Authorizes The Government To Legislate On The Reorganization And Liquidation Of Credit Institutions And Financial Corporations In The Context Of The Transposition Of Directive No. 2001/24/ec Of The European Parliament And Of The Council Of 4 April On T...

Original Language Title: Autoriza o Governo a legislar sobre o saneamento e liquidação de instituições de crédito e sociedades financeiras no âmbito da transposição da Directiva n.º 2001/24/CE do Parlamento Europeu e do Conselho de 4 de Abril, relativa ao saneamento e à liquidaçã

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Read the untranslated law here: http://app.parlamento.pt/webutils/docs/doc.pdf?path=6148523063446f764c3246795a5868774d546f334e7a67774c336470626d6c7561574e7059585270646d467a4c316776644756346447397a4c334277624455304c5667755a47396a&fich=ppl54-X.doc&Inline=false

1 PROPOSAL of law No. 54/X explanatory statement With this Bill the Government aims to obtain authorization from Parliament to legislate in respect of credit institutions and financial corporations, in order to, in conjunction with the transposition into national law of Directive 2001/24/EC of the European Parliament and of the Council of 4 April 2001 on the reorganisation and winding-up of credit institutions, revamp the system of credit institutions and financial societies, dating back to Decree-Law No. 30,689, of 27 August 1940. Deems appropriate to make this regime also applies to the liquidation of branches, located in Portugal of 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. The regime to Institute aims to adapt the process of liquidation of entities mentioned the specificity of the financial system in the same Act and the preservation of the interests involved, it is the balance of that system, that of equal treatment of creditors. It is intended a system updated, more in accordance with the new requirements and also the harmonisation of Community legislation. Leaves, thus, the predominantly administrative system of settlement, previously in force, recognising the specific nature of the financial sector taking into account the particularities of the business of credit institutions and financial societies and the need to establish a system which contributes to the credibility of financial activity and its agents. It is intended that the new regime continue to grant to the Bank of Portugal, as the supervisory authority, the authority provides for withdrawal of banking activities, like, in fact, what is happening in the Member States of the European Union 2, producing the decision of withdrawal of authorisation the effects of the Declaration of insolvency. The settlement itself becomes committed to judicial system, justified by the exceptional complexity and specifics features of the financial system, as well as the size of the interests and values involved, and the Central Bank continue to perform their supervisory functions, in relevant part, and also provide the necessary collaboration in mind. Voluntary dissolution and subsequent liquidation continue to be carried out under the general terms of trade legislation, in accordance with the deliberations of members, nevertheless pass the Bank of Portugal could apply for receivership, in order to protect the interests of creditors and of the financial system. Were heard the European Central Bank, the Bank of Portugal, the Commission of the securities market and the Portuguese Association of banks.

So: under d) of paragraph 1 of article 197 of the Constitution, the Government presents to the Assembly of the Republic the following proposal of law: Article 1 subject-matter is granted the Government legislative authorization to establish the mechanisms, terms and the competence for the dissolution, winding-up and reorganisation of credit institutions and financial companies based in Portugal , and their branches set up in another Member State, as well as branches, located in Portugal of credit institutions based in countries that are not members of the European Union.

Article 2 Scope within the legislative authorization granted by article 1 of this law, the Government is authorized to, in accordance with the following articles, determine: a) the grounds for the dissolution of the credit institutions and financial societies 3 as well as the point from which go into liquidation; b) the authority competent to apply for receivership despite possible situation of voluntary dissolution of the credit institution and finance company; (c)) the effects produced by the decision of withdrawal of authorisation by the Bank of Portugal; d) the scheme to establish concerning the conduct of insolvency proceedings; and the scope of the judgment) that focuses on the application of the Banco de Portugal; f) the competence to complain and appeal court decisions on winding-up proceedings; g) the competence for the recognition of decisions of adoption of reorganisation measures and winding-up proceedings proceedings taken by judicial authorities of another Member State; h) the law applicable to winding-up proceedings of credit institutions and financial societies.

Article 3 meaning and extent of legislative authorization on the grounds of dissolution of credit institutions and financial companies as well as the fixing of the moment from which go into liquidation on the use of legislative authorization conferred by article 2 (a)), is the Government allowed to determine which credit institutions and financial corporations dissolve just under the revocation of authorization or by resolution of the partners After entering immediately into liquidation.

Article 4 direction and extent of legislative authorization concerning the competence to apply for receivership in the use of legislative authorization conferred by article 2 (b)), is the Government authorized 4 to confer jurisdiction on the Bank of Portugal so that, notwithstanding the voluntary dissolution of the credit institution or financial society, require, at any time, the receivership of these in accordance with the fix under subparagraph (d)) of article 2 and article 6 of this law.

Article 5 direction and extent of legislative authorization concerning the consecration of the effects derived from the decision of revocation of authorisation by the Bank of Portugal on the use of legislative authorization conferred by article 2, point (c)), is the Government allowed to stipulate that the decision of withdrawal of authorisation of the credit institution or finance company by Banco de Portugal produces the effects provided for in the code of insolvency and business recovery to the Declaration of insolvency.

Article 6 direction and extent of legislative authorization concerning the arrangements applicable to the conduct of insolvency proceedings in the use of legislative authorization conferred by subparagraph (d)) of article 2, the Government is authorized to determine the adaptations and specialties of the regime to be imposed in respect of the processing of insolvency proceedings.

Article 7 direction and extent of legislative authorization concerning the arrangements applicable to the scope of the judicial decision relating to on request of the Banco de Portugal in the use of legislative authorization conferred by article 2 (e)), the Government is authorized to determine that the judicial decision relating to the application of the Banco de Portugal is limited to verify the completion of the requirements of that application, to appoint the liquidator or the liquidator and Committee to take the decisions provided for in paragraph 1 (b)) , c) and (f)) n) of article 36 of the code of insolvency and business recovery. 5 article 8 direction and extent of legislative authorization on jurisdiction for complaints and appeals under the winding-up proceedings on the use of legislative authorization conferred by article 2 (f)), is the Government allowed to give the Bank of Portugal to claim jurisdiction and appeal court decisions on winding-up proceedings.

Article 9 direction and extent of legislative authorization on the recognition of decisions taken by judicial authorities of another Member State in the use of the legislative authorisation conferred by article 2 (g)), the Government is authorized to establish that are recognized in Portugal the decisions of adoption of reorganisation measures and winding-up proceedings proceedings taken by judicial authorities of another Member State regardless of review, confirmation or another equivalent formality.

Article 10 meaning and extent of legislative authorization concerning the law applicable to winding-up proceedings on the use of the legislative authorisation conferred by article 2 (h)), the Government is authorized to determine that credit institutions and financial corporations with headquarters in Portugal, and its branches opened in another Member State, as well as branches, located in Portugal of credit institutions based in countries that are not members of the European Union are settled according to the laws, regulations and procedures applicable in Portugal, except in special situations.

6 article 11 Duration this legislative authorization lasts for 120 days.

Seen and approved by the Council of Ministers of 22 December 2005 the Prime Minister the Minister of Parliamentary Affairs Minister Presidency 7 1 of the main purposes of this decree-law is to transpose into Portuguese law Directive 2001/24/EC of the European Parliament and of the Council of 4 April 2001 on the reorganisation and winding-up of credit institutions. This is a set of standards for sanitation and liquidation of credit institutions that are established in more than one country of the EU. In line with the recommendations of the white paper for the completion of the internal market ", presented by the European Commission, in June 1985, that directive aimed at harmonising rules came from procedures, on the basis of mutual recognition and respect for the principles of freedom of establishment and freedom to provide services, universality and equal treatment of creditors. Established as a fundamental rule, that the reorganization and winding up of credit institutions, including their branches, are governed by the law of the Member State in which they have been authorized. Among other standards, it is necessary to emphasize that national supervisory authorities constitutes an obligation to communicate to the homologous entities from other Member States the adoption of reorganisation measures and winding-up proceedings decision. Also dedicates the recognition in the host Member State of the decisions taken by the authorities of the home Member State. Take advantage, however, the opportunity to upgrade the winding up of credit institutions and financial societies in force for decades. Until the entry into force of Decree-Law No. 298/92 of 31 December, order that approved the general scheme of credit institutions and financial corporations (hereinafter abbreviated called RGICSF), sanitation and liquidation of these institutions was regulated by Decree-Law No. 30,689, of 27 August 1940. In title VIII of that general scheme was attributed to the Bank of Portugal power to take, in respect of credit institutions and financial corporations, extraordinary measures of sanitation. The winding up of credit institutions and financial corporations continued, however, to be governed by the aforementioned Decree-Law No. 30,689 which was not, in this part, repealed. 8 as stated, the reorganization of credit institutions and financial corporations has your discipline established in the general scheme of credit institutions and financial corporations and don't see any reason to change it. There, therefore, limited the present Decree-law the mail. As regards liquidation, established a regime more updated as to new demands and also the harmonisation of Community legislation. Abandons, in this way, the system predominantly administrative liquidation of credit institutions and financial corporations, previously in force, recognising the specific nature of the financial sector taking into account the particularities of the business of credit institutions and financial societies and the need to establish a system which contributes to the credibility of financial activity and its agents. It was deemed appropriate to make this regime also applies to the liquidation of branches, located in Portugal of credit institutions based in countries that are not members of the European Union. Similarly, it was considered that it would make sense to submit at the same settlement scheme 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. Remains, however, the legislation applicable to mutual agricultural credit boxes belonging to the Integrated System of Mutual Agricultural Credit, because of the system of guarantee and solidarity prevailing in that system. Continues to grant to the Bank of Portugal, as the supervisory authority, the authority provides for withdrawal of banking activities, like, in fact, as in other European Union countries, producing the decision of withdrawal of authorisation the effects of the Declaration of insolvency. The settlement itself is committed to the judicial system, justified by the exceptional complexity and specifics features of the financial system, as well as the size of the interests and values involved, and the Central Bank continue to exercise the their supervisory functions, in relevant part, and also provide the necessary collaboration in mind. So, can the Bank of Portugal to request and propose what should be understand in the face of technical specificity of the materials and their impact on the financial system, as well as appeal of decisions made. As regards the other aspects of the new winding-up regime, it should be noted that the credit institutions 9, taking into account the complexity, the nature and the extent of the interests involved, dissolve just under the revocation of authorization or by resolution of the shareholders. This follows that both credit institutions and financial corporations, as the respective lenders still do not have legitimacy to request the judicial declaration of insolvency. Still takes place, given the specificity of the composition of equity and prudential standards subject to permanent, namely, solvency that credit institutions and financial corporations shall not apply the provisions of article 35 of the companies code. Voluntary dissolution and subsequent liquidation can take place under the general terms of trade legislation, in accordance with the deliberations of members, respected deemed the interests of creditors and of the financial system; happening place the withdrawal of authorisation, the rule is that of compulsory liquidation, for the reasons already stated. The regime established in this decree-law does not interfere with the rules transposed into national law the Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in the event of the insolvency of a participant in the settlement system, in particular in the securities code. In this decree-law, systematic reserve chapters I and IV for general provisions, introductory and final respectively; in chapter II regulates liquidation of credit institutions and financial companies that have headquarters in Portugal; in chapter III offers about sanitation and winding-up of credit institutions, where these are set out in more than one Member State. The Bank of Portugal had been heard, the European Central Bank, the securities market Commission and the Portuguese Association of banks.

So: the use of legislative authorization granted by article (...) of the law No. (.../2005, of ... of ...) and pursuant to points (a)) and b) of paragraph 1 of article 198 of the Constitution, the Government decrees the following: 10 chapter I INTRODUCTORY PROVISIONS Article 1 subject-matter 1-this Decree-Law regulates the credit institutions and financial corporations with headquarters in Portugal and their branches set up in another Member State , by transposition into Portuguese law Directive 2001/24/EC of the European Parliament and of the Council of 4 April 2001 on the reorganisation and winding-up of credit institutions. 2-the application of reorganisation measures the credit societies and financial institutions with headquarters in Portugal shall be governed by the provisions of the General Regime for credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December, further abbreviated called RGICSF, without prejudice to the established in chapter III of this decree-law.

Article 2 Definitions 1-for the purposes of this Decree-Law: (a)) ' reorganisation measures ' means measures intended to preserve or restore the financial situation of a credit institution, which could affect third parties ' pre-existing rights, including suspension of payments, suspension of enforcement processes or reduction of claims; b) ' winding-up proceedings ' shall mean collective proceedings the administrative or judicial authorities of a Member State of the European Community, with a view to the realisation of assets, under the supervision of those authorities, even when this process is extinguished through bankruptcy or similar measure; c) ' Administrator ' means person or body appointed by the administrative or judicial authorities for adopting and administering reorganisation measures; 11 d) ' Liquidator ', person or body appointed by the administrative or judicial authorities to manage the liquidation; e) ' competent authorities ' means the national supervisory authorities of credit institutions; f) "administrative or judicial Authorities ' means the administrative or judicial authorities of the Member States concerned of reorganisation measures or winding-up proceedings. 2-for sanitation or winding-up of branches, located in European Union credit institutions with head office in a third country, the expressions ' home Member State ', ' competent authorities ' and ' administrative or judicial authorities ' relate to the Member State in which the branch is located.

Article 3 information to the SEC the Bank of Portugal reports on the securities market Commission proposals or measures adopted in the framework of the reorganization or liquidation of credit institutions and financial societies are financial intermediaries registered in that Commission, without prejudice to the provisions of article 198 of the RGICSF.

CHAPTER II CREDIT INSTITUTIONS and financial companies BASED in PORTUGAL article 4 1 Settlement-the credit institutions with headquarters in Portugal shall be governed by the provisions of this chapter. 2-mutual agricultural credit boxes belonging to the Integrated System of Mutual Agricultural Credit are paid according to their special legislation. 12 3-the provisions of this chapter shall apply, mutatis mutandis, to the liquidation of the finance companies. 4-the provisions of this Ordinance is still applicable to the liquidation of branches, located in Portugal of 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 are dissolved only pursuant to revocation of its authorization shall, pursuant to article 22 of the RGICSF, or by resolution of the shareholders. 2-With the dissolution, credit institutions shall enter into liquidation, without prejudice to the established at the end of paragraph 3 of article 22 of the RGICSF. 3-the decision of withdrawal of authorisation is indicated the time of the Act, in case of omission, that the same occurred at 12 hours for this, for all legal purposes, as the moment of the commencement of winding-up proceedings.

Article 6 1-voluntary Dissolution is applicable to voluntary dissolution article 35 of the RGICSF, and the record of their project a detailed settlement plan and the identification of the liquidators. 2-voluntary dissolution does not prevent, at all times, the Bank of Portugal requires judicial settlement under article 8, including any protective measures.

Article 7 extrajudicial liquidation 1-credit institutions dissolved voluntarily under 13 are settled as provided in Chapter XIII of title I of the commercial companies code, with the exception of article 161 2-the designation of the liquidators shall apply, mutatis mutandis, the provisions of articles 69 and 70 of the RGICSF. 3-liquidators shall refer to the Bank of Portugal the annual and final reports and accounts. 4-pending liquidation, shall apply the provisions of title VII of the RGICSF, with the necessary adaptations.

Article 8-1 the judicial Settlement judicial winding-up of credit institutions founded on revocation of authorisation by the Bank of Portugal is made under the code of insolvency and business recovery, with specialties in the following articles. 2-the decision of withdrawal of authorisation by the Bank of Portugal produces the effects of the Declaration of insolvency. 3-fits in to the Bank of Portugal require, the Court with jurisdiction, the liquidation of the credit institution, within ten working days after the revocation of the authorisation given pursuant to article 22 of the RGICSF. 4-the application must be accompanied by a copy of the revocation decision and with the proposal of the administrator in bankruptcy or liquidator Commission designate by the judge, under the terms and for the purposes of articles following.

Article 9 Processing subsequent 1-In order to proceed, the judge is limited to verify fulfilment of the requirements laid down in the previous article, with any questions about the legality of the decision of withdrawal of authorisation suscitáveis only in case of dispute referred to in article 15-2 in the same order, the court appoints the liquidator or the liquidator and Committee take the 14 decisions provided for in paragraph 1 (b)) , c) and (f)) n) of article 36 of the code of insolvency and business recovery. 3-apply, mutatis mutandis, the other provisions of the code of insolvency and business recovery that are compatible with the specialties in the present Decree-Law, with the exception of Titles IX and X.

Article 10 liquidator or liquidator 1 Commission-the judge, acting on a proposal of the Bank of Portugal, appoints a liquidator or liquidator a Commission composed of three members, depending on the complexity and difficulty of the settlement, to which competes the exercise of the functions entrusted to the administrator of insolvency by the code of insolvency and Corporate recovery. 2-the Bank of Portugal may propose to judge the removal and replacement of the liquidator or of the members of the Committee a liquidator, in whole or in part, as well as the replacement of the Commission a liquidator for a single administrator in bankruptcy or for a Commission. 3-the remuneration of the liquidator or of the members of the liquidator shall be fixed annually by the judge, acting on a proposal of the Bank of Portugal.

Article 11 communication to the deposit guarantee fund and investor-compensation scheme within the time limit set for delivery in the legal secretariat of the list of recognized and unrecognized creditors, the liquidator reference copy of the same to the deposit guarantee fund and, in the case of end entity, the system of Compensation to investors.

Article 12 further 15 1 activity-When is necessary or convenient to the settlement, the judge may request the liquidators the partial continuation of the activity of the credit institution. 2-the application referred to in the preceding paragraph must be accompanied by a favourable opinion of the Bank of Portugal.

Article 13 Committee 1 lenders-the Committee of creditors is appointed by the judge, hearing the Bank of Portugal. 2-the powers conferred by the code of insolvency and reorganization to creditors are exercised by the lenders.

Article 14 the Banco de Portugal 1 Intervention-Banco de Portugal may follow the activities of the administrator in bankruptcy or liquidator may Commission yet, apply to the judge to understand appropriate. 2-for the purposes of the preceding paragraph, the Bank of Portugal can examine the elements of the credit institution's accounting and prompt the administrator in bankruptcy or liquidator to the Commission the information and presentation of the elements which it considers necessary. 3-on its own initiative, can the Bank of Portugal to present in court reports and opinions deemed convenient. 4-the Bank of Portugal has legitimacy to claim or recourse of judicial decisions to admit a complaint or appeal.

Article 15 effects of litigation on the dispute settlement 1-Without prejudice to the provisions of article 128 of the code of Administrative Court Procedure 16, litigation challenging the Act of revocation of authorisation of a credit institution, as well as the application of the suspension of the validity of the same Act to produce the effects provided for in the last part of paragraph 3 of article 40 of the code of insolvency and business recovery. 2-Distributed the petition of challenge or the request for suspension, the judge, if the process any proceeding determines that tell of their pending the court settlement, for the purposes of the preceding paragraph, requesting the parties, if necessary, the Court and the process. 3-The final decisions handed down in cases of impeachment or suspension is sent a copy to the court settlement.

CHAPTER III sanitation and COMMUNITY-WIDE SETTLEMENT section 1 Credit Institutions with headquarters in Portugal and with branches in another Member State Reorganisation subsection I article 16 Adoption of reorganisation measures it is up to the Bank of Portugal to adopt reorganisation measures with respect to a credit institution with headquarters in Portugal and their branches established in other Member States of the European Union, hereinafter referred to as the host Member States.

Article 17 Information to the authorities of other countries before the its outcome or, it is not possible, immediately after the Bank of Portugal shall inform the competent authorities of each Member State to host about 17 of reorganisation measures adopted and of their concrete effects.

Article 18 Publication 1 the application of reorganisation measures is likely to affect the rights of third in the host Member State, the Bank of Portugal publishes an extract from your decision in the official journal of the European Union and at least two national newspapers in that Member State. 2-the extract from the decision is drawn up in the official language or languages of the host Member State and shall mention at least the subject matter and the legal basis of the decision, the time limits for appeals, including its term, as well as the address of the competent authorities to hear the appeal. 3-the lack of publication pursuant to the preceding paragraphs shall not prevent the production of the effects of reorganisation measures.

SUBSECTION II article 19 entry into Liquidation liquidation 1-entry into liquidation of credit institutions authorised in Portugal, including branches located in other Member States of the European Union, shall be governed by the provisions of this decree-law. 2-before the revocation decision or not possible, immediately after the Bank of Portugal shall inform the competent authorities of each host Member State about that decision and its practical effects. 3-the provisions of the preceding paragraph shall apply, mutatis mutandis, to the voluntary dissolution.

Article 20 18 applicable law 1-except as provided to the contrary in this Ordinance, in particular in paragraph 3 of this article and in articles 27 to 34, the credit institutions referred to in the preceding article are liquidated in accordance with the laws, regulations and procedures applicable in Portugal. 2-Are determined in accordance with Portuguese law, namely: a) the goods are part of the bankruptcy estate and the treatment of goods acquired by the credit institution after the commencement of winding-up proceedings; b) legal capacity of the credit institution; c) the powers of the liquidator; d) the effects of winding-up proceedings on contracts for which the credit institution is party; and) the effects of winding-up proceedings on proposed actions by creditors; f) credit likely to claim and the treatment of claims constituted after the commencement of winding-up proceedings; g) the conditions under which the compensation; h) standards complaint, verification and approval of credits; I) the rules on the distribution of proceeds from the realisation of assets, the ranking of claims and the rights of creditors who have obtained partial satisfaction after the commencement of insolvency proceedings by virtue of a right in rem or compensation; j) the conditions for and the effects of extinction and suspension of winding-up proceedings, in particular by composition; l) creditors ' rights after the closure of winding-up proceedings; m) costs and expenses of winding-up proceedings; n) the rules on invalidity, annulment or enforceability of legal acts detrimental to the creditors as a whole. 3-Portuguese law does not apply to events contemplated in paragraph n) of the preceding paragraph, when the beneficiary of legal acts detrimental to the creditors as a whole do, cumulatively, proof that: a) the harmful act is governed by the law of another Member State; 19 (b)) in the present case, this law prohibits any means of challenging that Act.

Article 21 Publication the Bank of Portugal shall publish in the official journal of the European Union and at least two national newspapers in each host Member State, an extract from the decision referred to in paragraph 2 of article 19 or the deliberation of voluntary dissolution.

Article 22 Notification of creditors 1-known creditors who have domiciles, normal places of residence or head offices in other Member States shall be notified by the liquidator, with the as soon as possible, the order referred to in paragraphs 1 and 2 of article 9, and the notification to inform about the deadlines to be observed, the consequences of failure to comply with those deadlines, the court competent to accept the lodgement of claims as well as on other measures that have been determined. 2-The creditors referred to in the preceding paragraph, whose credits enjoy privilege or collateral, are also informed about the terms in which can or should be done to claim such credits.

Article 23 Claim credits credits whose holders have domicile, habitual residence or registered office in another Member State, including the public authorities, may be claimed and are graduates as the credits of an equivalent nature whose holders have habitual residence, domicile or head office in Portugal.

Article 24 Languages 20 1-the information provided for in articles 21 and 22 is provided in Portuguese, using for that purpose a form in that figure, in all the official languages of the European Union, the title "notice of Complaint. Legal time limits to be observed ". 2-The creditors who have domiciles, normal places of residence or head office in another Member State can lodge their claims in the official language of that Member State. 3-in the case referred to in the preceding paragraph, the lodgement of claims include in title the expression "credit Claims", in Portuguese language, and the translation of the claims require liquidator for the Portuguese language.

SECTION II branches in Portugal of credit institutions based in another Member State article 25 Sanitation if the Bank of Portugal to consider necessary the application of one or more reorganisation measures in the branch of credit institution with headquarters in another Member State of the European Union shall inform their competent authorities.

SECTION III branches of credit institutions based outside the community Reorganisation and liquidation article 26 1-the Bank of Portugal shall inform the competent authorities of the Member States in which they are established branches on the list referred to in article 11 of Directive 2000/No. 12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up of the business of credit institutions and your exercise for institutions based in countries not members of the European Union, the adoption of 21 reorganisation measures or winding-up proceedings in respect of the establishment of the branch of such institutions, established in Portugal. 2-the Bank of Portugal and the competent court for the dissolution of the branch in Portugal coordinate the his actions with the administrative or judicial authorities of the Member States referred to in the preceding paragraph, and the liquidator appointed under the winding-up proceedings proceed in the same way 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 reorganisation measures or the initiation of winding-up proceedings shall be governed: a) by the law of the Member State applicable to the contract, as the contracts and working relationships; b) by the law of the Member State of registration, as the rights relating to immovable property, ships or aircraft subject to registration in a public register; c) about contracts conferring rights of enjoyment about real estate or the right to your acquisition, by the law of the Member State in whose territory they are situated these buildings, which determines also the qualification as well as mobile or immobile.

Article 28 rights in rem of third parties 1-the application of reorganisation measures or the initiation of winding-up proceedings shall not affect the rights in rem of creditors or third parties about tangible or intangible, movable or immovable, including the universalities, belonging to 22 credit institution, at the time of application of such measures or the introduction of these processes, in the territory of another Member State. 2-the provisions of the preceding paragraph comprises in particular: a) the right to claim good or require your refund; b) the antichresis and other real rights on income of goods; c) the right to obtain satisfaction from the proceeds of the disposal of assets or income, particularly in execution of collateral or mortgage; d) the exclusive right of recovery of debts, in particular by virtue of the provision of security or transfer collateral debt. 3-is also right in rem the right entered in the public register and enforceable against third parties that allow acquiring any of the rights provided for in paragraph 1. 4-the provisions of this article shall be without prejudice to the application of the rules provided for in paragraph n) of paragraph 2 of article 20 article 29 supervening Acts the validity of acts of disposition for valuable consideration charged after the adoption of reorganisation measures or after commencement of insolvency proceedings, shall be governed: a) by the law of the Member State of their situation, in the case of property; b) by the law of the Member State of registration, in the case of a ship or an aircraft subject to registration in a public register; c) by the law of the Member State of the centralized system of registration or deposit, or, in respect of financial instruments or rights in such instruments the existence or transfer, assume the your inscription in centralized system, registration or deposit, or in check.

Article 30 the purchase and sale of assets Without prejudice to the application of the standards referred to in article n) of paragraph 2 of article 20, the adoption of reorganisation measures or the initiation of winding-up proceedings No 23 shall affect: a) the seller's rights to the assets of the credit institution, which based on reservation of title, if at the time of adoption of the measure or the institution of the proceedings, the assets they find themselves in the territory of another Member State; b) the acquisition of assets to the credit institution for this already delivered, or constitutes a basis for resolution of your purchase, if, at the time of adoption of the measure or the institution of the proceedings, those assets they find themselves in the territory of another Member State.

Article 31 Compensation Without prejudice to the application of the standards referred to in article n) of paragraph 2 of article 20, the adoption of reorganisation measures or winding-up proceedings shall not affect the right of creditors to set-off of their claims with the institution concerned, provided that this right is recognized by the law applicable to the credit institution.

Article 32-1 financial instruments shall be governed by the law of the Member State of the centralized system of registration or deposit, or the account of the exercise of rights of ownership or other rights on financial instruments, whose existence or transfer presupposes the your inscription in centralized system, registration or deposit, or in check. 2-Notwithstanding the previous paragraph, the repurchase contracts and transactions carried out in the framework of a regulated market shall be governed solely by the law applicable to their contracts.

Article 33 compensation agreements and novation 24 compensation agreements and novation (netting agreements) shall be governed solely by the law applicable to the contract.

Article 34 cases pending the effects of reorganisation measures or winding-up proceedings on proceedings pending cases relating to acts involving decreased equity guarantee of the credit institution shall be governed solely by the law of the Member State in which proceedings are pending.

SUBSECTION II powers of the administrator and the liquidator article 35 powers exercise 1-administrators or the liquidator may exercise in national territory the powers who are entitled to exercise within the Member State in which they were adopted reorganisation measures or winding-up proceedings the proceedings. 2-administrators or liquidator may designate people who coadjuvem or representing them in the context of reorganisation measures or winding-up proceedings. 3-in the exercise of its powers, administrators or liquidator observe the Portuguese law, in particular with regard to procedures for the sale of goods.

Article 36 proof of appointment of liquidators 1-proof of the appointment of administrators or liquidator shall be made upon presentation of a certified copy of the decision of your appointment or certificate issued by the competent authorities. 2-may be required to the Administrators or liquidator the translation of the documents referred to in the preceding paragraph 25, without reliance on legalization of this translation or any other formality.

Article 37. º Registration in a public register Without prejudice to their obligation, when scheduled, administrators, the liquidator and the administrative or judicial authorities are entitled to request the inscription of reorganisation measures or winding-up proceedings building in the land register or commercial.

Section V decisions taken in other Member States article 38 Recognition of decisions the decisions of adoption of reorganisation measures and winding-up proceedings taken proceedings by the administrative or judicial authorities of another Member State, in accordance with the provisions of Directive 2001/24/EC of the European Parliament and of the Council of 4 April 2001, are recognized in Portugal, regardless of review, confirmation or another equivalent formality.

CHAPTER IV transitional and final provisions article 39 1 obligations-is discharge the payment made the credit institution which is not a legal person, in liquidation in another Member State if, at the time of payment, the commencement of winding-up proceedings is unknown who perform. 26 2-subject to proof to the contrary, it is assumed: a) be aware of the commencement of winding-up proceedings if the payment has been carried out before publishing the article 21; b) Be aware of the commencement of winding-up proceedings if the payment was made after the publication referred to in the preceding paragraph.

Article 40 professional secrecy shall be subject to the duty of secrecy, in accordance with the provisions of articles 78 to 84 of the REGICSF, all persons involved in the application of reorganisation measures or winding-up proceedings.

Article 41 set Standard is revoked Decree-Law No. 30,689, of 27 August 1940, with the exception of settlement standards that continue to apply to mutual agricultural credit boxes belonging to the Integrated System of Mutual Agricultural Credit, in accordance with its special legislation.

Article 42 entry into force and application in time 1-the present Decree-Law shall enter into force on the day following your publication. 2-this decree-law shall apply only to reorganisation measures adopted or winding-up proceedings instituted after your entry into force.

Seen and approved by the Council of Ministers of the Prime Minister and State Minister of finance