Overview (table of contents) Chapter 1 the scope of the law, etc.
Chapter 2 the size of the injection of hybrid core capital
Chapter 3 application requirements and processing applications
Chapter 4 terms and conditions for deposits of hybrid core capital
Chapter 5 monitoring and sanctions
Chapter 6 the effective provisions, etc., The full text of the Ordinance to the law on state capital deposits in credit institutions
Hereby promulgated law on state capital deposits in credit institutions, see. Act No. 67 of 3. February 2009, with the changes imposed by section 3 of Act No. 338 of 1. May 2009.
The changes brought about by section 24 of Act No. 516 of 12. June 2009 amending the Danish financial statements Act, Danish financial business Act and various other acts (Changes as a result of the Danish companies Act), are not included in this consolidation Act, since the time of the entry into force of these changes shall be established by the Minister for economic and business affairs, see. Article 25, paragraph 1, of the lov nr. 516 of 12. June 2009.
The scope of the law, etc.
§ 1. Establishment of a mechanism, which means that the State can provide credit institutions in Denmark hybrid core capital (capital contributions) and issue underwriting in connection with capital raising.
(2). By hybrid core capital purposes a standing responsible loans without expiry date in accordance with detailed rules laid down in the financial business Act.
(3). By credit institutions for the purposes of this law, banks, mortgage companies and Danish ship credit a/s.
(4). Branches of foreign credit institutions in Denmark, Danish credit subsidiaries abroad as well as subsidiaries to the WUC established pursuant to the law on financial stability is not covered by the law.
§ 2. The Minister for economic and business affairs may enter into agreement with credit institutions for deposits of hybrid core capital and establish the procedures for doing so.
(2). The Minister for economic and business affairs can draw on the State's account in the Danmarks Nationalbank to payment of hybrid core capital to the credit institutions, which are contracted with. the costs are absorbed directly on the continuous supplementary appropriations laws.
(3). The Minister for economic and business affairs can, when agreement is reached with the individual credit institution, add hybrid core capital directly to the individual credit institution.
The size of the injection of hybrid core capital
§ 3. Credit institutions receiving capital injections after this law, after the capital injection have a core capital ratio of at least 12 of the basic regulation. However, paragraph 4.
(2). Credit institutions before the capital injection have a core‐capital ratio of less than 9, will be able to get a capital injection, which corresponds to the difference between the core‐capital ratio at 12 and the credit institution's current core capital ratio, provided that the limits of hybrid core capital in § 129, paragraphs 2 to 6 of the law on financial business permits.
(3). Credit institutions before the capital injection have a core‐capital ratio of 9 or more, will most could get a capital contribution, which corresponds to an increase in the core‐capital ratio of 3, provided the limits of hybrid core capital in § 129, paragraphs 2 to 6 of the law on financial business permits.
(4). For credit institutions, which have a core‐capital ratio of less than 6, may be negotiated individual solutions, which gives these credit institutions the highest possible core‐capital ratio.
Application requirements and processing applications
§ 4. Credit institutions in Denmark, which meet the solvency requirement of 8 per cent, the institutions ' individual solvency requirement and any of FSA individually set higher solvency requirements, see. section 124 of the financial business Act, and with the 30. June 2009 apply for deposits of hybrid core capital, see. § 1, paragraph 2.
(2). The Minister for economic and business affairs may lay down rules to the effect that the time limit referred to in paragraph 1 for the application for deposit of hybrid core capital should be extended.
§ 5. Application for deposit of hybrid core capital must be submitted to the economic and business affairs. The application must contain the following:
1) A statement from the credit institution on the Institute's financial position and prospects.
2) A statement of the credit institution's individual solvency needs.
3) a revised annual report for 2008 and the latest quarterly accounts.
4) an opinion from the credit institution's approved auditor.
(2). The Minister for economic and business affairs may lay down detailed rules on the application requirements, the opinion of the auditor and processing applications.
(3). A credit institution applying for hybrid core capital, is obliged to inform economic and business affairs, if in the period between the time of application and the time of the contract conclusion significant changes in the Institute's financial situation.
§ 6. A credit institution may instead to apply for deposits of hybrid core capital, see. section 4, paragraph 1, up to and including 30 June. June 2009 to apply for the State to place an underwriting for a capital raising, among other investors. The credit institution shall document in the application that may be attracted to other investors.
(2). The Minister for economic and business affairs may lay down rules to the effect that the time limit referred to in paragraph 1 for the application of the State's placement of an underwriting should be extended.
(3). The Minister for economic and business affairs may lay down detailed rules on the application requirements, examination of the application and payment terms as well as other conditions that the State shall deliver an underwriting.
§ 7. Persons involved in the processing of applications under this Act, has the responsibility for the criminal code §§ 152-152 (e) confidentiality in relation to the information which they obtain knowledge of in this context.
Terms and conditions for deposits of hybrid core capital
§ 8. Government provision of hybrid core capital is subject to the condition that the credit institution at the time of contract conclusion continues to fulfil the requirement set out in section 3, paragraph 1, to the effect that the credit institution after the capital injection has a core capital ratio of at least 12 of the basic regulation. However, § 3, paragraph 4, and meet the solvency requirements of the financial business Act.
(2). In the period, a credit institution receives capital contributions, subject to the following conditions:
1) capital injection aims to provide air for the institution's lending policies.
2) a credit institution shall publish a report every six months on the loan development in the Department.
3) a credit institution shall not make a capital reductions, which amount shall be paid to shareholders, guarantors or shareholders, or initiate new buyback programs of own shares.
4) the credit institution shall not issue stock or friaktier at a discounted rate or make use of similar preferential arrangements to the Executive Board.
5) a credit institution must pay dividends from the 1. October 2010, provided that it can be funded out of current profits, see. Moreover, paragraph 4.
6) a credit institution shall not apply the means to capitalise on the Group's other businesses, apart from its subsidiaries, or acquire own shares or shares in other companies in the group. Regardless of 1. section credit institution must acquire own shares for trading book in order to accommodate purchase orders from customers of the credit institution and the State's shares as part of a settlement of Government provision. The conditions referred to in 1. point, in exceptional individual cases can be waived in connection with contractual process.
7) the credit institution must not implement new share option programmes or other similar arrangements to the Executive Board, or extend or renew existing programs.
8) the credit institution shall not pay the members of the Executive Board with the variable wage components, see. the definition thereof in section 77 (a) (2) of the financial business Act, in an amount which exceeds 20 per cent of the total basic salary including pension.
9) a credit institution must in the Institute's tax balance sheet do not deduct more than half of the individual Director gunwale. In a note to the annual report the institution must indicate the amount of the deduction for tax purposes has been carried out.
10) a credit institution shall pay a rate of interest for the State to be determined individually for each Department.
(3). In addition to those referred to in paragraph 2, no. 1-10, referred to conditions that the subsidiaries of foreign financial groups, to the extent possible, to apply the capital deposits to ensure consolidation and increased lending in Denmark.
(4). A credit institution may not pay dividends, up to and including the 30th. September 2010. Regardless of 1. item must be credit institutions, which are part of a group of companies with a foreign parent company, well pay dividends if the parent company's dividend payments do not depend on dividend payments from the Danish subsidiary. In addition, Danish ship credit a/s regardless of 1. paragraph pay 15 percent of the annual profits to The Danish maritime Fund, provided that it can be financed within the current surplus.
(5). The Minister for economic and business affairs may lay down detailed rules on the determination and calculation of the interest to be paid to the State in accordance with paragraph 2, nr. 10.
(6). In cases where a credit institution's hybrid core capital represents more than 35 per cent of the total core capital, the FSA require capital converted into share capital, provided that the credit institution is in difficulties. The Minister for economic and business affairs may lay down detailed rules on conversion. Conversion of hybrid core capital shall not entail an obligation to submit takeover bids in accordance with the rules in section 31 of the Act on securities trading etc.
(7). If the conclusion of agreement on a contractual basis conversion, see. (6) the credit institution shall, not later than at the next ordinary general Assembly take a decision to suspend voting rights restrictions and ejerlofter.
(8). The State can sell and otherwise dispose of hybrid core capital, which is allocated to credit institutions in accordance with this law. Credit institutions can meet the State's capital after 3 years.
(9). Credit institutions entering the hybrid core capital, must pay the State's cost of external advisors and administration of the scheme. The Minister for economic and business affairs may lay down detailed rules on the subject.
Paragraph 10. The terms of paragraph 2, no. 3-10, and paragraphs 5-8 may be waived in whole or in part in the individual agreements with subsidiaries that are part of foreign corporations.
Paragraph 11. The Minister for economic and business affairs may lay down other specific conditions for deposits of hybrid core capital, including conditions for partial repayment of credit institutions referred to in article 6. Furthermore, paragraph 8.
§ 9. Payment of the hybrid core capital takes place immediately after the conclusion of the agreement.
(2). The Minister for economic and business affairs can agree that the payment will take place at a later date, but not later than 31 December 2006. December 2009.
(3). The Minister for economic and business affairs may lay down rules to the effect that the time limit referred to in paragraph 2 for payment is extended.
(4). A credit institution which has entered into an agreement with the State on deposit of hybrid core capital, is obliged to inform economic and business affairs, if in the period between the date on which the agreement is concluded and the time of payment is effected significant changes in the Institute's financial situation.
(5). A credit institution which has entered into an agreement with the State on deposit of hybrid core capital, is in the period up to the payment required to inform economic and business affairs, provided that the credit institution can no longer meet the law's solvency requirements, see. section 4, paragraph 1.
(6). The Minister for economic and business affairs may establish terms and conditions for payment, including rules requiring that a credit institution must pay a withdrawal fee in the period from the time of conclusion of the contract to the time of payment, about changes in interest calculation from the time of conclusion of the contract to the time of payment and special contract terms for a possible later withdrawal, of the basic regulation. (2).
§ 10. For credit institutions established in the applicable form, find the Danish public companies Act Chapter 6 on convertible and profit-making debt letters mutatis mutandis on hybrid core capital. For credit institutions not established in the applicable form, find the Danish public companies Act Chapter 6 apply mutatis mutandis on the hybrid core capital with the necessary adaptations.
(2). Way of derogation from paragraph 1 the credit institution with the FSA authorisation has the right to repay hybrid core capital.
§ 11. Economic and business affairs may be authorized, in connection with the supply of hybrid core capital for credit institutions to take on the obligations of indemnification by the State's financial adviser, in respect of expenditure charged to the financial advisor or its employees as a result of claims by third parties, unless the financial advisor or its employees have acted negligently or intentionally, and on the conclusion of the agreement on the fee If the Adviser does not receive royalty related to the State's capital.
Supervision and sanctions
§ 12. Economic and business affairs oversees the credit institutions to comply with the terms and conditions that apply to the State's underwriting under section 6 and the capital contribution under section 8.
(2). Economic and business affairs shall draw up every six months a comprehensive statement on the development of credit opportunities.
§ 13. If a credit institution violates the terms of the underwriting, see. § 6, or the terms and conditions of the capital contributions, as follows from § 8, the Danish financial supervisory authority can issue a warning to the credit institution in question, placing on the market of the Board of Directors of the institution concerned or to order the Department to allocate a Director in that Department.
Entry-into-force provisions, etc.
§ 14. The law will enter into force on 4. February 2009.
(2). The Bill can be confirmed immediately after its adoption.
(3). § 8, paragraph 2, no. 4, 7 and 8, have effect from 21. January 2009.
§ 15. Act §§ 16-18 shall not apply to the Faroe Islands and Greenland, but section 16, nr. 1-14 and 17-19, may by Royal Decree in whole or in part, be in force for the Faroe Islands and Greenland with the variances, as the special Faroese and Greenlandic conditions warrant.
(2). The provisions of the Act for mortgage companies is not applicable to the Faroe Islands.
§ 16. (Omitted).
§ 17. (Omitted).
§ 18. (Omitted).
Act No. 338 of 1. May 2009 contains the following entry into force and transitional provisions:
(1). The law shall enter into force upon the decree in the Official Gazette, 1) of the basic regulation. However, paragraphs 2 and 3.
(5). The Bill can be confirmed immediately after its adoption.
Economic and business affairs, the 15. September 2009 Lene Espersen/Jens lacle Official notes 1) Act was promulgated in the Official Gazette (A) the 2. May 2009.