What is Act No. 87 / 1995 Coll.?

Act No. 87 / 1995 Coll., on savings and credit cooperatives and certain measures related thereto and on supplementing the Act of the Czech National Council No. 586 / 1992 Coll., on income taxes, as amended — Act on savings and credit cooperatives and certain measures related thereto and on supplementing the Act of the Czech National Council No. 586 / 1992 Coll., on Income Tax, as amended.

When it became Act No. 87 / 1995 Coll. effectiveness?

Act No. 87 / 1995 Coll. became effective 01.01.1996.

Is Act No. 87 / 1995 Coll. still valid?

Yes, Act No. 87 / 1995 Coll. is still valid and effective.

How many times was it Act No. 87 / 1995 Coll. amended?

Act No. 87 / 1995 Coll. has 56 time versions of the text.

Act No. 87 / 1995 Coll. - Act on savings and credit cooperatives a...

87

THE LAW

of 20 April 1995

on savings and credit cooperatives and certain measures related thereto and on supplementing the Act of the Czech National Council No. 586 / 1992 Coll., on Income Tax, as amended

Parliament has decided on this law of the Czech Republic:

ČÁST I

§ 1

General provisions

(1) This law incorporates the relevant European Union1), building on the directly applicable European Union38), and regulates certain relations related to the formation, business and disappearance of savings and credit cooperatives ("cooperative reserve"). The Act also provides for supervision of cooperative reserves carried out by the Czech National Bank and insurance of deposit claims in cooperative reserves.

(2) The permission to operate as a cooperative reserve (hereinafter referred to as the "permit") is granted by the Czech National Bank (§ 2a) to a cooperative established in the Czech Republic to carry out the following activities:

(a) taking deposits from their members; and

(b) granting loans to its members.

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

(4) The cooperative reserve is not a bank under the law governing the activities of banks and its business is not considered to be a business activity.

(5) Collaborative bookmark

(a) be entitled to pursue only the activities provided for by this law, to the extent authorised;

(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; the breach of this condition constitutes the nullity of the contract,

(d) it cannot be the issuer of the subordinated debate3);

(e) the claim may not be acquired under a subordination condition within the meaning of the law governing debentures (3) for another credit institution, investment firm, financial institution or person having a qualifying holding in a cooperative advance office separately or by acting in agreement with another person.

(6) Approved financial statements, 3a) The annual report and a copy of the authorisation must be published in a place open to the public at the head office of the cooperative reserve, its branches, exposures and management offices.

(7) The cooperative reserve must request the prior approval of the Czech National Bank for the conclusion of a contract on the basis of which any business or part of it is available. The cessation of a cooperative back-up facility or part thereof is inadmissible.

(8) The request for consent referred to in paragraph 7 shall include, in addition to the formalities laid down in the administrative rules, information on the reasons for the intended procedure, the manner in which it is implemented and its participants. The application may only be submitted electronically. The details of the application details, its format and other technical details are laid down by the Czech National Bank Order.

(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.

§ 1a

Definition of terms

(1) For the purposes of this Act:

(a) institutions of an institution as referred to in point (3) of Article 4 (1) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(b) credit institution credit institution as referred to in point (1) of Article 4 (1) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(c) an investment firm's investment firm as referred to in Article 4 (1) (2) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(d) financial institution of a financial institution as referred to in point (26) of Article 4 (1) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(e) the subsidiary undertaking referred to in Article 4 (1) (18) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(f) control of the control referred to in Article 4 (1) (37) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(g) close interconnection of close links as referred to in Article 4 (1) (38) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(h) the controlling person of the parent undertaking referred to in point (15) of Article 4 (1) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(i) controlled by a subsidiary pursuant to Article 4 (1) (16) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(j) a person under Article 4 (1) (29c) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council based in the Czech Republic,

(k) a European controlling credit institution, the person referred to in Article 4 (1) (29d) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(l) a financial holding person, as referred to in Article 4 (1) (20) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(m) a domestic financial holding person as referred to in Article 4 (1) (30) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council based in the Czech Republic;

(n) a European financial holding person as referred to in Article 4 (1) (31) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(o) a mixed financial holding person as referred to in Article 4 (1) (21) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(p) a domestic mixed financial holding person as referred to in Article 4 (1) (32) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council, based in the Czech Republic,

(q) a European mixed financial holding person as referred to in Article 4 (1) (33) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(r) the European controlling investment firm is the person referred to in Article 4 (1) (29b) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(s) group group referred to in Article 4 (1) (138) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(t) the consolidated basis of the consolidated basis referred to in Article 4 (1) (48) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(u) the authority designated to exercise supervision on a consolidated basis by the competent authority pursuant to Article 4 (1) (41) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(v) a Member State of the European Union or another Member State constituting the European Economic Area;

(w) a financial instrument as referred to in point (50) of Article 4 (1) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(x) Common Equity Tier 1 capital of Common Equity Tier 1 according to Article 50 of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(y) Tier 1 capital of Tier 1 capital pursuant to Article 25 of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(z) another systemically significant institution other systemically significant institution as referred to in Article 4 (1) (146) (b) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council.

(2) For the purposes of this Act:

(a) environmental risk, social risk and risk of environmental, social and administrative management as referred to in Article 4 (1) (52d) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(b) the minimum exit threshold for the minimum exit threshold referred to in Article 92 (3) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(c) the information and communication technology risk referred to in Article 4 (1) (52c) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council;

(d) the financial director is the natural person responsible for the overall management of the financial resources, financial planning and financial reporting of the cooperative reserve;

(e) internal control function of the risk management function, compliance function or internal audit function;

(f) the head of the internal control function, the natural person responsible for day-to-day management of the risk management function, the compliance function or the internal audit function, which is the maximum in the management hierarchy of the relevant function;

(g) a person in a key function who has a significant influence on the day-to-day management of the cooperative reserve but is not a member of its board of directors; the person having a significant influence on the day-to-day management of the cooperative reserve activity is the head of the internal control function and the financial director;

(h) the senior management person is directly subordinate to the management board of the cooperative reserve and is involved in the day-to-day management of the cooperative reserve under the authority of that body; the senior management is not a member of the cooperative reserve board,

(i) the cryptoasset cryptoasset referred to in Article 3 (1) (5) of Regulation (EU) 2023 / 1114 of the European Parliament and of the Council on cryptoasset markets which is not the central bank's digital currency.

§ 1b

The Czech National Bank shall act as a competent authority and shall also be a designated authority in accordance with a directly applicable European Union regulation governing prudential requirements.

Some provisions on the establishment and establishment of a cooperative reserve

§ 2

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

(2) The 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 is 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 by the Czech National Bank upon written request. An application for authorisation may be made only on the prescribed form to which the applicant shall accompany the documents certifying compliance with the conditions referred to in paragraph 4. Models of forms and their annexes shall be laid down in the implementing legislation.

(2) 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. 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.

(3) 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.

(4) The following conditions shall be met for the authorisation:

(a) the competence and credibility of the applicant for authorisation referred to in paragraph 1;

(b) the competence, credibility and experience of the members of the Board of Directors, the Supervisory Board and the Credit Committee of the Cooperative Reserve and the fulfilment of other requirements for the bodies of the Cooperative Reserve and their members pursuant to § 7aa;

(c) technical 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; technical and organisational assumptions for the purposes of this Act include, in particular, the justification for the purpose of setting up a cooperative reserve and the strategic intention of its development on the market, processed 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 computer, information, accounting and statistical systems of the cooperative reserve, the provision of a sufficient number of employees or natural persons carrying out their activities under the orders of another (worker) to ensure the planned activities of the cooperative reserve and the provision of the corresponding structure and organisation of the cooperative reserve,

(d) the reality of the business plan, the organisational structure of the cooperative reserve and the ability to secure the development of the cooperative reserve, taking into account the general knowledge and experience, including data on controlling persons and financial holding persons and mixed financial holding persons in the group;

(e) the eligibility and credibility of natural or legal persons with qualified participation in a cooperative advance payment (§ 2b (1)) and a maximum of 20 members with another member deposit, if they do not have a qualifying participation (§ 2b (1)), to exercise the rights of a member in relation to the business of the cooperative advance in accordance with § 1 (5) (b);

(f) 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;

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

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

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

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

(5) 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 amend an authorisation, the conditions set out in paragraph 4 (f) and (g) 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.

(6) The Czech National Bank is entitled to request a copy of the criminal record concerning natural persons who are the founders of the cooperative reserve and members of the cooperative reserve body.

§ 2aa

Special provision for the granting of a resolution authorisation

(1) The Czech National Bank may, on its own initiative for a limited period of time, grant authorisation to a bridging institution under the Financial Market Recovery and Resolution Act, unless that institution fulfils the conditions for granting an authorisation under Paragraph 2a (4).

(2) If the acquirer of the assets or debts of the obliged entity submits an application for authorisation under the law governing recovery and resolution of the financial market, the Czech National Bank shall assess it without undue delay.

§ 2b

(1) Qualified participation for the purposes of this Act means qualifying participation as referred to in Article 4 (1) (36) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council.

(2) For the purposes of calculating the qualifying participation in the cooperative advance payment referred to in paragraph 1, shares in the capital or voting rights which are exercised by a representative of the person referred to in paragraph 3 shall be counted on the basis of the power of attorney.

(3) The person or persons acting in agreement must announce their intention and have the approval of the Czech National Bank

(a) to acquire a qualifying holding in a cooperative advance;

(b) to increase the qualifying participation in the cooperative advance payment by reaching or exceeding 20%, 30% or 50%; or

(c) to become persons controlling the cooperative reserve;

even if those persons do not exercise voting rights associated with such acquired participation in a cooperative advance; there is no change in the voting rights of those or other persons.

(4) The Czech National Bank shall acknowledge receipt in writing to the applicant no later than 10 working days after the date of receipt of the complete request for consent referred to in paragraph 3; where the application is incomplete, without undue delay, invite the applicant to remedy the deficiencies of the application. The Czech National Bank shall inform the applicant, without undue delay, upon receipt of the complete application, of the date on which the deadline for the examination of the application set out in paragraph 7 expires. The application shall contain details of the person (s) intending to acquire or increase the qualifying participation in the cooperative reserve or the cooperative reserve to exercise control, the information on the cooperative reserve to which the participation is to be acquired, increased or controlled, an indication of the total amount of the share that the applicant has in that cooperative contribution by acquiring or increasing the qualifying holding and of the person transferring the share to the applicant. The application shall be accompanied by the documents necessary for the assessment of the application in view of compliance with the conditions referred to in paragraph 9. An application for consent may be made only on the prescribed form to which the applicant shall accompany the documents certifying compliance with the conditions referred to in paragraph 9. The models of the forms and the content of their annexes shall be laid down by the Order of the Czech National Bank.

(5) The Czech National Bank shall request the opinion of the supervisory authority of another Member State of the European Union upon receipt of an application for approval in the cases referred to in paragraph 3 if the person with a qualifying participation in the person requesting the approval is the person who is to be authorised by the supervisory authority of that Member State to act as a credit institution, insurance undertaking, reinsurance undertaking, investment firm or investment firm or is the controlling person of that person.

(6) If necessary for the examination of the application, the Czech National Bank shall, at the latest on the 50th working day of the period set out in paragraph 7, invite the applicant in writing to submit further information, confirming receipt of the requested information by the Czech National Bank to the applicant within the time limit referred to in paragraph 4. The date of dispatch of this call shall be the date of the period laid down in paragraph 7, for a maximum period of 20 working days. This period can only be built once. The period laid down in paragraph 7 shall be suspended for up to 30 working days if the applicant:

(a) has its residence, registered office or place of business in a State which is not a Member State; or

(b) is not subject to supervision by the authority of the Member State supervising credit institutions, insurance undertakings, reinsurance undertakings, investment firms or foreign investment fund managers.

(7) The Czech National Bank shall take a decision on the application no later than 60 working days from the date of dispatch of the written confirmation of receipt of the complete application referred to in paragraph 4. If the Czech National Bank does not issue a decision within this period, the consent has been granted. This shall not apply in the case of a request for consent submitted pursuant to paragraph 15. If the decision on the application for the transfer of activity to a private acquirer is relevant under the law governing the recovery and resolution of the financial market, the Czech National Bank shall proceed so that the implementation of the transition of that activity is not delayed and that the purpose of the resolution is not prevented.

(8) The Czech National Bank only examines the fulfilment of the conditions set out in paragraph 9 when examining the application and does not take account of the economic needs of the market. The Czech National Bank shall not comply with the application if the conditions referred to in paragraph 9 are not met or if the information submitted by the applicant is insufficient to assess the application. The Czech National Bank may not comply with the request if it has received a negative opinion from the Financial Analysis Office pursuant to paragraph 9 (f) (1) to acquire or increase a qualifying participation in the cooperative advance.

(9) The Czech National Bank will comply with the request if, with a view to ensuring the proper and prudent management of the cooperative reserve, there are no reasonable concerns as to the possible effect on its activities and if the following conditions are met:

(a) persons requesting consent are trustworthy;

(b) persons who, in the context of the acquisition of a qualifying holding, are proposed to board members and members of the credit committee who are in a cooperative reserve executive management function shall, without doubt, fulfil the condition of credibility, competence and experience;

(c) the financial health of the applicant and the sufficient volume, transparency of origin and safety of its financial resources in relation to the activities carried out and planned in the cooperative reserve;

(d) the cooperative reserve will continue to be able to comply with prudent business rules;

(e) the structure of the group to be part of the cooperative reserve does not prevent the effective supervision of the cooperative reserve and supervision on a consolidated basis, the effective exchange of information between the Czech National Bank and the competent supervisory authority of another Member State or make it difficult to exercise the powers of the individual competent supervisory authorities in supervision on a consolidated basis and persons in that group; and

(f) in the context of the proposed acquisition or increase of a qualifying holding in a cooperative advance office, there is no reasonable concern that there may be a breach of the law governing the measure against the legalisation of the proceeds of crime and terrorist financing, or that such breach has already occurred; to assess compliance with this condition Czech National Bank

1. Consults on the prevention of infringements of the law governing action against the legalisation of proceeds from crime and terrorist financing with the Financial Analysis Office and, in the context of this consultation, requests the Financial Analysis Office to give it an opinion within 30 working days of the date of receipt of the request on whether the condition under this provision is met,

2. need not comply with the request if the applicant has a residence or registered office in a high-risk third country defined by law concerning certain measures against the legalisation of proceeds from crime and terrorist financing and the Czech National Bank assesses that this affects the applicant's ability to effectively prevent infringements of the law governing the measure against the legalisation of proceeds from crime and terrorist financing;

3. it may not comply with the application if the applicant is resident or registered in a Member State other than that to which the European Union restrictive measures apply, and the Czech National Bank shall assess that this affects the applicant's ability to effectively prevent infringements of the law governing the measure against the legalisation of proceeds from crime and terrorist financing.

(10) The Czech National Bank may make public the reasons for the refusal of a request for consent, at the request of the applicant or without such request.

(11) In the decision on the application, the Czech National Bank

(a) may set a time limit for the acquisition of the holding referred to in paragraph 3;

(b) state the conclusions resulting from the opinions received in accordance with the procedure referred to in paragraph 5 before the decision is taken.

(12) The person or persons acting in agreement without undue delay shall notify the Czech National Bank that:

(a) reduce their qualifying participation in the cooperative advance payment in such a way that it falls below or abstain from 50%, 30% or 20%; or

(b) reduce their qualifying participation in the cooperative advance payment by losing control of it.

(13) The notification referred to in paragraph 12 shall contain details of the person (s) reducing or withdrawing his or her qualifying participation in the cooperative advance payment or of the person (s) remaining to control it, the information on the cooperative advance payment and the amount of participation in the cooperative advance payment following the reduction.

(14) For the purposes of the application referred to in paragraph 4 and the notification referred to in paragraph 12, data relating to a person shall be:

(a) in the case of a legal person, the trading firm or the name, registered office and identification number, if assigned;

(b) in the case of a natural person, the name and surname, date of birth, birth number, if assigned, address of residence; in the case of an entrepreneur incorporated in a commercial register, a commercial firm or place of business, where applicable, and an identification number, if assigned.

(15) Consent within the meaning of paragraph 3 may be given subsequently in cases of special consideration.

(16) The acquisition or increase of a qualifying participation in a cooperative advance office or its control without the prior approval of the Czech National Bank does not result in the annulment of the legal act on the basis of which such changes in the participation in the cooperative advance office took place, but the voting rights associated with such acquired participation must not be exercised until such consent has been granted.

(17) The consent referred to in paragraph 3 or the notification referred to in paragraph 12 shall not be required if the acquisition of a qualifying holding or an increase in the qualifying holding is made by reaching or exceeding 20%, 30% or 50%, or by reducing the qualifying holding below 50%, 30%, 20%, 10% or its disposal otherwise than by reason of the conduct of a person or persons acting in agreement.

(18) The consent to acquire a qualifying holding in a cooperative advance shall also be deemed to be the consent to acquire a direct or indirect holding or a sum thereof representing less than 10% of the capital of the cooperative advance or voting rights in the cooperative advance. The consent to increase the qualifying participation in the cooperative advance payment by reaching or exceeding 20%, 30% or 50% in the cooperative advance payment shall also be deemed to be an agreement to increase such participation by reaching or exceeding a direct or indirect share or their sum which represents less than or equal to the share of the share capital of the cooperative advance payment or voting rights in the cooperative advance.

§ 2c

(1) If the Czech National Bank finds that the presence of a person with a qualifying holding in a cooperative advance office is contrary to Article 1 (5) (b), or the person has acquired a qualified participation or increased the qualifying participation in a cooperative advance without prior consent beyond the limits set out in Article 2b (3), it shall decide to suspend the right of a person with a qualified participation to participate in and vote in a member meeting and to request the appointment of a member meeting. Only the exercise of all the above rights may be suspended. The party to the proceedings shall only be a person with a qualifying holding and a cooperative reserve. The decomposition does not have suspensory effect.

(2) The cooperative reserve shall not allow the participation of a person who has been suspended by the Czech National Bank under paragraph 1 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 the rights referred to in paragraph 1 shall be lifted by the Czech National Bank if the reason for its issue has been waived.

(3) The cooperative reserve must inform the Czech National Bank in writing of the acquisition or change in the qualifying participation of persons in the cooperative reserve if, in the event of such changes and the conduct of other members, the limits referred to in § 2b (3) and (12) are exceeded or reduced within 5 working days of the determination of the relevant facts.

(4) As a result of the suspension of the rights referred to in paragraph 1 by a person qualified to participate in a cooperative advance, there shall be no change in the voting rights of that person or other persons.

§ 2ca

Notification of significant transfer of assets or liabilities

(1) The cooperative deposit office shall notify the Czech National Bank in advance of its intention to transfer assets or liabilities equivalent to at least:

(a) 10% of its total assets or liabilities, in the absence of a transfer within the group; or

(b) 15% of its total assets or liabilities in the case of intra-group transfers.

(2) When determining whether the transfer of assets or liabilities achieves the limits referred to in paragraph 1, transfers shall not be taken into account.

(a) assets meeting the conditions for non-executive exposures referred to in Article 47a of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council at the time of their transfer;

(b) the assets to be included in the cover portfolio under Section 30c of Act No. 190 / 2004 Coll., on Bonds, as amended;

(c) assets transferred for subsequent securitisation purposes; and

(d) assets or liabilities related to the use of instruments, powers and resolution measures under the law governing recovery and resolution procedures in the financial market.

(3) Where the transfer of assets or liabilities referred to in paragraph 1 (b) takes place, the obligation referred to in paragraph 1 shall apply to all persons involved in such transfer.

(4) The Czech National Bank shall acknowledge receipt to the notifier no later than 10 working days after the date of the notification referred to in paragraph 1.

§ 2cb

Relationship of a significant transfer of assets or liabilities and disposition with or part of a cooperative reserve business establishment

Paragraph 2ca shall not apply where a significant transfer of assets or liabilities fulfils the features of a disposition with a commercial establishment or parts thereof and if a request for consent has already been submitted in accordance with Paragraph 1 (7).

§ 2cc

Notification and request for consent to a merger or division

(1) The cooperative reserve must notify its intention in advance and ask the Czech National Bank for approval to carry out the merger under the Act governing the transformation of companies and cooperatives, if it is a person involved in the merger. Such notification shall be deemed to have been made after the merger has been approved by the members' meetings of the cooperative, but before the application for registration in the Commercial Register or in the Foreign Commercial Register has been submitted under the Act governing the conversion of companies and cooperatives.

(2) The cooperative reserve must notify its intention in advance and ask the Czech National Bank for approval to implement the division under the law governing the transformation of companies and cooperatives if it is a person involved in the division. Such notification shall be deemed to have been made after approval of the division by the member meetings of the cooperative, but before the application for registration in the Commercial Register or in the Foreign Commercial Register has been submitted under the Act governing the conversion of companies and cooperatives.

§ 2cd

Forms of application for approval to carry out a merger or division

(1) In the application pursuant to § 2cc (1) or (2) of the cooperative guarantee, the details of:

(a) all persons involved in the conversion; and

(b) the amount of the assets transferred or part of them and the actual amount of the supplement.

(2) The application referred to in Article 2cc (1) or (2) shall include the documents necessary to assess compliance with the conditions set out in Article 2cg.

(3) Details of the details of the application pursuant to § 2cc (1) or (2), its format and other technical details may be provided by the Czech National Bank by decree.

§ 2ce

Decision on the request for consent to the merger or division

(1) Within 10 working days of the date of the submission of the full application pursuant to § 2cc (1) or (2) of the Czech National Bank, the Czech National Bank shall confirm its acceptance in advance. If the application is incomplete, the Czech National Bank shall without undue delay invite the cooperative reserve to remedy the deficiencies of the application. The Czech National Bank shall, without undue delay after the submission of a complete application, inform the cooperative bank of the date on which the deadline for the decision on the application under Paragraph 2cc (1) or (2) falls to end.

(2) If the merger or division is to take place only between the cooperative backups belonging to the same group, the Czech National Bank shall take a decision on the application pursuant to Paragraph 2cc (1) or (2) within 60 working days of the date of dispatch of the acknowledgement of receipt of the complete application referred to in paragraph 1. If the Czech National Bank does not issue a decision within this period, the consent has been granted.

(3) If this is necessary for the decision on the application pursuant to Paragraph 2cc (1) or (2) and if the merger or division is to take place only between the cooperative advances belonging to the same group, the Czech National Bank shall, at the latest on the 50th working day of the period referred to in paragraph 2, invite the cooperative advance to submit further information, confirming receipt of the requested information by the Czech National Bank in advance within the period referred to in paragraph 1. The date of dispatch of this call shall be the date of the period referred to in paragraph 2 and shall not exceed 20 working days. This period can only be built once. The period referred to in paragraph 2 shall be suspended for up to 30 working days where an exchange of information with the Financial Analysis Office or an authority from another Member State responsible for supervision in the field of measures against the legalisation of proceeds from crime and terrorist financing is necessary to decide on an application pursuant to Article 2cc (1) or (2) and the Czech National Bank has requested such exchange of information; the deadline is set at the date on which the Czech National Bank requested the exchange of information.

(4) In the decision on the application pursuant to § 2cc (1) or (2), the Czech National Bank may set a deadline for completion of the merger or division. If a merger or division is to take place between cooperative repayable assets which are not part of the same group, paragraphs 2 and 3 shall apply mutatis mutandis, the duration of the time limits being determined by the Czech National Bank at its discretion, taking into account the circumstances of such conversion.

§ 2cf

Exemptions from the obligation to decide on a request for consent to a merger or division

(1) The Czech National Bank does not have to decide on the application under Paragraph 2cc (1) if the merger is to take place only between the cooperative reserve companies belonging to the same group. In this case, the Czech National Bank shall suspend the proceedings and inform the applicant without undue delay.

(2) The Czech National Bank does not decide on an application pursuant to § 2cc (1) or (2) if the implementation of a merger or division would require authorisation under § 1 (2). In such a case, the Czech National Bank will stop the procedure already in place for consent to the merger or division.

§ 2cg

Conditions for approval of mergers or divisions

(1) The Czech National Bank shall comply with the request under Paragraph 2cc (1) or (2) if, in order to ensure the sound and prudent management of the cooperative advances involved in the merger or division, there are no reasonable concerns as to the possible impact of the merger or division on the exercise of their activities, including during the merger or division decided on by the Czech National Bank, and if:

(a) the cooperative advances involved in the merger or division are credible;

(b) the financial soundness of the cooperative advances involved in the merger or division and the sufficient volume, transparency of origin and the safety of their financial resources in relation to the activities they intend to carry out after the merger or division;

(c) the cooperative advances involved in the merger or division will be able to comply, even after the merger or division, with prudent business rules on an individual and consolidated basis;

(d) the proposed merger or division project is, from a prudential point of view, realistic and orderly, while compliance with the project is monitored by the Czech National Bank until the completion of the proposed merger or division; and

(e) there is no reasonable concern, in the context of a merger or division, that there may be a breach of the law governing the measure against the legalisation of proceeds from crime and terrorist financing, or that such a breach has occurred.

(2) For the purposes of assessing compliance with the condition set out in paragraph 1, points (a) and (b) shall apply. (e) The Czech National Bank shall consult on the prevention of infringements of the law governing the measure against the legalisation of proceeds from crime and terrorist financing with the Financial Analysis Office or the authority of another Member State responsible for supervision in the field of measures against the legalisation of proceeds from crime and terrorist financing.

(3) The Czech National Bank shall, in the context of the consultation referred to in paragraph 2, request the Financial Analysis Office or the authority from another Member State responsible for supervision in the field of measures against the legalisation of proceeds from crime and terrorist financing to give it an opinion within 30 working days of the date of receipt of the request whether the condition referred to in paragraph 1 (e) is met.

(4

(5) The Czech National Bank does not take into account the economic needs of the market when deciding on an application under Article 2cc (1) or (2).

§ 2ch

Exemptions from the obligation to decide on a request for approval to carry out a merger or division under the Financial Market Recovery and Resolution Act

Paragraph 2cc to 2cg shall not apply to mergers and divisions under the law governing recovery and resolution of the financial market.

§ 2d

(1) The cooperative reserves are entitled to set up branches in the territory of another Member State (hereinafter referred to as the host State) and to do business in its territory within the scope of authorisation only with the approval of the Czech National Bank.

(2) In the notification of the intention to establish a branch referred to in paragraph 1, the cooperative 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;

Citation	Act No. 87 / 1995 Coll., on savings and credit cooperatives and certain measures related thereto and on supplementing the Act of the Czech National Council No. 586 / 1992 Coll., on income taxes, as amended
Regulation Type	Law
Author	-
Collection	Code of Laws

Date of Promulgation	29.05.1995
Effective from	01.01.1996
Effective until	-
Status	Valid

Act No. 87 / 1995 Coll.

Act on savings and credit cooperatives and certain measures related thereto and on supplementing the Act of the Czech National Council No. 586 / 1992 Coll., on Income Tax, as amended

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