Law On Deposit Insurance In Banks

Original Language Title: Закон за гарантиране на влоговете в банките

Read the untranslated law here: http://parliament.bg/bg/laws/ID/15143/

Name of law
Law on Deposit Insurance banks




Name Bill
A bill to guarantee deposits in banks





Date of adoption
30/07/2015



Number / year Official Gazette
62/2015







DECREE № 159
Pursuant to Art. 98 pt. 4 of the Constitution of the Republic of Bulgaria
DECREE:
To be published in the "Official Gazette" Law on Deposit Insurance banks HLIІI adopted by the National Assembly on July 30, 2015
Released in Sofia on August 3, 2015
President of the Republic: Rosen Plevneliev
stamped with the state seal.
Minister of Justice Hristo Ivanov LAW

Deposit Insurance banks

CHAPTER ONE PURPOSE AND SCOPE OF THE LAW
Art. 1. (1) This law regulates the social relations associated with the reliable functioning of the system of deposit insurance in banks and protecting depositors, as well as the device, objectives, functions and activities of the Fund Deposit Guarantee Fund, hereinafter "the Fund".
(2) This Act shall apply to all banks that have received under the Law on Credit Institutions licensed for public attraction of deposits or other repayable funds, as well as their branches in other Member States.
(3) This Law shall apply to branches of the bank in a third country which has received a license from the Bulgarian National Bank to operate in the Republic of Bulgaria when:
1. in the home country of the bank did not have a system of deposit insurance or such a system exists, but it does not cover the bank's branches abroad or
2. the size or scope of the guarantee provided by the existing state in the bank's system of deposit insurance is less than the size or scope of deposit protection provided for in this Act; in this case the guarantee provided by the Fund for the difference, exceeding the guarantee provided by the system of deposit insurance at the headquarters of the bank.
(4) The persons under par. 2 and 3 are required to make cash contributions to the fund in the manner provided in this Act.
(5) The Management Board of the Fund established upon collection of relevant evidence, to which branches of banks in the country are the conditions under par. 3.
(6) In the cases under par. 3 Fund cooperate with the authorities of the system of deposit insurance. Chapter Two

FUND DEPOSIT INSURANCE BANKS Section
I

status of the fund Art. 2. (1) The Fund is a legal entity with headquarters in Sofia.
(2) The Fund shall be transformed, terminated and liquidated by law.
(3) The Court exercises control over the fund.

(4) The Fund shall be exempt from paying state and local taxes only on the operation of the Deposit Insurance and financing of restructuring activities under the recovery and resolution of credit institutions and investment firms.
(5) Upon liquidation of the Fund after payment of its obligations remainder of his estate shall be distributed among the banks in proportion to the contributions paid by them, except for those banks whose debts to depositors are paid by the Fund.
(6) Funding of living expenses of the Fund is determined by an ordinance of the Bulgarian National Bank on a proposal of the Management Board of the Fund.
Section II
objectives and functions of the Fund
Art. 3. (1) The purpose of the fund is to contribute to stability and confidence in the financial system of the Republic of Bulgaria by:
1. protect Deposit and payment of insured deposits;
2. promote the efficient operation of the process of restructuring of credit institutions under the terms and procedure of the recovery and resolution of credit institutions and investment firms; 3
. provides optimum protection of the interests of creditors in the process of bank insolvency.
(2) The Fund:
1. determine and collect annual and extraordinary premiums from banks;
2. invest their funds in the terms and conditions of Art. 23; 3
. pay the guaranteed amount of deposits;
4. perform the functions and powers set out in the Bank Insolvency Act;
5. participates in financing the restructuring of credit institutions by incurring losses instead of depositors in the process of restructuring under the terms and procedure of the recovery and resolution of credit institutions and investment firms.
Section III
Management Fund.
Representation Art. 4. (1) The Fund is managed by a board.
(2) The Board consists of five members, including the chairman and vice-chairman, who shall be appointed as follows:
1. Chairman - Council of Ministers;
2. Vice-President - by the Management Board of the Bulgarian National Bank; 3
. one member - by the Professional Association of Banks; in case of more than one professional organization governing board of the Bulgarian National Bank determines the procedure for nomination and election of a member of professional associations of banks;
4. two members - jointly by the Chairman and Deputy Chairman of the Management Board of the Fund.

(3) Board members must have higher economic or legal education degree "Master" and professional experience not less than five years in the areas of banking, securities trading, accounting or finance .
(4) The mandate of the board is four years. Board members may be reelected without limitation. Board members expired mandate continued execution of its powers to the identification of new members.
(5) The Management Board shall meet at least once every three months. The meetings are scheduled if at least three members. For each meeting minutes are recorded, which is signed by all members present.
(6) The Management Board shall be adopted by a majority of more than half of all its members, and the decisions under Art. 7, p. 5 and 12 shall be adopted by a majority of 4 votes.
(7) The Management Board shall adopt rules of organization and operation of the fund, which include internal governance, organizational structure and procedures to identify, manage, monitor and report the risks to which it may be exposed to activity of the Fund.
(8) The Chairman of the Board organizes and manages the activities of the Fund and represents the Fund at home and abroad, take all decisions relating to the management of the fund, except for decisions under Art. 7. The President may authorize other persons with separate powers.
(9) The Chairman of the Management Board shall appoint and dismiss the administrative staff of the Fund. The organization of the administration of the fund and the total number of staff shall be determined by rules under par. 7.
(10) The Board shall conclude a contract on behalf of the Fund with the Chairman of the Management Board, which determines the remuneration and specify the rights and obligations in connection with the exercise of his powers under par. 8 and 9.
(11) In the absence of the Chairman functions shall be discharged by the Vice-President or any other member designated by the Board of the Fund.
(12) The Board may recruit experts and form commissions to assist the realization of his powers.
(13) The Fund, its bodies, authorized by them and its employees are not liable for damages caused in the exercise of their powers, unless they acted intentionally.
Art. 5. (1) It can not be a board member of the Fund who:

1. the last two years before the date of the bankruptcy was a member of the executive or supervisory body or a general partner in a company that is terminated due to bankruptcy and are unsatisfied creditors;
2. over the last five years preceding the date of the declaration in bankruptcy, was a member of its management or supervisory body; 3
. a spouse or lives together, or a relative in direct or collateral line to the second degree of a member of the board of the fund;
4. He has been convicted of a crime of general nature;
5. the last two years e accordingly deprived of the right to occupy certain position or to exercise a certain profession.
(2) The Chairman of the Management Board may not engage in other remunerative activity than research and teaching.
(3) Board members may not work for banks and financial institutions within the meaning of Art. 3 of the Law on Credit Institutions.
Art. 6. (1) The powers of a board member shall be terminated early:
1. at his request;
2. for incompatibility under Art. 5; 3
. with inability to perform his duties for more than 6 months;
4. when committed a material breach of his duties;
5. when his activities against the interests of the Fund;
6. when not participate without good reason in three consecutive meetings of the board;
7. when it violated Art. 42, para. 1 of the bank insolvency;
8. in an effective act, which was established conflict of interest on the Prevention and detection of conflicts of interest;
9. death.
(2) The powers under par. 1 board member shall be terminated by a decision of the relevant authority under Art. 4 para. 2.
(3) Upon early termination of the powers of the board member in his place is determined another person who starts a new term.
Art. 7. The Management Board:
1. sets annual and extraordinary premiums from banks;
2. invest the funds in compliance with the requirements for security and constant liquidity and may enter into financial transactions in order to reduce the risk or liquidity; 3
. arrange payment of insured deposits under the terms and provisions of this Act;
4. adopt rules on terms and conditions for use of loans from the Fund, including the issue of debt securities;
5. organize the provision of funding for restructuring under Art. 134, para. 5 and Art. 144 of the Law on recovery and resolution of credit institutions and investment firms;

6. decide on the participation of the fund in international organizations;
7. approve agreements for cooperation fund with government institutions and public organizations;
8. appoint a certified auditor for independent financial audit of the annual financial statements of the Fund;
9. decide to receive donations and grants from local and foreign entities;
10. adopt rules on the arrangements for the internal control of the Fund;
11. consider and decide on all matters within its competence related to the powers of the Fund at the Bank Insolvency Act;
12. consider and decide on all matters within its competence under the recovery and resolution of credit institutions and investment firms;
13. adopt an annual report on the activities of the Fund and submit it to the Council of Ministers, the Bulgarian National Bank and the Court of Auditors;
14. adopt annually and published in the "Official Gazette" 31 March report on the performance of the fund and the statement of financial position for the previous year;
15. adopt an annual budget for the administrative expenses of the Fund and report on its performance in the 30 days after their adoption submit them to the Bulgarian National Bank and the Court of Auditors;
16. develop draft regulations stipulated by this law and present them to the Bulgarian National Bank for discussion and adoption;
17. decide on lending to other schemes of deposit insurance in the European Union under Art. 24;
18. determine the amount and procedure for collecting annual fee from banks to cover the administrative expenses of the Fund; the amount of the annual fee from banks based on the necessary technical and administrative costs of the Fund provided for in the annual budget of the Fund;
19. issued guidance on the content and format in which banks provide information to the fund for the purpose of payment of insured deposits and system testing for deposit insurance;
20. examine and resolve other issues relating to the operation of the fund. Chapter Three


insured deposits Section I
size and scope of the guarantee
Art. 8. guaranteed deposits in national and foreign currency.
Art. 9. (1) The Fund guarantees full payment of the deposit amounts to one person at a bank regardless of the number and size to 196,000 Levs.
(2) Paragraph. 1 shall not apply to persons who have acquired rights to a deposit as a result of completed disposition of the deposit during the term of the measures under Art. 116, para. 2 pt. 2 and 3 of the Law on Credit Institutions and the date of issue of an act of art. 20, para. 1.

Art. 10. (1) The following deposits are guaranteed up to 250,000 lev for a period of three months from the moment the amount is credited to the account of the depositor or the moment in which the depositor has acquired the right to dispose of the amount of the deposit :
1. Deposits of individuals resulting from real estate transactions for residential purposes;
2. Deposits of individuals that arise as a result of amounts paid in connection with the conclusion or termination of marriage, termination of employment or service relationship, disability or death; 3
. deposits that occur as a result of insurance or insurance payments or payment of damages from crimes or canceled conviction.
(2) Deposits under par. 1 do not participate in the calculation of the total commitment of the bank to a depositor of art. 12 within the period under par. 1.
Section II

Exceptions Art. 11. (1) Do not pay the guaranteed amount of bank deposits:
1. other banks when made in their name and on their behalf;
2. financial institutions under Art. 3 of the Law on Credit Institutions; 3
. Insurers and reinsurers under Art. 8 of the Insurance Code;
4. pension insurance companies and funds of mandatory and voluntary pension insurance;
5. investment firms;
6. collective investment schemes, national investment funds, alternative investment funds and special investment purpose;
7. budget organizations under § 1, p. 5 of the Supplementary Provisions of the public finances;
8. Compensation Fund investors Guarantee Fund Deposit Insurance and Guarantee Fund under Art. 287 of the Insurance Code.
(2) No guarantee on deposits arising out of or related to transactions or actions constituting money laundering within the meaning of Art. 2 of the Law on Measures against money laundering or terrorist financing within the meaning of the Law on Measures against Terrorist Financing established by a final verdict.
(3) shall not be paid deposits the holder of which has never been identified pursuant to Art. 3 of the Law on Measures against Money Laundering on the date of the act of art. 20, para. 1.
(4) The circumstances justifying the exceptions under par. 1 and 2 shall be established on the date of the act of art. 20, para. 1.
Section III
calculation of the guaranteed amount at
Art. 12. (1) The total amount of the obligation of the bank to a depositor shall be determined by deposits, including interest accrued thereon to the date of the act of art. 20, para. 1 collected. When collecting the deposits in foreign currency engage with BGN its equivalent using the exchange rate of the Bulgarian National Bank on the date of the act of art. 20, para. 1.

(2) At a joint deposit the part of any person shall be taken into account in establishing the total amount of deposits in the bank. If the deposit contract is not stated, it is assumed that parts of the depositors are equal.
(3) In cases where the depositor has no exclusive right to the funds in the account, the right to receive payment from the fund to the person in whose favor the deposit is made, unless the contract provides otherwise and provided that that person has been identified or It can be identified before the date of the act of art. 20, para. 1. In the event that the deposit is made in favor of more persons, the rules for joint deposit.
(4) Upon conversion of two or more banks through merger or acquisition deposits in these banks before the transformation is calculated for purposes of coverage under the warranty for each bank individually within a 6-month term of art. 263k para. 1 of the Commercial Law.
(5) Deposit that are encumbered or serves as collateral is included in the collection under par. 1 as relevant due to the deposit of the security is not paid to the depositor - holder of the deposit, to lift the encumbrance or security. If deposits in the first sentence is enforced act of judicial authority, the Fund pays due on the deposit guarantee the person referred to in the Act as having the right to receive the deposit amount. Chapter Four

financing to fund Section
I
Sources fundraising
Art. 13. (1) Sources of the fund are:
1. annual and extraordinary premiums from banks;
2. Income from investing the accumulated funds; 3
. received by the Fund from the assets of the bank in case of subrogation;
4. other sources (loans, grants, foreign aid, etc.).
(2) The Bulgarian National Bank is the custodian of the funds.
Art. 14. (1) Until 1 May of the current year, the fund determines annual premium for each bank, taking into account the risk profile and the amount of guaranteed deposits in the bank for the previous year, calculated as the average of the amount of guaranteed deposits at the end of each quarter .
(2) are guaranteed all deposits up to the amount of the guarantee of art. 9, para. 1, except for the deposits of art. 11, para. 1 and 2.
(3) In determining the insured deposits for the purposes of par. 1 Deposits in foreign currency deposits shall be recalculated in levs at the exchange rate of the Bulgarian National Bank for the day.
(4) The calculation of the amount of contributions under par. 1 shall be determined by ordinance of the Bulgarian National Bank on a proposal of the Management Board of the Fund.
(5) Banks, including branches of foreign banks transferred annual premium by 31 May of the current year.

(6) The annual premiums of banks accounted for as expenses for the current year.
Art. 15. contributions made by banks are not recoverable, including the termination of the bank.
Art. 16. (1) The non-payment of dues within the prescribed period the fund calculated for the period of delay interest on the amount due at the statutory rate.
(2) If the bank does not pay the premium within the fund shall immediately notify the Bulgarian National Bank to take supervisory measures under the Law on Credit Institutions.
(3) If the measures taken under par. 2 does not ensure compliance with the obligation to pay the required contributions, the fund with the express consent of the Bulgarian National Bank may give one month's notice to exclude Bank of membership in the system of deposit insurance in Bulgaria.
(4) The Fund excludes bank system of deposit insurance in Bulgaria if after the deadline under par. 3 bank has failed to fulfill its obligation.
(5) Deposits available on the date off the bank of membership in the system of deposit insurance in Bulgaria continue to be guaranteed by the Fund.
(6) The Bulgarian National Bank shall issue an ordinance for the implementation of this Article on the proposal of the Management Board of the Fund.
Art. 17. (1) Where in the fund exceed one per cent of total insured deposits in banks, the Management Board may decide on annual premiums to be paid a reduced amount or not to pay for a certain period.
(2) Payment of annual contributions shall be resumed when the fund fall below specified in par. 1 size.
(3) The procedure for calculating the annual premiums reduced amount shall be determined in accordance with Art. 14, para. 4.
(4) When used from the fund under Art. 144, para. 1 of the recovery and resolution of credit institutions and investment firms, the payment of installments under par. 2 is determined so that that in par. 1 size to be reached for up to six years.
Section II
Shortfall of funds of funds
Art. 18. (1) If the funds available in the Fund are not sufficient to cover its liabilities under Art. 20 when deposits become unavailable, by decision of the Board of the Fund banks translated into extraordinary premiums amounting to 0.5 percent of insured deposits per calendar year, calculated to the last quarter preceding the date of transfer of the contributions. The fund with the express consent of the Bulgarian National Bank may also require greater contributions in exceptional circumstances.

(2) To cover the remaining shortfall of the funds with the decision of the board Fund may borrow:
1. including through the issuance of debt securities on terms and conditions determined by the Board of the Fund;
2. the state budget after the Council of Ministers.
(3) used by the Fund loans can be secured by a guarantee issued by the Council of Ministers and on behalf of the government or fund assets, including future claims fund.
(4) Where a bank has liquidity problems, Bulgarian National Bank may postpone full or partial payment of contributions under par. 1 for a period not longer than six months. Delaying the payment of contributions under par. 1 may be renewed at the request of the bank.
(5) Contributions under par. 1 which payment is deferred shall be paid when the Bulgarian National Bank found that their payment does not jeopardize the liquidity and solvency of the bank.
(6) Contributions under par. 1:
1. not deducted from the contributions of art. 14, para. 1;
2. They are calculated according to the ordinance under Art. 14, para. 4.

Chapter Five USE OF THE RESOURCES OF THE FUND Section
I

General Art. 19. (1) The funds are used to pay deposit amounts to guaranteed amounts as provided in this Act cases.
(2) the fund is being used to finance the restructuring activities under the terms and conditions of Art. 144 of the Law on recovery and resolution of credit institutions and investment firms.
Section II
Terms and conditions for payment of amounts insured deposits
Art. 20. (1) The Fund pays obligations of the bank to its depositors up to the guaranteed amount in the event that there is:
1. decision of the Bulgarian National Bank to revoke the banking license;
2. decision of the Bulgarian National Bank to establish that deposits are unavailable and that in its opinion at that time the bank seems unable - for reasons directly related to its financial circumstances, to repay the deposit and will not be able to do that in the short term ; decision shall be taken no later than 5 working days of becoming aware that the bank failed to repay deposits which are due and payable, or 3
. a judicial authority, which, for reasons directly related to the financial position of the bank is hindering the bringing of claims of depositors against bank.
(2) The Fund pays insured deposits by one or more banks designated by the Management Board.

(3) Within two working days of the date of the act under par. 1 appointed conservator, temporary or emergency manager, liquidator, provisional liquidator or trustee is obliged to provide the fund information for bank deposits.
(4) Within no later than two working days prior to payments made by the fund management board of the fund is obliged to disclose in at least two national daily newspapers and on its website the day when the depositors of the bank can receive payments from the fund and the bank or banks, which will effect these payments. Correspondence between the fund and depositors are in Bulgarian language.
(5) The Fund provides access to depositors of the bank to the sums to be paid by insured deposits no later than 7 working days from the date of the act under par. 1.
(6) The term of repayment can be extended when:
1. the hypothesis of Art. 12 para. 3, but with no more than three months from the date of the act under par. 1;
2. it is determined whether a person is legally entitled to receive a guaranteed amount of the deposit or where the deposit is subject to legal dispute; in these cases, the deposit shall be paid within 7 working days from the date of notification of the fund to resolve the dispute or establish a legal right; 3
. the deposit is subject to restrictive measures imposed by the government or international organizations; in these cases, the deposit shall be paid within 7 working days from the date of notification of the Fund to terminate the restrictive measures;
4. the amount to be paid is part of a temporary high balance in the account under the terms of Art. 10 but no more than three months from the date of the act under par. 1;
5. Fund pays insured deposits of the Bulgarian branch of the bank in another Member State, but no more than 20 working days from the date of issuance of the act under par. 1.
(7) Irrespective of the term under par. 5, where a depositor or other person who has rights or interests in connection with the amounts on account charge is for an offense arising out of or related to money laundering under Art. 2 of the Law on Measures against money laundering or terrorist financing within the meaning of the Act on measures against financing of terrorism, the Fund may suspend any payments involving depositor / person until the entry into force of the judgment.
(8) Do not pay to accounts in which there were no operations on the instructions of the depositor in the last 24 months before the date of the act of art. 20, para. 1 and the balance of each is less than 20 lev.
(9) amounts paid reduces the amount of liabilities of the bank to depositors.

(10) The Fund shall periodically inform the conservator, temporary or exceptional manager, liquidator, provisional liquidator or receiver of the amount paid to each depositor.
(11) over claims received by the Fund depositors are satisfied from the assets of the Bank in accordance with applicable law.
(12) Bulgarian National Bank shall issue an ordinance for the implementation of this Article on the proposal of the Management Board of the Fund.
Art. 21. (1) A person who claims to be a depositor, but he was refused payment of amounts under the deposit in the amount of art. 9 and 10 in terms of art. 20, para. 5 or 6, or which does not agree with the amount of the paid amount, may file written objections within three months from the initial date of payment of insured deposits to the conservator, temporary or exceptional manager, liquidator, provisional liquidator or trustee in bankruptcy of bank.
(2) The conservator, temporary and exceptional manager, liquidator, provisional liquidator or trustee in bankruptcy ruling on objections under par. 1 in 7 days of receipt. If the objection under par. 1 is not granted, the person may assert their rights under the Civil Procedure Code.
Art. 22. (1) From the date of payment under Art. 20 Fund subrogated to the rights of depositors to the bank within the amounts guaranteed, regardless of the amount and date on which the depositor has ordered a guaranteed amount.
(2) The Fund does not owe interest on the guaranteed amounts.

INVESTMENT Chapter Six of the funds
Art. 23. The funds are invested in:
1. deposits in the Bulgarian National Bank;
2. highly liquid debt securities:
a) issued or guaranteed by the Bulgarian state;
B) issued by other Member States that have a credit rating of the two highest ratings awarded by two credit rating agencies registered or certified in accordance with Regulation (EC) №1060 / 2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies (OJ, L 302/1 of 17 November 2009), hereinafter "Regulation (EC) № 1060/2009";
C) issued by third countries that have a credit rating of the two highest ratings awarded by two credit rating agencies registered or certified in accordance with Regulation (EC) № 1060/2009;
D) issued by the European Central Bank, the European Investment Bank, the European Bank for Reconstruction and Development and other international financial institutions or international financial organizations, including supranational organizations of the Member States whose obligations are assigned one of the two highest ratings issued by two credit rating agencies registered or certified in accordance with Regulation (EC) № 1060/2009.
Chapter Seven

COOPERATION WITH THE SCHEMES FOR DEPOSIT INSURANCE WITHIN THE EUROPEAN UNION Section
I
Borrowing between schemes Deposit Insurance
Art. 24. (1) The Fund may lend schemes for deposit insurance from other Member States under the following conditions:
1. borrowing scheme can not meet its obligations for payment of insured deposits due to lack of funds;
2. borrowing scheme has used the opportunities to raise extraordinary contributions from banks; 3
. borrowing scheme will use borrowed money only for payment of insured deposits;
4. borrowing scheme no obligation to repay the loan from another scheme;
5. borrowing scheme has indicated the amount he wants to borrow;
6. the total amount of the loan can not exceed 0.5 percent of insured deposits of the borrowing scheme;
7. the borrowing scheme informs EBA for the request, ensuring that it fulfilled the conditions under p. 1-5 and indicate the amount of the requested loan;
8. borrowing scheme undertakes to repay the loan within five years; payment can be made in annual installments, and interest is payable at the time of full repayment of principal;
9. the rate of interest is not less than the interest rate on the marginal lending facility of the European Central Bank during the credit period.
(2) The Fund shall inform the European Banking Authority of the initial interest rate and the term of the loan.
Section II
Payment of guaranteed deposits in branches of banks from other Member States
Art. 25. (1) The Fund pays insured deposits to depositors at branches in Bulgaria of banks from other Member States and on behalf of the scheme of deposit insurance in the Member State of origin.
(2) The Fund paid amounts under par. 1 in accordance with the guidelines of the scheme for deposit insurance in the Member State of origin. In these cases, the fund is not responsible for determining the amounts to be paid.
(3) scheme for deposit insurance in the home Member State provides the necessary funds before the payment of the amounts and reimburse the fund all expenditure.
(4) The Fund shall inform the depositors concerned on behalf of the scheme of deposit insurance in the Member State of origin and may receive correspondence from those depositors on behalf of the scheme in the Member State of origin.
Art. 26. (1) The Fund pays insured deposits to depositors at branches of Bulgarian banks in other Member States through the scheme for deposit insurance in the host Member State.

(2) The amounts paid to depositors from the scheme for deposit insurance in the host Member State in accordance with the instructions of art. 7, p. 19.
(3) For purposes of par. 1 banks maintain and provide information about the fund guaranteed deposits in branches of Bulgarian banks in other Member States. Banks provide information to the fund in scope and format according to the instructions of art. 7, p. 19.
Section III
Switching to another scheme for deposit insurance in another Member State
Art. 27. (1) If the Bank terminates its membership in the Fund and joins another scheme to guarantee deposits paid last annual premium contribution of art. 14, para. 1 prior to the termination of the membership is transferred to the other scheme for deposit insurance. This does not apply if the Bank's membership is terminated due to exclusion from the fund under Art. 16.
(2) If any of the activities of a bank transfer to another Member State and consequently switch to another scheme to guarantee deposits of the last paid annual premium contribution of art. 14, para. 1 of this bank is transferred to the other scheme Deposit Insurance proportion of insured deposits transferred.
(3) In the cases under par. 1 and 2, the bank sent notice of its intention to fund at least six months before. During this period, the bank due to annual and extraordinary premium contributions in their original deposit guarantee.
Section IV
agreements for cooperation and exchange of information
Art. 28. (1) For the purposes of Art. 24, 25 and 26 fund conclude cooperation agreements, exchange information received pursuant to Art. 30 para. 2, 3 and 5 and cooperate with schemes guaranteeing deposits in other Member States. The Fund shall inform the European Banking Authority concluded agreements. Failing to reach an agreement with the scheme of deposit insurance in another Member State or dispute concerning the interpretation of the agreements Fund may refer the matter to the European Banking Authority.
(2) The lack of an agreement under par. 1 shall not affect the rights of depositors at branches in the Republic of Bulgaria on the banks of other Member States and the branches of Bulgarian banks in other Member States for their claims from the scheme for deposit insurance of the home Member State and the interests of the banks in the cases of Art. 27.
(3) In connection with the exchange of information on depositors in branches of Bulgarian banks in other Member States and to branches of banks from other Member States in the Republic of Bulgaria, the requirements of confidentiality and data protection for accounts of depositors under the Law on protection of personal data. Chapter Eight

TESTING SYSTEM FOR DEPOSIT INSURANCE

Art. 29. (1) The Fund carries out regular stress tests of the system of deposit insurance, as well as presence information from the Bulgarian National Bank for problems in the bank, which could lead to activation of the system for deposit insurance.
(2) Stress tests are conducted at least once every three years.
(3) The Management Board and employees of the Fund may use the information necessary to test the system for deposit insurance, only to perform the tests. The fund has no right to keep the information received any longer than necessary for the tests of time. Chapter Nine


EXCHANGE OF INFORMATION Art. 30. (1) Banks provide the funds necessary information to calculate the premiums payable to the fund.
(2) Banks are required to submit the fund necessary information for regular testing of the system of deposit insurance or to prepare a repayment of guaranteed deposits at any time and upon request from the Fund in the form and format specified in instructions Art. 7, p. 19.
(3) The Fund may at any time request information from the bank for eligible deposits per depositor and marking them under Art. 57, para. 3 of the Law on Credit Institutions.
(4) The Bulgarian National Bank shall immediately inform the Fund in the event that a bank problems are found, which are likely to cause activation of the system of deposit insurance, as well as applied to banks' supervisory measures under Art. 103, para. 2 pt. 4-9, 13-15, 17-21, 23 and 24 of the Credit Institutions Act, giving the fund a copy of the application of the measure.
(5) The Bulgarian National Bank shall immediately notify the fund, in case it has been found the occurrence of the conditions under Art. 36, para. 1 and 2 of the Law on Credit Institutions.
(6) At the request of the Fund Deputy Governor "Banking Supervision" of the Bulgarian National Bank, carried out targeted inspections of banks and present the results to the fund.
(7) The Board may publish information about the fund, which contains data representing banking or commercial secret.
(8) In the cases under par. 6 restrictions under Art. 62 and 63 of the Credit Institutions Act on access to bank and professional secrecy do not apply.
(9) information that it acquires or creates in performing its functions under this Act and the disclosure of which would harm the commercial interests or the reputation of the bank, its shareholders or customers, is a professional secret. Professional secrecy does not constitute an official secret under the Law on protection of classified information.

(10) There is a professional secret information subject to publication or disclosure in accordance with law.
(11) Board members, employees, external auditors, experts and other persons working for the fund are obliged to keep professional secrecy, even after termination of their relationship with the Fund.
(12) persons under par. 11 may use the information covered by professional secrecy only for the purposes and in the performance of their duties. This information can not be disclosed or provided to other persons or bodies except those under para. 14 cases.
(13) restrictions under par. 12 shall not apply if the information is provided in summary form so that it can not identify the bank or persons concerned. Information obtained from a bank or other person liable under this Act may grant them back without restriction.
(14) persons under par. 11 can provide information covered by professional secrecy to the following bodies and organizations in connection with the performance of their functions or duties:
1. Court:
a) in the case of criminal proceedings;
B) in connection with a lawsuit concerning actions under this Act and / or the Bank Insolvency Act;
2. other organs where it is expressly provided for in a special law; 3
. scheme for deposit insurance in the Member State for the purposes of Art. 25, para. 1.
(15) Every year at the latest by 1 March, the Management Board of the Fund inform the European Banking Authority of the amount of guaranteed deposits in the country and the amount of funds available to the Fund as at 31 December of the previous year.
Art. 31. When a bank fails to fulfill its obligations under Art. 30, the fund shall immediately notify the Bulgarian National Bank to take supervisory measures under the Law on Credit Institutions.
Art. 32. Banks covered in the system of deposit insurance can not used for advertising purposes the guarantee amount under this law, and to promote deposit insurance in amounts exceeding those set by this law.
Art. 33. If the bank discontinued its membership in the Fund or be excluded from it, it shall within one month from the date of termination of membership to inform depositors about it. ADDITIONAL PROVISIONS

§ 1. For the purposes of this Act:
1. 'Deposit' is a credit balance which results from funds left in an account or from temporary situations due to normal banking transactions which the bank is obliged to pay under the applicable laws and contractual conditions with the exception of credit balance for which any of the following conditions:

A) its existence can only be proved to a financial instrument within the meaning of Art. 3 of the Markets in Financial Instruments unless savings product certified with the deposit certificate issued to a named person and going to July 2, 2014 .;
B) its principal is not repayable at par;
C) its principal is repayable at par only under a particular guarantee or agreement with a credit institution or a third party;
D) is not equity as defined in Art. 4, paragraph 1, p. 118 of Regulation (EU) № 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) № 648/2012 (OJ, L 176/1 of June 27, 2013), hereinafter referred to as "Regulation (EU) № 575/2013", or debt securities issued by a bank, and liabilities resulting from the promissory note or the result written consent of the bank payer to accept the order of the issuer of the bill of exchange.
2. 'Unavailable deposit "is a deposit that is due and payable but has not been paid by the bank under statutory or contractual conditions applicable thereto. 3
. "Joint Deposit" are cash account opened in the name of two or more persons or in an account to which two or more persons have rights exercised by the signature of one or more of these persons.
4. "Available resources" are cash, deposits and low-risk assets that can be liquidated within a period not exceeding the term of art. 20, para. 5.
5. "Eligible deposits' are deposits that are not excluded from protection under Art. 11, para. 1 and 2.
6. "Depositor" is the holder or in the case of a joint account - each of the holders of the deposit.
7. "Member State" country - EU member state or another state - party to the Agreement on the European Economic Area.
8. "Third country" is a country that is not a Member State within the meaning of item. 7.
9. "Low risk assets" are tools within the first or second category in Table 1 in the article. 336 of Regulation (EU) № 575/2013, or other assets for which the Bulgarian National Bank or the Fund believes are just as safe and liquid.
10. "Schemes Deposit Guarantee" are:
a) statutory schemes to guarantee deposits;
B) schemes to guarantee deposits that are officially recognized as Guarantee Schemes deposits;
C) institutional protection schemes that are officially recognized as Guarantee Schemes deposits.
11. "Member State" is a concept within the meaning of Art. 4, paragraph 1, p. 43 of Regulation (EU) № 575/2013.
12. "Host Member State" is a concept within the meaning of Art. 4, paragraph 1, p. 44 of Regulation (EU) № 575/2013.

13. "Branch" is a concept within the meaning of § 1, para. 1, p. 22 of the Additional Provisions of the Law on Credit Institutions.
§ 2. This Act introduces the requirements of Directive 2014/49 / EC of the European Parliament and of the Council of 16 April 2014 on Guarantee Schemes deposits (OJ L 173/1 of June 12, 2014).
TRANSITIONAL AND FINAL PROVISIONS
§ 3. This Act repeals the deposit insurance in banks (prom. SG. 49 of 1998 .; amend., SG. 73, 153 and 155 of 1998 ., No. 54 of 1999 pcs. 109 of 2001, pcs. 92 and 118 of 2002, pcs. 31 and 39 in 2005, pcs. 59, 64 and 86, 2006 pcs. 67 and 98 in 2008, pcs. 42 and 44, 2009, pcs. 97 and 101 in 2010, pcs. 109 of 2013, pcs. 98 2014 pcs. 22 2015).
§ 4. Guarantee Fund Bank Deposit is the successor fund to guarantee deposits in banks established by the repealed Law on Deposit Insurance banks.
§ 5. For the procedures for payment of insured deposits started before the entry into force of this Act, the provisions of the repealed Law on Deposit Insurance banks.
§ 6. In the Credit Institutions Act (prom. SG. 59 of 2006 .; amend. Pcs. 105 of 2006, pcs. 52, 59 and 109 of the 2007 issue. 69 of 2008, pcs. 23, 24, 44, 93 and 95 of 2009, pcs. 94 and 101 in 2010, pcs. 77 and 105 of 2011, pcs. 38 and 44 of 2012 ., No. 52, 70 and 109 of 2013, pcs. 22, 27, 35 and 53 of 2014 pcs. 14, 22 and 50 of 2015) the following amendments:
1. In art. 36:
a) in para. 1 creates pt. 7:
"7. Bulgarian National Bank has decided to establish that bank deposits are unavailable, pursuant to Art. 20, para. 1 pt. 2 of the Law on Deposit Insurance banks. "
B) paragraph 2 shall be amended as follows:
"(2) The Bulgarian National Bank must withdraw the license issued to the bank due to insolvency when its equity is negative and the conditions for restructuring under Art. 51, para. 1 of the recovery and resolution of credit institutions and investment firms. "
C) in para. 7 after the word "license" insert "under par. 1 ".
2. In art. 37, para. 2, the second sentence: "The request shall be filed not later than two working days after the withdrawal of the license."
Third. In art. 56 new paragraph. 5:
"(5) The inclusion and exclusion from the information system is carried out by an act of Deputy Governor" Banking "."
4. In art. 57:
a) Paragraph 3 is amended as follows:

"(3) The Bank shall indicate the terms under par. 2 and in the contract that the deposit is guaranteed or not in the terms and conditions of the Law on Deposit Insurance Fund, the bail amount and the applicable system for deposit insurance. Newsletter accordance with the Annex shall be provided to investors before the conclusion of the contract and at least once a year after signing a contract in the language and in the manner chosen by mutual agreement between the depositor and the bank when opening the account. Banks must mark the Deposit in a manner and procedure determined by the BNB that allow immediate identification of eligible deposits within the meaning of § 1, p. 5 of the Supplementary Provisions of the deposit insurance in banks. "
B) a par. 6:
"(6) The Bulgarian National Bank shall notify the depositors to convert the bank through the merger with another bank at least one month before the action to produce legal effects by disclosure of the BNB website. Within three months of notification depositors can withdraw or transfer to another bank their eligible deposits within the meaning of § 1, p. 5 of the Additional Provisions of the Law on Deposit Insurance banks together with accrued interest on the amount of security, without penalties or fees for early termination of the deposit. "
5. In art. 58:
a) in para. 3, 'which is not user "shall be deleted;
B) a par. 5:
"(5) This section applies for loans that are not custom."
6. In art. 62:
a) paragraph 1 shall be amended as follows:
"(1) The employees of the bank, members of management and supervisory bodies of the bank officials BNB staff and members of the board of the Fund Deposit Guarantee banks, liquidators, trustees and interim trustees, and all other persons working for the bank could not disclose, and use for personal or members of their families gain information constituting bank secrecy. "
B) paragraph 5 shall be amended as follows:
"(5) In addition to the Bank for the purpose and conditions of Art. 56 bank can give information under par. 2 for individual clients only:
1. with their consent;
2. by a court decision, taken under par. 6 and 7; 3
. by order of the court when it is necessary to clarify the circumstances of the case pending before it or
4. in cases under par. 12 with a bank in bankruptcy. "
7. In art. 63, para. 1, first sentence the words "and the disclosure of which would harm the commercial interests or the reputation of the bank or its shareholders" are deleted.
8. In art. 64:
a) in para. 1:
aa) in section. 2, letter "b" after the word "court" shall be added "or arbitration";

Bb) point 3 is amended as follows:
"3. Financial Supervisory Authorities in the Republic of Bulgaria, the Fund for deposit insurance in banks and the State Agency "National Security" - in cases and procedures specified in the Law on Deposit Insurance banks or through joint instructions or agreements; "|| | b) in para. 2, the second sentence: "Such information may be made only where necessary for the purposes of surveillance, prevention and resolution of credit institutions."
9. In art. 67:
a) creates a new item. 7:
"7. detailed records of financial contracts under § 1, p. 83 of the Additional Provisions of the recovery and resolution of credit institutions and investment firms to which the bank is a party; "
b) the previous item. 7 becomes item. 8 .
10. 73d is repealed.
11. In art. 103:
a) in para. 1:
aa) Point 7 is amended as follows:
"7. nonpayment of premium contribution to the Fund for deposit insurance in banks or other actions threatening the interests of depositors; "
bb) the item. 18:
" 18. unplanned changes in activity in the BNB within or at the discretion of the Bank proposed bank changes are not suitable for the removal of shortcomings and obstacles in relation to the preparation and adoption of recovery plans under Chapter II, Section I of the Law on recovery and resolution credit institutions and investment firms. "
B) in para. 2:
aa) point 21 is deleted;
Bb) in Item. 23 finally added "where there are no conditions for the appointment of a temporary administrator of art. 46 of the recovery and resolution of credit institutions and investment firms';
Cc) in Item. 24 words "- in danger of insolvency" are deleted.
12. In art. 103a para. 2 pt. 1 the words "Art. 73d "are deleted.
13. In art. 105, para. 2, first sentence after the word "should" insert "at the discretion of the Bank have qualifications, skills and knowledge necessary to perform their assigned functions and tasks, and" and after the words "Art. 11, para. 1 "is added" item. 1 and m. 3-9. "
14. In art. 115:
a) paragraph 1 shall be amended as follows:
"(1) The Bulgarian National Bank may put the bank under special supervision under the following conditions:
1. bank failed to repay deposits which are due and payable, and the Bank has initiated proceedings to rule on art. 20, para. 1 pt. 2 of the Law on Deposit Insurance banks and
2. the bank is not eligible for restructuring under the recovery and resolution of credit institutions and investment firms. "
B) paragraph 2 shall be repealed;
C) in para. 3 first sentence the words "six months" are replaced by "one month" and the second sentence is deleted;
D) a par. 4:

"(4) In the cases of art. 107, 109, 110 and Art. 115-121 provisions of the Public Offering of Securities Act shall not apply with respect to the Bank - a public company. "
15. In art. 116:
a) a new para. 3:
"(3) The measure under par. 2 pt. 2 may not provide total foreclosure depositors to deposit for a period longer than 5 days. "
B) the previous paragraph. 3 becomes para. 4.
16. In art. 118 par. 1, 2 and 3 are canceled.
17. In art. 121 word "one" is replaced by "10 days".
18. In Chapter Eleven Section IX Article 121a is repealed.
19. In art. 125 par. 3 is amended as follows:
"(3) If the proposal under par. 1 is grounded, the BNB Governing Council on a proposal by Deputy Governor "Banking Supervision", within 5 working days of the proposal under par. 1 take a decision finding that the bank is in a state of insolvency, and to request the competent court for the opening of bankruptcy proceedings. "
20. In art. 127, para. 5 Insert "and its temporary and exceptional managers."
21. In art. 130 par. 3 is amended as follows:
"(3) If the proposal under par. 1 is grounded, the BNB Governing Council on a proposal by Deputy Governor "Banking Supervision" take a decision finding that the bank is in a state of insolvency, and to request the competent court for the opening of bankruptcy proceedings . "
22. In art. 133:
a) in para. 1:
aa) the words "and other similar measures" shall be deleted;
Bb) the second sentence: "The remedy includes application tools for restructuring and exercising the powers restructuring under the recovery and resolution of credit institutions and investment firms or the legislation of another Member State."
B) a par. 4:
"(4) The measures under par. 1 are measures implemented by the National Bank and the competent authorities of another Member State in their capacity as supervisory authorities and restructuring. "
23. In art. 145:
a) t. 1, 'or other instruments "are replaced by" instruments within the meaning of Art. 4, paragraph 1, p. 50, letter "b" of the Regulation (EU) № 575/2013 ";
B) in item. 2 finally added "subject to the provisions of Art. 100 and 103 of the Law on recovery and resolution of credit institutions and investment firms or relevant provisions of the legislation of a Member State ";
C) in item. 3 finally put a comma and added "subject to the provisions of Art. 100 and 103 of the Law on recovery and resolution of credit institutions and investment firms or relevant provisions of the legislation of a Member State. "

24. In art. 148 'or other instruments "are replaced by" instruments within the meaning of Art. 4, paragraph 1, p. 50, letter "b" of the Regulation (EU) № 575/2013 ".
25. In art. 151 par. 4 is amended as follows:
"(4) In proceedings under par. 3 when necessary to conduct a forensic accounting or judicial-economic examination, the court shall appoint experts from a list approved by the President of the Supreme Administrative Court. Bulgarian National Bank shall provide the President of the Supreme Administrative Court, information on specialized auditing companies that audit the annual financial statements of the bank or branch of a bank in a third country under Art. 76 and 78 in the last five years. These businesses provide the Chairman of the Supreme Administrative Court a list of at least two certified public accountants who were involved in those activities. Chairman of the Supreme Administrative Court approved a list of experts which is updated at least every five years. "
26. In § 2 of the Supplementary Provisions par. 2 is repealed.
27. An annex to art. 57, para. 3:
"Supplement to the article. 57, para. 3
information template for depositors
Basic information about deposit protection





Deposit
(Insert name of bank) are protected by:


Guarantee Fund Deposit Insurance (DIF)




Coverage:


196 000 lev per depositor per bank




If you have more deposits in one bank:


All your accounts in the same bank is "aggregated" and the total amount applied guaranteed amount - 196 000 lv.1




If you own a joint deposit with another person (persons):


The guaranteed amount - 196 000 lev applies to each vlozhitel2




Deadline for payout in case of
insolvency of the bank:


7 working dni3




Currency used for payout:


Guaranteed deposit amounts are paid in Bulgarian levs.




Contact:


Guarantee Fund Deposit Insurance (DIF)
Address: …………………………….
Tel: .........., Fax: ...............,
e-mail: contact@dif.bg
URL: http://dif.bg




For more information:


www.dif.bg





Acknowledgement of receipt by the depositor:









__________
1 If a deposit stock as a bank is unable to meet its financial obligations DIF paid deposits of depositors.

The maximum amount which can be paid is 196 000 lev to the bank. This means that all deposits in one bank are added together to determine the amount of the guarantee. For example, if a depositor holds a savings account that has 180,000 Levs and current account which has 40,000 lev, this depositor will be paid only 196,000 Levs.
2 In joint deposit limit - 196 000 lev applies to each depositor.

More information can be found on the website of the DIF: www.dif.bg.

3 payout

Obligations scheme for deposit insurance is:
Guarantee Fund Bank Deposit (DIF)
1606 Sofia, ul. Vladayska № 27,
Phone: +359 2953 1217, fax + 359 2 952 1100
e-mail: contact@dif.bg
URL: http://dif.bg.
Deposit Insurance Fund will start paying your savings amounting to 196,000 Levs in no later than 7 working days from the date of issuance of the act of art. 20, para. 1 of the Law on Deposit Insurance banks. Other important information

Basically all depositors, whether natural or legal persons protected by the schemes for deposit insurance. Exceptions for certain deposits are stated on the website of the debited scheme for deposit insurance. Upon request your bank will inform you whether certain products are covered or not. If deposits are covered, the bank confirms this and statement of account. "

§ 7. The Law on Financial Collateral Arrangements (prom. SG. 68 of 2006 .; amend., SG. 24 of 2009 n. 101 of 2010, pcs. 77 2011, pcs. 70 and 109 of 2013) in art. 3, para. 1 p. 17 is amended as follows:
"17. any person except a sole trader or a company which is not a legal person, provided that the other party to the contract for financial security person under p. 1 - 16. "
§ 8. The resources available in the fund must reach size one per cent of the total amount of insured deposits in banks no later than July 3, 2024
§ 9. Ordinance under Art. 14, para. 4 taken within December 31, 2015
§ 10. (1) This Act shall enter into force on the day of its promulgation in the "Official Gazette".
(2) The requirement to determine premiums proportional to the degree of risk in accordance with Art. 14, para. 1-4 shall apply from 1 January 2016 to 31 December 2015, the requirements of Art. 16 para. 1-4 of the repealed Law on Deposit Insurance banks.
The law was adopted by the 43rd National Assembly on July 30, 2015 and was affixed with the official seal of the National Assembly.
Chairman of the National Assembly Tsetska Tsacheva
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