons;

(k) the amount of the registration fee to cover the expenditure related to membership;

(l) the manner and extent of the transfer of the powers of the credit committee to other persons;

(m) determining the liability of members to cover losses of the cooperative reserve pursuant to Article 4 (3);

(n) the conditions for the provision of information;

(o) the financial rules laid down in particular:

1. the types of other funds, their amount and the way in which they are created and used;

2. the amount of the risk and reserve funds, their production and use;

3. Conditions for the provision of cash services,

4. the principles of credit protection;

5. basic types of deposits and loans and interest limits.

Some provisions on the institutions of the cooperative reserve

§ 5a

(1) In order to adopt the resolution of the member meeting, the consent of at least two thirds of the members present should be required in the event of a vote on the merger or division of the cooperative reserve.

(2) The alternate member meeting may be convened by the same invitation as the original member meeting. The invitation shall include an indication that the alternate membership meeting is capable of deciding on any number of members present. An alternate member meeting so convened may be opened no later than 30 minutes after the planned start of the initial member meeting referred to in the invitation. The details are laid down in the statutes.

(3) The decision of a member meeting to reduce the amount of the basic member contribution without prior agreement of the Office, which will assess the reduction of the amount of the basic member contribution in relation to the obligation of the cooperative reserve to comply with the rules laid down in Article 11 with regard to the security and stability of the cooperative reserve, is invalid.

(4) The Trustee shall convene a meeting of members, at the request of the Office, only for the purpose of the clearance of sound accounts, within 30 days of its receipt. The provisions of the Statutes, special legislation1) and § 5a (2) shall apply mutatis mutandis to the appointment of a member meeting by the trustee. The costs of calling and holding a meeting shall be those of maintaining and managing the substance under a special law. (a)

§ 6

(1) In addition to the bodies established under the Special Law (6), the cooperative shall establish a credit committee with at least three members. A member of the credit committee may not be a member of the board of directors or a member of the supervisory board of the cooperative reserve.

(2) The credit committee is elected by the member meeting of the cooperative reserve from among the members of the cooperative reserve.

(3) The credit committee decides on:

(a) granting loans to members under the Statutes;

(b) guarantee for loans and loans of members;

(c) securing loans.

(4) Where the statutes so determine, the credit committee shall be entitled to transfer part of its powers to other persons, in the manner specified in the statutes. This is without prejudice to the liability of the members of the Credit Commission under Paragraph 6a (2).

(5) The Board of Directors shall decide, in addition to the matters under this Act and the Special Act, 1), where applicable under the Statutes

(a) on a proposal from the Credit Commission on the remuneration of deposits and loans, on the granting of a loan to another cooperative advance and on the acceptance of a loan from another cooperative advance or bank and on the acceptance of a deposit from another cooperative advance;

(b) trading on its own account in foreign exchange and interest rate instruments to ensure the risks arising from the activities referred to in Article 3 (1);

(c) trading on its own account in registered securities;

(d) the fees for activities and services provided to members.

Citation	Full text of Act No. 526 / 2004 Coll., Act No. 87 / 1995 Coll., on savings and credit cooperatives and certain measures related thereto and on the addition of the Act No. 586 / 1992 Coll., on Income Tax, as amended, as the result of subsequent amendments
Regulation Type	Declared full text
Author	-
Collection	Code of Laws

Date of Promulgation	13.10.2004
Effective from	-
Effective until	-
Status	Valid

Full text of Act No. 526 / 2004 Coll.

Full version 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, as amended

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