The Amendments To The Law On Credit Institutions

Original Language Title: Grozījumi Kredītiestāžu likumā

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.
The Saeima has adopted and the President promulgated the following laws: the law of credit institutions to make the law of credit institutions (the Parliament of the Republic of Latvia and the Cabinet of Ministers rapporteur, 1995, nr. 23; 1996, 9, 14, 23 no; 1997, no. 23; 1998; 2000, no. 13, no. 13; 2002, 10, 23; 2003, nr. 14. No; 2004, 2, 12, No 23; 2005, 13, 14, 15 no; 2006; 2007, nr. 7, 12 no; 2008 14. no; Latvian journal, 2008, 174. No.) the following amendments: 1. in article 4: Supplement to the second part of the article as follows: "(2) the provisions of this Act applicable to the transfer of the bank to the extent that the Bank takeover laws provides otherwise. ';
believe the current text of article about the first part.
2. Turn off the article 6, first paragraph, the number "114.113, 115, 116, 117, 118, 121,.".
3. To supplement the law with 59.2 and 59.3, 59.4 article as follows: "article 59.2. (1) a credit institution, or part of the company, including subsidiaries, separate property, assets or liabilities or with credit institutions clients magnitudes contract concluded as a whole (hereinafter referred to as a credit company) for the transition to another person's property or use (hereinafter referred to as the credit company's transition) a credit institution is required by the financial and capital market Commission. The authorisation of a credit institution shall submit financial and capital market Commission for credit institutions corporate transition proposal, to which is attached the credit company assets and liabilities contained in the normal functioning of the value assessment of market conditions, which is not less than 30 days before the submission of the proposal made by the expert included in the commercial register approved list. Credit the company's transition, which has not received the financial and capital market Commission authorized, shall be deemed void.
(2) credit institutions for the transition of the company after the financial and capital market Commission's authorization is not required to receive a credit business transition credit institutions involved in a vendor or another person.
(3) a credit institution in respect of transfers of undertakings, credit institutions, which are located outside the Republic of Latvia, is in effect regardless of such property in the component or separate things, rights or obligations applicable to other State law.
(4) the financial and capital market Commission administrative act issued on the authorisation of a credit institution to the transition the company appeal shall not suspend the execution.
59.3 article. (1) if the financial and capital market Commission in accordance with article 113 of this law, the first paragraph of point 6 is designated by the Governor, who has received this law, the first paragraph of article 117 of the mandate referred to in paragraph 3, the appointed trustee will decide on a proposal for the transition of the credit institution submitting the company's financial and capital market Commission. To the credit of the acquiring company does not apply to Commercial Law article 20 the provisions of the first paragraph of the traitor and the company benefit from joint and several liability. In the case of transition following financial and capital market Commission authorises credit institutions corporate transitions, if the deal is made in the State sector of the economy or of credit institutions and the stability of security or in the interests of the depositors of a credit institution, and to such a transition is not subject to the provisions of article 170 of the commercial law on bringing the public good.
(2) the business of the credit institution which is the transition occurred with the financial and capital market Commission appointed by the Governor, the decision cannot be regarded as void.
59.4 article. (1) a decision on the credit institution's business transition credit institutions adopting the liquidator in the winding-up proceedings.
(2) the decision on the establishment of credit institutions the transition process of the credit institution's insolvency administrator and adopted to the benefit of the credit institution's business is not being applied to commercial law article 20 the provisions of the first paragraph of the traitor and the company benefit from joint and several liability. "
4. in article 111: expressing a fifth by the following: "(5) the financial and capital market Commission and the trustee is not liable to third persons for losses incurred by an employee in the performance of his duties or the proxy holder when carrying out its tasks."
to supplement the article with sixth and seventh paragraph as follows: "(6) the financial and capital market Commission is responsible for damages caused to a third party by the financial and capital market Commission, in the performance of their statutory functions, just in case financial and capital market Commission has deliberately acted unlawfully or gross negligence.
(7) the financial and capital market Commission is responsible for damages caused to a third party by the financial and capital market Commission staff or Governors of the conduct of the performance of their duties or tasks, only if the employee or the trustee has acted unlawfully or deliberately committed gross negligence. "
5. Put the title of Chapter VIII and 113 114, 115, 116, 117, 118, 119, 120, 121, 122 and 123,. the following article: "chapter VIII restrictions applicable to credit institutions article 113. (1) if the financial and capital market Commission finds that credit institution does not comply with this law, directly applicable European Union legislation issued by the institution or the financial and capital market Commission issued decision or regulatory rules, or if the credit institution's activities threaten its stability or solvency of credit institutions sector of Latvia's security or stability, threaten to cause significant damage to the national economy, or if abnormal deposits from the bank or another outflow of leverage Financial and capital market Commission, the decision is entitled to exercise one or more of the following operations: 1) require that a credit institution shall immediately take the necessary steps to remedy such a situation and provide financial and capital market Commission within the time limit laid down in the action plan;
2) warn credit institution;
3 the credit institution given), their leaders and members of binding written guidance necessary to remedy such a situation;
4 determine the credit institution law) and operational constraints, including fully or partially suspend the provision of financial services, as well as the discharge limits, except those referred to in paragraph 5 of part of the deposit of the discharge limits;
5) determine the bank deposit restrictions of obligations (hereinafter decision on restrictions on deposits);

6) appoint one or more credit in the financial and capital market Commission Governors (hereinafter referred to as the decision on the appointment of Governors);
7) impose an obligation to the credit institution to reduce the risk associated with its business, services and payment systems;
8) put in statutory fines.
(2) the financial and capital market Commission is entitled to exercise one or more of the first paragraph of this article, even if the activities of the consolidation group of the credit institution in the company activity endangers or may endanger the whole of the relevant credit institution or credit institutions sector stable operation.
(3) if it is determined in the first paragraph of this article 4 restrictions mentioned in paragraph bank serving tranzītkredīt, Ministry of finance, shall decide on the continuation of the service tranzītkredīt in the bank or transfer to other banks.
114. article. (1) decision on deposit restrictions on financial and capital market Commission may adopt only in relation to the bank, which at the date of adoption of this decision in a position to satisfy his creditor log on to legitimate claims. Such a decision may be made also at the request of the bank.
(2) the decision on deposit restrictions are specified in the constraint types and their duration, which must not exceed 12 months.
(3) the decision on deposit restrictions are applicable to any customer of the bank.
(4) the financial and capital market Commission can give binding instructions to the bank on how enforceable decision on deposit restrictions.
115. article. (1) the decision on the appointment of the Governors is Governor of a particular operational objective, tasks and functions, the extent and duration of the mandate, the trustee's remuneration, the Governors about the Mission of the permissible amount of expenditure, as well as other rules that financial and capital market Commission considers relevant.
(2) If more than one is appointed by the Governors, then in addition to the first paragraph of this article the decision on the appointment of the Governors is Governor of powers laid down in volume distribution and their exposure.
(3) a Person may not be appointed as a proxy without its written consent.
116. article. (1) The trustee may be: 1) natural person, including the financial and capital market Commission staff who meet the requirements of the second subparagraph and which cannot be subject to the third subparagraph under certain restrictions;
2) legal person (Corporation), to which the members of the Management Board may not extend in the third subparagraph the limits and that the majority of the Board members meet the requirements of the second subparagraph.
(2) The Governor may appoint a natural person whose action impartiality in respect of the credit institution is not in doubt, and which are: 1) the public recognised the second level of higher professional education or higher academic education and appropriate qualifications;
2) according to the competence and professional experience;
3) perfect reputation.
(3) the trustee shall not appoint a natural person: 1) which is to be recognized as an interested person in respect of a credit institution or is a related person;
2) as against the debtor which are completed or initiated insolvency proceedings or which are considered to be representative of the debtor in insolvency proceedings and this case is not ended;
3) which has been convicted of a crime against the State, criminal offences against property, General Security and public order, administrative order or criminal jurisdiction or the economy or public institutions service regardless of delete or remove a criminal record;
4) against which prosecution has been initiated or is a suspect in the criminal proceedings;
5) is convicted of this part specified in paragraph 3 of the crime, although released from parole, pardon, amnesty or statute of limitations;
6) against which criminal proceedings on this part of the paragraph 3 a specific criminal offence is terminated due to a statute of limitations or amnesty;
7) that criminal law is determined in accordance with the procedure prescribed by law restricts the specific commercial or occupy the posts;
8) which has been a company member of the administrative organ or a company and its prokūrist negligent or deliberately led the company to bankruptcy legislation for.
(4) If a decision on the appointment of a trustee pursuant to this law, article 117, first paragraph, point 3 States that the Governor take the management of the credit institution, in addition to the first, second and third subparagraphs to the requirements and restrictions for such trustee may be only the first paragraph of this article, legal person or a natural person who is a financial and capital market Commission staff or the insolvency practitioner's certificate.
Article 117. (1) the decision on the appointment of a trustee may determine that with its entry into force are: 1) the trustee is entitled to convene a shareholders or members of the credit institution meeting, Council and Board and participate in it with the right to propose a meeting and hearing escalated issues;
2) the trustee shall decide whether or not to authorise a credit institution to make payments, to enter into new transactions, as well as to amend or terminate the existing transactions, to ensure that the credit institution and the bank act 113 of the first paragraph of article 4 or the limit set in paragraph 5;
3 Governors make managing the credit institution).
(2) If the decision on the appointment of the Governors is certain his rights pursuant to the first paragraph of this article credit institutions to convene a meeting of the shareholders or members, Council and Board and participate in it, the credit institution of the administrative organ concerned decided, if the Governor oppose it.
(3) if the financial and capital market Commission decides on credit institutions meeting of the shareholders or members, Council, Board or other credit institution, as well as a person who, on behalf of a credit institution in adopting relevant decisions, causing civil obligations to the credit institution, the suspension of the determination of the credit institution and the prohibition to proceed with their belongings, as well as with its owned or held the existing third party-owned assets, then this right in accordance with article 3 of the first paragraph of point retrieves the proxy.
(4) the trustee of their tasks is entitled: 1) to issue binding orders to all units of the credit institution and its staff;

2) ignore the credit statutes, regulations and rules (policies, procedures, schedules and other operational instruments) noted restrictions;
3) submit the financial and capital market Commission proposal on the establishment of a credit institution, a credit institution make the transition property, tangible or intangible, contract and disposal or transfer of obligations, if this action is intended to ensure the repayment of deposits in credit institutions;
4) name of a credit institution to draw up and approve the financial statements.
118. article. (1) the financial and capital market Commission paid to the trustee pay and his/her tasks necessary expenses in the decision on the appointment of the Governors specified. The costs set out in this part, the credit institution shall compensate the financial and capital market Commission within the time limit.
(2) the trustee about his tasks are not entitled to any form of remuneration or income in addition to the decision on the appointment of Governors.
119. article.   (1) a credit institution, departments, employees and other representatives and shareholders of a credit institution is obliged to cooperate with the trustee and, at his request: 1) put his things (documents, keys, access codes, passwords, URu.tml.);
2) give him the necessary information, documents, explanations and assistance.
(2) the trustee shall immediately notify the financial and capital market Commission of the first paragraph of this article, the rules as well as other obstacles to his tasks.
120. article. (1) the Trustee has the duty of financial and capital market Commission to provide it within the report about its activities and to report immediately to the financial and capital market Commission of public facts, which may affect the financial situation of the credit institution.
(2) the trustee, when carrying out its tasks, the care of national economic interest, the credit institutions sector of Latvia's security and stability and the protection of the interests of the depositors, as well as careful and prudent credit management.
121. article. (1) the trustee shall be entitled to withdraw from the performance of his duties by giving financial and capital market Commission a reasoned application, which the Governor to add activity report for all his life.
(2) the financial and capital market Commission review the trustee's application for abandonment of the duties one month from the date of receipt and shall adopt the appropriate decisions. Until the adoption of this decision and for the transfer of the case the trustee continues to carry out his obligations.
122. article. (1) the financial and capital market Commission shall monitor the operation of the Governors and is entitled at any time at its sole discretion cancel him.
(2) the powers of Attorney shall expire: 1) after the decision on the appointment of the trustee period set or 2) with the Governors.
(3) the financial and capital market Commission examine the issue of Governors waiver if it finds that the Governor, in exercising their responsibilities, do not follow this law, or other laws, regulations and court rulings that he does not meet the requirements laid down in this law or to abuse their powers.
(4) the trustee, shall refer the matter to the expiry of the mandate of the financial and capital market Commission within the period laid down by the specific person.
123. article. Chapter VIII of this law for the activities referred to in the financial and capital market Commission issued administrative appeal Act shall not suspend its execution. "
5. Turn off 124. and article 125.
6. Add to article 129 of the fourth subparagraph by the following: "(4) the financial and capital market Commission issued the administrative act of appointment of Trustees appeal shall not suspend the execution."
7. To make the first paragraph of article 131.1 (1) of the following: "1) individual who acquired the insolvency practitioner certificate;".
8. Add to article 148 of the third and fourth subparagraph by the following: "(3) the insolvency proceedings of financial and capital market Commission appointed by the Governor.
(4) the financial and capital market Commission issued the administrative act of appointment of Trustees appeal shall not suspend the execution. "
9. Replace article 161 in the fifth paragraph, the words and figures "of the Latvian Labour Code article 33, first paragraph, point 1 and 1.2" with the words and figures "employment law 101 in the first paragraph of article 9 and paragraph 10".
10. Supplement article 173 of the fourth part as follows: "(4) the business of the credit institution's transition carried out in accordance with this law, article 59.4 59.3 or the second paragraph of article may not be declared invalid."
11. Supplement article 185 of part 1.1 in the following wording: "(11) in the first part of this objective can be achieved by the administrator in accordance with the procedure laid down in this law, implementing the credit company's transition."
12. off 197.1 article.
The law shall enter into force on the day following its promulgation.
The Parliament adopted Act of 2009 on February 12.
President Valdis Zatlers in Riga V 2009 February 18, editorial comment: the law shall enter into force on 19 February 2009.