Law No. 83 Of 15 April 1998 On The Insolvency Of Banks

Original Language Title:  LEGE nr. 83 din 15 aprilie 1998 privind procedura falimentului băncilor

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Law No. 83 of 15 April 1998 on the ISSUING banks ' bankruptcy procedure Parliament Published in MONITORUL OFICIAL nr. 159 of 22 April 1998, the Romanian Parliament adopts this law.

Chapter 1 General provisions Article 1 legally established Banks in Romania, placed in a State of insolvency, shall be subject to insolvency proceedings instituted under this law.

Article 2 a bank is deemed to be insolvent if it lies in one of the following situations: a) the Bank does not wholly satisfied certain claims, liquid and payable for at least 30 days;

b) value exceeds the obligations of the Bank or asset value.

The value of the assets and liabilities of the Bank shall be calculated in accordance with rules issued by the National Bank of Romania in this respect.

Chapter 2 powers of bodies apply the procedure of article 3 of the bankruptcy of the main tasks of the Tribunal under this Act, are: a) designation and nomination of judge-appointed in agreement with the National Bank of Romania, the liquidator, control over their work and, if necessary, replace them;

(b) approval of the appointment of experts), authorized under the law, which would help him judge appointed to the performance of his duties;

c) prosecuting applications to pick up debit bank managers to lead its work;

d) prosecuting actions brought by judge appointed for the cancellation of a patrimonial character transfers, previous introductory application;

(e) appeals the judgment debtor Bank) times of creditors against the measures taken by the judge-trustee;

f) confirmation of plan funds obtained from the liquidation;

g) objections to the settlement reports quarterly and at the end of the appointed judge;

h) judgments start and closure of insolvency proceedings.

Article 4 the Tribunal's Judgments are final and enforceable. According to the law they can be subject to appeal.

Article 5 judge appointed is appointed by the President of the Tribunal, pursuant to law No. 92/1992 for the judicial organisation.

Article 6 in the performance of his duties, which involve the application of banking regulations, the trustee may apply to the judge and the opinion of the National Bank of Romania, in his capacity as the banking supervisory authority.

Article 7 the main duties of the judge appointed under this Act, are: (a) debit bank) examination activity, in relation to facts, compiling a detailed report on the causes and circumstances that led to the cessation of payments, with an indication of the persons for whom they would be responsible for the submission of that report, and of the Tribunal, within 30 days of its designation;

b) directing the work of the people he has hired to help him;

c) Courthouse, introduction of actions for annulment of fraudulent debit bank concluded in harm creditors ' rights and patrimonial character transfers, commercial operations entered into by the debtor's Bank and the establishment of safeguards provided by it;

d) maintenance or termination of contracts entered into by the debtor's Bank;

e) liquidating plan admission of property of the debtor Bank, up to cover liabilities;

f) at the start of the bankruptcy proceedings, application of seals, inventorying debit and Bank appropriate measures for their conservation;

g) examination of the claims and, where appropriate, the formulation of objections to them;

h) tracking receipt of claims arising from debtor bank transfers of goods or funds, carried out before registration, introductory;

I disposed of) of the debtor's Bank;

j) receipt of payments on account and debit the amounts recorded Bank within 24 hours, into a bank account opened at the National Bank of Romania, on behalf of the debtor Bank, exclusively available in the interest of the bankruptcy proceedings;

k) referral to the Tribunal about any problem that would require a resolution by the latter;

l) performance of the acts of procedure required by this law.

Article 8 and any of the debtor's bank lenders can make opposition against measures taken by the judge appointed in the cases expressly provided for in this law. Such a review will have to be registered within 10 days of the date on which the measure was taken, and its resolution will be made within 30 days. If necessary, the Tribunal counts will hold a meeting, with the attendance of the author of the appeal, the debtor Bank, creditors and the National Bank of Romania, with the participation of the appointed judge.

Article 9 at any stage of the procedure of bankruptcy, the Court may replace a judge appointed another, motivated by the conclusion of the Council Chamber.

Article 10 in all cases of bankruptcy, the trustee in the proposal of the judge and with the opinion of the National Bank of Romania, the Court will appoint a liquidator. It will need to be a legal entity established under the specialized law.

Article 11 a liquidator is invested with the powers of management and control over bank debit and may take such measures as it considers necessary for the liquidation of the debtor's bank assets so as to achieve their optimal capitalization, even in cases where the debtor Bank was withdrawn the authorization. These measures shall concern the following aspects: a) to continue or discontinue, justifiably, any operation;

b) to borrow money, thereby guaranteeing the debtor bank assets with or without warranty;

c) fixed interest rates liabilities bank debit, provided, however, any new interest rate level is not lower than the lowest level practiced banking market;

d) to hire necessary staff liquidation;

e) to conclude any document on behalf of the debtor Bank, to initiate or defend and to coordinate, on behalf of any legal action or proceeding.

The liquidator shall draw up a report on a monthly basis on the evolution of the procedure of bankruptcy, which it will present for approval the judge appointed, after which it will transmit and Banca Naţională a României. Such a report will include information on the total amount of claims on the debtor's Bank and the total value of the assets of the debtor Bank that were sold.

Chapter 3 Procedure of referral to the Tribunal Article 12 insolvency proceedings will start on the basis of an application made by the debtor or its creditors or by National Bank of Romania.
The Tribunal jurisdiction to hear the application is the one in whose jurisdiction is located the headquarters of the debit bank.

Article 13 bankruptcy of a bank to start, usually after a finding by the National Bank of Romania as a special supervisory measures carried out for the purpose of redresarii the Bank in question, did not lead to avoidance of the State of insolvency.

Article 14 the bank debit, which no longer can make the face entirely its debt due to the amounts of money available, can address a request to the Tribunal to be subject to the provisions of this law.
The Bank's application will be signed by the persons who, under the law, they represent quality.

Article 15 the bank debit Request will need to be accompanied by the following documents: a) the balance sheet and copies of books;

b) a list of all of the goods; for real estate will pass the data from the register of real estate advertising;

(c) a list of names) and addresses of the creditors, whatever their claims-or under certain condition, liquid or illiquid due or nescadente, uncontested or contested-, amount, cause and rights of preference;

d) profit and loss account for the year earlier filing.

Article 16 any creditor who has a claim foul, liquid and payable, may introduce in court a claim against a debtor who, for at least 30 days, lies in the cessation of payments.
The lender will not be able to enter the application without having to provide evidence of that, previously, as a result of the introduction of an enforcement action over bank account debit, National Bank of Romania, as a third party poprit, said that the Bank that lies in the cessation of payments more than 30 days.

Article 17 National Bank of Romania, in its capacity as supervisory authority, the Bank will be able to enter the request against the Bank that have been applied to surveillance measures and Special Administration, which have not led to the recovery of the Bank that are in a position to not honor payments in full.

Article 18 upon registration of the application, in accordance with article introduced 14, 16 and 17, the Tribunal will notify it to interested parties and the trade register Office where the debtor Bank is registered, for making the statement.
All costs for these measures will be borne by the debtor Bank wealth.

Article 19 of the first period, the Tribunal will examine the application and, if the debtor does not contest the bank insolvency situation, it has the start of bankruptcy proceedings immediately debit bank.
The opposition against the application to initiate insolvency proceedings can be done within 5 days from the date of that request.
The Tribunal will rule on the appeal within 10 days, which may be extended once for another 10 days.

The judgment concerning the commencement of bankruptcy proceedings the debtor Bank will be notified as soon as the deposit guarantee Fund in the banking system, with a view to the application of the rules relating to the payment of guaranteed deposits.

Article 20 the Tribunal will communicate to the National Bank of Romania its judgment concerning the commencement of bankruptcy proceedings the debtor Bank. National Bank of Romania will close as soon as the debit bank accounts, opened in the National Bank of Romania, and will open a new account with the name of the Bank in bankruptcy ". In this account will make transfers of money till at that time in the Bank's accounts. Still, the Bank's financial operations in bankruptcy will take place exclusively through this account.

Article 21 other procedures of liquidation operations provided for in law No. 64/1995 to reorganise production and bankruptcy, as amended, Chapter III, Section 6 of the "Bankruptcy", that will be applied and the procedure of bankruptcy of banks.

Chapter 4 Liability of the management organs and to the auditor of the Bank into receivership 558 Article 22 the Tribunal may order that a portion of the liability side of the Bank, into receivership, be borne by the members of the management organs-administrators, directors and, if applicable, the censors, if they contributed to its bankruptcy, through one of the following facts: a) have used goods or bank loans in favor of its own;

b) have made trade acts for personal purposes, under cover of the Bank;

c) may, for personal, continuing an activity that led the way to the Bank regarding the cessation of payments;

d) held a fictitious accounting to disappear, they did some accounting documents or have not kept the accounts in accordance with the law;

e) embezzled or hid part of the Bank's assets or increased, fictionally, liabilities;

f) have used the ruinous means, to procure the Bank funds in order to delay the termination of payments;

g) in the previous month of cessation of payments, paid or were willing to pay, with the creditor's preference, in harm all other creditors.

The provisions of paragraphs 1 and 2. 1 do not remove the application of the criminal law to the facts which constitute the offence.

Article 23 amounts paid under art. 22 paragraph 1. 1 will become the Bank's debit and wealth will be intended for payment of debts.

Article 24 in order to take measures under article 4. 22 paragraph 1. 1, the Court may be consulted by the judge appointed, by any of the lenders, the National Bank of Romania or may refer the matter of its own motion, on the basis of the facts of the case, and shall order precautionary measures.

Article 25 enforcement against the person referred to in art. 22 paragraph 1. 1 shall be carried out according to the provisions of the code of civil procedure.

Article 26 of the Bankruptcy Procedure will be closed when the Tribunal has approved the final report, when all funds or assets of the Bank reached bankrupt were distributed and funds were deposited at go unreported Bank National Bank of Romania. Following a request from the trustee, the Court judge will render a decision closing the procedure of bankruptcy. The judgment will be communicated in writing to all creditors, the debtor's Bank and the National Bank of Romania, which will close the account "Bank bankruptcy" existence and will be paid on any monies remaining in the account at the State budget. These amounts may be required by the entitled persons within legal limits.

Chapter 5 transitional and final Provisions Article 27 of this law shall be completed, as far as their compatibility with those of the civil procedure code.

Article 28 procedures for reorganization and judicial liquidation of banks, open until the date of entry into force of this law, shall be continued and closed according to law nr. 64/1995 concerning the procedure of bankruptcy and judicial reorganization, with subsequent amendments and additions.

Article 29 this law shall enter into force 30 days after its publication in the Official Gazette of Romania, part I.

Article 30 on the date of entry into force of the present law shall repeal any provisions to the contrary.
This law was adopted by the Senate at its meeting on 30 March 1998, in compliance with the provisions of art. 74 para. (2) of the Constitution of Romania.
p. RADU VASILE, SENATE CHAIRMAN this law was adopted by the Chamber of deputies at its meeting on 30 March 1998, in compliance with the provisions of art. 74 para. (2) of the Constitution of Romania.
p. VASILE LUPU, PRESIDENT of the CHAMBER of DEPUTIES — — — — — — — — — — — — — — — — — — — — —

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