Notice On Municipal Borrowing And Granting Of Guarantees, Etc.

Original Language Title: Bekendtgørelse om kommunernes låntagning og meddelelse af garantier m.v.

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Overview (table of contents)



Chapter 1



Access to borrowing, etc.





Chapter 2



Line of credit and the conditions for borrowing, etc.





Chapter 3



A derogation





Chapter 4



Date of entry into force and transitional provisions





Annex 1









The full text of the Decree on local government borrowing and granting of guarantees, etc.

Pursuant to § § 41, 58 and 59 of the law on local government administration, see. lovbekendtgørelse nr. 1440 by 1. November 2010, fixed: Chapter 1 access to borrowing, etc.

§ 1. A municipality's total borrowing must not exceed, in each financial year the municipality's access to loans under section 2 and sections 16-17.

§ 2. A municipality's access to in each financial year to take out loans, see. section 3, equal to the sum of the following municipal expenditure: 1) the investment cost through network activities and the production of electricity by burning waste, see. section 4, paragraph 1 1. paragraph, of the law on the electricity supply.

2) the cost of the transfer of assets to universal companies, see. § 102, paragraph 2, of the law on the electricity supply.

3) the investment cost in the production and distribution of gas (other than natural gas) and heat, including the cost of investing in waste incineration plants with heat recovery.

4) Investment cost of waste disposal, etc. of investing in waste incineration at waste incineration plants with heat utilisation apply nr. 3.5), the cost of construction and maintenance, straightening, as well as the improvement of collective security of energy installations with accessories, including wiring. To energy plant may, notwithstanding section 10, paragraph 1, recorded nominal loans with up to five years of afdragsfrihed.

6) cost of energy-saving measures in buildings or facilities belonging to the municipality or an institution, if borrowing is attributed to the municipality, without prejudice. § 3 (1) (8). 3 and 4. By energy-saving measures shall mean: a) such measures relating to energy consumption, resulting from an energy labelling prepared pursuant to executive order on energy labelling, etc. in buildings and b) replacement of lamps and luminaires for more eløkonomiske types, acquisition of automaticity to the regulation or management of electricity consumption and replacement of electrical systems and appliances in addition to the eløkonomiske types.

c) measures, resulting from the construction of the energy requirements for the existing construction in accordance with the notice of the publication of the building regulations.

7) the cost of installation of the electricity or heat-producing plants based on domestic, including renewable, energies in estates for social, cultural and educational purposes.

8) Expenditure, including outstanding guarantees for measures covered by a reorganisation plan in accordance with the law on the reorganisation, a decision pursuant to the Act on urban renewal and housing improvement, a decision pursuant to the Act on urban renewal, or a decision pursuant to the Act on urban renewal and the development of cities, however, only 95 per cent of expenditure, including outstanding guarantees for decisions after 31 December 2006. December 2000.

9) cost of implementing improvements in municipal apartment houses, acting on a proposal from the resident representatives or at the request of resident representatives or a majority of the tenants.

10) cost of the municipal cooperative deposits pursuant to section 2, paragraph 7, of the Act relating to cooperative housing associations and other residential communities.

11) cost of outstanding guarantees by construction of subsidised private cooperative housing in accordance with the law on housing and law on public housing and supported private cooperative housing, etc. or construction of ustøttede private cooperative housing in accordance with the law on public housing and supported private cooperative housing, etc. and act on public housing, etc.

12) Cost, excluding. the nominal capital, by the construction or acquisition of municipal general senior citizen pursuant to the law on social housing, etc., cost of remediation work, etc. in the municipal general senior housing in accordance with the same article 91, paragraph 8 and section 92, paragraph 3, of the basic regulation. section 96, the cost of extraordinary renovation works in the municipal senior housing in accordance with the same article 98, paragraph 2, and the cost of repairing the building damages in municipal senior housing in accordance with the same article 157, paragraph 1 and 2. For ældrebolig purposes may, notwithstanding section 10, paragraph 1, shall be included in credit and loans in the municipality of Credit in accordance with the rules of the law on public housing, etc.

13) cost of acquisition and fitting-out of buildings to residential for rent in accordance with the Integration Act.

14) 85 per cent of the cost of acquisition of land and property for municipal land supply with track access code 05: agriculture developed, 07: Orchard, greenhouse and nursery or 17: Undeveloped landbrugslod, etc. at the last made public assessment.

15) cost of acquisition of property under section 47 (A) of the law on planning. Absorbed loans after this provision, must the loan be met when the property passes to municipal purposes, or to do the deposit according to the rules in section 6.

16) cost of the provision of loans in accordance with section 1, paragraph 1, of the law on the loan for the payment of property taxes and amending tax assessment Act, deducted from the outstanding loans during the financial year.

17) cost of or legal support for replacement, new construction and renovation of ferries and ferry facilities in bilagetanførte ferry crossings.

18) cost of construction works in ports and municipal autonomous municipal port.

(2). A municipality's access to loans includes in addition the following loans: 1) loans under section 3 (1) (8). 3, be assimilated to a municipality's borrowing, and which are recorded in order to carry out network activities and the production of electricity by burning waste, see. section 4, paragraph 1 1. paragraph, of the law on the electricity supply.

2) Loans, which corresponds to the amount, which will be used for the repayment of construction loans or credits, including the elderly. accrued interest, previously recorded in accordance with this Ordinance or corresponding provisions previously provided by the economy and the Minister of the Interior.

3) Loan, the proceeds of which entirely used for repayment of existing loans. By conversion to a series or annuity, it is a condition that the total funding thus continually meets the requirements set out in section 10, paragraph 1. If the conversion is done from a standing loan or a loan with a grace period, it is furthermore a condition that the average duration of the total funding does not exceed 10 years. By conversion to a permanent loan or loans with a grace period, it is a condition that the total funding thus continuously comply with the requirements of article 10, paragraph 2. If more loans are rescheduled at the same time to a new loan, the remaining maturity is calculated as a weighted sum of the individual loan maturity.

4) loans taken over from another municipality or an institution, if borrowing is attributed to the municipality, without prejudice. § 3 (1) (8). 3 and 4, when this loan in the past are recorded in accordance with this Ordinance or corresponding provisions previously provided by the economy and the Minister of the Interior.

5) deposit priorities being delivered in connection with the acquisition of immovable property, if the property acquired by the municipality as ufyldestgjort secured creditor at a foreclosure auction. Taken over as priorities under this provision, the priorities will be met if the property passes to municipal purposes, or to do the deposit according to the rules in section 6.

(3). By statement of loan access referred to in paragraph 1 in a fiscal year shall be taken into account only the costs incurred in the current financial year. Decision on the inclusion of loans must be taken by the Municipal Council in a meeting not later than 31 December. March this year after the fiscal year. Loans must be entered no later than 30 June. April year following the accounting year.

(4). For municipalities to take up loans in accordance with paragraphs 1 and 2 may not be taken into account for the value of agreements, including rent and lease agreements, concerning the use of buildings, premises, installations, etc., as before the conclusion of the agreement has been in the municipality's own regulation. § 11.

(5). A municipality's borrowing access under paragraph 1, nr. 3 and 4 in each financial year is limited to the investment cost net of collected operating and fixed income for which no expenditure, up to a maximum local government outlay on the individual supply area at the end of the financial year in question.

§ 3. To a municipality's borrowing be assimilated: 1) Loan, which alone absorbed by the municipality.

2) the portion of the loans contracted by several municipalities in association, which, according to the agreement shall be the responsibility of the municipality.

3) the portion of loans raised by local communities, partnerships, cooperatives, public limited companies, private limited companies, self-governing institutions and the like with municipal participation, which can be attributed to the municipality.

4) Loans contracted by other institutions than those falling under (1). 1, 2 and 3, and which, after agreement with the municipality shall make seats available in order to solve tasks in accordance with the law on social service, law on the day, recreation, and Club deals, etc. for children and young people or the Act on active social policy. The loan included pro rata in proportion to the seats that are available to the municipality.

5) Loans not covered by nr. 1-4, to the extent the municipality shall notify the guarantee for the loan, and the loan used for financing of expenditure that can be equated to a municipal construction task.

6) deposit priorities being delivered, and mortgages, issued to seller in connection with the acquisition of real estate.


7) the conclusion of agreements, including rent and lease agreements, concerning the use of buildings, premises, etc., or agreement on the operation of institutions, whose establishment can be equated to a municipal construction task.

8) that part of the agreements, including rent and lease agreements, concluded by the municipal communities, partnerships, cooperatives, public limited companies, private limited companies, self-governing institutions and the like with municipal participation, about the use of buildings, premises, etc., if the establishment can be equated to a municipal construction task.

(2). The transactions referred to in paragraph 1, no. 5, however, not be assimilated to the municipality's borrowing, if communicated to guarantee loans for the following purposes: 1) General family homes, General youth homes, General senior housing and supported private cooperative housing or ustøttede private cooperative housing in accordance with the law on public housing, etc.

2) Community contributions and private common roads in accordance with the law concerning the Community contribution to public roads and law on private common roads.

3) Coastal protection measures carried out by contributory digelag, kystsikringslag or coastal protection in accordance with the law on coastal protection.

(3). The share of loans raised by utilities in accordance with law on water sector organisation and economic conditions for the investment cost by the abstraction and distribution of domestic water and investment cost of sewerage and sewage treatment facilities, as well as guarantee for doing so, not to the municipality's borrowing.

§ 4. Loans are stated net of value adjustments if necessary. Borrowings are stated at market value of the bonds at the withdrawal of these, although the sale of the bonds have not yet occurred.

(2). Deposit priorities and sells pantebreve are assessed at the rate of 80. Loans with a residual maturity of 3 years or less will be summed up, however, the residual nominal amount of the debt.

(3). For bridging loans and, in the case of joint municipal corporations, bank overdrafts are included only loans which are not covered by the provisions of section 9. Such loans shall be taken into account with the amount at the end of the year is deducted from the loan in addition to the amount drawn at the beginning of the year.

§ 5. The conclusion of the in section 3 (1) (8). 7 and 8, referred to agreements is calculated as the higher of the following values: 1) Construction cost/acquisition costs relating to occupied buildings, premises, etc. including VAT.

2) value of the type property, premises, etc., according to the latest public assessment carried out at the conclusion of the agreement.

(2). When a municipality pays a continuous performance for the use of buildings, premises, etc., including VAT, which can be refunded pursuant to the notice of the VAT refund scheme for the municipalities and regions, the amount is calculated in accordance with paragraph 1, nr. 1 However, excluding VAT.

(3). Conversion costs, as agreed in the contract with the landlord, to be included in the inventory.

(4). At the subsequent improvement in the form of extension, renovation or other recovery, which is not in the nature of general maintenance of the rented, are also included with an amount equivalent to the costs of borrowing.

(5). When a municipality terminates a rental agreement and enters into a new lease within the same fiscal year or no later than 31 December. March of the following financial year, the amount calculated in accordance with paragraph 1 shall be reduced by the value of the terminated leases also calculated in accordance with paragraph 1.

(6). Where a municipality enters into an agreement referred to in section 3 (1) (8). 7 or 8, about the use of buildings, premises, etc., at the time of the conclusion of the agreement is not listed, be assimilated to the municipality's borrowing agreement with an amount in the year of the contractual process and each of the subsequent years corresponds to construction costs, which will be held in the year in question.

§ 6. In section 3, paragraph 1, no. 2-8, said loans and agreements not be assimilated to the municipality's borrowing, if at the same time, the municipality shall deposit an amount in a separate account in a bank or deposit the bonds with a similar market value in a financial institution, a mortgage lender or in the municipality of Credit.

(2). The deposit is calculated on the basis of the valuation of loans under section 4 or rent and lease agreements, etc. pursuant to section 5.

(3). In the loan period or the period of the contract may be of the deposited amount or the deposited bonds after 10 years annual enforced or released a fifteenth. In addition, each year of the loan period or the period of the contract enforced or released to the deposited amount accrued interest. If the municipality in the years after the deposit is made, has free lending facility, the municipality can reduce the deposited amount by an amount equivalent to the available lending facility.

(4). At the termination of the loan repayment can respectively the municipality raise the remaining part of the deposited amount or the deposited bonds.

§ 7. At a sale of one of the municipality's immovable properties, including installations, for which the municipality has included loans, must meet the relevant loan, unless the municipality the municipality according to the rules of section 6 simultaneously with the sale shall deposit an amount equal to the amount by which the said loans can be met without prejudice. However, section 8.

§ 8. By a transfer of one of the municipality's immovable properties, including installations, for which the municipality has included loans to a company with limited liability, which the municipality is wholly or partly owns, to the municipality of reduce the relevant loan with an amount equal to the sum of the transfer less the portion thereof that is paid with shares or similar in the company (relative). By a later sale of such shares or similar must the municipality reduce that loans with an amount equal to the sales sum by the sale of shares or similar.

2. The rules laid down in paragraph 1 shall not apply, if the municipality according to the rules of section 6 simultaneously with the transfer shall deposit an amount equal to the amount by which that loan should have been reduced in accordance with paragraph 1.

Chapter 2 Cash credit and conditions for borrowing, etc.

§ 9. In the municipalities must average over the last 12 months of daily balances in the function 9.50.50, bank overdrafts and bridging loans, bridging loans, who shortly after Excl. construction work will be converted to long-term loans must not exceed the average of the daily balances during the same period on liquid assets, see. functions 9.22.01-9.22.11 in the ' budgetary and accounting system for municipalities '.

(2). Cash credit for municipal communities, partnerships, cooperatives, public limited companies, private limited companies and the like with dominant local influence may apply a maximum of 125 DKK per capita. By works, that after completion can be financed by borrowings, however, can be carried out further drag on overdraft within an amount that equals the total proceeds of the expected final loan, provided that the conversion to take place as soon as possible after completion.

§ 10. Loans may be raised as annuity, serielån, or inflation-indexed loans. The annuity may not exceed 25 years, however, the loans for the construction or acquisition of General older homes have longer maturity within the limit laid down in the law on public housing, etc.

(2). Loans can also be accepted as permanent loans or loans with a grace period. The maturity of such loans may not exceed 15 years and with an interest-only courses that most gives an average maturity of 10 years.

(3). A municipality may enter into forward contracts for the purpose of exchange rate and interest rate hedging in connection with borrowing and payment of interest and principal payments, if there is a specific obligation to pay interest and principal payments, respectively, to receive or pay an amount in foreign currency. A municipality must not be over exposed in currency other than Danish kroner or euro.

(4). A municipality can reschedule loans using simple interest and/or currency swap agreements. For the purpose of exchange rate and interest rate hedging can be used in this context, forward transactions, but not options.

(5). A municipality may enter into sales and repurchase agreements relating to debt securities (REPO-transactions). A municipality may also issue certificates with maturity of less than 1 year. The proceeds of the agreements and issued certificates is included on common terms in the calculation of the municipal credit card opportunities pursuant to section 9.

§ 11. A Municipal Council may not, without the approval of the Minister of Economic Affairs and the Interior, enter into an agreement, including rental and leasing agreement on use of buildings, premises, installations, etc., equipment, operating funds, or appliances before the conclusion of the agreement has been in the municipality's own. Economy-and the Minister of the Interior shall determine the conditions for approval, including the terms and conditions of deposit.

§ 12. Guarantee for loans can be granted only if the loan meets the for municipal borrowing applicable terms, see. section 10, paragraphs 1 and 2.

(2). Guarantees for loans to the collective energy supply companies and property for social, cultural and educational purposes follows notwithstanding paragraph 1 maturity rules of the law on mortgages and mortgage bonds, etc.

(3). Guarantees for loans for purposes covered by the law on social housing, etc. Notwithstanding paragraph 1 follows the rules of the law on public housing maturity, etc.

§ 13. A Municipal Council may not, without the consent of the supervisory authority offer undertakings for regular services and similar, not under the legislation by the municipality is obligated to perform.

(2). The restriction referred to in paragraph 1 in access to offer undertakings for regular services and the like do not apply to commitment because daghøjskoler and production grants for schools.


§ 14. A Municipal Council may not, without the consent of the supervisory authority contracting municipality of joint and several liability through entry into an association, an institution, a company, or the like. However, consent is not necessary if the Township alone books with its deposits, and not the municipality incurred obligations with regard to any additional deposits.

(2). The Municipal Council may, however, without the consent in accordance with paragraph 1 take out loans in mortgage credit institutions and in the municipality of Credit, regardless of whether the municipality by borrowing occurs as a member of the lending Association, as well as liable for loans to finance leases, which the municipality Leasing record in the municipality of Credit.

§ 15. Resolution on the assumption of guarantees, including the decision of joint and several liability of the ship owner through entry into an association, an institution, a company, or the like, shall be taken by the Municipal Council in a meeting.

(2). The Finance Committee or a Standing Committee may, however, be authorized to take the decisions referred to in paragraph 1, within the envelope and other conditions, such as the Municipal Board of Directors determines. In municipalities with the magistrate's Government can authorize the magistrate's Municipal Council Member, under whose management area case on the assumption of a guarantee obligation belongs.

(3). They referred to in paragraphs 1 and 2 restrictions to access to decide whether the assumption of warranty obligations do not apply to resident indskudslån and loans for road and sewer purposes.

(4). Decision on the conclusion of rental and lease agreements, which can be likened to a municipal construction task, taken by the Municipal Council in a meeting.

Chapter 3 section 16 Exemption. Economy-and the Minister of the Interior may, in respect of each financial year, within a framework to each of the purposes determined by the economy-and the Interior Minister, grant a derogation to the recording of loans beyond what follows from the provisions of section 2. Economy-and the Minister of the Interior may also, as part of contract negotiations announce general waivers.

(2). Economy-and the Interior Minister can outside the framework referred to in paragraph 1 shall notify a derogation for the conclusion of agreements covered by article 3, paragraph 1, no. 7 and 8, in particular in cases where, in the case of short-term leases.

(3). Loans as provided for in paragraph 1 must be entered no later than in § 2, paragraph 3, the time limit specified.

§ 17. Economy-and the Minister of the Interior may, in exceptional cases, grant derogations from the provisions of § 2, paragraph 3, section 2, paragraph 4, article 5, § 9, § 10 and § 12.

Chapter 4 entry into force and transitional provisions § 18. The notice shall enter into force on the 1. January 2012. However, § 2, paragraph 1, no. 6 (c), and with effect from the fiscal year 2011.

(2). Executive Order No. 1311 of 15. December 2009 on local government borrowing and granting of guarantees, etc. shall be repealed.

(3). Loans recorded before the 1. January 2012 in currency other than Danish kroner and euros can continue to be converted in the currency other than Danish kroner and euro, see. section 2, paragraph 2, no. 3. Economics and the Ministry of the Interior, the 15. December 2011 P.M.V. E.B. Niels Jørgen Mau/Søren h. T



Annex 1



Crossing the shipping Stigsnæs-Agersø færgeselskabet vestsjælland, 4230 Skælskør-Grenaa Anholt Grenaa, 8500 Grenaa Anholt færgefart-Askø-bandholm Lolland municipality, 4930 Maribo Assens-Baagø Assens-Bago Ferry a/s, 5610 Assens Barso Landing -Barso Aabenraa municipality, 6200 Aabenraa birkholm-Marstal Ærø Municipality, Town Hall, 5970 Ærøskøbing Fejø-Kragenæs Lolland municipality, 4930 Maribo Gudhjem-Christiansø, 300 go Aps, 3760 Gudhjem Kulhuse-Sølager Kulhus ferry a/s, 3390 hundested Hals-Egense





Aalborg Municipality, Technical Management, 9400 Nørresundby Aalborg-Aalborg Municipality, Technical Management, Egholm 9400 Nørresundby Endelave Endelave færgefart, Snaptun-Horsens Municipality, 8700 Horsens Femø-Kragenæs Lolland municipality, 4930 Maribo Fur-Fire Fursund Færgeri, Skive Kommune, 7800 Roslev Faaborg-Lyø-Avernakø





Ø-Færgen a/s, 23, 5600 Fåborg Feggesund-Færgevej Arup Holme I/S Thy-Mors færgefart, 7900 Nykøbing Mors Hjarnø-Snaptun Hjarnø ferry services, Hedensted 8722 Hedensted municipality, Hjortø-Svendborg, Svendborg Municipality boat Hjortø, 5700 Svendborg Hvalpsund-Sundsøre Hvalpsund-Sundsøre færgefart I/S, 9600 Aars







Bogø-stubbekøbing Bogø-stubbekøbing Over the move, 4760 Vordingborg Hirsholmene Frederikshavn-Frederikshavn-Freddy J, Holmbovej 37, 9900 Frederikshavn Nakskov-/Slotø/Vejlø/Enehøje Torben Rasmussen, Storm sheet All 45, 2. Hall, 4900 Nakskov hardeshøj-Ballebro hardeshøj-Ballebro færgefart, Mothercare, 6400 Sønderborg Thyborøn – Agger Thyborøn – Agger færgefart A.m.b.a., 7680 Thyborøn Orø-Hammer Bakker Østre Færge a/s, 4300 Holbæk Rørvig-hundested hundested-Rørvig færgefart a/s, 4581 Rørvig Bjørnø-Faaborg





Cooperative company Bjørnøen Bjørnø, 5600 Fåborg Ferry Amba, Vesterø Havn-Frederikshavn færgeselskabet Læsø, Vesterø Havn, 9940 Læsø Marstal-Rudkøbing Ærøfærgerne a/s, 5970 Ærøskøbing Nekselø-Havnsø færgeselskabet vestsjælland, 4592 Sejerø Næssund Mors-Thy Næssund I/S Thy-Mors færgefart, 7900 Nykøbing Mors Omø-Stignæs






Færgeselskabet vestsjælland, 4230 Skælskør Orø-Holbæk Orø-Holbæk ferry service, Holbæk Municipality, 4300 Holbæk Svaneke-Christiansø Niels Peter Sonne, Fisherman Street 8, 3740 Svanneke Sejerø-Havnsø færgeselskabet vestsjælland, 4592 Sejerø Samsø-Hov Samsø Linien a/s, 8305 Samsø Strynø-Rudkøbing





Strynø-Rudkøbing færgefart ApS, 5900 Rudkøbing Rønbjerg-Livo I/S Company Mini line, 9681 Ranum Søby-Fåborg Ærøfærgerne a/s, 5970 Ærøskøbing Hov-8300 Odder municipality, Odder Mellerup Tuno-Voer Randers Fjord Ferry Company in/S, v/Randers and North djurs municipalities chenlin Udbyhøj S-8961 Udbyhøj N





Randers Fjord Ferry Company in/S, v/Randers and North djurs Municipalities, 8961 chenlin Venø-Kleppen Struer municipality, 7600 Struer Skarø/Drejø-Svendborg Svendborg Municipality, Town Hall, 5700 Svendborg Ærøskøbing-Svendborg Ærøfærgerne a/s, 5970 Ærøskøbing Søby-Fynshav





Ærøfærgerne a/s, 5970 Ærøskøbing







Årø-Aarøsund Haderslev Municipality, Gåskær Street 28, 6100 Haderslev Nordby-Esbjerg Scandlines, Fanø-crossing, Dokvej 5, 6720 Esbjerg