Law amending the law on financial stability
(Transitional regime for Government guarantee, etc.)
WE, MARGRETHE the SECOND, by the grace of God Queen of Denmark, do indeed:
The Danish Parliament has adopted and we know Our consent confirmed the following law:
In Act No. 1003 out of 10. October 2008 on financial stability shall be amended as follows:
1. In article 3 the following paragraph 3 is added:
' (3). Eligible state government lending to the WUC. '
2. In paragraph 4 the following paragraph 3 is added:
' (3). The WUC ensures timely payment of all overdue requirements, see. paragraphs 1 and 2. '
3. In paragraph 5 shall be added as paragraph 2:
' (2). The provisions of the financial business Act § 61, paragraph 8, and sections 170, 171 and 175 (a) shall not apply in relation to the WUC. '
4. Pursuant to section 6 shall be added:
» Chapter 2 (a)
Liquidation of distressed financial institutions, etc. "
5. In article 7, paragraph 2, the words ' his assets and liabilities ' for: ' its business in whole or in part '.
6. In article 7, paragraph 2, be inserted after 1. paragraph: ' the WUC will determine which parts of the money the Foundation's business that should not be transferable. ';
7. Article 8, paragraph 1 is replaced by the following: ' the WUC can instead in order to conclude an agreement with a distressed financial institution under section 7 choose to pay for or put stock in a financial institution that is wholly or partly takes over the failed credit institution, or otherwise contribute to the settlement of the financial institution in accordance with the Act's purposes. '
8. In section 8, paragraph 2, the words ' article 7 (2), 2. paragraph ' to: ' section 7 (2), (3) section ' 9. In section 11, 1. paragraph, the words ' in financial institutions and branches covered by the scheme ' to: ' and depositors, see. § 4 (1) and (2) '.
10. section 11, 2. paragraph is replaced by the following: ' Commitments in the Settlement, the company and its subsidiaries, which exceeds the Private Contingency obligations pursuant to section 9, is assumed by the State. '
11. Under section 16 shall be inserted before Chapter 5:
» Chapter 4 (a)
System of an individual State guarantee for simple, unsecured debt
section 16 a. establish a regime obliging the WUC after application may conclude an agreement on the granting of an individual State guarantee for existing and new efterstillet, unsecured debt and not for a specific covered bond-issuing mortgage covered bond or institution as well as Danish ship credit a/s ' supplementary collateral (junior covered bonds) with a maturity of up to 3 years.
(2). The scheme is administered by the WUC in accordance with the provisions of this law.
(3). The regime referred to in paragraph 1 include loans issued before 31 December 1999. December 2010. May be applied for individual State guarantee on loans until 31 December 2005. December 2010. The Minister for economic and business affairs may lay down rules to the effect that the time limit referred to in 2. paragraph should be extended.
section 16 b. Application pursuant to section 16 (a) may be made by Danish banks, subsidiaries in Denmark by foreign banks and mortgage credit institutions which meet the solvency requirement of 8 per cent, the claim to the institution's individual solvency requirement and a possibly higher individual solvency requirements laid down by the Danish financial supervisory authority, without prejudice to article. section 124 of the financial business Act.
(2). Application for a State guarantee must be submitted to WUC and be accompanied by the following documents:
1) an explanation of the statement of the individual solvency need.
2) A statement from the credit institution on the Institute's financial position and prospects, as well as a statement from the Institute's approved auditor accordingly.
3) the latest annual report and the latest quarterly accounts.
(3). The Minister for economic and business affairs may lay down detailed rules on the application requirements, on the opinion of the auditor whether the processing of applications and the publication of information on issued guarantees, etc.
§ 16 (c). For individual State guarantee pursuant to section 16 (a) applies in the State guarantee period the following conditions:
1) must not be paid dividends. There may, however, be paid dividends from the 1. October 2010, provided that it can be accommodated within the current surplus. 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.
2) may not be capital reductions, which amount shall be paid to shareholders, guarantors or shareholders, launched new buyback programs of own shares, issued stock-or friaktier at a discounted rate or otherwise made use of similar preferential arrangements. However, this does not fully or partially repurchase of State shares as part of a settlement of a state capital in those institutions where the State has a konverteringsret.
3) must not be initiated new share option programmes or other similar arrangements to the Executive Board, and existing programmes and other similar schemes may not be extended or renewed.
4 the credit institution) pays a guarantee Commission for the State guarantee, which will be determined individually for each Department.
(2). Guarantee commissions, see. (1). 4, is the property of the State.
(3). The rules in section 13, paragraphs 1-7, and section 15 shall apply mutatis mutandis to contracts for individual State guarantee.
(4). The Minister for economic and business affairs may lay down detailed rules for fixing and calculating the guarantee Commission payable to the State in accordance with paragraph 1, nr. 4.
(5). If a bank or mortgage lender, which has entered into an agreement regarding an individual State guarantee on loans, violate the terms, as follows from paragraph 1, no. 1-4, FSA 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.
(6). The Minister for economic and business affairs may lay down detailed rules concerning the terms and conditions of the Settlement the company's conclusion of an agreement on the granting of State guarantee pursuant to section 16 (a).
§ 16 d. Administration Act applies to the winding-up the company's processing of applications for State guarantee under section 16 (a). '
12. section 17 (4) 1. paragraph is replaced by the following: ' The General State guarantee scheme, see. § 1, shall end on 30 June. September 2010. '
13. In article 17, paragraph 4, 3. paragraph, the words ' delivered ' to: ' bankruptcy petition has been filed '.
(1). The law will enter into force on 4. February 2009.
(2). The Bill can be confirmed immediately after its adoption.
Given in Copenhagen, the 3. February 2009 MARGRETHE r./Lene Espersen