Amendment Of The Act On Banks And Certain Other Laws

Original Language Title: změna zákona o bankách a některých dalších zákonů

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Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=53295&nr=126~2F2002~20Sb.&ft=txt

126/2002 Sb.



LAW



of 13 October. March 2002,



amending Act No. 21/1992 Coll., on banks, as amended

legislation, Act No. 219/1995 Coll., the Foreign Exchange Act, as amended

legislation, Act No. 593/1992 Coll., on reserves for the determination of the tax base

income, as amended, law No. 241/2001 Coll., on the Czech

the consolidation of the Agency and on amendments to certain acts (the Act on the Czech

consolidation agency), as amended by Act No. 15/2002 Coll., Act No.

513/1991 Coll., the commercial code, as amended, and the law

No 363/1999 Coll., on insurance and amending certain related

law (Insurance Act), as amended



Change: 278/2009 Sb.



Change: 89/2009 Sb.



Parliament has passed the following Act of the United States:



PART THE FIRST



Amendment of the Act on banks



Article. (I)



Act No. 21/1992 Coll., on banks, as amended by Act No. 265/1992 Coll.,

Act No. 293/1993 Coll., Act No. 154/1994 Coll., Act No. 83/1995 Coll.

Law No. 84/1995 Coll., Act No. 61/1996 Coll., Act No. 306/1997 Coll.

Act No. 16/1998 Coll., Act No. 125/1998 Coll., Act No. 167/1998 Coll.,

Act No 120/2001 Coll., Act No. 239/2001 Coll. and Act No. 318/2001

Coll., is amended as follows:



1. in article 1, paragraph 1, including footnote # 1):



"(1) this Act regulates some relations related to the creation,

business and the demise of banks established in the territory of the Czech Republic, including

their effect outside the territory of the United States, and on some of the relationships

related to the effect of foreign banks in the territory of the Czech Republic.

The banks, for the purposes of this Act shall mean the legal person established in the

The Czech Republic, founded as a joint stock company, "^ 1") that



and) receive deposits from the public, and



(b)) provide loans,

and that to pursue the activities referred to in points a and b)) have a banking license

(hereinafter referred to as the "license") (§ 4). The provisions of the commercial code on the stock

the company will not apply to them, unless this Act provides otherwise.



1) commercial code. ".



2. in article 1, paragraph 3, including footnote No. 1a) is inserted:



"(3) the Bank may, in addition to the activities referred to in paragraph 1 (b). and) and (b)),

to perform these additional activities, if it is allowed in the license granted by the



and) invest in securities on own account,



(b)) finance lease (finance lease)



(c) payments and clearing),



(d)) the issuance and management of means of payment, such as credit cards

and travellers cheques,



(e)), provision of guarantees,



(f) the opening of letters of credit),



g) procurement of direct debit,



(h)) to provide investment services ^ 1a)



I) issuance of mortgage bonds,



j) financial broking,



the performance of the functions of the depositary to),



l) foreign exchange cash operations (purchasing of foreign exchange resources),



m) provision of banking information,



n) trading for own account or for the account of the client with foreign exchange

values, and with gold,



about) car safety



p) activities directly related to the activities referred to in (a))

up to) and in paragraph 1.



1A) of section 8 of Act No. 586/1992 Coll., of the Securities Act, as amended

regulations. ".



3. in section 1, paragraph 4 reads:



"(4) the Bank shall engage in any other business than those that has

allowed in the license. It does not apply to activities carried out for another,

If ensuring of its operation and the operation of other banks

financial institutions and ancillary banking services undertakings over which the

the Bank carries out control. ".



4. In section 1 (1). 5, the words "and 4 ' shall be deleted and the following is added at the end of paragraph

This sentence:



"Unless a special law determines the performance of certain activities

granting of an authorisation, can allow such an activity licence until

will be granted a residence permit under special legislation. ".



5. In section 1 (1). 6, the word "permit" shall be replaced by the word "license".



6. in section 1, paragraph 7 is added:



"(7) a Licence contains a definition of the permitted activities and nominal can

contain a definition of the scope of the approved activities, but not in the sense of

limit the number of individual business cases, and it can also contain

the determination of the conditions to the Bank or branch of a foreign bank

meet before the start of any of the approved activities, where appropriate, is

exercise any of the permitted activities. ".



7. § 2 reads as follows:



"§ 2



(1) without a licence, no person shall



and receive deposits from the public),



(b)) to issue electronic money,

If a specific law provides otherwise.



(2) electronic money instrument "means a payment instrument,

that stores cash value in electronic form and that is

accepted as means of payment, as well as by persons other than its

by the Publisher.



(3) acceptance of deposits is considered also the continuing issue of bonds and

other comparable securities, if



and) is the only or one of the main activities of the issuer,



(b) the subject of the business activities of the issuer) is the provision of loans, or



(c) the subject of the business activities of the issuer) is one of the activities

referred to in § 1 (1). 3.



(4) acceptance of deposits from the public is not considered a continuing issue

of bonds and other comparable securities, will be offered

only institutional investors. "



8. In section 3, paragraph 3. 1 the words "on the basis of these words

occur, "shall be replaced by the words" derived from them ", the words" business name "

shall be replaced by "commercial company" and the words "permit was granted

Act as the Bank "shall be replaced by the words" the licence was granted ".



9. in section 3, paragraph 2 reads as follows:



"(2) the provisions of paragraph 1 shall not apply to persons whose business

company or name are introduced or recognised by law or on the basis of

the international treaty, which was approved by the Parliament, ratified and

published and which the Czech Republic is bound, or on the basis of a similar

the international treaty, which entered into force before 1. in January 1993,

(hereinafter referred to as "international agreement"). ".



10. In section 3, the following paragraph 3 is added:



"(3) the Czech National Bank may require



and the proposed change of trade firm) created the Bank in cases where the

There is a danger of confusion with the trade name of another already existing

legal persons or organizational units,



(b)) change of trade firm of the branch of the foreign bank of the Tween

the distinguishing addendum in cases where there is a likelihood of confusion with

the trade name of another already existing legal entity or its

organizational folder. ".



11. the title of part II:



"PART TWO



The licence ".



12. in section 4, paragraph 1 reads:



"(1) an application for a license shall be presented to the Czech National Bank. With the application for

the licence shall be submitted to the draft statutes. The minimum amount of share capital

the Bank shall be Eur 500 0000 0000 and at least in this amount must consist of

cash deposits. Requirements for an application for a license provides for the Czech national

the Bank notice. ".



13. in section 4, paragraph 4. 2, the words "permit to operate as a bank ' shall be replaced by

the word "license".



14. in paragraph 4, at the end of paragraph 2 the following sentence:



"Before issuing a decision on the application for a licence shall consult the Czech national

the Bank of its intention with the authority of the Bank or other supervision of the competent

State, if required by an international treaty ".



15. in section 4, paragraph 3 is added:



"(3) for the grant of a license shall be subject to the following conditions:



and transparent and safe) the origin of the capital and other financial

resources of the Bank, their sufficiency and matching song



b) capital in full,



c) eligibility with a qualified interest (Article 17a, paragraph 4) on the Bank to

exercise of the rights of a shareholder in the business of the Bank,



(d)) the competence, credibility and experience of the people that are on the

the basis of employment or another contract proposed in a bank to the Executive Management

function with which it is associated with power and responsibility as defined by statute,

(hereinafter referred to as "the head of the staff of the Bank"),



e) technical and organizational conditions for the performance of the proposed activities

banks, functional management and control system of the Bank including the management system

risks,



f) business plan based on the strategy proposed activities of the Bank

based on real economic calculations,



g) transparency groups with close links to which it belongs with the founder

qualified participation (Article 17a, paragraph 4) on the Bank,



h) close links within the groups referred to in subparagraph (g)) does not prevent the exercise of

banking supervision,



I) in the State on whose territory the group referred to in subparagraph (g)) close links,

they are not legal or de facto barriers to exercise banking supervision,



(j) the headquarters of the future of the Bank) must be within the territory of the United States. ".



16. in section 4, paragraph 3, the following paragraph 4 is added:



"(4) the close links, for the purposes of this Act, the



and) relationship between two or more parties, in which one of the people on the

the other person, directly or indirectly, at least 20% of the share capital

or of the voting rights,



(b)) the relationship between two or more persons, in which one of the people the other

a person controls



(c)) the relationship of two or more persons who are controlled by the same person. ".



The current paragraph 4 shall become paragraph 5.



17. section 5 is added:



"§ 5



(1) a foreign bank that proposes to establish a branch within the territory of the United

Republic, shall submit an application for a licence of the Czech National Bank.




(2) a foreign bank shall submit at the same time as the application for a license expression

the banking supervisory authority of the country of residence of the foreign bank to the intent

set up a branch in the Czech Republic and its statement that the above branch

banking supervision will be carried out.



(3) the licence referred to in paragraph 1 shall be decided by the Czech National Bank,

that's before the decision will require the opinion of the Ministry of finance.



(4) for the grant of a licence referred to in paragraph 1 shall be subject to the following

terms and conditions:



and a sufficient volume and transparency) the origin of the financial resources provided by the

foreign bank branch with regard to the scope and level of risk of

business affiliates



(b)) the credibility of the foreign bank and its sufficient financial strength with

given the scope of business of the branch



(c)) the competence, credibility and experience of the persons proposed to

management of the branch,



(d)) of the technical and organizational conditions for the performance of the proposed activities

Branch, functional management and control system including system branch

risk management,



e) business plan based on the strategy proposed activities of the branch

based on real economic calculations,



f) transparency groups with close links to which the foreign

the Bank,



g) close links within the groups referred to in subparagraph (f)) does not prevent the exercise of

banking supervision,



(h)) in the State on whose territory the group referred to in subparagraph (f)) close links,

they are not legal or de facto barriers to exercise banking supervision,



I) a foreign bank wishing to operate through its branch in

the Czech Republic must have a registered office and head office within the

the same State.



(5) the requirements referred to in paragraph 1, as well as the minimum amount of

provided financial resources, established by a decree of the Czech National Bank.



(6) the reason for the rejection of the application for the licence cannot be the fact that

the legal form of a foreign bank does not correspond to the legal form of the joint stock

the company.



(7) the procedure referred to in paragraphs 1 to 5 shall not apply to the cases referred to in §

5a. ".



18. in section 5, the following new paragraph 5a to 5 m, including a footnote

# 3) are added:



"§ 5a



(1) a bank located in the Member States of the European Union and persons authorized to

to the issuance of electronic money based in Member

States of the European Union may exercise, on the territory of the Czech Republic

through its branches of activity under this Act without a licence,

If permission to their performance they have been granted in the country of their location and

If the foreign person has complied with the procedure laid down by the law of the European

the community in accordance with § 5 c up to 5 m. Such branches are covered by the registration

the obligation of tax subjects under special legislation. ^ 3)

Banks based in the Member States of the European Union and of a person authorized to

the issuance of electronic money based in Member

States of the European Union under the same conditions are also entitled to

the pursuit of these activities without establishing a branch, if their

the operation does not have the character of permanent economic activity.



(2) the provisions of paragraph 1 shall not apply in the cases, when it comes to persons who

do not benefit from the advantages of the single licence according to the law of the European communities,

or about a person based in the State, which does not enjoy the benefits of a single license

According to the law of the European communities.



(3) the Czech National Bank may, in accordance with the international treaty by Decree

extend the range of States whose bank or a person authorized to issue

electronic funds enjoy, when business in the territory

The United States, the same facilities as banks and persons authorised to issue

electronic funds based in the Member States

Of the European Union.



(4) the branches of foreign banks, which according to paragraph 1, the territory of the

The United States to carry out activities under this Act without a licence

granted to them by the competent foreign bank, are not subject to this Act with the

exception of the provisions of § 11 (1) 5, the obligation to provide information under section

38 para. 2 to 6, the provisions concerning liquidity, implementation

monetary policy, amending the clearing bank (§ 20 c), and the provisions of § 41 m

paragraph. 1 and 2.



(5) If a branch of a foreign bank referred to in paragraph 1 shall decide

to participate in the payment system operated by the Czech National Bank (§

20b), subject to laws governing the operation of this

the system. If a branch of a foreign bank decides to use options

under section 38 (a) of paragraph 1. 1, subject to the provisions of § 38a.



(6) the provisions of this Act relating to the insurance of receivables from

deposits at these branches apply only when they exercise options

provided for in § 41 m. Procedure according to § 26 can be to branches of foreign

the banks referred to in paragraph 1 apply only on the condition that the branch fails to

on the challenge of the Czech National Bank remedy itself and, at the request of the Czech national

the Bank has not completed the remedy its prior informing or authority

banking supervision to the residence of the foreign banks, and

the conditions that the unlawful situation persists. This does not apply in case of breach

the provisions of § 11 (1) 5, provisions on the appeal and the clearing bank, in

the case of violation of the legislation governing the operation of payment

system operated by the Czech National Bank (§ 20b), if the branch is

a participant in such a system, in the case of violation of the provisions of § 38a and

the obligation to provide information under § 38 paragraph 1(a). 2 to 6, or just can't stand the

a matter of delay, and if it is necessary in the interests of depositors. Procedure according to § 26

applied on the grounds that the matter is urgent and if necessary in the interest of

depositors, the Czech National Bank must, without undue delay, or in

the time limit set by the Commission of the European communities to rethink, if

The Commission of the European communities so decides in accordance with § 5 para. 4.



(7) the Czech National Bank may in the branches of foreign banks, which according to the

paragraph 1, on the territory of the United States to pursue the activities referred to in

This Act without a licence granted in respect of the foreign bank,

or in the persons forming the consolidation unit is a member of foreign

the Bank referred to in paragraph 1, perform a check on the spot, if requested, a

supervisory authority to the country of residence of the foreign bank. The supervisory authority of the country of residence of

the Bank or the person entitled to the issuance of electronic money

the funds referred to in paragraph 1 may, after prior notification of the Czech national

the Bank carried out on the territory of the Czech Republic on the spot check at the Branch Office

foreign banks referred to in paragraph 1, the persons authorized to issue

electronic funds referred to in paragraph 1 or in the financial

institution that meets the conditions of § 5e para. 1.



section 5b



The license shall not be granted if it would be contrary to international

the Treaty.



The principle of single license



§ 5 c



(1) a bank located within the territory of a Member State of the European Union (hereinafter referred to as

"home State") may exercise, on the territory of another Member State

The European Union (hereinafter referred to as "the host State") through its branch

activities listed in § 5 d without a license, if the permission to

the performance of these banks issued in the home State. The same privileges with

the exception of the activities referred to in § 5 d (a). a) also applies to the financial

institutions meeting the conditions referred to in § 5e para. 1 (hereinafter referred to as

"authorized financial institution").



(2) a bank referred to in paragraph 1 shall be further entitled to the pursuit of activities

listed in § 5 d even without establishing a branch, if their operation

does not have the character of permanent economic activity. The same applies to eligible

financial institutions referred to in paragraph 1 with the exception of the activities referred to in § 5 d

(a). and).



(3) to exercise on the territory of the host State through its branch

activities without a licence cannot bank or financial institution that

It does not enjoy the benefits of the single licence according to the law of the European communities,

or a bank or financial institution established in a State that does not enjoy

the advantages of the single licence according to the law of the European communities.



§ 5 d



The Bank or authorized financial institutions may exercise, on the territory of the

of the host State, in compliance with the conditions laid down by the law of the European

community and referred to in this Act, the following activities:



and) acceptance of deposits from the public,



b) lending,



(c)) finance lease (finance lease)



d) payments and clearing,



e) issuing and managing means of payment,



(f)), provision of guarantees,



g) trading for own account or for the account of the client



1. money-market instruments,



2. with funds in foreign currencies,



3. in the area of futures (futures) and options (options) including

Exchange-rate and interest-rate deals,



4. transferable securities,



h) participation in the issuing of securities, and the provision of related services,



as well as advice in matters of) capital structure, industrial strategy and in

related questions and advice and services relating to mergers and the purchase of

enterprises,



j) money brokering,



k) securities management on behalf of the client, including the

advice (portfolio management),



l) storage and management of securities,



m) provision of banking information,



n) safekeeping valuables.



§ 5e



(1) a financial institution that intends to make use of the advantages referred to in § 5 c,

at the same time must meet the following conditions:




and the Bank or the Bank) in accordance with § 5 para. 1 must have at least 90%

voting rights and share capital in this financial

institution and must be governed by the law of the same State as this financial

institutions,



(b)) the activities that it intends to operate on the territory of the host Member State must

operated on the territory of their country of origin,



(c)) must be included in consolidated supervision exercised over the Bank

or banks pursuant to § 5 para. 1 in accordance with the provisions of the European

the community,



(d)) the Bank or Bank pursuant to § 5 para. 1 jointly and severally liable with

the approval of the supervisory authority is liable for its obligations,



(e)) the Bank or Bank pursuant to § 5 para. 1 meet the requirements of the home

supervisory authority regarding the prudent management of financial institutions.



(2) the conditions referred to in paragraph 1 shall be verified by the supervisor

Home State, who shall issue a confirmation.



(3) in the event that the authorized financial institution ceases to meet any

of the conditions referred to in paragraph 1, the home supervisory authority immediately

informs the host supervisory authority and financial institutions shall cease to be benefits

single license.



§ 5f



The Bank or authorized financial institution that intends to base its

a branch within the territory of the host Member State shall inform the supervisory authority

Home State and inform him in writing the following information:



and) on the territory of the Member State intends to set up a branch,



(b)) a business plan containing the particular enumeration of the activities envisaged,



(c)), the organisational structure of the branch



(d) the address in the host State), on which it will be possible to retrieve documents,



(e)) the names of persons responsible for the management of the branch,



f) in the case the legitimate financial institution whether or not the supporting documents for verification

the facts referred to in § 5e para. 1.



§ 5 g



(1) the supervisory authority of the home State if it has doubts as to the

organizational structure and financial position of the Bank or financial institution

in relation to the expected activities, it passes within 3 months of receipt of the

information in accordance with § 5f this information together with data on the amount of capital banks

or authorized financial institution, with details of its capital

adequacy, details about deposit insurance and passing the confirmation

in accordance with § 5e para. 2, the host supervisory authority, which will inform and

Bank or financial institution.



(2) in case there are doubts referred to in paragraph 1, the authority

oversight by the State within the time limit referred to in paragraph 1 a bank or

the financial institution informs you that its notification was sent to the

the host supervisory authority, and to justify. In this case, and

in the case where it is not within the time limit referred to in paragraph 1 of the Bank or financial

institutions by the supervisory authority of the home State informed, can

the Bank or financial institution to seek redress in court.



§ 5 h



(1) the supervisory authority of the host State shall within 2 months of the receipt of the

information pursuant to § 5 para. 1, to the supervision of the Bank or

financial institutions, and, if necessary, shall notify it of the provisions of its

the legislation, which will apply to its activities.



(2) following receipt of the information referred to in paragraph 1, or after the expiry of 2

months, the Bank or authorized financial institution to start a business on

the territory of the host State.



(3) Changes in the data referred to in § § 5 g 5f and para. 1 shall notify the Bank or

authorized financial institutions supervisory authority one month in advance

the home and the host State.



§ 5i



In the event that a bank or authorized financial institution intends to in the territory

of the host State to operate in accordance with § 5 d without establishing

the branch shall notify the intended activities before provision of the service

the home supervisory authority that this notification within one month it shall send the

the host supervisory authority.



section 5j



(1) supervision of a branch of the Bank or authorized financial institutions

carries out supervisory authority of the home State. Supervision of the liquidity of the branch

the Bank or authorized financial institution shall exercise supervisory authority

of the host State. Branch is subject to measures adopted by the host

State in the framework of its monetary policy; in the case of States that have adopted the

euro as their currency, measures taken by the European Central Bank.

Such measures must not be discriminatory.



(2) in exercising its jurisdiction under paragraph 1, and in the area of monitoring

risks arising from the open positions in the financial market on the territory of that

State, the host State from Bank branch or authorized financial

institutions requesting the same information from banks or financial

institutions with head offices in its territory. The host State may, from the Bank or

authorized financial institution having a branch on its territory

regular reports on its business activities in its territory in

the form of statistical data.



§ 5 k



(1) if the competent authority of the host Member State finds that a bank or

authorized financial institutions in the provision of services in its territory

violates the provisions of legislation in areas which fall within the

the scope of the host State shall request the Bank or authorized financial

the institution of the termination of the infringement.



(2) unless the Bank or authorized financial institution needed

measures, the competent authority of the host Member State supervisory authority

Home Member State, which shall immediately take the necessary measures to ensure

termination of the infringement and inform the competent authority of the

of the host State.



(3) If, despite the measures referred to in paragraph 2, the Bank or the beneficiary

financial institutions remains in a State of infringement

referred to in paragraph 1, the competent authority of the host State

the previous informing the supervisory authority of the home State to take

the necessary measures to end the illegal status, and, if necessary, to

termination of the activities of the Bank or authorized financial institution in the territory of the

of the host State.



(4) if the matter does not tolerate delay, the competent authority of the host State

take measures to protect the clients of the Bank. The adoption of such measures

the competent authority of the home State shall inform the Commission of the European

the community and the authorities of the States concerned. After consultation with the authorities of

supervision of the States concerned, the Commission of the European communities may order the

authority of the host State to revoke or amend the measures taken.



(5) the authorities of the host Member State may take the necessary measures to

prevent or punish the conduct in the territory of that State in violation

the legislation of the State in areas of public interest, including measures

to end the activities of the Bank or financial institution in the territory of that

State. The provisions of the preceding paragraphs shall not apply in this case.



§ 5 l



(1) in the event of the withdrawal of the licence to the Bank or authorized financial institution

the home supervisory authority informs the host supervisory authority without delay.

The host supervisory authority shall take the necessary measures to end the activities of the

the Bank or authorized financial institutions on their territory and to protect the interests of

depositors.



(2) supervisory authorities shall inform the Commission of the European communities on the number and

the nature of the cases, when they refused to cede the authority of the host State

information on the establishment of a branch or when they used their privileges to

their infringement pursuant to § 5 para. 1 to 3.



§ 5 m



Banks and authorized financial institutions are allowed to freely advertise your service

in the States of the European Union, while respecting the legislation on advertising

taken by the competent State.



3) section 33 of Act No. 337/1992 Coll., on administration of taxes and fees, as amended by

amended. ".



19. in section 6 (1). 1 the words "authorisation as a bank ' shall be replaced by

the word "license" and the word "transferable" shall be replaced by the word

"transferable".



20. In article 6, paragraph 2 shall be deleted and paragraph 1 shall be abolished.



21. in Section 7a of the paragraph. 1 the introductory sentence, the words "Permit to operate as a bank"

shall be replaced by the word "license".



22. in Section 7a of the paragraph. 1 (b). a) and (c)), § 26 para. 4, § 34 paragraph 1. 2 (a). a) and

(b)) § 35 para. 1 and 2, § 40 paragraph 2. 1 and 2 and § 41 para. 2, the words

"license to operate as a bank" shall be replaced by the word "license".



23. in Section 7a of the paragraph. 1 at the end of the text of the letter b), the words "If

shall be repealed with the liquidation, ".



24. in Section 7a of the paragraph. 1 at the end of the text of subparagraph (d)), the words ", if

ceases to exist without liquidation ".



25. In Section 7a of the paragraph. 2, the words "Permit to operate as a Bank granted"

replaced by the words "license granted".



26. in § 8 para. 3, in the second sentence, the words "the bank employee" is inserted

a comma and the words "which is not a member of the statutory body of the Bank".



27. in § 8 para. 3 (b). and), after the words "financial institutions"

the words "or banks or foreign banks" and the words "under the control of

the Bank "with the words" the financial institution or bank or

foreign banks that over the Bank carries out a check ".



28. in paragraph 8, the following paragraphs 6, 7 and 8 are added:



"(6) the Bank is required to establish an internal audit department that explores and

assesses in particular



functionality and efficiency) the management and control system of the Bank,



(b)) risk management system and compliance with the principles of prudent business bank.



(7) the head of internal audit shall not be member of the Board

Bank or of the Supervisory Board of the Bank.




(8) following the notification of the statutory body of the Bank is head of Department of the internal

audit findings must inform the Supervisory Board and in

the event, which may negatively affect the management of the Bank, is

obliged to give impetus to the special meeting of the Supervisory Board. ".



29. in § 9 para. 1 letter d) is added: "(d)) Organization ensure the internal

control system ".



30. In paragraph 11 (1) 1 at the end of the first sentence, the words "and of their

participation in payment systems ".



31. in paragraph 11 (1) 1, the first sentence, the following sentence is added: "on

request are required to provide information about the rules of the competent

the payment system ".



32. In section 11 paragraph 2 reads as follows:



"(2) in the information about the services that consist in taking over cash

resources from a client, or in providing these services must be

expressly and clearly shows this service for insurance claims

of the deposits, including limits for the payment of a single authorized person. The Bank and the

branch of a foreign bank is obliged to inform in writing in the official

the language or languages of the State in whose territory they are operating, how

payment of compensation from the deposit insurance fund (section 41a) or from another system

insurance that is involved, and how a claim with the Fund

deposit insurance or other similar insurance system, on which the

It is involved in. ".



33. In paragraph 11 (1) 3 the first sentence after the word "shareholders," the words

"on the structure of the consolidation unit [section 26 d of paragraph 1. 1 (b). and)], which is

part of it, "and at the end of the text of the first sentence, the words", published by the

in the journal of the Czech National Bank ".



34. In section 11 (1) 3 the second sentence after the word "Bank", the words ",

published in the journal of the Czech National Bank ".



35. In article 11, the following paragraph 5 is added:



"(5) the banks and branches of foreign banks are required to establish an effective

procedure for dealing with complaints and clients about this procedure,

in writing and in the official language or languages of the State in whose territory the

It acts, in their premises. ".



36. In paragraph 12, at the end of paragraph 1 the following sentence:



"The Bank should not be a partner of a limited partnership or a public

the business of the company. ".



37. In section 12 paragraph 3 reads:



"(3) banks are required to comply with capital adequacy to

individual and consolidated basis. ".



38. In section 12, the following paragraph 4 is added:



"(4) the Capital of the Bank shall not fall below the minimum amount of

capital provided for in section 4, paragraph 4. 1. ".



39. section 13 reads as follows:



"section 13



Banks are required to comply with the rules of the credit exposures to a

individual and consolidated basis. ".



40. in paragraph 14 of the text at the end of the first sentence, the words "on

individual and consolidated basis ".



41. section 15 reads as follows:



"§ 15



Rules under section 12 to 14 and the extent to which these rules are subject to

branches of foreign banks, as well as defining the notion of capital to

an individual and on a consolidated basis shall establish the Czech National Bank

the measure, published in the journal of the Czech National Bank. ".



42. In article 16(1). 1 letter c) is added:



"(c)) the merger of the Bank".



43. In article 16(1). 1 letter d) is added:



"(d)) to reduce the share capital of the Bank, unless it is for a reduction of

the share capital of the Bank to cover the loss, ".



44. In § 16 para. 2 at the end of subparagraph (b)), the words "including

submission of supporting documents necessary for the assessment of their professional

competence, integrity and experience. "



45. In article 16(1). 2 (c)) shall be deleted.



Subparagraph (d)) shall become point (c)).



46. in article 16, the following paragraph 16a is inserted:



"§ 16a



(1) the Bank shall be obliged to inform, in writing, of the intention of the Czech National Bank

Open a branch or representative office abroad, of the intention to provide services

abroad without the Foundation of a subsidiary and any discriminatory

measures of the State in whose territory the branch or representative office abroad

Act or to act or in whose territory they are or are to be

provision of services without establishing a branch.



(2) the Bank shall proceed in the event of intent to open a branch or provide

service without the Foundation of a subsidiary in a Member State of the European Union in accordance with

§ 5 c up to 5 m. The same applies in the case of intent to provide the services according to § 5 d

through financial institutions meeting the conditions under § 5e para.

1, which will provide services through their subsidiaries, or without

Foundation of a subsidiary. After receipt of the notification of the intention to open a branch of the Bank

or financial institutions abroad, the Czech National Bank will decide in

the administrative procedure, that the conditions laid down by the law of the European

the community for these cases in accordance with § 5 c up to 5 m.



(3) if the Czech National Bank in administrative proceedings, decides that the

the conditions laid down by the law of the European communities for these cases

According to § 5 c up to 5 m are not met, the decision is judicially reviewable. ".



47. In section 17(2). 2 at the end of the text of subparagraph (a)), and (b))

the words ", and that, on an individual and a consolidated basis".



48. In § 17 paragraph 3 reads:



"(3) the prohibition provided for in paragraph 1 and the restrictions referred to in paragraph 2 shall not apply for participation

banks in the legal entity resulting from the Bank's claims for this title

a legal person, if the Bank holds a participation for rescue operations

or the financial reconstruction of the legal person not more than 3 years from the

its acquisition. ".



49. In article 17, after paragraph 3, insert a new paragraph 4 is added:



"(4) the limits referred to in paragraph 2 does not apply to qualified participation of the Bank of

the title of the participation in the issuing of securities, and the provision of related

services, if the Bank holds a qualifying holding within a maximum of 12 months from the

its acquisition. ".



The current paragraph 4 shall become paragraph 5.



50. in paragraph 1 § 17a is inserted:



"(1) the control of the person, carries on the one who is in relation to this person

controlling person within the meaning of the commercial code. ".



51. In Article 17a. 2 the words "above which is exercised control"

replaced by the words "or above which, or over which they exercised

check ".



52. In section 17a. 3, after the word "that", the words "within the framework of their

business as a decisive or substantial activity is gaining market shares

other legal entities or ".



53. In section 17a shall at the end of the text of paragraph 3, the words ", all

including those based abroad and with similar activity ".



54. In Article 17a. 4, the words "more than" is replaced by "or their

a total that represents at least the ", the words" capital "

replaced by the words "capital" and after the words "person or" shall be inserted

the word "option".



55. In section 19 para. 1 (b). (c)), the words "their major shareholders"

replaced by the words "persons with a qualified interest in these persons ' and

the word "company" shall be replaced by the word "persons".



56. In § 19 para. 1 (b). (e)) the words "share of the capital

more than 10% "shall be replaced by" qualifying holdings ".



57. In § 19 para. 1 (b). f), the words "the principal shareholders of the Bank" shall be replaced by

the words "persons with a qualified interest in the Bank."



58. In article 19, paragraph 2 shall be deleted and paragraph 1 shall be abolished.



59. In paragraph 20, paragraphs 3 and 4, including footnote No. 5b) are added:



"(3) prior to the acquisition of a qualifying holding in a bank or before increasing

qualifying holding so that it reaches at least 20%, 33% or 50%

of the capital or of the voting rights, must have legal person

the natural person or persons acting in concert ^ 5b) consent of the Czech national

of the Bank. Consent of the Czech National Bank and the person must always have the closing with

the Bank, the contract as a person managing or carrying out other legal

the Act leading to the domination of the banks. Member of the Board, the management of the person

must meet the conditions laid down in this law for senior staff

of the Bank. Requirements for an application establishes the Czech National Bank by Decree. Czech

the National Bank does not grant consent if it was granted contrary to the

international agreement, to which Parliament gave its assent, which the Czech

Republic is bound and which was announced.



(4) before the intended reduction in qualifying holdings in the Bank, which

represented at least 50%, 33%, 20% or 10% of the capital

or voting rights, under these limits, or before the reduction

qualifying holdings in the Bank, as a result of the Bank ceases to be

the controlled person is a legal person, a natural person or persons

acting in shodě5b) is required to immediately report this fact to the United

the National Bank. The same obligation is in the case, if it intends to convert

the volume of shares or other rights, which itself represents

a qualifying holding in the Bank, or if it intends to lose or without

own volition has no longer the position of the controlling entity against the Bank. Essentials

notification shall determine by Decree of the Czech National Bank.



5B) joining the commercial code. ".



60. In section 20 (2). 6, the word "permit" shall be replaced by the words "the grant of

consent ".



61. In section 20 (2). 6, § 26 para. 1 (b). (b)), § 26 para. 3 (b). a) and section 34

paragraph. 1 and 3, the words "permit to operate as a bank ' shall be replaced by

"license".



62. In § 20 paragraph 8 reads as follows:



"(8) the implementation of the legal act contrary to the provisions of paragraph 3 does not have

result in its annulment. ".



63. In section 20, the following paragraph 9 to 12 shall be added:




"(9) legal action on the basis of the consent referred to in paragraph 3 can be done

not later than 1 year after the grant of consent.



(10) where the Czech National Bank within the period referred to in section 40 para. 5 shall not issue to

the request referred to in paragraph 3 of the decision, at least in the first instance, the

approval was granted.



(11) in the case that is not complied with the deadline for the submission of a complete application, it is

The Czech National Bank entitled to administrative procedure for granting consent

stop.



(12) the Bank shall be obliged to inform the Czech National Bank about all

the changes, if these changes are subject to the procedure referred to in paragraph 3

or 4, immediately after discovery of the facts. "



64. In section 20a para. 1 the introductory sentence as follows:



"In cases where the share of the Bank was acquired without the prior consent of the

The Czech National Bank pursuant to section 20 (2). 3 or after the time limit under section 20 (2). 9

and has not been granted consent pursuant to section 20 (2). 7, and in the cases where the

The Czech National Bank finds that the action of the person or persons

a qualified interest in the Bank is prejudicial to the proper and prudent

the business of the Bank, or can be reasonably expected of such an action, Czech

the National Bank shall suspend the administrative procedure to the holder of the shares, which has itself

or acting in concert with another person, a qualifying holding in the Bank;

the performance of these shareholder rights: ".



65. In section 20a, the following new paragraph 2 is added:



"(2) in cases where the Bank is operated as a result of a closed control

contract and this contract was concluded without the consent pursuant to section 20 (2). 3

or after the time limit under section 20 (2). 9 and has not been granted consent pursuant to section 20

paragraph. 7, and in the cases where the Czech National Bank finds that the

the action of the management person is prejudicial to the proper and prudent business bank,

where appropriate, such action can be reasonably expected, the Czech National Bank in

administrative proceedings shall suspend the effectiveness of the contract and the contract

expires at the earliest opportunity, who admits the commercial code.

The provisions of § 26 para. 6 and 8 shall apply mutatis mutandis. The decision to suspend

the effectiveness of the contract shall be published by the Czech National Bank in the commercial

journal. ".



Paragraphs 2 to 7 shall become paragraphs 3 to 8 and a reference to the

paragraph 2 in section 20a para. 4 in the first sentence shall be replaced by a reference to

paragraph (3).



66. In section 20a para. 3 the first and second sentence shall be added:



"The Bank is obliged to submit to the Czech National Bank listing of all shareholders and

administrators from the issuer's register of uncertificated shares, acquired at the date of that

about the 7 days preceding the date of the general meeting. This statement must be the Bank

delivered to the Czech National Bank not later than six days before the General

meeting. ".



67. In section 20a para. 6, after the words "" the words "under the conditions

stipulated by special legislation ".



68. section 20b is inserted:



"section 20b



(1) the banks on the territory of the United States transferred money to each other

resources in the Czech currency under individual items created on the

the basis of their statements and statements of their clients through the

payment systems operating in accordance with a special law or

through payment systems operated by the Czech national

the Bank.



(2) the Czech National Bank leads the Bank, which is a participant in a payment

system operated by the Czech National Bank, the interbank account

payments in Czech Crowns. Account of the interbank payment

contact cannot be subject to enforcement or interim measures.



(3) the provisions of paragraphs 1 and 2 shall also apply to branches of foreign

banks. ".



69. in section 20b is added to § 20 c, which reads as follows:



"§ 20 c



(1) if the Bank on the territory of the Czech Republic nezúčtovala amount in the Czech

currency or did not use the Bank connection in accordance with the client and

caused by an error in the settlement, Microsoft is required to correct the correction

clearing. This Bank is required to convert the account without delay

the authorized recipient of funds in the correct amounts and interest

arising from the contract during a period when he could not dispose of them. Interest is

does not convert, if the amount does not exceed $ 10, unless the return

an authorized recipient expressly requested. Repair clearing banker

the amount of the unauthorized recipient account can be made within 3 months from the date of

the error in the showdown. If the unauthorized recipient account incorrectly

cleared payments other Bank, is Bank, which caused the error, shall be entitled to

give this bank stimulus to the debiting of his account.



(2) the Bank that the account is unauthorized recipient of incorrectly cleared

payment is in compliance with the principles set out in paragraph 1 shall be entitled to

to write off the amount from his account of the amending of clearing and recalculate

interest on the funds so that the account was caught by the State, as

would incorrectly posted payment received; If the error was in the reckoning

caused by another bank, is required to write off the money from his

account on the initiative of the Bank, and issue is that Bank.



(3) the Provisions of settlement shall be payable by the tax administrator accounts is excluded; the Bank,

that caused an error in clearing, requests the reimbursement of the amount of the relevant

the tax administrator.



(4) the technical procedures for banks in the settlement provides for the appeal and the Czech national

Bank by Decree.



(5) the provisions of paragraphs 1 to 4 shall also apply to branches of foreign

banks. ".



70. in article 21, paragraph 2 shall be deleted.



The former paragraph 3 shall become paragraph 2.



71. section 22, including footnote # 6 c) is added:



"§ 22



(1) the Bank shall ensure that the legal or natural person, the executing

the audit function under special legislation ^ 6 c) (hereinafter referred to as

"the audit firm") has



and verification of the financial statements of the Bank),



(b)) the verification of the management and control system of the Bank including the management system

risks,



(c)) the development of authentication messages accounts and systems referred to in point (a)

(b) submission of these reports) and the Czech National Bank, within a specified

dates.



(2) the Czech National Bank may verify the systems referred to in paragraph 1 (b). (b))

waive or limit the requirement to only some of their components.



(3) the selected firm, the Bank is required to notify the United

the National Bank, which may, within 30 days after receipt of this notification

the audit company. The Bank is required to notify, within 30 days after

refusal of the Czech National Bank audit firm.



(4) verification of the facts referred to in paragraph 1 may not perform in the Bank

the audit firm, which has a special relationship to the Bank pursuant to § 7 para.

1. The same is true for natural persons carrying out on behalf of the audit

company audit work.



(5) the determination of the deficiencies must be in the reports referred to in paragraph 1.

(c)) expressed the effect that these shortcomings in the management and liquidity

the Bank and on the formation and distribution of profit.



(6) the obligations referred to in paragraphs 1 to 5 shall apply mutatis mutandis to branches

foreign banks.



6 c) section 15 of Act No. 254/2000 Coll. on Auditors and on the amendment of Act No.

165/1998 Coll. ".



72. In § 24 para. 2 the words "share capital" shall be replaced by

"share capital".



73. the heading of part six:



"BANKING SUPERVISION AND OBLIGATION OF SECRECY".



74. In the sixth, the designation "head FIRST" is deleted.



75. section 25 reads:



"§ 25



(1) the activities of banks and their branches operating in the territory of a foreign State

is subject to banking supervision by the Czech National Bank, including

checks on the spot. The activity of branches of foreign banks is subject to supervision

country of residence of foreign banks, and to the extent provided by law, the Bank

supervision by the Czech National Bank. The activities of the consolidation

entities [section 26 d, paragraph 1 (a))], which is part of the Bank, shall be subject to

banking supervision on a consolidated basis by the Czech

the National Bank, including spot checks, unless the law provides otherwise.



(2) the Czech National Bank may ask for a check on the spot for her

supervised persons outside the supervision of the competent authority of the Czech Republic

State. The Czech National Bank may grant the request of a supervisory authority of the country of

headquarters of the Bank or financial institution to perform spot checks on it

a supervised Bank or branch of a foreign bank. Carrying out checks on the spot

supervisory authority to the country of residence of the foreign bank or financial institution

The Czech National Bank will allow, on the basis of reciprocity. ".



76. under section 25 shall be added to § 25a is inserted:



"§ 25a



(1) all persons carrying out banking supervision or administration are

required to maintain the confidentiality of all information obtained in the context of

with the exercise of their profession, occupation or function. Can provide

to third parties only in aggregate form, which cannot be

identify the specific bank or person in question. The obligation to

secrecy continues after the end of the occupation, employment or functions.



(2) information obtained in the performance of their powers can a person referred to in

paragraph 1 shall apply only to the performance of the tasks of banking supervision, forced

Administration, or in the trial of an action against a decision taken in

connection with the performance of banking supervision, or similar proceedings before

international body.



(3) for the breach of confidentiality is in compliance with the legal

terms and conditions does not constitute the provision of information acquired in connection with


the banking supervisory authority, the power of supervision of financial institutions

or the financial markets in the Czech Republic or supervisory authority over banks,

financial institutions or financial markets in another State.



(4) for the breach of confidentiality is in compliance with the legal

terms and conditions does not constitute the provision of information acquired in connection with

performance of banking supervision for public authorities and other persons in the United

Republic, if the information provided for the performance of their functions,



and when disposing of the bodies) or bankruptcy at a bank or financial

institutions,



(b) the supervisory authority) according to point (a)),



c) auditor statutory financial statements of the Bank or financial

institutions,



d) supervision of an auditor of the accounts provided for bank or financial

institutions,



e) supervision of compliance with company law,



(f) to combat the legalization) of proceeds of crime,



g) oversight of payment systems,



(h) the operator's payment system)



I) Authority participating in criminal proceedings,



(j)) of the Central Bank is responsible for monetary policy,



to insurance claims from the systems) deposits and insurance investors.



The same is true in relation to public authorities and other persons in the States

Of the European Union.



(5) information obtained in connection with the performance of banking supervision may

also be provided to the institutions of the European Union, if it is needed to

the fulfillment of international agreements.



(6) the provision of the information referred to in paragraphs 3 and 4 is only possible for

condition that the institution is a scheme for the protection of

information at least to the extent of that law.



(7) the information obtained from the authorities of foreign States cannot be used to

any purpose other than that for which it was provided, and may not be without

consent of the provider made available to anyone else.



(8) information obtained in the course of supervision in place on the territory of another State

must not be without the consent of that State banking supervisor

made available to anyone else. ".



77. in section 25a, the following text:



"PART SEVEN



REMEDIAL MEASURES AND PENALTIES ".



78. In section 26 para. 1 (b). a), the words "share capital" shall be replaced by

"capital" and "equity" are replaced by the words

"share capital".



79. In § 26 para. 1 (b). (b)) after the word "activities", the words "in the

"and the words" in article 1 (1). 3 "shall be deleted.



80. in § 26 para. 1 (b). f), the words "share capital" shall be replaced by

"the capital".



81. In section 26 para. 1, letter f) dot replaced with a comma and the following

the letter g) is added:



"(g)) prohibit or restrict the execution of operations with persons that are linked

close links with the Bank, or that are part of the same

the consolidated Group as a bank or have a special relationship with the Bank (§

19). ".



82. In § 26 para. 2 the second sentence, after the words "paragraph 1 (b). (d)) "

the words "and (g))."



83. In section 26 para. 3 at the end of subparagraph (a)) the following words "or non-compliance with

the conditions under which the licence was granted under section 4 (4). 3 or § 5

paragraph. 4. "



84. In section 26 para. 3 (b). (b)) after the word "violation", the words "or

circumvention. "



85. In section 26 para. 3 (b). (c)), after the words "Bank", the words "or

a branch of a foreign bank "and the words" banking system "shall be replaced by

the words "the Bank or branch of a foreign bank".



86. In § 26 para. 3 (b). (d)), after the word "Bank", the words "or

a branch of a foreign bank "and the words" good citizen "shall be replaced by

the word "trusted".



87. In section 26 para. 3 (b). (e)) at the end of the dot is replaced by a comma and

the following points (f) and (g))) are added:



"(f)) violation of law State, in whose territory the Bank branch,

While business in the territory of that State,



(g) capital below the minimum) the decrease of the amount of the share capital (§ 12 para.

4).".



88. In § 26 para. 4, the word "and" shall be replaced by a comma and the words "the basic

the assets "are replaced by the words" of the capital, and the prohibition or restriction

the implementation of the operations ".



89. In section 26a para. 1 the words "the ratio of capital to risk-weighted assets

the Bank "shall be replaced by the words" capital adequacy ratio of the Bank on an individual

the basis ".



90. in section 26a para. 1 (b). a), the words "share capital" shall be replaced by

"core capital" and the words "the ratio of capital to risk-weighted assets

the Bank "shall be replaced by the words" the solvency ratio of the Bank on the

an individual basis ".



91. In section 26a para. 1 (b). (c)), the words "capital" shall be replaced by

"the capital".



92. In section 26b of the words "the ratio of capital to risk-weighted assets"

replaced by the words "capital adequacy of the Bank on an individual

the basis ".



93. under section 26b of the section 26 c shall be inserted up to within 26 h, they are referred to as part of the

the eighth, and including the following title:



"PART EIGHT



BANKING SUPERVISION ON A CONSOLIDATED BASIS



section 26 c



(1) the banking supervision on a consolidated basis shall mean the tracking and

the risk controls for the consolidation plant, the part of the Bank is, for

to reduce the risks to which the Bank is exposed in terms of its participation

in the consolidation.



(2) banking supervision on a consolidated basis is not the supervision of

each of the persons included in the consolidated Group and does not replace the

the performance of banking supervision over banks on an individual basis

under this Act, or under the supervision of financial institutions

special legislation.



(3) in the exercise of supervision on a consolidated basis of the Czech National Bank

cooperates with the authorities in the supervision of financial institutions in the United

Republic and with the authorities in the supervision of banks and financial institutions in the

abroad, and has the right to exchange information with these authorities. The provisions of the

§ 25a shall remain unaffected.



(4) the Czech National Bank may, for the purpose of banking supervision at the

consolidated basis, carry out checks on the spot in the persons covered

in the consolidated entity or request the competent authority of the

supervision. The Czech National Bank informs about the opening, of the purpose and results of the

the-spot checks, the competent authority of supervision of controlled person.

The provisions of § 25a shall remain unaffected.



section 26 d



(1) for the purposes of this Act, means the



and for the consolidation of the controlling group), units of the Bank or a group of financial

the holding company or a mixed-activity holding company, the Group

with the consolidated accounts for at least two persons,



(b)) the controlling Bank Bank, whose subsidiary or associated

companies are banks, financial institutions or undertakings offering ancillary

banking services,



(c)) financial holding company controlling person that is a financial

institutions other than the insurance company, which controlled entity are exclusively or

mostly banks or financial institutions, at least one

controlled entity must be a Bank,



d) mixed‐activity holding company controlling a person who is not

financial holding company or by the Bank, the person and its controlled

include at least one pot,



(e) controlling the Bank Group) group formed by the Bank, its controlled

entities and associated companies,



(f)) a group of financial holding companies group formed by the financial

the holding company and its controlled entities and associated

companies,



g) by a group of mixed-activity holding company made up of a mixed group

the holding company and its controlled entities and associated

companies,



h) an associated company legal person in which the other person

a direct or indirect share of at least 20% of the capital or

voting rights, if the legal person does not control.



(2) in the case where binding within the consolidated Group are such

character, it is not possible to conclusively determine the controlling person or his

type, the Czech National Bank is authorised to determine, in agreement with the competent

the supervisory authority of banks or financial institutions controlling

the person of the consolidated group or its type.



(3) the Czech National Bank may determine by Decree the criteria for removing the

people from the supervision of the consolidation unit.



section 26e



(1) the Czech National Bank may refrain from the exercise of banking supervision at the

a consolidated basis of consolidation in total, over which is practiced

banking supervision or comparable supervision on a consolidated basis

supervisory authority or supervision in the home country or in another State. Czech

the National Bank may agree the conditions of supervision on a consolidated basis

with that authority. However, the Czech National Bank always carries out banking supervision

on a consolidated basis over a group of controlling a bank located in the

The Czech Republic.



(2) the competent supervisory authority to the country of residence of the Bank or financial

institution, unless otherwise agreed, the Czech National Bank does not exercise supervision over

a group of financial holding companies established in another Member

State of the European Union where



and a member of this group) financial holding company is a bank

registered offices in that State, or



b) belong to this group is a bank based in another State of the European Union,

While the Bank is based in the Czech Republic, which is a member of the group, has

in comparison with this Bank, lower balance sheet total; they have both banks

the same high balance sheet total, if the Bank is based in the United

Republic has received the license later.



section 26f



(1) the controlling entity, whose consolidation units are subject to the Bank


supervision on a consolidated basis are required to comply with the rules

a prudent business persons on a consolidated basis. This

the rules and the extent to which these rules are subject to different types of

of persons, established by a decree of the Czech National Bank.



(2) the persons included in the consolidated Group are required to communicate to the United

the National Bank directly or through the controlling person or Bank,

that is part of the consolidated Group and the Czech

National Bank, all the information necessary for the implementation of the supervision on a

a consolidated basis. Way to pass information, scope, and

the periodicity shall lay down by Decree of the Czech National Bank.



section 26 g



(1) persons included in the consolidated group must create the corresponding

control mechanisms to ensure the accuracy of the information provided for

the purposes of supervision on a consolidated basis.



(2) the controlling person shall notify in advance the Czech National Bank Auditors and

the audit firm that will audit the people included in the

consolidation.



§ within 26 h



(1) the Czech National Bank in the administrative procedure may save a person included

in the consolidated entity, which is not a Bank, a fine up to 50 0000 0000

In cases where it does not provide the required information for the purposes of

banking supervision on a consolidated basis or provide information

incomplete, untrue or distorted, or fails to comply with the time limits for their

submission.



(2) if the Czech National Bank, shortcomings in the activities of the person included

in the consolidated entity, which is not a Bank, which may negatively

affect the management of the Bank, which is part of the consolidated Group, is

entitled to in relation to the controlling Bank or financial holding

the company according to the nature of the observed lack of



and) require that jumped into the correction within the time limit,



(b) ensure extraordinary audit) requires a person who is part of the

the consolidated Group, at the expense of the controlling entity,



(c) impose a fine of up to 50 0000 0000) $



d) prohibit or restrict the execution of operations with persons who are part of the

the same consolidated Group.



(3) a lack of in the activities of the person included in the consolidated Group,

that is not a Bank, means a



and) violation of this Act, or to circumvent the specific laws,

regulations issued by the Czech National Bank and the legislation under section 5 k,



(b)) the implementation of the stores within the consolidated group or externally

in a way that harms the interests of the depositors of the Bank, which is part of the

the consolidated Group, or threatens its security and stability.



(4) The procedure for the imposition of measures pursuant to paragraph 2 (a). (b)) to (d))

subject to the provisions of the administrative procedure, unless this Act provides otherwise.

The provisions of § 26 para. 6 to 9, 11 and 12 shall apply mutatis mutandis; a participant in the

control is the controlling entity concerned only. ".



94. under section within 26 h, the words "SECOND HEAD" is replaced by "PART NINE".



95. In section 27 para. 1 at the end of the text of the letter b), the words "and

name, last name and social security number, a representative of the administrator ".



96. In section 27, paragraph 2, the following paragraph 3 is added:



"(3) the representative shall represent the Manager administrator in his absence, in the

full. Provisions of this Act relating to the administrator applies

mutatis mutandis to the Deputy Administrator. ".



The former paragraph 3 shall become paragraph 4.



97. In section 29 para. 1 at the end of the first sentence, the words ", except for the

appeals against the administration. "



98. In section 29 para. 1 the second sentence, the words "this moment" are replaced by

the words "the time of delivery".



99. In section 29 para. 3, after the words "Ministry of finance" shall be inserted after.



100. In § 31 para. 2, after the word "management", the words "the end of the

the Administration ".



101. the words "HEAD" and the heading "the THIRD WITHDRAWAL of AUTHORISATION to ACT AS a

The BANK "shall be replaced by the designation" PART TEN "and the heading" WITHDRAWAL

The licence ".



102. In the introductory part of paragraph 34 paragraph 2, the words "Permit to act as a

the Bank "shall be replaced by the word" license "and the word" withdrawn "is replaced by

"withdrawn".



103. In § 34 paragraph 1. 2 (a). a) after the word "Bank", the words "or

branch of a foreign bank "and in the end, the words" or

does not provide loans. "



104. In § 34 paragraph 1. 2 (a). (b)), the words "obtained" is replaced by

"obtained".



105. In § 34 paragraph 1. 3 the words "the ratio of capital to risk-weighted assets

the Bank "shall be replaced by the words" capital adequacy ratio of the Bank on an individual

the basis ".



106. In § 35 para. 1 the word "permit" shall be replaced by the word "license".



107. In article 35, the following paragraphs 3 and 4 are added:



"(3) the decision to revoke the licence delivers the Czech National Bank

the statutory body of the Bank. At the same time inform the decision of the authority

banking supervision States in which the Bank has a branch.



(4) the decision to revoke the licence granted for a branch of a foreign bank

the Czech National Bank will deliver to the person responsible for the management of the branch. ".



108. the words "PART SEVEN" is replaced by "part of the ELEVENTH".



109. In § 36 odst. 1 the words "If the Bank withdrawn authorisation

as the Bank "shall be replaced by" If the Bank was deprived of license. "



110. In § 36 odst. 2, the second sentence shall be deleted, the words "or" shall be deleted;

and after the word "is" with the words "or in the last 5 years" and

at the end of the paragraph, the following sentence is added: "taking into account the

the scope of activities of the liquidator shall fix the amount of and the Czech National Bank

the maturity of its rewards. ".



111. In paragraph 36, at the end of the text of paragraph 4, the following words: ", and to

the written request, the Czech National Bank supporting documents necessary to

assessment of the activity of the liquidator and the liquidation ".



112. In § 36 paragraph 5 is added:



"(5) the liquidator is obliged to enforce the surrendering of the invalid law

(section 12 (2)). ".



113. the words "PART EIGHT" is replaced by "PART TWELVE".



114. In paragraph 37, the current text shall become paragraph 1 and the following

the new paragraphs 2 to 5, including the footnotes # 7b) to 7e)

shall be added:



"(2) the banks and branches of foreign banks are required for the purposes of

banking business to discover and handle the data on persons, including

sensitive data about individuals, ^ 7b) needed to make

possible banking business to take place without undue legal and factual

the risk for the Bank.



(3) the obligation to provide free of charge information about the personal data

processed by the data subject set out specific legal

Regulation 7 c) on ^ banks and branches of foreign banks.



(4) the banks and branches of foreign banks are required to make in their operating

the premises of the natural person, in writing, inform the Bank and branch

foreign banks are not subject to the obligation to inform the physical free of charge

persons on personal data processed about them, that the provision of personal

the data bank is voluntary, but it is the condition for the implementation of the Bank

trade, and on the right of individuals to seek redress under the Special

legislation, ^ 7 d) as well as about the possibility for banks to obtain data from the

third parties, in particular under section 38 (a) of paragraph 1. 1 and 2.



(5) the data referred to in paragraph 1, as well as the data obtained from other entities,

in particular, under section 38 (a) of paragraph 1. 1 and 2, for the branches of foreign banks

provide for processing to the Head Office of the foreign bank, if it has its registered office in

State law guarantees that it will respect the confidential nature of the

data in accordance with the law of the European communities. If it is necessary to

the conclusion or performance of a contract between the Bank and the client, the Bank and the

branches of foreign banks provide such data for processing in the

State law guarantees that it will respect the confidential nature of the

data in accordance with the law of the European communities. The consent of the Office for

protection of personal data under a special legal regulation ^ 7e) in

the cases referred to in this paragraph requires only before the first

by providing information to the State.



7B) section 9 of Act No. 101/2000 Coll., on the protection of personal data and on amendments

Some laws.



7 c) § 12 para. 2 of the Act No. 101/2000 Sb.



7 d) § 21 of Act No. 101/2000 Sb.



7E) section 27 of Act No. 101/2000 Sb. ".



115. In § 38 paragraph 1(a). 3 (c)):



"(c)) to the tax authorities in accordance with a special law on administration of taxes and

the fees ".



116. In § 38 paragraph 1(a). 3 (f)):



"(f)), the social security authorities in case of any insurance on the

social security contributions to the State employment policy,

that the client owes the social security authorities or district offices

in the matter of the overpayment proceedings on the social security contributions and the State

social support, that the client is obliged to return; This also applies to

enforcement of this insurance, allowance and overpaid, ".



117. In § 38 paragraph 4 is added:



"(4) the Bank shall be obliged to communicate without the agreement of the client on written request

the social security institutions or the district offices in the case of proceedings for

return a batch to the account credited after the death of the beneficiary, including the

the recovery of identifiable information about his client, which is the account owner,

and persons authorized to dispose of the funds in that account and

information on matters relating to this account. The Bank is also

After the death of the client shall be obliged to communicate these data to the written request of the authority

work. ".




118. In § 38 paragraph 1(a). 6, after the words "enforcement", the words

"or tax enforcement."



119. In paragraph 38, paragraph 7 shall be deleted.



Paragraphs 8 and 9 shall be renumbered as paragraphs 7 and 8.



120. In § 38 paragraph 1(a). 8 sentence the third digit "8" is replaced by the figure "7".



121. In paragraph 38, the following paragraph 9 and 10 are added:



"(9) the provisions of paragraphs 1 to 8 shall also apply to branches of foreign

banks.



(10) a report on matters relating to the client, which are subject to

banking secrecy, shall report to the Bank in connection with its business on the

territory of another State without the consent of the client, if it is necessary to meet the

obligations imposed by the laws of the State on whose territory it is taking. "



122. In paragraph 38 (a) of paragraph 1. 1 the first sentence after the word "Bank", the words "and

branches of foreign banks. "



123. In paragraph 38 (a) of paragraph 1. 1 the last sentence, after the words "Bank", the words

"a branch of a foreign bank" and the words "other banks" are the words

"a branch of a foreign bank".



124. In § 38a is inserted after paragraph 1 paragraph 2, including the

footnote # 10a) is inserted:



"(2) the Czech National Bank produces from data obtained in the range according to the

paragraph 1 from banks, branches of foreign banks ^ 10a) and others

If provided for by a special law, information database. The information in this

the database have access to banks, branches of foreign banks and other persons

If provided for by a special law, under conditions laid down by Decree of the Czech

the National Bank. The provision of information in this database is not a violation of the

Bank secrecy. The Bank and the branch of a foreign bank, however, is required to

to the information about the clients of other banks or branches of foreign banks gained

from the information database access as if it were data on its

custom clients.



10A) § 41 para. 2 of law No 6/1993 Coll. on Česká národní banka, as amended by

amended. ".



Paragraphs 2, 3 and 4 shall become paragraphs 3, 4 and 5.



125. In section 38a, paragraph 5 shall be deleted.



126. under section 38a, the following new section 38b-38 h shall be inserted:



"section 38b



(1) data, which are subject to banking secrecy, the Bank may, on

which has a qualifying holding of a foreign legal person, above which is in

the country of its offices and supervised on a consolidated basis,

authorities in the execution of this supervision.



(2) data, which are subject to banking secrecy, may Bank, which

It is part of the consolidated Group, provide the controlling entity for the purpose of

preparation of reports on a consolidated basis.



section 38 c



The Czech National Bank carries out consultation and information duty to

the banking supervisory authorities of other States, the authorities of the international

organizations and other persons to the extent of the international treaty. Enumeration

basic facts notified and consulted is provided in § 38d

up to 38 h.



§ 38d



(1) the Czech National Bank shall inform the Commission of the European communities

in particular, the



and) number and nature of cases in which refused to allow the Bank or financial

institution that meets the conditions of § 5e para. 1 based on the territory of the

The United States establishment of a branch in another Member State of the European Union or when

apply to branch office listed in section 5a paragraph 2. 1 the procedure under section 26,



(b)) granted and withdrawn the licenses



(c) a bank controlled by the granting of a license) by the person governed by the law of the State which

It is not a member of the European Union, and on the structure of the consolidated Group, which is

This part of the Bank,



(d)) the fact that the Bank has become a person controlled entity governed by the

the law of the State which is not a member of the European Union, and on the structure of

the consolidated Group, which is part of the Bank,



e) discriminatory measures are applied to banks in

the establishment of branches in the States, which is not a member of the European Union,



f) financial holding companies,



g) agreements pursuant to section 26e,



(h)) use of the procedure under section 26 to the branch office listed in section 5a paragraph 2. 1 in the

When the matter is urgent and necessary in the interests of depositors.



(2) the Czech National Bank shall inform the Commission of the European communities on

her request for applications



and) persons controlled by person governed by the law of a State which is not a member of the

The European Union, for a license,



(b)) of the person governed by the law of a State which is not a member of the European Union, or

a person controlled by a person governed by the law of a State which is not a member of the

The European Union, on the acquisition of a holding in the Bank, which would

the applicant became a person controlling a bank.



§ 38e



(1) the Czech National Bank shall inform the competent authority of the Member

State of the European Union on the



and the consolidation of all entities) which includes Bank and at the same time

the Bank, based in the territory of a Member State of the European Union or a financial

institutions meeting the conditions under § 5e para. 1 based on the territory of the

the Member State of the European Union,



(b)) information to the Bank or financial institution which meets the requirements under section

paragraph 5e. 1, that intends on the territory of the Member State of the European Union to establish

a branch or provide services, and amending the data reported



(c)) the fact that a financial institution no longer fulfils the conditions referred to in

§ 5e para. 1,



(d)) the procedure under section 26 to the branch office listed in section 5a paragraph 2. 1 in the

When the matter is urgent and necessary in the interests of depositors,



e) consent pursuant to § 29 para. 3 in the event that the Bank in question has

establishment in the territory of that State; This information shall provide the competent

supervisory authority before granting consent or immediately after its

granted, if the thing does not tolerate delay.



(3) the Czech National Bank shall consult the supervisory authority

the Member State of the European Union grant



and) license the Bank, which is under the control of a bank located within the territory of

of this State or under the control of the same person as the Bank based on the

territory of that State,



(b)) the consent with the acquisition of qualified equity investments at the Bank, in which the

as a result, the Bank would become part of the consolidated Group, whose

There is a bank based in the territory of that State.



§ 38f



Before the decision on the amendment or withdrawal of the license of the Bank, which has a branch on the

territory of a Member State of the European Union, the Czech National Bank shall consult the

my intention with the banking supervisory authority of that Member State. If the case does not tolerate

delay, the Czech National Bank shall inform the supervisory authority of its intention

license change or remove. The Czech National Bank informs about changing or

the withdrawal of the licence without delay banking supervision authorities of the States in which it has

Bank branch. The same applies in the case of the intention to remove the license branch

foreign banks, which also has a branch in the territory of a Member State

Of the European Union.



§ 38 g



The Czech National Bank may carry out on-site inspection in the territory of the Member

State of the European Union informed the banking supervisory authority

of this State or of the implementation of this control request.



§ 38 h



(1) the Czech National Bank cooperates with the supervisory authorities of the other

States, in particular those on whose territory the Bank branch or on the

It has its seat, the foreign bank branch on the territory of the United

of the Republic.



(2) the Czech National Bank provides to the supervisory authorities referred to in paragraph 1

in particular, information



and bank shares) or a foreign bank,



(b)) on the management of the Bank or a foreign bank,



(c)) of the capital foreign bank controlled by a bank or financial

companies,



(d) the capital adequacy indicator) and a consolidated indicators

capital adequacy,



e) of the financial holding companies,



f) important for the supervision of these banks or foreign banks,

in particular in the areas of liquidity, solvency, deposit insurance,

capital adequacy, consolidated supervision, accounting, internal

control and monitoring of the risks arising from the open positions on the

financial markets in the Czech Republic or in the territory of the State, on the

whose territory the Bank underwent such risks. ".



127. In § 39 para. 1, the words "as well as" replace clutch "and", the words

"and the people performing banking supervision" shall be deleted and the number "3"

the following digit "4".



128. In section 40 para. 1, the word "its" is replaced with "her".



129. In § 40 paragraph 3 reads:



"(3) the Czech National Bank shall issue a decision on the granting of licences, amending

licence or to reject an application for a licence or for an amendment of the licence up to 6

months from the date of commencement of the administrative procedure and decision within this period, the

delivers. In the case that brought the request was incomplete and the Czech National Bank

sought her replenishment, the Czech National Bank shall issue a decision within 12

months from the date of commencement of the administrative procedure and decision within this period, the

delivers. ".



130. In § 40 paragraph 3 shall be inserted after paragraph 4 to 6, which

shall be added:



"(4) in the event that, after the completion of the application request on the part of the Czech national

the Bank is again submitted application is incomplete or is not complied with from

by the applicant, the period for the Czech National Bank for its

the tween, the Czech National Bank is entitled to the administrative procedure for granting

stop the license.



(5) on an application for consent under this Act shall be decided within 3

months from the date of commencement of the administrative procedure.



(6) the rejection of the application for the grant of a license, on its amendment or rejection

consent under this Act shall be duly justified. ".




The current paragraph 4 shall become paragraph 7.



131. In section 40 para. 8, the words "permit to operate as a bank ' shall be replaced by

the word "license".



132. the words "PART NINE" is replaced by "part of the THIRTEENTH".



133. In section 41a of paragraph 1. 3, in the last sentence, after the word "Provisions"

the words "section 5a paragraph 2. 4. "



134. In article 41 c of paragraphs 6 and 7 are added:



"(6) the annual contribution of the Bank to the Fund shall be 0.1% of the average volume of

insured receivables from deposits for the previous year, including interest.

The average volume of insured receivables from deposits, the Bank calculated in accordance with

the status of insured receivables from deposits on the last day of each

calendar month in the previous year, including interest on the

credited to the depositor was entitled on the same date. The calculation is carried out in

the Czech currency. Claims of deposits denominated in a foreign currency for conversion

the Czech currency foreign exchange market the rate announced by the Czech national

by the Bank on the date on which the calculation is performed.



(7) the annual contribution of building societies in the Fund is 0.05% of the average

the volume of insured receivables from deposits for the previous year, including interest,

on the crediting of building savings participant was entitled in the

the previous year. The average volume of insured receivables from deposit

building society calculates according to the quarterly insured status

Receivables from deposits in the preceding year, without counting the State

support. ".



135. In paragraph 41 d of paragraph 1 reads:



"(1) the compensation for the claim of an insured deposit with an authorized person of the

The Fund will provide after the Fund receives written notification of the Czech national

the Bank or, in the case of a branch of a foreign bank in accordance with § 5a,

připojištěnou pursuant to § 41 m, the banking supervisory authority of the home state of the

the inability of banks to live up to commitments to beneficiaries for legal

and terms and conditions. Such notice must be issued no later than 21

days from the date of the relevant facts and findings to the Bank or the former Bank

must be communicated in writing to. ".



136. In paragraph 41 d of paragraph 1. 2 in the first sentence, the word ' publish ' is replaced by

"publish".



137. In section 41e, the following paragraph 3 is added:



"(3) If, for the purpose of paying the refund from the Fund for a qualifying

person more advantageous to use the foreign exchange market the rate promulgated by the Czech national

by the Bank on the date of the initiation of the payment, the beneficiary shall be entitled to be paid

the relevant difference. ".



138. In section 41f para. 2 in the first sentence, the words "depositor" is replaced by

"account holder".



139. In section 41f para. 4, after the word "provide" the words "authorized

persons ".



140. In section 41f para. 5, in the first sentence the word "depositor" is replaced by

"account holder", and the second in the sentence, the word "Depositor" is replaced by

"Account holder".



141. In § 41 para. 3 (b). and at the end of the text), the words "with the

exception of those mentioned in § 19 para. 1 (b). (e)) ".



142. under § 41l § 41 m shall be inserted, as follows:



"§ 41 m



(1) the branches of foreign banks can deposit be reinsured claims on

under a contract with the Fund. Contribution to the Fund is equal to the contribution under section

41 c, multiplied by a fraction, the numerator of which is the difference between € 25 000 and

the limit for the maximum reimbursement under the insurance claims from the system

deposits of which it is a branch employee, expressed in euro and in the denominator

eur 25 000.



(2) supplementary insurance referred to in paragraph 1 shall cease on termination of the contract with the annual

period of notice, which shall start to run on the first day of the year following

then, when the notice was served. The Fund may cancel the contract only when the

a branch of a foreign bank obligations to the Fund, in the case of

a branch of a foreign bank in accordance with § 5a, however, only in the case where a

proceed in accordance with § 5a paragraph 2. 6. A branch of a foreign bank may

terminate the contract without giving reasons. On these facts is an affiliate

Foreign Bank required to notify clients in their operating

areas.



(3) the Bank shall not take advantage of the differences in advertising credit insurance from

deposits between the Member States of the European Union. ".



143. the words "PART TEN" is replaced by "part of the FOURTEENTH".



Article II



Common and transitional provisions



1. If the provisions of an international treaty, which was approved by the

Parliament, ratified and promulgated, and which the Czech Republic is bound,

provides otherwise than the provisions of Act No. 21/1992 Coll., on banks, as amended by

the existing legislation and this Act, the provisions of this

of the Treaty. The provisions of the preceding sentence shall also apply to similar international

the Treaty, which entered into force before 1 January 2005. before 1 January 1993.



2. the provisions of Act No. 21/1992 Coll., on banks, as amended by this Act,

(hereinafter referred to as "the Act") relating to the Member States of the European Union

also apply to other States of the European economic area, if

It is thus apparent from the international treaty, which was approved by the Parliament,

ratified and promulgated, and which the Czech Republic is bound, or from

similar to the international treaty, which entered into force before 1. January

1993.



3. Czech National Bank issues in the administrative proceedings initiated by her

the design of the initiative without all banks operating in accordance with existing legal

regulations on the territory of the United States banking license in accordance with this

the law; the Bank will also be issued licenses to foreign banks,

the offices operating on the territory of the Czech Republic according to present

legislation. The date on which the decision to issue banking licences

the judicial power, the authorisation as a Bank, where it has been granted

According to the existing legislation.



4. the banks are required to set up an internal audit service under § 8 para. 6

This law within 1 year from the date of its effectiveness.



5. the Bank shall be obliged to bring its statutes and its investments in

public companies and limited companies to

accordance with this Act within one year of the effective date of its effectiveness.



6. when calculating the amount of the additional refund interest on receivables from deposits

be calculated in the case of Pragobanka, a.s., Prague, now in bankruptcy, to

on 1 January 2007. 12.1998; in the case of the Universal Bank, a. s., Ústí nad Labem, now

in bankruptcy, on 17 March 1998. 5.1999; in the case of Moravia Banka, a. s.

Frýdek-Místek, now in bankruptcy, on the day 11. 10.1999.



7. the date of the initiation of the payment of additional compensation are transferred to the Fund

insurance claims from depositors ' claims for bank deposits in the amount of

rights of depositors insurance fund to meet the claims of the deposits.



8. with effect from the entry of the Treaty of accession of the Czech Republic

The European Union, in force on 41l in the section para. 1, the words "as a system

insurance of receivables from deposits under this Act "shall be replaced by

"what is required by the law of the European communities".



Article. (III)



Deposits recorded in the books of certificates to bearer



The system of credit insurance on deposits does not apply to deposits registered

in their books on the bearer. All deposit relations confirmed

vkladními books to bearer shall be abolished on the date of 31. December 2002.

The right of depositors to payment of the balance of the cancelled deposit shall be barred

the expiry of 10 years from the date of 31. December 2002.



Article IV



A mandate



The Prime Minister shall be empowered, in the collection of laws promulgated the full text

Act No. 21/1992 Coll., on banks, as is apparent from later laws.



PART TWO



To change the foreign exchange law



Article. In



Act No. 219/1995 Coll., the Foreign Exchange Act, as amended by Act No. 155/2000 Coll.

Act No. 366/2000 Coll. and Act No. 483/2001 Coll., is amended as follows:



1. In paragraph 1 (b). l), point 1, the words "permit to operate as a bank

granted "are replaced by the words" a banking license granted ".



2. In paragraph 1 (b). (l)), the following paragraph 4 is added:



"4. a person authorised to conduct foreign exchange values, or to

implementation of payments in relation to foreign countries on the basis of the principle of

the single license, 16) ".



3. In article 3, paragraph 3. 1, the words "which is not a bank under a special legal

předpisu16) "shall be replaced by the words" which does not carry out activities on the basis of

Bank or the single licence pursuant to a special Act ".



4. In article 3, paragraph 3. 6, the words "permit to operate as a bank ' shall be replaced by

"the Bank or the single license".



5. In article 7 (2). 1 the words "authorisation as a bank ' shall be replaced by

"the Bank or the single license".



6. § 9 para. 1 the words "authorisation as a bank ' shall be replaced by

"the Bank or the single license".



PART THREE



Amendment of the Act on reserves for the findings of the corporate tax base



Čl.VI



Act No. 593/1992 Coll., on reserves for the findings of the corporate tax base,

as amended by Act No 157/1993 Coll., Act No. 323/1993 Coll., Act No.

244/1994 Coll., Act No. 132/1995 Coll., Act No. 209/1997 Coll., Act No.

333/1998 Coll., Act No. 363/1999 Coll. and Act No. 492/2000 Coll., is amended

as follows:



section 5 is added:



"§ 5



Bank reserves and provisions



(1) as expenditure (cost to achieve secure and maintain příjmů1))

may banky4) create in the tax year



and) adjustments to receivables from loans, nepromlčeným



(b)) the provision for bank guarantees provided for loans provided by the banks.



(2) the total amount of creation for the tax period



and) adjustments referred to in paragraph 1 (b). and) shall not exceed 2

% from the base, which is the average state of the balance sheet values nepromlčených


Receivables from loans without accessories nesníženém appeal in valuations

provisions already created and less the part of the average State

the balance sheet value of receivables from credit nepromlčených that is secured

adopted by bank guarantees,



b) reserves referred to in paragraph 1 (b). (b)) shall not exceed 2%

the average State Bank guarantees provided for loans granted

banks.

Adjustments must always be assigned to individual claims,

reserves to individual guarantees. Average is calculated from the monthly

balances as of the last day of the month and the balance at 1. January

of the reporting period.



(3) the Claim of credit for the purposes of paragraph 1 (b). and) means the

claim arising from the loan provided to non-bank entity under section

497-507 of the commercial code and the claim resulting from the discharge of the Bank

the warranty.



(4) if the Bank proves that on the basis of business dokumentace5)

justification higher účetnictví6) creation of provisions and reserves, than

referred to in paragraph 2, the tax administrator may, at the request of the Bank

creation of provisions and reserves recognised in the following proven.

Decision on the application shall issue a tax under a special legal

prescription. ^ 16)



(5) a provision referred to in paragraph 1 (b). and) shall be lifted if no longer exist

the reasons for its existence, or if the claim to which it has been created,

was time barred. A corrective entry, the Bank will use to cover losses from depreciation

or the assignment of a receivable. Reserve referred to in paragraph 1 (b). (b)) is used to

cover losses related to the execution of bank guarantees provided for

loans.



16) Act No. 337/1992 Coll., on administration of taxes and fees, as amended by

amended. ".



Article. (VII)



Transitional provision



For the tax liability for the tax period until 31 December 2006. 12.2001

the existing legislation. The provisions of this Act shall be for the creation of

adjustments and provisions shall apply for the first time for the tax period

starting on 1 July. before 1 January 2002. Reserves to the effective date of this

the Act referred to in § 5 para. 1 (b). a) of Act No. 593/1992 Coll., on reserves

to determine the tax base from income, banks used to cover losses from

depreciation and the assignment of receivables from loans created community

goodwill to the effective date of this Act and reserves in accordance with section 5 of the

paragraph. 1 (b). (c)) to cover losses from guarantees provided that

do not match the definitions referred to in paragraph 1. (b)) of this Act.

Unused provisions, with the exception of provisions corresponding to the definition by

paragraph 1 (b). (b)) of this Act, the Bank will cancel in favor of revenue

to keep their balance for each tax period starting in 2002

reduce by at least 25% of the balance at 31. 12.2001, reaching their

the cancellation no later than 31 December 2007. 12.2005.



PART FOUR



Amendment of the Act on the Czech consolidation agency



Article. (VIII)



Act No. 241/2001 Coll., on the Czech Consolidation Agency and amending

to certain acts (the Act on the Czech Consolidation Agency), as amended by law

No 15/2002 is amended as follows:



In § 19 para. 6 including the footnotes # 16) and 17):



"(6) the Agency provides the information database of the Czech National Bank

by a special Act ^ 16) data about their clients (debtors) and

clients (debtors) people that controls on the basis of interest in them, and

whose principal activity is the management, sale and recovery

claims, to the extent provided by the law on banks. ^ 17) interested

controlled entity are required to communicate the relevant data to the Agency so as to

could be the obligation referred to in the first sentence. The Agency shall have access to

the information in this database, under the conditions laid down by Decree of the Czech

the National Bank. Information obtained from the database of the Agency is required to

keep confidential and protect against misuse.



16) § 41 para. 2 of law No 6/1993 Coll. on Česká národní banka, as amended by

amended. § 38a para. 2 of law No 21/1992 Coll., on banks, in

as amended.



17) § 38a para. 1 and 2 of Act No. 21/1992 Coll., on banks, as amended by

amended. ".



PART FIVE



cancelled



Article. (IX)



cancelled



PART SIX



cancelled



Article. X



cancelled



PART SEVEN



The EFFECTIVENESS of the



Article. XI



This Act shall take effect on 1 January 2000. in May 2002, with the exception of the provisions

§ 2 (2). 3, section 4, paragraph 4. 2 the second sentence of § 5a to 5 m, § 11 (1) 2 sentences

Second, section 11 (1) 5, section 16a para. 2, section 25a paragraph 1. 4 the last sentence, § 25a

paragraph. paragraph 5, section 26e. 2, section 38 c to 38 h and 41 m Act No. 21/1992 Coll., on the

banks, as amended by this Act, shall take effect on the date of entry

the Treaty of accession of the Czech Republic to the European Union enters into force.



Klaus r.



Havel, v. r.



in the financial times in the r..