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PROPOSED LAW NO. 54 /X

Exhibition of Motives

With the present proposed law the Government aims to obtain permission from the Assembly of the

Republic to legislate in the settlement of credit institutions and societies

financial, in order to, jointly with the transposition into legal planning

national of Directive 2001 /24/CE of the European Parliament and of the Council of April 4 of

2001, relating to sanitation and settlement of credit institutions, reshape the scheme

of settlement of credit institutions and financial corporations, which dates back to the Decree-

Law No. 30,689 of August 27, 1940. It is judged to be appropriate to make this scheme equally

applicable to the liquidation of branches, located in Portugal, of credit institutions with

to be registered in countries other than members of the European Union, as well as branches of

financial institutions located in Portugal and subject to the supervision of the Bank of Portugal.

The scheme to be instituted is designed to appropriate the settlement process of the above-mentioned

entities to the specificity of the financial system in which they act and to preserve

of the interests in question, be that of the balance of that system, be that of the equality of

treatment of creditors. An updated regime is intended, more so as to the new

requirements and also to the harmonisation of community legislation.

It is thus abandoning the predominantly administrative system of settlement,

previously in force, recognizing the specific nature of the financial sector having in

account, in particular, of the particularities of the activity of credit institutions and the

financial companies and the need to institute a system that contributes to the

creditization of the financial activity and the respective agents.

It is intended that the new regime will continue to defer the Bank of Portugal, while

supervisory authority, the competence for the revocation of the exercise authorization of the

bank activity, similarity, incidentally, of what succeeding in the Member States of the Union

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European, producing the decision to revocation of the permit the effects of the declaration of

insolvency.

The liquidation proper becomes committed to the judicial system, justified option

by the exceptional complexity and specificities of the financial system, well

how, by the size of the interests and values involved, by its head to the Central Bank

continue to carry out their supervisory functions, in the relevant part, and, still, provide the

necessary collaboration in judgement. Voluntary dissolution and subsequent settlement

continue to process in the general terms of the trade legislation, according to the

business partners ' deliberations, notwithstanding passing the Bank of Portugal to be able to apply for

judicial settlement, so as to accrate the interests of creditors and the financial system.

The European Central Bank, the Bank of Portugal, the Market Committee of

Securities Securities and the Portuguese Association of Banks.

Thus:

Under the terms of the paragraph d) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following proposal for a law:

Article 1.

Subject

It is granted to the Government legislative authorization to establish the mechanisms, the terms

and the competence for the dissolution, settlement and sanitation of credit institutions and

financial companies with registered office in Portugal, and their branches set up in another State-

member, as well as of branches, located in Portugal, of credit institutions with registered office

in countries that are not members of the European Union.

Article 2.

Scope

Within the scope of the legislative authorization granted by Article 1 of this Law, it shall be the

Government authorized to, in the terms of the following articles, determine:

a) The fundamentals of the dissolution of credit institutions and societies

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financial as well as the time from which they enter into liquidation;

b) The competent authority to apply for judicial settlement notwithstanding possible

situation of voluntary dissolution of credit institution and financial society;

c) The effects produced by the decision to revocation of the authorisation by the Bank of

Portugal;

d) The regime to be instituted with respect to the tramping of insolvency proceedings;

e) The scope of the court decision which is incited on the Bank's application of

Portugal;

f) The competence to complain and appeal of court decisions in the process of

settlement;

g) The competence for the recognition of decisions to adopt measures of

sanitation and the establishment of settlement processes taken by authorities

judicial from another Member State;

h) The law applicable to the process of settlement of credit institutions and the

financial companies.

Article 3.

Sense and extension of the legislative authorization relating to the fundamentals of

dissolution of credit institutions and financial companies as well as to the

fixation of the moment from which they enter into liquidation

In the use of the legislative authorization conferred by the letter (s) a) of Article 2, lies the Government

authorized to determine that credit institutions and financial companies dissolve

only by virtue of the revocation of the respective authorisation or by deliberation of the partners,

after which they immediately enter into liquidation.

Article 4.

Sense and extent of legislative authorization concerning the competence to apply for

the judicial settlement

In the use of the legislative authorization conferred by the letter (s) b) of Article 2, lies the Government

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authorized to confer competence on the Bank of Portugal so that, notwithstanding the dissolution

volunteer of credit institution or financial society, rewant, at all time, the

judicial settlement of these, pursuant to the terms to be laid down under subparagraph (d) of that Article 2 and

of Article 6 of this Law.

Article 5.

Sense and extension of the legislative authorization concerning the consecration of the effects

derivatives of the decision to revocation of permission by the Bank of Portugal

In the use of the legislative authorization conferred by the letter (s) c) of Article 2, lies the Government

authorized to stipulate that the decision to revoke the authorization of credit institution

or financial society by the Bank of Portugal produces the effects provided for in the Code of

Insolvency and Business Retrieval for the declaration of insolvency.

Article 6.

Sense and extension of the legislative authorization relating to the regime applicable to the tramway

of the insolvency proceedings

In the use of the legislative authorization conferred by the letter (s) d) of Article 2, lies the Government

authorized to determine the adjustments and specialties of the scheme to be instituted in respect of

tramping of the insolvency proceedings.

Article 7.

Sense and extent of the legislative authorization relating to the scheme applicable to the

scope of the court decision that incited on the application of the Bank of Portugal

In the use of the legislative authorization conferred by the letter (s) e) of Article 2, lies the Government

authorized to determine that the judicial decision incited on the Bank's application of

Portugal limits itself to check the fulfillment of the requirements of that application, the

appoint the liquidator or the liquidated commission and to make the decisions provided for in points

b), c) and f) a n) of Article 36 of the Code of Insolvency and Corporate Recovery.

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Article 8.

Sense and extent of the legislative authorization concerning the competence for the

complaints and resources in the framework of the settlement process

In the use of the legislative authorization conferred by the letter (s) f) of Article 2, lies the Government

authorized to confer with the Bank of Portugal competence to claim and appeal from the

court decisions in the process of liquidation.

Article 9.

Sense and extent of legislative authorization concerning the recognition of decisions

taken by judicial authorities of another Member State

In the use of the legislative authorization conferred by the letter (s) g) of Article 2, lies the Government

authorized to establish that they are recognized in Portugal the decisions to adopt

sanitation measures and the establishment of settlement processes taken by

judicial authorities of another Member State, regardless of review, of

confirmation or other formality of equivalent effect.

Article 10.

Sense and extension of the legislative authorization relating to the law applicable to the process of

liquidation

In the use of the legislative authorization conferred by the letter (s) h) of Article 2, lies the Government

authorized to determine that the institutions of credito and the financial companies with a registered office

in Portugal, and its branches set up in another Member State, as well as branches,

situated in Portugal, from credit institutions based in countries that are not

members of the European Union are settled in accordance with the laws, regulations and

procedures applicable in Portugal, save in special situations.

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Article 11.

Duration

The present legislative authorization has the duration of 120 days.

Seen and approved in Council of Ministers of December 22, 2005

The Prime Minister

The Minister of the Presidency

The Minister of Parliamentary Affairs

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One of the main purposes of the present decree-law is to make the transposition to the

Portuguese legal order of Directive No 2001 /24/CE of the European Parliament and of the

Council, of April 4, 2001 on sanitation and settlement of institutions of

credit. It is a set of standards applicable to sanitation and settlement of

credit institutions that find themselves established in more than one country of space

community.

In the line of the recommendations of the "White Paper for the Realization of the Internal Market",

presented by the European Commission, in June 1985, that directive came to establish

standards aiming at the harmonisation of procedures, on the basis of mutual recognition and

with respect for the principles of freedom of establishment and provision of services,

of the universality and equal treatment of creditors.

It was established, as a fundamental rule, that the sanitation and settlement of the institutions of

credit, including their respective branches, shall be governed by the law of the Member State in

that have been authorized. From among the other standards, it is up to you to highlight the one that constitutes the

national supervisory authorities in the obligation to communicate to the homologous entities of

other Member States the adoption of sanitation measures and the decision to establish

settlement processes. It is also enshrine-recognition in the Member State of

reception of the decisions taken by the authorities of the Member States of origin.

Take the opportunity, meanwhile, to update the regime of the settlement of the

institutions of credit and financial corporations beholdred for dozens of years.

Until the entry into force of the Decree-Law No. 298/92 of December 31, diploma which

approved the General Regime of Credit Institutions and Financial Societies (hereafter

abbreviated to be abbreviated by RGICSF), the sanitation and settlement of these institutions was

regulated by the Decree-Law No. 30,689 of August 27, 1940. In Title VIII of that

General Regime has been allocated to the Bank of Portugal competence to adopt, relatively

to credit institutions and financial companies, extraordinary arrangements of

sanitation. The settlement of credit institutions and financial companies continued,

however, to be regulated by the already mentioned Decree-Law No. 30,689 that was not, in that part,

revoked.

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As you have pointed out, the sanitation of credit institutions and financial companies has its

discipline established in the General Regime of Credit Institutions and Societies

Financial and you see no reason to change it. For there, therefore, is limited to the present decree-

law to refer. As far as settlement is concerned, an updated regime is established, more

as per the new requirements and also to the harmonisation of Community legislation.

It is thus abandoning the predominantly administrative system of the settlement of the

credit institutions and financial companies, previously in force, recognizing the

specific nature of the financial sector taking into account, in particular, the particularities

of the business of credit institutions and financial corporations and the need for

institute a system that contributes to the accredibilization of financial activity and the

respective agents. It was judged to be appropriate to make this scheme equally applicable to the

liquidation of branches, located in Portugal, of credit institutions based in countries

that are not members of the European Union. In the same way, it was understood that it would do all the

sense to submit to the same scheme the liquidation of branches, located in Portugal and

subject to the supervision of the Bank of Portugal, of companies included by the RGICSF in the

category of financial institutions.

There remains, however, the legislation applicable to mutual agricultural credit boxes

belonging to the Integrated System of the Mutual Agricultural Credit, on the grounds of the scheme of

warranty and solidarity vigour in that System.

Continues to defer to the Bank of Portugal, as a supervisory authority, the

competence for the revocation of the authorization to exercise the banking activity, to the

similarity, incidentally, of what succeeding in the other countries of the European Union, producing the

decision to revocation of the permit the effects of the insolvency declaration. The settlement

proper is committed to the judicial system, option justified by the exceptional

complexity and specificities characteristics of the financial system as well as, by the

dimension of the interests and values involved, by having the Central Bank continue to

exercise your supervisory functions, in the relevant part, and, still, provide the necessary

collaboration in judgement. So, can the Bank of Portugal apply for and propose what to understand

convenient in the face of the technical specificity of the subjects and their incidence in the

financial system, as well as to appeal the decisions rendered.

In regard to the remaining aspects of the new settlement scheme, it is further emphasized that the

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credit institutions, taking into account the complexity, characteristics and size of the

interests involved, dissolve only by virtue of the revocation of the respective

authorization or by deliberation of the partners. Of this fact it follows that, both the institutions of

credit and financial companies, as the respective creditors continue to have no

legitimacy to apply for the judicial declaration of insolvency. It stems still, attentive to

specificity of the composition of own capitals and the permanent subjection to standards

prudential, in particular of creditworthiness, which to credit institutions and societies

financial is not applicable to the provisions of Article 35 of the Code of Commercial Societies.

Voluntary dissolution and subsequent liquidation may process in the general terms

of the trade legislation, in accordance with the deliberations of the associates, acautelates that if

show the interests of creditors and the financial system; taking place on the revocation of the

authorization, the rule is that of judicial settlement, for the reasons already stated.

The scheme established in this decree-law does not interfere with the standards that they have transposed

for national legal planning a Directive No 98 /26/CE of the European Parliament and of the

Council of May 19, 1998 on the definitive nature of the settlement in the event of

insolvency of a participant in the settlement system, specifically at the headquarters of

Code of Securities.

In the systematic of the present decree-law, the chapters I and IV are reserved for provisions of

general scope, respectively introductory and final; in Chapter II it regulates the settlement of

credit institutions and financial companies that have registered office in Portugal; in the chapter

III has been available for sanitation and settlement of credit institutions, where

these are found to be established in more than one Member State.

The Bank of Portugal, the European Central Bank, the Market Committee, were heard.

Securities Securities and the Portuguese Association of Banks.

Thus:

In the use of the legislative authorization granted by the Article (...) of the Law No. (.../2005, of

... of ...) and in the terms of the points a) and b) of Article 198 (1) of the Constitution, the Government

decrees the following:

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CHAPTER I

INTRODUCTORY PROVISIONS

Article 1.

Subject

1-The present decree-law regulates the liquidation of credit institutions and societies

financial years with registered office in Portugal and its branches set up in another Member State,

Proceeding to the transposition into the Portuguese legal order of Directive n.

2001 /24/CE of the European Parliament and of the Council of April 4, 2001 on the

sanitation and the settlement of credit institutions.

2-A The application of sanitation measures to credit institutions and financial companies

with registered office in Portugal shall be governed by the provisions of the General Regime of Institutions of

Credit and Financial Societies, approved by the Decree-Law No. 298/92, of 31 of

December, hereafter abbreviately designated by RGICSF, without prejudice to the

establishes in Chapter III of this decree-law.

Article 2.

Definitions

1-For the purposes of this decree-law, it is understood by:

a) "Sanitation measures", measures to preserve or re-establish the

financial situation of a credit institution, likely to affect rights

third-party preexisting ones, including those for suspension of payments, of

suspension of running processes or reduction of credits;

b) "Process of liquidation", collective process for the office of the authorities

administrative or judicial proceedings of a Member State of the European Community,

with the aim of proceeding to the liquidation of the goods, under the supervision of those

authorities, including when that process becomes extinct by effect of

bankruptcy or analogous measure;

c) "Administrator", person or body designated by the administrative authorities

or judicial to adopt and manage sanitation measures;

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d) "Liquidator", person or body designated by the administrative authorities or

judicial authorities to manage settlement proceedings;

e) "competent authorities", the national supervisory authorities of the

credit institutions;

f) "Administrative or judicial authorities", the administrative authorities or

court of law of the competent Member States in relation to measures of

sanitation or settlement processes.

2-Relatively to the sanitation or settlement of branches, located in the European Union,

of credit institutions with registered office in third country, the expressions " Member State of

origin "," competent authorities "and" administrative or judicial authorities "

respect to the Member State in which the branch is located.

Article 3.

Information to CMVM

The Bank of Portugal informs the Securities Market Committee

concerning the proposals or measures adopted in the context of sanitation or

settlement, credit institutions or financial companies that are intermediaries

financial registered in that Commission, without prejudice to the provisions of Article 198 of the

RGICSF.

CHAPTER II

SETTLEMENT OF CREDIT INSTITUTIONS AND SOCIETIES

FINANCE WITH REGISTERED OFFICE IN PORTUGAL

Article 4.

Settlement

1-A The liquidation of credit institutions with registered office in Portugal is governed by the provisions of the

this chapter.

2-Mutual agricultural credit boxes belonging to the Integrated Credit System

Mutual Agricultural shall be settled in accordance with the respective special legislation.

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3-The provisions of this Chapter shall be applicable, with due adaptations, to

settlement of financial companies.

4-The provisions of this decree-law is still applicable to the liquidation of branches, located

in Portugal, from credit institutions based in countries that are not members of the

European Union as well as branches of financial institutions located in Portugal

and subject to the supervision of the Bank of Portugal.

Article 5.

Dissolution and entry into liquidation

1-Credit institutions dissolve only by virtue of the revocation of the respective

authorization, pursuant to Art. 22 of the RGICSF, or by deliberation of the partners.

2-With the dissolution, credit institutions enter into liquidation, without prejudice to the

set out in the final part of Article 22 (3) of the RGICSF.

3-In the decision to revocation of the permit, the time of the practice of the act is indicated,

considering, in the event of omission, that the same occurred at twelve o'clock, valendo

that, for all legal effects, such as the timing of the establishment of the process of

liquidation.

Article 6.

Voluntary dissolution

1-It shall apply to voluntary dissolution of the provisions of Article 35 of the RGICSF, owing

record of the respective project a detailed settlement plan and the identification

of the liquidators.

2-A voluntary dissolution shall not preclude the fact that, at all time, the Bank of Portugal requires the

judicial settlement pursuant to Article 8, including any precautionary measures.

Article 7.

Extrajudicial settlement

1-The credit institutions dissolved voluntarily are settled on the terms

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provided for in Chapter XIII of Title I of the Code of Commercial Societies, with

exception of Article 161 para.

2-The designation of the liquidators shall apply, with the necessary adaptations, the provisions of

in Articles 69 and 70 of the RGICSF.

3-The liquidators shall refer to the Bank of Portugal the annual reports and accounts and

endings.

4-In the pendency of the liquidation, the provisions of Title VII of the RGICSF shall apply, with the

necessary adaptations.

Article 8.

Judicial settlement

1-A judicial settlement of the credit institutions founded on the revocation of authorization

by the Bank of Portugal is in the terms of the Insolvency and Recovery Code

of Companies, with the specialties set out in the following articles.

2-A The decision to revocation of the authorisation by the Bank of Portugal produces the effects of

declaration of insolvency.

3-It shall be in sole discretion to the Bank of Portugal to apply, in the competent court, to settle

of the credit institution, within the maximum of ten working days after the revocation of the

authorization, delivered pursuant to Article 22 of the RGICSF.

4-The application must be instructed with a copy of the revocation decision and with the proposal

of judicial liquidator or liquidatory commission to be designated by the judge, on the terms and for

the effects of the following articles.

Article 9.

Subsequent tramping

1-In the order to continue, the judge is limited to checking the filling of the

requirements set out in the previous article, being any questions about the legality of the

decision to revoke the suscible authorisation only in the process of impugning the

Referring to Article 15 para.

2-In the same order, the judge appoints the liquidator or the liquidated commission and takes the

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decisions provided for in points b) , c) and f) a n) of Article 36 of the Code of Insolvency and

of the Recovery of Companies.

3-They shall apply, with the necessary adaptations, the remaining provisions of the Code of

Insolvency and Recreation of Companies that show compatible with the

specialties set out in this decree-law, with the exception of Titles IX and X.

Article 10.

Liquidator or liquidated commission

1-The judge, on a proposal from the Bank of Portugal, appoints a judicial liquidator or a

liquidated commission composed of three members, depending on the complexity and

difficulty of the liquidation, to which it competes the exercise of the functions committed to the

insolvency administrator by the Code of Insolvency and Recovery of

Companies.

2-The Bank of Portugal may propose to the judge the removal and replacement of the liquidator

judicial or the members of the liquidated commission, in whole or in part, as well as the

replacement of the liquidatary commission by a single judicial liquidator or of this by

a commission.

3-A remuneration of the judicial liquidator or the members of the liquidatory commission is

fixed annually by the judge, on a proposal from the Bank of Portugal.

Article 11.

Communication to the Deposit Guarantee Fund and the System of Compensation to the

Investors

On the deadline set for delivery at the judicial office of the list of creditors

recognized and unrecognized, the liquidator refers copy of the same to the Fund of

Deposit Guarantee and, dealing with participating entity, to the Compensation System

to Investors.

Article 12.

Continuation of activity

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1-When it shows necessary or convenient to liquidation, can the liquidators

apply for the judge to the partial continuation of the business of the credit institution.

2-The application to which the preceding paragraph is referred shall be instructed to appear

favorable of the Bank of Portugal.

Article 13.

Commission of creditors

1-A The commission of creditors is appointed by the judge, heard the Bank of Portugal.

2-The competences conferred by the Code of Insolvency and Business Recovery

to the assembly of creditors are exercised by the commission of creditors.

Article 14.

Intervention of the Bank of Portugal

1-The Bank of Portugal has the faculty to monitor the activity of the liquidator

judicial or liquidation commission, and may, still, require the judge to understand

convenient.

2-For the purposes of the provisions of the preceding paragraph, the Bank of Portugal may examine the

elements of the accounting of the credit institution and to request the judicial liquidator

or to the liquidating commission the information and the presentation of the elements that it considers

necessary.

3-On the initiative of its own, may the Bank of Portugal submit in judgment the reports and

convenient judging opinions.

4-The Bank of Portugal has legitimacy to claim or appeal from court decisions

who admit complaint or appeal.

Article 15.

Effects of the contentious challenge on settlement

1-Without prejudice to the provisions of Article 128 of the Code of Procedure in the Courts

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Administrative, the contentious challenge of the act of revocation of authorization of

a credit institution, as well as the application for the suspension of the effectiveness of the

same act shall produce the effects set out in the final part of Article 40 (3) of the

Code of Insolvency and Corporate Recovery.

2-Distributed the petition for contest or the application for suspension, the judge, if the

process there is to proceed, determines that it is informed of the respective pendency the

court of liquidation, for the purposes of the provisions of the preceding paragraph, requesting the

parts, if necessary, the indication of the court and the process.

3-Of the final decisions rendered in the proceedings of the imputation or suspension is

sent copy to the court of liquidation.

CHAPTER III

SANITATION AND SETTLEMENT OF COMMUNITY SCOPE

SECTION I

Credit institutions with a registered office in Portugal and with branches in another Member State

SUBSECTION I

Sanitation

Article 16.

Adoption of sanitation measures

It is incumbent on the Bank of Portugal to adopt sanitation measures in respect of

credit institutions with registered offices in Portugal and their branches established in other

Member States of the European Union, henceforth designated Member States of

reception.

Article 17.

Information to authorities in other countries

Prior to the respective decision or, not being possible, immediately thereafter, the Bank of

Portugal shall inform the competent authorities of each Member State of

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reception about the sanitation measures adopted and their concrete effects.

Article 18.

Publication

1-If the application of sanitation measures is likely to affect the rights of

third in the host Member State, the Bank of Portugal publishes an extract

of its decision in the Official Journal of the European Union and in at least two papers of

national circulation in the said Member State.

2-The extract of the decision is drawn up in the language or official languages of the Member State of

hosting, and should mention at least the subject matter and legal grounds of the

decision, the time limits of appeal, including the respective term, as well as the address of the

competent entities to know about the resource.

3-A lack of publication in the terms of the preceding paragraphs shall not preclude the production of the

effects of sanitation measures.

SUBSECTION II

Settlement

Article 19.

Entry into liquidation

1-A entry into liquidation of authorized credit institutions in Portugal, including the

branches located in other Member States of the European Union, shall be governed by the provisions of

in the present decree-law.

2-Prior to the revocation decision or, not being possible, immediately thereafter, the Bank

of Portugal shall inform the competent authorities of each Member State of

reception about that decision and its concrete effects.

3-The provisions of the preceding paragraph shall apply, with the necessary adaptations, to the dissolution

voluntary.

Article 20.

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Applicable law

1-Unless otherwise disposed of in this decree-law, in particular in paragraph 3 of the present

Article and in Articles 27 to 34, the credit institutions referred to in the previous article are

settled in accordance with the laws, regulations and procedures applicable in Portugal.

2-Are determined in accordance with Portuguese law, specifically:

a) The goods that are part of the bankrupt mass and the destination to be given to the purchased goods

by the credit institution after the establishment of the liquidation process;

b) The legal capacity of the credit institution;

c) The powers of the liquidator;

d) The effects of the settlement process on the contracts of which the institution of

credit is part;

e) The effects of the settlement process on proposed actions by creditors;

f) The claims susceptible to claim and the destination to be given to the credits constituted

after the establishment of the liquidation process;

g) The conditions of the countervailing of the compensation;

h) The standards relating to the claim, verification and approval of credits;

i) The standards on product distribution of the liquidation of the goods, the graduation of the

credits and the rights of creditors who have been partially satisfied after the

establishment of the liquidation process by force of real law or

compensation;

j) The conditions and effects of the extinction and suspension of the liquidation process,

notably by concordat;

l) The rights of creditors after the extinction of the liquidation process;

m) The costs and expenses of the settlement process;

n) The norms on nullity, cancellability or enforceability of harmful acts

to the pool of creditors.

3-A Portuguese law shall not apply to the hypotheses provided for in paragraph (n) of the preceding paragraph,

when the beneficiary of the acts detrimental to the creditors ' set up does prove,

cumulatively, of which:

a) The harmful act shall be governed by the law of another Member State;

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b) In the present case, that law prohibits the imputation of the act by any means.

Article 21.

Publication

The Bank of Portugal publishes in the Official Journal of the European Union and in at least two

newspapers of national circulation in each host Member State, an extract from the

decision referred to in Article 19 (2) or the deliberation of voluntary dissolution.

Article 22.

Notification of creditors

1-known creditors who have domicile, habitual residence or registered office

in other Member States must be notified by the liquidator, with the brevity

possible, of the dispatching to which the n refers. the

1 and 2 of Article 9, owing to the notification

inform about the deadlines to be observed, the consequences of the failure to comply with those deadlines, the

competent court to receive the claim of the credits, as well as on other

measures that have been determined.

2-The creditors referred to in the preceding paragraph, whose credits enjoy privilege or

real guarantee, they are also informed about the terms in which you can or should

process the claim of these credits.

Article 23.

Claim of credits

The credits whose holders have domicile, habitual residence or registered office in another State-

Member, including those of the public authorities, may be claimed and are graduates

such as credits of an equivalent nature whose holders have habitual residence,

domicile or registered office in Portugal.

Article 24.

Languages

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1-A information provided for in articles 21 and 22 is provided in Portuguese, using,

for the purpose, a form in which it appears, in all the official languages of the Union

European, the title " Notice of Complaint of Credits. Legal Deadlines to Watch ".

2-The creditors who have domicile, habitual residence or registered office in another State-

Member may claim the respective credits in the official language of that State-

Member.

3-In the case provided for in the preceding paragraph, the claim of the credits includes in title to

expression "Complaint of Credits", in Portuguese language, and the liquidator may

require full translation of the complaint into the Portuguese language.

SECTION II

Branches in Portugal of credit institutions with registered office in another Member State

Article 25.

Sanitation

If the Bank of Portugal considers necessary the application of one or more measures of

sanitation to branch office of credit institution with registered office in another Member State of the Union

European shall inform the respective competent authorities of this fact.

SECTION III

Branches of credit institutions with registered offices outside the Community

Article 26.

Sanitation and settlement

1-The Bank of Portugal shall inform the competent authorities of the Member States

where constant branches of the list referred to in Article 11 of the list have been established

Directive No 2000 /12/CE of the European Parliament and of the Council of March 20 of

2000, concerning access to the business of credit institutions and their exercise, by

institutions with registered offices in non-EU countries, of the adoption of

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sanitation measures or the establishment of settlement processes in respect of

branch of those institutions, established in Portugal.

2-The Bank of Portugal and the competent court for the liquidation of the branch in Portugal

coordinate their actions with the administrative or judicial authorities of the states-

Members referred to in the preceding paragraph, owing to the liquidator appointed in the scope

of the settlement process proceed in the same manner in relation to their counterparts.

SECTION IV

Common provisions

SUBSECTION I

Law applicable to special situations

Article 27.

Effects on certain contracts and rights

The effects of the adoption of sanitation measures or the establishment of processes of

settlement shall be regulated:

a) By the law of the Member State applicable to the contract, as to contracts and relations of

work;

b) By the law of the Member State of the Registry, as to the rights relating to immovable property,

ships or aircraft, subject to registration in public register;

c) As for contracts that confirm enjoyment rights on real estate or the right to your

acquisition, by the law of the Member State in whose territory those real estate are located,

which shall also determine the qualification of the good as movable or immovable.

Article 28.

Real rights of third parties

1-A the application of sanitation measures or the establishment of settlement processes not

undermines the real rights of creditors or third parties on tangible goods or

intangible, movable or immovable, including the universalities, belonging to the institution

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of credit, which at the time of the application of such measures or of the establishment of those

processes, find themselves in the territory of another Member State.

2-The provisions of the preceding paragraph shall include, inter alia:

a) The right to claim the good or to demand their restitution;

b) The consignment of income and other real rights on the income of goods;

c) The right to obtain credit satisfaction through the product of the divestment or the

income from assets, specifically in execution of collateral or foreclosed;

d) The exclusive right to collect debts, in particular by force of provision

of escrow or transmission of the debt to guarantee title.

3-It is also considered to be a real right the right entered into public record and objectiable to

third parties that allow to acquire some of the rights provided for in paragraph 1.

4-The provisions of this Article shall be without prejudice to the application of the standards laid down in paragraph

n) of Article 20 (2)

Article 29.

Super-convenient acts

The validity of the acts of provision for onerous title practiced after the adoption of measures

of sanitation or after the establishment of the liquidation process, it is regulated:

a) By the law of the Member State of the respective situation, dealing with immovable;

b) By the law of the Member State of the Registry, dealing with ship or aircraft subject to

enrollment in public register;

c) By the law of the Member State of the centralised system, of the registration or deposit, or of the

account, in respect of financial instruments or rights on these

instruments, whose existence or transmission presupposes their enrollment in

centralized system, registration or deposit, or on account.

Article 30.

Purchase and sale of assets

Without prejudice to the application of the standards referred to in paragraph n) of Article 20 (2), the

adoption of sanitation measures or the establishment of settlement procedures not

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harms:

a) The rights of the seller of assets to the credit institution, which are founded

in reservation of ownership, if, at the time of the adoption of the measure or the

establishment of the process, the assets meet in the territory of another State-

Member;

b) The acquisition of assets to the credit institution, by this one already delivered, nor constitutes

grounds for resolution of its purchase, if, at the time of the adoption of the measure

or of the initiation of the proceedings, those assets are found in the territory of

another Member State.

Article 31.

Compensation

Without prejudice to the application of the standards referred to in paragraph n) of Article 20 (2), the

adoption of sanitation measures or the establishment of winding-up process not

undermines the right of creditors to the compensation of their claims with those of the institution in

cause, provided that this right is recognized by the law applicable to the institution's credits.

Article 32.

Financial instruments

1-Regulates by the law of the Member State of the centralised system, of the registration or deposit,

or of the account the exercise of rights of property or other rights on

financial instruments, whose existence or transmission presupposes their enrollment

in centralized system, registration or deposit, or in account.

2-Without prejudice to the provisions of the preceding paragraph, the reporting contracts and transactions

carried out in the framework of a regulated market shall be governed exclusively by law

applicable to the respective contracts.

Article 33.

Compensation and novation conventions

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The conventions of compensation and novation ( netting agreements ) govern themselves

exclusively by the law applicable to the respective contract.

Article 34.

Pending processes

The effects of the adoption of sanitation measures or the establishment of processes of

settlement on pending proceedings that have for the purpose of acts involving

decrease in the credit institution's equity guarantee is exclusively regulated

by the law of the Member State in which the proceedings are pending.

SUBSECTION II

Powers of the administrator and the liquidator

Article 35.

Exercise of powers

1-Administrators or the liquidator may exercise in national territory the powers

that they are empowered to exercise in the Member State in which they have been adopted

sanitation measures or instituted the process of liquidation.

2-Administrators or the liquidator may designate persons who co-adjugated them or the

represent within the scope of the sanitation measures or the settlement process.

3-In the exercise of its powers, the administrators or the liquidator observe the law

Portuguese, in particular, with respect to the modalities of selling the goods.

Article 36.

Proof of the appointment of the liquidators

1-A proof of the appointment of the administrators or the liquidator is carried out upon

presentation of certified copy of the decision of your appointment or certificate

issued by the competent authorities.

2-It may be required of the administrators or the liquidator the translation of the documents

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referred to in the previous number, without dependence on legalization of that translation or the

any other formality.

Article 37.

Registration in public register

Without prejudice to the respective compulsion, when provided for, the administrators, the

liquidator and the administrative or judicial authorities have legitimacy to apply for the

enrollment of the sanitation measures or the establishment of the settlement process in the

predial or commercial registration.

SECTION V

Decisions made in other Member States

Article 38.

Recognition of decisions

The decisions to adopt sanitation measures and to initiate processes of

settlement taken by the administrative or judicial authorities of another Member State,

in accordance with the provisions of Directive No 2001 /24/CE, of the European Parliament and of the

Council, of April 4, 2001, are recognized in Portugal, regardless of

review, confirmation or other formality of equivalent effect.

CHAPTER IV

FINAL AND TRANSITIONAL PROVISIONS

Article 39.

Fulfillment of obligations

1-It is liberatory the payment made to the credit institution that is not a legal person,

in liquidation in another Member State, if, at the time of payment, the establishment of the

settlement process is unknown to whom it conducts it.

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2-Unless proven otherwise, it is presumed to:

a) There is no knowledge of the establishment of the settlement process if the payment

has been carried out prior to the publication to which you rent Article 21;

b) There is knowledge of the establishment of the settlement process if the payment

it has been carried out after the publication referred to in the preceding paragraph.

Article 40.

Professional secret

They shall be subject to the duty of secrecy, pursuant to the provisions of Articles 78 to 84 of the

REGICSF, all persons intervening in the application of sanitation measures or in

settlement processes.

Article 41.

Abrogation standard

The Decree-Law No. 30,689 of August 27, 1940, with the exception of standards, is repealed

relating to the settlement that continue to apply to mutual agricultural credit boxes

belonging to the Integrated System of the Mutual Agricultural Credit, pursuant to the respective

special legislation.

Article 42.

Entry into force and application in time

1-The present decree-law shall come into force on the day following that of its publication.

2-This decree-law is only applicable to the measures of sanitation adopted or to the

settlement proceedings instituted after its entry into force.

Seen and approved in Council of Ministers of

The Prime Minister

The Minister of State and Finance