Law Governing The Debt Nature Of The Covenant

Original Language Title: Gesetz zur Regelung des Schuldenwesens des Bundes

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Read the untranslated law here: http://www.gesetze-im-internet.de/bschuwg/BJNR146610006.html

Law for the control of the debt being Federal (federal debt being law - BSchuWG) BSchuWG Ausfertigung date: 12.07.2006 full quotation: "federal debt Act of July 12, 2006 (BGBl. I S. 1466), by article 1 of the Act of September 13, 2012 (BGBl. I S. 1914) has been changed" stand: amended by art. 1 G v. 13.9.2012 I 1914 for details on the stand number found in the menu see remarks footnote (+++ text detection from) : 1.8.2006 +++) the G was adopted as article 1 of the G v. 12.7.2006 I 1466 by the Bundestag. It is under article 4 para 1 sentence 1 of this G on the 1.8.2006 entered into force. The sections 1 and 2 are according to article 4 paragraph 2 mWv 19.7.2006 entered into force.
Part 1 performance of duties of the debt being federal and parliamentary control section 1 to the transfer of responsibilities of the debt being (1) authorization is to improve the efficiency of the debt being the Federal Government authorized the Federal Ministry of finance, by Decree of the Federal Republic of Germany - the following tasks of the debt being to carry out on behalf of the Federal Government and its funds to transfer finance agency: 1. obtaining loans for the Federal Government and its special funds in accordance with § 4, as well as measures to the portfolio management and market maintenance;
2. management of debt and funding of federal and his Fund, as well as the bonds issued by the Deutsche Ausgleichsbank.
3. management of the federal debt register in accordance with articles 5 to 8;
4. conclusion of transactions to control liquidity, including shops for investment.
From the transactions referred to in sentence 1, exclusively the Federal Government or its funds are entitled and obliged. The Federal Ministry of finance determines the terms and conditions and contractual policies.
(2) insofar as this is necessary for the fulfilment of the tasks transferred pursuant to paragraph 1, the Federal Republic of Germany -, may provide finance agency orders to the acceptance or payments according to article 70 of the federal financial regulation carried out by the Office of the Federal Government. The Federal Ministry of finance can also transfer the perception of payments as the body responsible for payment and in so far as paying agent of the Federal Republic of Germany - finance agency to the fulfillment of the tasks. The provisions of the federal financial regulation and the implementing provisions adopted in this are to apply in this respect accordingly.
(3) the Federal Republic of Germany - finance agency performs the duties conferred pursuant to paragraph 1 as part of public debt management of the Federal Government.
(4) different rules of jurisdiction in the debt of the Federal Government by law remain unaffected.

§ 2 supervision of the Federal Republic of Germany - Finance Agency (1) the Federal Ministry of Finance has the supervision on the right and appropriate exercise of the tasks of the debt being by the Federal Republic of Germany – from finance agency.
(2) in the Ordinance according to section 1, paragraph 1, sentence 1 the Federal Ministry of finance may determine that it temporarily one or all tasks can even perceive or transferred to an authority in his Division or a third party, otherwise the right and appropriate perception of the tasks cannot be ensured.

Section 3 parliamentary panel (1) the German Bundestag elects for a parliamentary term a panel consisting of members of the Budget Committee of the German Bundestag. The German Bundestag determines the number of members, the composition and the working methods. It is selected who combines the majority of votes of the members of the German Bundestag on himself. A member retires from the German Bundestag or his faction or a member appointed to the Federal Minister or the Federal Minister or the Parliamentary Secretary of State or Parliamentary Secretary of State, so it loses its membership in the Committee. A secretory Member, a new Member is immediately to choose.
(2) the Panel is informed by the Federal Ministry of Finance on all matters of the federal debt. The Federal Ministry of finance and the General Accounting Office are constantly represented. The Panel decides on the participation of additional participants.
(3) the members of the Panel are obliged to maintain secrecy of all matters, which have become known to them in their activities. The same applies to participants in the meetings.
Part 2 of the Federal borrowing and federal debt register section 4 borrowing by the Federal Government (1) borrowing by the Federal Government and his funds 3. entering into bills, 4. Bank loans or 5 other usual financial market financial instruments is carried out within the framework of the respective budgetary law 1st issue of debt securities, in particular by the issue of book-entry securities, 2. raising of loans against promissory notes.
(2) introduced derivative financial instruments can be used within the framework of the respective budgetary law of the financial markets.

Introduction of collective action clauses that terms and conditions of the bonds issued by the Federal Government with an original maturity of over one year can contain § 4a clauses that allow a change of the terms and conditions for the purpose of rescheduling by a majority of the creditors with the consent of the Federal Government (collective action clauses). The collective action clauses may provide the possibility for a single resolution for bonds of different bonds (bond cross-change). As far as terms and conditions provide otherwise, the §§ 4 b shall apply for the collective action clauses to 4 k.

§ 4 b majority resolutions of the holders of (1) the creditors may in particular following rescheduling decide (essential decisions): 1. the reduction of interest rates, the change of their maturity, the reduction or the modification of the procedure for their calculation;
2. the reduction of the principal, the change of their maturity or the modification of the procedure for their calculation;
3. the change of the currency of the debt securities or of the place of payment;
4. the other change a payment obligation of the Federal Government;
5. the release or the change of a guarantee or other security, unless the release or modification of the conditions are not already expressly contractually provided;
6. the change of circumstances whose occurrence of the notes can be terminated prematurely;
7. the changing of the precedence of claims under the bonds;
8. the change of the applicable law, provided that the notes are subject to German law;
9. the change of jurisdiction unless a foreign jurisdiction has been stipulated in the terms and conditions.
(2) the creditors decide in a meeting of holders or by way of a written vote.
(3) decisions taken in a meeting of the creditors, shall require a majority of at least 50 per cent of the nominal value of the outstanding bonds, represented at the vote. Major decisions are taken in a meeting of creditors, require a majority of at least 75 per cent of the nominal value of the outstanding bonds, represented at the vote. Essential decisions that are taken in a meeting of creditors and concern a change in cross-borrowing, require a majority of at least 75 per cent of the nominal value of the outstanding bonds in terms of all bonds affected by the change, as well as a majority of at least 66 2/3% of the nominal value of the outstanding bonds with respect to each single bond that is affected by the change, represented at the vote represented at the vote.
(4) decisions are taken through a written vote shall require a majority of at least 50 per cent of the nominal value of outstanding bonds. Essential decisions are taken through a written vote shall require a majority of at least 66 2/3% of the nominal value of outstanding bonds. Major decisions, which are taken through a written vote and affect a change in cross-borrowing, require a majority of at least 66 2/3 percent of the face value of the outstanding bonds in terms of all bonds affected by the change, as well as a majority of at least 50 per cent of the nominal value of the outstanding bonds with respect to each single bond that is affected by the change.
(5) the creditors can set notwithstanding the content of key decisions and necessary for a majority of the face value of outstanding bonds 3 and 4 paragraphs 1, a decision on this is considered an essential decision.
(6) the majority voting of creditors are equally binding on all holders of same bond and bond cross-change for all creditors of bonds affected by the change. Significant decisions affecting a change in bond Cross- and reaches the required majorities only in respect of some of the loans affected by the change, are binding for the holders of these bonds if the Federal the criteria which must be met for this purpose, specific date (date), of a maximum of five business days before the meeting of creditors or the beginning of the written vote cannot precede one by him , known makes and if these conditions actually exist.
(7) the creditors majority decisions always need to be the consent of the Federal Government.
(8) the Federal Government announced the resolutions of holders to make immediately.

voting rights (1) resolutions of the creditors each creditor participates in section 4 c in accordance with the nominal value of outstanding bonds, which he holds at the balance sheet date.
(2) a bond is considered not pending, particularly if keep 1 the Federal Government or a legal entity controlled by the Federal Government holds 2 and this legal entity at a resolution can vote freely.
A legal entity is dominated to see if the Federal Government is directly or indirectly entitled to give instructions to the management of the legal entity or if the Federal Government can choose the majority of the members of the supervisory boards or comparable supervisory body of the legal entity or otherwise appointed as by the Federal Government. A creditor can vote freely if he is subject to a federal vote 1, must be 2. According to an objective standard of care in their own interests or the interests of its shareholders, or necessarily 3 due to a fiduciary or similar duty in the interest of a person who holds no bonds to look at would be as not pending.
(3) the creditor can set by way of derogation from paragraph 2, the conditions under which a bond is considered to be pending; a decision on this is considered an essential decision.
(4) the Federal Government acquaints a list with all creditors prior to the deadline, which is at the time of publication as federally controlled entities are and which of them, that they can vote freely in a decision.

§ 4 d calculation agent; Certificate (1) the Federal Government designates a competent authority which determines whether the majorities required for decisions of the creditor (the calculation agent) are achieved.
(2) the Federal Government passes the calculation agent are shown prior to a resolution of the creditors a certificate from the: 1 the face value of the notes outstanding at the balance sheet date, 2. the nominal value on the date as not pending within the meaning of § 4 c paragraph 2 sentence 1 applicable notes and 3. creditors on the date as not pending within the meaning of § 4 c paragraph 2 sentence 1 applicable notes.
The Federal certificate makes known in sufficient time prior to a resolution of the creditors, that a reasonably informed and knowledgeable believer can check the accuracy of the information to the decision-making.
(3) the information in the certificate referred to in paragraph 2 are binding for all creditors and the Federal Government, as long as not an affected creditors before the decision of the creditors in writing and communication of reasons the correctness of the information and if not this creditor challenges a decision of the creditors, based on a false claim, within 15 days after notice of the decision action in accordance with the section 4i.

§ 4e convening of meeting of creditors (1) a meeting of creditors can at any time be convened by the Federal Government. The Federal Government has convened a meeting of creditors, unless a case provided for in the terms and conditions of non-performance of a payment obligation of the Federal Government and creditors by at least 10% of the nominal value of outstanding bonds in writing require the convocation. § 9 paragraph 2 and 4 of the bond Act is to be applied accordingly. The higher regional court at the seat of the German Federal Bank is responsible. The rules of the first book of the law on the procedure in family matters and in matters of voluntary jurisdiction shall apply accordingly. A decision by the judge is excluded. The decision of the higher regional court is final.
(2) the meeting of creditors is convened at least 21 days before the date of the meeting. An adjourned meeting of creditors is convened at least 14 days before the date of the meeting.
(3) in the Convocation shall be indicated: 1 the time and place of the meeting of creditors, 2. the agenda, proposals for decision and the conditions of the quorum, 3. the date and the conditions, depend on participation in the meeting of the creditors of which, 4. the conditions that must be fulfilled to an effective representation to ensure 5, based on the liability of creditors decisions bond cross-changing conditions which , in which obtained the necessary majorities only in respect of some of the loans affected by the change, and 6 the calculation agent.
(4) the notice shall inform to make.

section 4f Presidency; Quorum (1) the Federal Government determines the Chairperson of the meeting of creditors. Unless the person appointed by the Federal Government in the Assembly does not appear, to determine creditors holding more than 50% of the nominal value of the outstanding bonds, represented in the general meeting, the Chairman of the meeting of creditors.
(2) the creditors meeting is quorate, if those in attendance represented at least 50 per cent of the nominal value of outstanding bonds. Essential decisions to be taken, the creditors meeting is quorate if those present represented at least 66 2/3% of the nominal value of outstanding bonds.
(3) the Chairman may adjourn a meeting of creditors, if it is not validly deliberate only 30 minutes after the start of the session. The adjourned meeting is quorate, if those present represent at least 25% of the nominal value of outstanding bonds. Essential decisions to be taken, the adjourned meeting of creditors is quorate if at least 66 2/3 percent of the face value of the outstanding bonds represent the present.
(4) the creditor can set the required quorum par value of outstanding bonds by way of derogation from paragraphs 2 and 3; a decision on this is considered an essential decision.

§ 4 g representation (1) every creditor represented by proxy at the meeting of creditors can. The grant of authority if in writing. Authorization is to demonstrate the Federal Government no later than 48 hours prior to the date of the meeting of creditors.
(2) the revocation of power of Attorney is effective only if he is declared at least 48 hours prior to the date of the meeting of creditors against the League. The same applies to a change of the power of attorney.

§ 4h written vote on the written vote are regulations apply accordingly to the convening and conduct of meetings.

Contestation of decisions (1) a decision of the creditors can section 4i due to violation of the law or the terms and conditions be challenged through legal action.
(2) the action is within one month after the announcement of the decision to charge; section 4 d, paragraph 3 shall remain unaffected. It is against the Federal Republic of Germany. The higher regional court at the seat of the German Federal Bank is responsible for the action. The rules of civil procedure on the procedure before the national courts at first instance are to be applied accordingly. A decision by the judge is excluded. The revision takes place in accordance with § 543 of the code of civil procedure against the decision of the Oberlandesgericht; Article 544 of the code of civil procedure shall apply accordingly. In addition, article 20, paragraph 1, sentence 2 and paragraph 2 are the bond Act and § 246 paragraph 3 set 4 to 6 of the companies Act apply.
(3) before a final decision of the Court the contested decision must be, not consummated unless this is set 3 jurisdiction referred to in paragraph 2 at the request of the Federal Republic of Germany in accordance with section 246a of the Stock Corporation Act, that the bringing of the action does not preclude the enforcement of the contested decision; Set 1 to 4 and 6, paragraph 4 of the Stock Corporation Act shall apply accordingly section 246a, paragraph 1, sentence 1 and 2, paragraph 2, 3.

section 4j effectiveness and execution of decisions resolutions of holders, through which the contents of the terms and conditions is changed or supplemented, will not take effect if they are consummated. You are in the way to understand that the terms and conditions made known in their modified or amended version.

§ 4 k notices
Announcements according to § 4 4 c paragraph 4, section 4 d, paragraph 2, sentence 2, section 4e, paragraph 4 and § 4j shall be b paragraph 6 sentence 2 and paragraph 8, section in the Federal Gazette and on the Internet at the address of the Federal Republic of Germany - finance agency, as well as by the German Bundesbank.

§ Runs a federal debt register 5 federal debt register (1) the Federal Government and its Fund, which serves the explanatory statement, documentation and management of book entry securities, as well as the documentation and management of other liabilities in accordance with the following provisions. The federal debt register can be done electronically.
(2) the federal debt register consists of departments. Each registered in a Department: 1 collective debt register claims in accordance with article 6, 2. individual debt register claims in accordance with § 7, 3. other liabilities within the meaning of section 4, as far as this departments; established the Federal Ministry of Finance shall decide on the establishment of these departments.
(3) a debt register claim is established as collective debt register claims or individual debt register claim by registration in the appropriate Department; the registration in the federal debt register a legally prescribed form is considered to be noticed.

§ 6 collective debt register claims (1) the Federal Government and his funds can notes it issued that book entry securities be registered up to the amount of the nominal value of the respective emission on the name of a securities depository in the federal debt register (collective debt register claims).
(2) the collective debt register claims considered to be value securities deposits. The creditors of collective debt register claims is considered to be co-owner fractions. The respective share shall be determined according to the principal amount of the debt register claim collected for the believer in collective administration. The Securities Depository Trust manages the collective debt register claims for creditors without even authorized the collective debt register claims to be. The securities depository can manage the collective debt register claims for the creditors together with their own shares. The provisions of the custody Act shall apply accordingly.
(3) claims on case of securitised debt instruments are excluded, unless the terms and conditions see such claims explicitly above.
(4) the securities depository may allow for the collective custody at any time in a collective debt register claims transform entrusted to securitized debt securities of the Federal Government and his funds you, provided that the terms and conditions expressly exclude this.
(5) the emission of the Federation consists partly a collective debt register claims out of and partly from securitised bonds, these parts shall apply as a single deposits.
(6) the debtor of the collective debt register claims can raise only such objections arising from the entry, concerning the validity of the registration or directly against the creditor is entitled to him.
(7) the securities depository is entitled to demand the payment of interest and principal at maturity by the debtor for the collective debt register claims registered in her name. The debtor is discharged by payment to the securities depository to the holders of the collective debt register claims.
(8) emissions or parts are away in the Treasury of the Federation or one of its funds, they can be deleted completely or partially in the federal debt register, provided that the terms and conditions do not preclude the. The Federal Ministry of finance decides on deletion.

§ 7 individual debt register claims (1) individual natural or legal persons or estates, managing it is regulated by law or whose Verwalter prove their right of disposal by a judicial or notarial deed, may during the term of a collective debt register claims require that their share it is converted by registration in the single book in a denominated in their name claims (individual debt register claims), if the grounds of a single debt register claims is not excluded in the terms and conditions. The sending of the request is made through the registered securities depository. An individual debt register claims in the amount of the share is justified by the entry. § 6 paragraph 6 shall apply accordingly.
(2) if the grounds of a single debt register claims is not excluded in the terms and conditions, an individual debt register claims this can be justified, that 1 for the creditor who provides the purchase price to the Federal Government, the corresponding nominal value directly is entered as individual debt register claims, 2. the creditors, which provides a federal securities the job leading the federal debt register to convert into a book claims, entered a single debt register claims in the amount of the nominal value of delivered securities; This void his rights to the delivered securities. The legal relations created by the security between debtor and creditor applies also for the individual debt register claims.
(3) an individual debt register claims can be registered also to comply with a legally justified claim of performance as related to the creditor claims in the federal debt register if debtor is the Federal Government or any of its funds.
(4) changes in the individual debt register claims may be carried out only on the basis of a request of the holder or a person authorised by law or on the basis of law, legal business, judicial decision or enforceable administrative act for this purpose.
(5) the Agency leading the federal debt register gives only the named persons and public authorities which are entitled to information on the basis of a law, certificates and information on all entries and changes in the debt register account in paragraph 4.
(6) individual debt register claims, can be converted at the request of the holder within the meaning of paragraph 4 in a proportion of deposits for safekeeping with a credit institution unless it is to a compulsory individual debt register claims.

§ 8 public faith of the federal debt register shall require to be effective against the debtor of the registration in the federal debt register (1) orders of individual debt register claims.
(2) an individual debt register claims on the basis of a request for a legitimate within the meaning of § 7 para 4 on an other creditors is transferred, so this also acquires her if she wasn't to the previously registered creditors. The assignee against infringement of the requirement and restrictions of the current creditor shall only be effective insofar as they are registered in the federal debt register. The sentences 1 and 2 shall not apply if the new creditor at the time of the purchase of the debt register claims known or unknown as a result of gross negligence was that the assignor demand does or does not condition to the extent, that was the previous holder of a restricted, or that the requirement with the right of a third person was charged.
(3) a person who acquires the rights as holders of a lien established by legal transaction or a usufruct on a single debt register claims is entered, too, as far as the individual debt register claims no right to the registered creditors. Paragraph 2 sentences 2 and 3 shall apply mutatis mutandis.
(4) the entries be made in the order in which entered the applications at the point of leading the federal debt register.

§ 9 (dropped out)