Amendments To The Law On Deposit Guarantees

Original Language Title: Grozījumi Noguldījumu garantiju likumā

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now

Read the untranslated law here:

The Saeima has adopted and the President promulgated the following laws: the law on deposit guarantees to make the deposit guarantee Act (Republic of Latvia Saeima and the Cabinet of Ministers rapporteur, 1998, nr. 13; 2000, no. 13; 2001, 22 no; 2007, 9. no; 2008, 22 no; 2009, 6. nr.) the following amendments: 1. Express article 1 paragraph 4 by the following: "4) deposit takers — Latvia registered bank, credit unions, foreign bank branch in Latvia As a Member State of the European Union (hereinafter referred to as Member States) bank branch in Latvia, where the laws of the order participates in the deposit guarantee fund; ".
2. in article 2: express the second subparagraph by the following: "(2) the provisions of this law apply to: 1) Latvia registered banks and their branches, credit unions, as well as foreign bank branches in Latvia;
2) registered in a member bank branches in Latvia, where the national legislation provides for the guarantee of deposits in bank branches in other countries, including Latvia, but this does not cover all statutory guaranteed deposits or guaranteed remuneration is less than the specified in this Act, and where the bank has informed the Commission of their wish to take part in the Latvian deposit guarantee funds. ";
turn off the third;
replace the fourth subparagraph in paragraph 1, the words "European Community legislation as a minimum" with the words "this Act";
turn off the fourth part 2;
Add to article 4.1 part as follows: "(41) the Commission has the right to conclude a cooperation agreement with the competent authority of the Member State concerned, which shall be responsible for the deposit guarantee scheme in the country. The contract may lay down the deposit guarantee system of information exchange, the guaranteed amount of remuneration to be paid to the depositor, in accordance with this law and the law of the Member State concerned, as well as the guaranteed reimbursement costs. Guaranteed in the contract and the cost amount of remuneration arrangements do not impair the provisions which guaranteed the payment of remuneration laid down in this law. "
3. in article 8: make the second paragraph as follows: "(2) deposit-takers will make quarterly payments on the deposit guarantee fund, the amount of which is 0.05 percent of guaranteed deposits averaging deposit takers in the previous quarter. The Commission shall determine the specific deposit takers payment the applicable adjustment factor. Setting the correction factor applicable to payment, the Commission shall take into account the deposit takers for capital adequacy, liquidity and high risk business indicators, as well as deposit retained portfolio quality in the previous calendar year. Payment of the deposit guarantee fund, applying the adjustment factor may not be reduced more than 25 percent and should not increase more than 40 percent. Deposit-takers payments shall be made in local currency. ';
to supplement the article with 2.1 and 2.2 the part as follows: "(21) the Commission shall determine the order in which the calculated deposit takers payment a deposit guarantee fund, as well as up to 1 March of each year, inform the payment of deposit-takers for the correction factor applied. If the deposit takers will appeal the Commission's decision concerning the payment of the correction factor applied, pending a final decision by the Court of Justice shall make the payment of deposit-takers 0.05% of the guaranteed deposits averaging deposit takers in the previous quarter.
(22) Member State bank branch that participates in the deposit guarantee fund of this law, article 2, paragraph 2, second subparagraph, in the case referred to, the payment of the deposit guarantee fund be 0.05 percent of those deposits, this branch has attracted and which would have to be guaranteed consideration. "
to supplement the article with the sixth part as follows: "(6) once the depositors guaranteed remuneration paid to the Commission in order to ensure sufficient resources to the accumulation of deposit guarantee fund are entitled to increase for a period of up to one year deposit takers, according to the second, 2.1 or 2.2 part payment applied. Payment of the deposit guarantee fund must not increase more than twice. "
4. Turn off the second part of article 10, the words "if its operation is terminated".
5. Express article 12 third, fourth and fifth paragraph as follows: "(3) if the member bank branch in Latvia or foreign bank branch established in Latvia missed the time limit for payment more than 30 days, the Commission shall immediately inform the supervision authority for deposit-takers.
(4) If a deposit-takers within 30 days after the time limit laid down in the law are not paid in full the deposit guarantee fund, the Commission warned the deposit takers for exclusion from participation in the deposit guarantee fund.
(5) If a deposit-takers within 12 months after the Commission expressed its alarm about the exclusion from participation in the deposit guarantee fund is not paid in full the deposit guarantee fund, the Commission excluded from participation on the deposit takers of deposits guarantee fund. "
6. To supplement the law with article 13.1 the following: "13.1 article. (1) deposit-takers in their accounting records continuously provides information about all the savers who are entitled to a guaranteed remuneration in accordance with the provisions of this law, and the amount of remuneration guaranteed. Information is updated at least once a day so that the accounting records reflect the current guaranteed compensation.
(2) the Commission shall issue rules and regulations setting out on a guaranteed remuneration in the amount of information provided to it, the requirements relating to the collection of that information and the procedures for submission. "
7. in article 17: Express (4) as follows: "4) deposits, committed by deposit takers shareholders, which is essential for deposit-takers in participation, Council and Chairman of the Board and members of the internal audit service, the head of the company's controller and other deposit takers, which plans, manages and controls the operation of deposit-takers and responsible;"
make paragraph 6 by the following: "6) deposits, which are assigned with depositors individually determine interest rates or other terms, if their performance contributed to the deposit takers in the deterioration of the financial situation;".
8. Article 20 be expressed as follows: "article 20. (1) the cost of compensation guaranteed by this law, within the time limit laid down in article 12.5 provides one of the following forms: 1) guaranteed remuneration paid from the deposit guarantee fund with one or more banks selected by the Commission;
2) remuneration shall be paid on guaranteed with the person (guaranteed deposit winners), that deposit-takers guaranteed deposits in the amount of remuneration guaranteed fee as a credit institution in accordance with the company law of credit institutions and 59.4 59.3 article.
(2) where, in accordance with the first subparagraph of paragraph 2 the costs of remuneration of guaranteed deposits to provide referrer released guaranteed deposits are covered by the equivalent amount of retained deposits transferred assets, the Commission may decide on the payment of guaranteed compensation for the missing funds guaranteed deposits of the beneficiary from the deposit guarantee fund.
(3) the Commission shall, in the selection of the bank through which payments of the guaranteed compensation are not applicable to public procurement law. In order to ensure the depositors ' interests, the Commission shall designate the bank that provides depositors guaranteed favourable remuneration conditions.
(4) the costs of remuneration of guaranteed security in accordance with the first paragraph of this article, the Commission may enter into a contract with the bank. The contract may provide for the payment of the guaranteed compensation costs as a result of this provision the bank customers, and linked to this payment includes the deposit guarantee fund. The amount of such payment will be determined depending on the number of depositors who receive a guaranteed remuneration, have expressed a desire to become and become clients of the bank in question, or determined on the basis of other financial factors.
(5) the Commission shall decide on the procedures for the payment of remuneration of guaranteed, time, and location, and publish this information in the newspaper "Gazette", as well as place the Commission website on the internet.
(6) If the administrative act issued by the Commission for referred to in the third subparagraph of the designation of the judgment under appeal, it is not suspend the operation of this Act. "
9. To supplement the law with article 22 the following: ' article 22. The Commission's administrative act issued under this Act may appeal to the administrative court. The court case as a Court of first instance. The case is being heard in the three judges. Administrative District Court judgment may be appealed by submitting appeals. "
10. transitional provisions be supplemented with points 7 and 8 as follows:

"7. The amendments to article 8 of this law the second part on how to calculate payments to deposit guarantee fund, in application of the correction coefficient shall come into force on January 1, 2010.
8. Article 13.1 of this law shall enter into force on January 1, 2010. "
11. Make the informative reference to European Union directives as follows: "Informative reference to European Union directives, the law includes provisions resulting from: 1) of the European Parliament and of the Council of 30 May 1994, Directive 94/19/EC on deposit guarantee schemes;
2) the European Parliament and of the Council of 11 March 2009. directive 2009/14/EC, amending Directive 94/19/EC on deposit guarantee schemes as regards the coverage level and the payout delay. "
The law shall enter into force on the day following its promulgation.
The Parliament adopted the law of 4 June 2009.
President Valdis Zatlers in Riga V June 19, 2009, an editorial added: the law shall enter into force on the 20 June 2009.