Law On Mortgage Deed Companies

Original Language Title: Lov om pantebrevsselskaber

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Read the untranslated law here: https://www.retsinformation.dk/Forms/R0710.aspx?id=132202

Overview (table of contents) Chapter 1 scope of Chapter 2 of the law requirements for the mortgage deed companies Chapter 3 information requirements Chapter 4 suspension and cancellation of permits Chapter 5 Monitoring, complaint and penal provisions Chapter 6 entry into force and transitional provisions of The law on mortgage deed full text of companies 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: Chapter 1 scope § 1 of the Act. This law shall apply to commercial trade in mortgages in the form of commercial mortgages in the purchase or sale of real estate, including commercial sales of mortgages in its own real estate.
Chapter 2 requirements for the mortgage deed companies § 2. Commercial trade in mortgages, see. section 1, may only be carried out by a company that has a permit in accordance with the provisions of this chapter to operate as a mortgage deed company, see. However, paragraph 2.
(2). (1) and §§ 3-7 and 9-11 does not apply to financial undertakings covered by article 5, paragraph 1, no. 1 of the law on financial business.
(3). Mortgage deed companies which have been authorized in accordance with the rules laid down in this chapter, shall use the term mortgage deed company in name. Expressions such as registered, approved, authorized or equivalent must not be added to the name. Other companies may not use the names or descriptions of their activities, which are apt to induce the impression that they are mortgage deed companies.
§ 3. FSA provides upon application a company authorized to carry on business as mortgage deed company, when 1) the company operated in the form of a public limited company or a private limited company, 2) the company has a Board of Directors and an Executive Board and members thereof, shall comply with the conditions laid down in § 4, 3), the person in the company, which is responsible for the trade in mortgages, satisfies the conditions laid down in § 5, 4) owners of qualified shares in the company complies with the principles laid down in §§ 61-62 on ownership in the financial business Act and 5) a mortgage deed company When dealing with consumers, documenting that there is created a special account to which the agreed proceeds should be inserted, and that the company has established the safety of these products, see. (5).
(2). The requirements referred to in paragraph 1, no. 1-5, must be fulfilled at the time of submission of the application, and at any time after the permission is given, see. However, section 24, paragraph 2 and 3.
(3). An application for authorisation in accordance with paragraph 1 shall contain the necessary information to the Danish financial supervisory authority can assess whether the conditions laid down in paragraph 1 are fulfilled. The application must also include a statement 1) corporate form and the company's structure and organisation, including the company's gadgets and planned operation, as well as business processes for compliance with the disclosure requirements of section 8, 2) the names of the company's capital owners and on capital owners ' share of the company's capital or voting rights, and 3) which of the activities listed in section 1, the company intends to exercise, including whether the company does business with consumers.
(4). The Danish financial supervisory authority may lay down detailed rules on the extent, nature and the temporal extent of the security referred to in paragraph 1, no. 5. Paragraph 5. Mortgage deed company must annually to the Danish financial supervisory authority submit a declaration from an approved auditor about the security referred to in paragraph 1, no. 5. (6). The Danish financial supervisory authority shall take a decision on a permit, no later than 6 months after the financial supervisory authority has received the information necessary to process the application.
§ 4. A member of the Board of Directors and the Executive Board of a mortgage deed company must have sufficient experience to exercise his functions or carry out his position in the company in question.
(2). A member of the administrative or management body shall comply with the following: 1) shall not be imposed or to be imposed criminal liability for violation of the criminal law, this law, other financial legislation or other relevant legislation, if the offence involves a risk that he or she is unable to perform his duties or his position on the comforting way.
2) must not have declared bankruptcy, filed a petition for compulsory settlement, bankruptcy or debt settlement or be in receivership, receivership, debt settlement or composition.
3) must not have expelled or exhibit a behaviour which gives reason to believe that he or she does not want to carry out the duties of the position or safely. In deciding whether a member of the Board of directors or the Executive Board has expelled or engages in misconduct, the emphasis should be on the need to maintain confidence in the financial sector.
(3). Members of the administrative or management body of a mortgage deed company shall notify the financial supervision information of the kind referred to in paragraph 2 in connection with their entry into the company's management, and if the situation subsequently change.
§ 5. Mortgage deed company must appoint a person who is responsible for the marketing of mortgages. The person responsible for the trade in mortgages must have at least 3 years of practical experience with mortgage deed trade regulation. However, paragraph 3.
(2). section 4, paragraph 2, no. 1 and 3, and (3) shall apply mutatis mutandis for the person responsible for the trading of mortgages.
(3). The Danish financial supervisory authority may, on application, allow the person who is responsible for trade in mortgages, does not fulfil the condition set out in paragraph 1.
§ 6. FSA creates a register of mortgage deed companies authorized under section 3. When the Danish financial supervisory authority has granted a mortgage deed company authorized under section 3 (1) be registered company and the person who is responsible for trade in mortgages, in the FSA register. The register is available to the public.
§ 7. A mortgage deed company may engage in activities other than commercial trade in mortgages.
(2). The Danish financial supervisory authority may decide that a mortgage deed company must not engage in a specific activity, provided that this company is not compatible with a comforting exercise of trade in mortgages.
Chapter 3 information requirements section 8. For commercial sale of mortgages to be there before the agreement is concluded, the purchaser shall be given information about secured the letter and the circumstances in which it was issued, so the buyer can evaluate mortgage real value of the letter.
(2). The Danish financial supervisory authority shall lay down detailed rules concerning the information to be made available to the buyer in accordance with paragraph 1, including information on whether mortgage letter is nyudstedt, what type of real estate mortgage letter provides security in, and on mortgage letter priority position.
Chapter 4 suspension and cancellation of licences section 9. The Danish financial supervisory authority involves a mortgage deed company permission, if 1) at the request of the company, 2) the company is guilty of serious or repeated violations of the provisions of this law or regulations issued pursuant to the Act, 3) the company no longer meets the conditions laid down in § 3 (1) (8). 5, section 24, paragraph 2, and section 4, 4) the company no longer employs a person who is responsible for trade in mortgages, and which meets the requirements set out in § 5, 5) are not carried on activities covered by the law for a period exceeding 12 months, 6) the Danish financial supervisory authority has ordered the company to set aside the Director or the mortgage deed of mortgage deed trade responsible person and the order is not complied with within the time limit laid without prejudice to article. section 14, paragraphs 1 and 3, or 7) the Danish financial supervisory authority has ordered a Board member to resign and the order is not complied with, see. section 14, paragraphs 2 and 3.
§ 10. A mortgage deed company licence lapses if the company is declared bankrupt or ceases otherwise.
§ 11. Once permission for a mortgage deed company is withdrawn or cancelled, the company's activities under section 1 cease, see. However, paragraph 2.
(2). A mortgage deed company whose permission shall be withdrawn or lapses, however, can divest the holdings of mortgages, which the company has at the time of the withdrawal or lapse of authorisation. The Danish financial supervisory authority may require the company to draw up an inventory of the stock of mortgages.
(3). Upon suspension or withdrawal of an authorisation for a mortgage deed company erased the company concerned and the person responsible for the trade in mortgages, the FSA mortgage deed register of companies.
Chapter 5 Monitoring, complaint and penal provisions article 12 Supervision. The Danish FSA shall ensure compliance with this law and the regulations issued pursuant to the law. Supervision is carried out on the basis of a risk assessment.
(2). The Danish financial supervisory authority may at any time against proper identification without a court order to access the premises belonging to the companies covered by this law in order to obtain information.
(3). The Financial Business Council is included in the supervision referred to in paragraph 1 with the powers conferred on the Council under section 345 of the financial business Act.
(4). The Danish financial supervisory authority may give orders for the rectification of circumstances which are contrary to this law, without prejudice. § 3 (1) (8). 5, § 3, paragraph 5, article 7, paragraph 2, article 8, paragraph 1, and article 11, paragraph 1.
§ 13. For employees of the FSA will find sections 354 and 356 in the financial business Act shall apply.
§ 14. The FSA can order a mortgage deed company to dedicate a Director within a period laid down by the Danish financial supervisory authority, if this is pursuant to section 4, paragraph 2, cannot contest the post. The Danish financial supervisory authority may also require a mortgage deed company to set aside the person who is responsible for trade in mortgages, if this under section 5 of the basic regulation. section 4, paragraph 2, no. 1 and 3, cannot contest the post.

(2). The Danish financial supervisory authority may order a member of the Board of Directors of a mortgage deed company to resign within a period laid down by the Danish financial supervisory authority, if the Member pursuant to section 4, paragraph 2, cannot contest the Office.
(3). The duration of the injunction granted in accordance with paragraphs 1 and 2 shall be set out in the order. The duration can be valued from 1 to 5 years or until further notice.
(4). The FSA can order a mortgage deed company to dedicate a Director responsible for the mortgage deed or trade, when there is indicted in a criminal case about violation of criminal law, this law or other financial legislation, until the criminal case is settled, if a conviction would mean that he or she does not meet the requirements in section 4, paragraph 2, no. 1. The Danish financial supervisory authority shall set a deadline for compliance with the order. The Danish financial supervisory authority may, under the same conditions as in 1. point to order a member of the Board of Directors of a company governed by the law to resign. The Danish financial supervisory authority shall set a deadline for compliance with the order.
(5). Injunction granted pursuant to paragraphs 1, 2 and 4, of the mortgage deed, the company or the person to whom the order relates, demanded brought before the courts. The request must be submitted to the FSA, within 4 weeks after the order is notified the concerned. The request does not have suspensive effect on order, but the Court may by order direct that the person concerned was Director, the Board Member concerned or the person responsible for the trade in mortgages during these proceedings can maintain his functions or his position. FSA earns within 4 weeks the matter to the courts. Proceedings in the civil procedure forms.
(6). The FSA may, of its own motion or on application, withdraw an injunction granted pursuant to paragraphs 1, 2 and 4. Declines the FSA an application for revocation, the applicant may require the refusal brought before the courts. The request must be submitted to the FSA, within 4 weeks after the refusal is notified the concerned. Request to the Danish financial supervisory authority on the right to apply to the courts, however, may only be made if the order is not limited in time and elapsed at least 5 years from the date of issuance of the order or at least 2 years after the FSA refused withdrawal is confirmed by judgment.
§ 15. The Danish financial supervisory authority may publish notices issued under section 12, paragraph 4, of the basic regulation. § 8, with an indication of the company's name.
(2). Decisions to be adopted pursuant to section 345 (2) of the financial business Act, see. This article 12, paragraph 3, shall be published. 1. paragraph also applies to decisions to hand over cases to the police investigation, see. However, paragraph 3. The publication shall include the name of the company.
(3). Publication in accordance with paragraph 2 may not, however, happen, if it would cause disproportionate harm to the company or investigative matters argues against publication. The publication shall not include confidential information about customer relations or information subject to section 12, paragraph 1, of the law on open government.
(4). If disclosure is omitted in accordance with paragraph 3, 1. point, there must be disclosure pursuant to paragraph 2, when the grounds necessitating the derogation, is no longer applicable. It applies, however, only, for up to 2 years after that decision is taken.
§ 16. As a party in relation to the Danish financial supervisory authority shall be deemed to be natural or legal persons with which the FSA decisions taken pursuant to this Act or rules adopted on the basis of this law are directed against, see. However, paragraph 2.
(2). As a party to the relationship with the FSA, as regards that part of the case, which relates to the person concerned shall be deemed to be also 1) the operator of a mortgage deed company without permission, see. § 2 (1), (2)) an undertaking applying for an authorisation to engage in the trading of mortgages, see. § 3, 3) a member of the administrative or management body of a company or the person who is responsible for trade in mortgages, when supervision refuses a company permission, see. § 3, paragraph 1, or withdraw the authorization referred to in article 6. § 9 and 4) a natural or legal person to whom the DFSA requires information for determining whether this is covered by the provisions of this law, without prejudice. § 17.
§ 17. Mortgage deed companies shall, on request, give the FSA the specific information needed for supervisory activities.
(2). The Danish financial supervisory authority has access to physical and legal persons may request all information necessary for the supervisory assessment of whether their activities are covered by the provisions of the Act.
§ 18. In the calculation of the time limits under this Act or in the rules issued pursuant to law, see section 357 of the financial business Act shall apply.
§ 19. Mortgage deed companies under supervision after this law pays tax to the Danish financial supervisory authority in accordance with Chapter 22 of the financial business Act.
§ 20. The Minister for economic and business affairs shall lay down detailed rules on the application of digital communication, including electronic signature, by the exchange of information under this law between citizens and businesses on the one hand and the public administration, on the other hand, and on the retention of information.
Appeal section 21. Decisions taken by the Danish financial supervisory authority according to the law or regulations issued by virtue of law can by it, as the decision is aimed at, be referred to the EAB, no later than 4 weeks after the decision is announced.
Criminal provisions of section 22. Violation of article 2, paragraph 1, and article 3, paragraph 5, is punished with a fine, unless a higher penalty is inflicted upon the rest of the legislation.
(2). With fine punished anyone who fails to give the FSA information pursuant to section 4, paragraph 3, article 5, paragraph 2, and section 17.
(3). In addition, a mortgage deed is punishable by a fine company that fails to comply with an injunction granted under section 12 (4) and section 14 (1) and (4) 1. and (3). point in the same way penalized the Board Member who fails to comply with an injunction, which is given under section 14, paragraph 2.
(4). In rules adopted pursuant to the law may be fixed fines for violation of the rules.
(5). That can be imposed on companies, etc. (legal persons) criminal liability in accordance with the provisions of the criminal code 5. Chapter.
Chapter 6 entry into force and transitional provisions § 23. The law shall enter into force on the 1. July 2010.
§ 24. A person or a company can demonstrate that the person or company before the 1. July 2010, engaged in commercial trade in mortgages and have submitted applications for authorisation to the FSA by 1. January 2011, can continue to do so until the Danish financial supervisory authority has taken a decision on the permit. For the person or company get § 2, paragraph 1, § 3, paragraph 1, no. 1 and 5, and section 8 first effect from the 1. January 2011.
(2). A person or a company that does not comply with the requirements of section 3 (1) (8). 1, and as the face of the Danish financial supervisory authority can demonstrate that the person concerned before the 1. July 2010, engaged in commercial trade in mortgages, see. § 1, regardless of section 3 (1) (8). 1, continue its business for 5 years, though this shall not be exercised in those types of companies. The person or company is, however, required to submit financial statements in accordance with the Danish financial statements Act. Met the requirement set out in section 3 (1) (8). 1, not by 1. July 2015, repealed the right to operate commercial trade in mortgages, see. § 1.
(3). For individuals and companies, such as at the date of entry into force of the Act deals with commercial mortgages, see § 3 (1) (8). 2 of the basic regulation. § 4, no. 3 of the basic regulation. § 5 shall not apply in the case of an application for a permit.
§ 25. The law does not apply to the Faroe Islands and Greenland but may by Royal Decree in whole or in part be put into force for Greenland and the Faroe Islands with the derogations which the Faroese and Greenlandic conditions warrant.
section 26. In the financial business Act, see. lovbekendtgørelse nr. 467 of 29. April 2010, is amended as follows: 1. In section 361 (1), the following is inserted as a no. 26: ' 26) companies covered by the law on mortgage deed mortgage deed companies pay 15,000 DKK annually. '

Given at Christiansborg Palace, on 25 May. June 2010 Under Our Royal hand and Seal MARGRETHE r./Brian Mikkelsen