Law No. 122 Of 19 April 2004 On The Amendment Of The Government Emergency Ordinance Nr. 97/2000 Credit Cooperative Organizations

Original Language Title:  LEGE nr. 122 din 19 aprilie 2004 pentru modificarea Ordonanţei de urgenţă a Guvernului nr. 97/2000 privind organizaţiile cooperatiste de credit

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Law No. 122 of 19 April 2004 on the amendment of the Government Emergency Ordinance nr. 97/2000 cooperative organizations ISSUING credit PARLIAMENT Published in MONITORUL OFICIAL nr. 387 of 3 May 2004 Parliament adopts this law.


Article I of the Government Emergency Ordinance nr. 97 of 29 June 2000 on the credit cooperative organizations, published in the Official Gazette of Romania, part I, no. 330 of 14 July 2000, approved with amendments and completions by law No. 200/2002, with amendments and additions thereto, shall be amended and shall be completed as follows: 1. Paragraph 1 of article 7 shall read as follows: Art. 7.-Central House guarantee in full the obligations of affiliated credit unions in accordance with the regulations issued under it. For this House will be the central reserve on the basis of mutual guarantee contributions affiliated credit unions in accordance with the regulations issued by the Central home for this purpose, and has a quota of a maximum of 5% of the accounting profit determined before deduction of tax on the profits of the House. "
2. Paragraph 1 of article 8 shall read as follows: Art. 8.-can be a member any person cooperator has full capacity of exercise, domicile/residence in the operating territory of cooperative credit, signed or agreed to, as appropriate, of its articles of incorporation and subscribed and paid-up at least the number of shares set out in the articles of incorporation. "
3. Paragraph 2 of article 9 shall read as follows: "application for enrollment will comprise at least the following elements: name and surname of the applicant's social security number, place of residence and, if applicable, the number and value of social parties that it intends to become a party and signing the application. Also, an application for entry will also include the Declaration of acceptance of the provisions of the articles of incorporation. "
4. Article 13 shall read as follows: Art. 13. Membership of a cooperator credit unions shall cease through withdrawal by changing domicile/residence outside the operating range of the territorial credit cooperative, by exclusion, or as a result of death. Also, membership of a cooperator credit unions may be terminated as a result of the Division, merger or liquidation of the credit cooperative. "
5. In paragraph 2 of article 15 shall read as follows: "the conditions and procedures for extinguishing patrimonial obligations of credit cooperative and member of the cooperator, respectively legal successors thereto, in the event of termination of membership cooperator following a change in domicile/residence outside the radius of territorial cooperative credit, exclusion or as a result of death to be determined through the Constitutive Act."
6. Paragraph 1 of article 17 ^ 1 shall read as follows: Art. 17 ^ 1. -For the purpose of mutual aid each cooperator member requesting a loan will constitute a social fund whose amount will be determined through the Constitutive Act. "
7. Article 18 shall read as follows: Art. 18.-credit unions allocates 20% of accounting profit determined before deduction of tax on profit for the establishment of a reserve fund until the Fund thus constituted calls social capital, then a maximum of 10% by the time the Fund has gotten two times larger than the capital. After reaching this level of allocation to the reserve fund amounts is made from the net profit. For the calculation of the repartizărilor in the reserve fund will have regard to the existing level of social capital at the end of each financial year.
Credit unions shall allocate annually from accounting profit determined before deduction of corporation tax amounts intended for the establishment of the reserve for credit risk limit of 2% of the balance of the loans.
The provisions of paragraphs 1 and 2. 1 and 2 shall apply until the end of the financial year of 2004.
Starting with the financial year of 2005, credit unions Reserve Fund according to the provisions of the laws relating to companies and also Fund for general banking risks from accounting profit determined before deduction of income tax, up to a limit of 1% of your balance risk-bearing assets specific to banking activity, as determined by the regulations of the National Bank of Romania with the opinion of the Ministry of public finance to the extent that these amounts are included in net profit.
In determining the level of the Fund for general banking risks will take into consideration the amounts representing the general reserve for credit risk, established pursuant to paragraph 1. 2, in the balance.
The Reserve Fund and the general reserve for credit risk, established pursuant to paragraph 1. 1 and 2, there will be reduced depending on the limits and quotas under paragraph 1. 4 and will be used according to the legal regulations laid down by destination.
How to use the Fund for general banking risks shall be established by regulations of the National Bank of Romania.
Credit unions allocates 25% of net accounting profit determined tax on profit for the establishment of a reserve intended to aid the creation of conditions necessary for deduction of the cost of bank transactions carried out with members of the cooperative. "
8. In article 21, the letters), c), (d)) and j) shall read as follows: "the acceptance of deposits) from members of the cooperative, as well as from individuals and legal entities that are domiciled/registered offices and operates in the operating territory of cooperative credit;. ..

c) granting credits for micro-enterprises, public organisations and associations of worship, family, individuals with regulated professions, which have their registered office and carries out its activity in the territory of operation of the cooperative;
  

d), unfolding in the name and on behalf of the State, the sources made available to members of the cooperative, as well as for small businesses, civic organizations and religious associations, individuals with regulated professions, which have their registered office and carries out its activity in the territory of operation of the cooperative;
  



j) advice on the activities of cooperative organizations of credit granted to the members of the cooperative, as well as natural persons, micro-enterprises, public organisations and associations of worship, family and individuals with regulated professions, residing/headquarters and performs in the operating territory of cooperative credit; "
  

9. In article 25 (a)), and h) will read as follows: ' a) name and surname, place and date of birth, citizenship, place of residence and, if applicable, the founding members of the cooperative;


h) name and surname, place and date of birth, citizenship, place of residence and, where appropriate, administrators, leaders and appointed censors; "
  

10. In article 29, first indent shall read as follows: "a register of members of the cooperative, including first and last name, social security number, place of residence and, where appropriate, their residence, and the number of parties held;"
11. Paragraph 1 of article 35 shall read as follows: Art. 35.-the general meeting members of the cooperative may be represented by delegates who will be appointed from among the members of the cooperative only which do not hold membership of the Administrative Board, on the basis of a delegation in authentic form or certified by the Secretary of the administrative and territorial unit in which they have their habitual residence/residence of the respective cooperative members. Delegations will be submitted in one original to the place and the time limit laid down in the notice of calling and will be mentioned in the minutes. "
12. Paragraph 2 of article 47 shall read as follows: "administrators are revocabili and are appointed for a maximum period of 4 years, with the possibility to be re-elected."
13. The letter g) of paragraph 2 of article 59 shall read as follows: "g) approves credit policy of cooperative credit and loans granted by it, under its jurisdiction, in compliance with the regulations issued by the Central House, which is affiliated with the credit cooperative."
14. Article 65 shall read as follows: Art. 65.-credit cooperative Leaders must have, preferably, domicile/residence in the territory of the credit cooperative. "
15. In article 66, paragraph 1 shall be inserted after paragraph 1 ^ 1 with the following content: "in the event that the managers of the credit cooperative don't have Romanian citizenship, at least one of them must prove knowledge of the Romanian language."
16. The first sentence of paragraph 7 of article 69 shall be repealed.
17. Article 102 shall read as follows:

"Art. 102.-the Central Houses allocates 20% of accounting profit determined before deduction of tax on profit for the establishment of a reserve fund until the Fund thus constituted calls social capital, then a maximum of 10% by the time the Fund has gotten two times larger than the capital. After reaching this level, allocation of amounts for the reserve fund is made from the net profit. For the calculation of the repartizărilor in the reserve fund will have regard to the existing level of social capital at the end of each financial year.
Central homes allocates from accounting profit determined before deduction of corporation tax amounts intended for the establishment of the reserve for credit risk limit of 2% of the balance of the loans.
The provisions of paragraphs 1 and 2. 1 and 2 shall apply until the end of the financial year of 2004.
Starting with the financial year of 2005, the central credit unions Reserve Fund according to the provisions of the laws relating to companies and also Fund for general banking risks from accounting profit determined before deduction of income tax, up to a limit of 1% of your balance risk-bearing assets specific to banking activity, as determined by the regulations of the National Bank of Romania with the opinion of the Ministry of public finance to the extent that these amounts are included in net profit.
In determining the level of the Fund for general banking risks will take into consideration the amounts representing the general reserve for credit risk, established pursuant to paragraph 1. 2, in the balance.
The Reserve Fund and the general reserve for credit risk, established pursuant to paragraph 1. 1 and 2, there will be reduced depending on the limits and quotas under paragraph 1. 4 and will be used according to the legal regulations laid down by destination.
How to use the Fund for general banking risks shall be established by regulations of the National Bank of Romania.
Central homes allocates a share of accounting profit determined before deduction of tax on profit for the establishment of mutual guarantee reserve, which will be used in order to guarantee the obligations of affiliated credit unions to the extent that these amounts are included in net profit. The order of formation and use, as well as mutual guarantee reserve level will be determined by regulations of the houses. The houses are required to maintain, in addition to the mandatory minimum reserve level of assets with high liquidity at least equal to that of mutual guarantee reserve. "
18. In article 104, in subparagraph (b)) shall read as follows: "(b)) granting credits to individuals other than members of the cooperative have you affiliated credit unions and legal persons having their domicile/residence, headquarters or respectively operates through a unit without legal personality in the operating territory of Central House;"
19. Paragraph 2 of article 116 shall read as follows: "administrators are revocabili and are appointed for a maximum period of 4 years, with the possibility to be re-elected."
20. The letter h) in point 1 of paragraph 2 of article 121 shall read as follows: "h) approves the credit policy of the House and sets its own regulations how to grant loans to the Central House;"
21. In article 121, paragraph 2 (2), after the letter h) Insert the letter i) with the following content: "i own regulations) sets out the general framework for approval of loans from credit unions, in compliance with the regulations issued by the National Bank of Romania."
22. Article 125 shall read as follows: Art. 125.-Central House Leaders must have, during the period of tenure, residing in the locality in which is located the House. "
23. In article 126, paragraph 1 shall be inserted after paragraph 1 ^ 1 with the following content: "in a situation where the leaders of the House have central Romanian citizenship does not, at least one of its leaders must prove knowledge of the Romanian language."
24. The first sentence of article 128 shall be repealed.
25. Subparagraph (c) of paragraph 2) Article 189 shall read as follows: "(c) fine applicable to cooperative organization) or, where appropriate, financial auditor, between 0.1% and 1% of share capital, or administrators, managers, members of the Executive or auditor, average gross wages between 1-6 of employment/organization of the previous month, the date of establishment of the offence; fines collected shall be made to the State budget income; "


Article II (1) cooperative credit Organizations and credit cooperative organizations whose requests for approval of operation, submitted pursuant to article 1. 146 paragraph 1. (2) in Government Emergency Ordinance nr. 97/2000, were rejected by the National Bank of Romania and which at the date of entry into force of this law, is in appeal proceedings under article 9. 202 from Government Emergency Ordinance nr. 97/2000 may request the National Bank of Romania, directly operating authorisation, under Government Emergency Ordinance nr. 97/2000, as amended by this law.
  

(2) cooperative credit Organizations and credit cooperative organizations, referred to in paragraph 1. (1) will waive the appeal referred to in art. 202 from Government Emergency Ordinance nr. 97/2000 in order to request authorization for the operation, according to the provisions of this law.
  

(3) for the purposes mentioned in paragraph 1. (1), the cooperative credit organizations and credit cooperative organizations whose requests for approval of operation, submitted pursuant to article 1. 146 paragraph 1. 2 of the Government Emergency Ordinance nr. 97/2000, were rejected by the National Bank of Romania and who decided the request authorisation under the present law operation can proceed on the basis of decisions of the competent statutory bodies, as follows: a) within four months after the entry into force of the present law, will proceed to Central homes reorganization through merger, to establish a network of cooperative credit;
  

b) within 6 months after the expiry of the period referred to in subparagraph (a). the Central House), resulting from the merger, as well as credit unions affiliated with it shall undertake the necessary measures for the fulfilment of each of the credit cooperatives in the network, as well as at the level of the whole cooperative network requirements set by Government Emergency Ordinance nr. 97/2000, as well as the regulations issued in implementation thereof, including through the merger of the operations of credit cooperatives, to increase the share capital thereof, assessment of quality of assets and provisioning them properly. Incorporation of credit unions resulting from the merger shall be drawn up in compliance with the provisions of the memorandum drawn up by the Central home network;
  

c) within 3 months from the expiry of the period referred to in subparagraph (a). (b)), the cooperative credit organizations and credit cooperative organizations have completed their merger operations, have abandoned the use of the right of appeal referred to in art. 202 and which meet the requirements established by Government Emergency Ordinance nr. 97/2000 and rules issued pursuant thereto shall require the authorization of the National Bank of Romania.
  

(4) House and central credit unions will provide evidence that both at their level, and at the level of the network of cooperative credit requirements are met on the set of indicators on banking rules caution of Banca Naţională a României for credit cooperative organizations authorized to work. The calculation of the indicators will be done in accordance with the rules in force at the date of the application for authorisation, for representing the end of the preceding the date of filing the application.
  

(5) the request for approval will be submitted to the National Bank of Romania in the form prescribed by it.
  

(6) documentation that must accompany the application and approval procedure shall be laid down by the regulations of the National Bank of Romania.
  

(7) the documentation will comprise at least the following: a) the articles of Association prepared by the casa framework Central requesting authorization of the operation;
  

b) documents of the credit unions, updated, developed on the basis of a framework memorandum referred. a);
  

c) registration certificate, accompanied by the conclusion of the judge delegate to the trade registry office, indicating that it has ordered the entry in the trade register of the corresponding instruments of incorporation referred to in b);
  


d) feasibility study of the network, showing the fulfillment of legal requirements, as well as the network's ability to function for the purpose for which it was established, in compliance with prudential requirements applicable to, and the ability of the House and its organisational structure to carry out the tasks and responsibilities incumbent on it, arising from powers conferred by law on the line of control, supervision, regulation and authorization of cooperative organizations affiliated and in terms of intrareţea credit transfer;
  

e) statement regarding the liquidation operations provided for in article 10. 246 ^ 2 of Government Emergency Ordinance nr. 97/2000;
  

f) financial statements prepared for the end of the month preceding the date of filing the application; financial statements of Central House and those of affiliated credit unions will be certified by sworn auditors Chamber of financial auditors of Romania. Financial statements must be consonant with the data entered in the accounting ledgers, registers to be kept in accordance with the accounting rules in force;
  

g) calculation of aggregate capital and own funds, loans and investments classification situation and the need for specific provisions for credit risk, calculation of indicators of solvency, large exposures, statements concerning the circumstances relating to loans to persons in special relationships, its staff and its families, drawn up according to the regulations in force, according to provizionării of assets according to the regulations of the National Bank of Romania, for the end of the month preceding the date of submission of the application for authorization both at the level of each of the entities on the network, and at the level of the network, as appropriate;
  

h) documents certifying the fulfilment of legal requirements by the rulers, administrators, auditors;
  

I) confirmation by the Central House of each cooperative credit membership, fulfilling the legal requirements of the proposed credit cooperatives, and that as a result of the checks carried out by the Central Home result so that the articles of incorporation of each cooperative credit is drawn up in compliance with the provisions of Government Emergency Ordinance nr. 97/2000 and articles of incorporation, and that each network organization meets the legal requirements concerning the level of own capital funds, as well as the other indicators of banking prudence, calculated under the conditions provizionării the assets according to the regulations of the National Bank of Romania;
  

j) documents attesting ownership with legal title of the space representing the registered office, for home and for each cooperative credit network;
  

k) the rules concerning the transfer of project funds intrareţea and of rules on information requirements which must be fulfilled by the rulers, developed by casa;
  

l) the existence of the rules of the House and credit cooperatives affiliated, drawn up in accordance with the provisions of Government Emergency Ordinance nr. 97/2000 and regulations issued in implementation thereof applicable to co-operative credit organisations;
  

m) documents justifying the origin of the funds used to purchase the social parties, in the case of members of the cooperative who subscribed and paid-up shares of at least an equivalent in MDL of 10,000 euro; amounts used for acquiring social parties must come from their own sources, and each Member's shareholding in the capital of a cooperator credit unions should not be at such a level, a manner as the Member's withdrawal to a cooperator have significant impact on the financial situation of the whole network.
  

(8) the National Bank of Romania shall examine and settle the request for approval of operation within six months after the filing of the application, examination and assessment is being carried out in accordance with the provisions of Government Emergency Ordinance nr. 97/2000 and the implementing rules issued by the National Bank of Romania, applicable at the date of registration of the application.
  

(9) article. 143 para. 2 and art. 145 from Government Emergency Ordinance nr. 97/2000 shall apply accordingly.
  

(10) the merger of the Operations of the Central houses and credit cooperatives referred to in paragraph 1. (3) shall be carried out under the arrangements established by law No. 109/1996 concerning the Organization and functioning of cooperative consumer and credit cooperative, supplemented by the provisions of general law on the reorganization of legal entities traders.
  

(11) pursuant to the provisions of this article, and credit cooperative organizations formed during the process of authorisation under article 13. 250 paragraph 3. 1 of the Government Emergency Ordinance nr. 97/2000 will not be able to have the quality of acquiring credit cooperative organization of cooperative credit.
  

(12) the provisions of art. 146 and 258 from Government Emergency Ordinance nr. 97/2000 are not applicable to the cooperative organizations of credit/credit cooperative organizations applying for authorization under this Act.
  

(13) article. 246 ^ 2 of Government Emergency Ordinance nr. 97/2000 shall apply accordingly. In this sense, banking, investments and activities, contracts will be liquidated by the end of the month preceding the date of submission of the application for authorization.
  

(14) the provisions of art. 250 paragraph 3. 2 of the Government Emergency Ordinance nr. 97/2000 shall apply accordingly, with effect from the date of expiry of the period referred to in paragraph 1. (3) (a). b). In this regard, Central House and credit unions shall deposit a declaration, signed by the legal representatives, indicating that, at the date of the application for authorization, they have honored all obligations due, do not record a negative level of net assets and solvency indicators shall be located at least at the minimum level required by the regulations of the National Bank of Romania for credit cooperative organizations.
  

(15) in the case of nesolicitării operating authorization within 13 months from the date of entry into force of this law or of the neobţinerii authorization operation after the exhaustion of the consent procedure and to the National Bank of Romania and of the right of appeal referred to in art. 202 from Government Emergency Ordinance nr. 97/2000, cooperative credit organizations and credit cooperative organizations referred to in paragraph 1. (1) law and dissolves immediately fall into liquidation, in accordance with the provisions of law No. 109/1996, as amended, and of the common law relating to legal persons operating for profit, the provisions of law No. 31/1990 relating to companies, republished, with subsequent amendments and additions, being applicable.
  


Article III (1) with effect from the financial year 2004, credit unions. 68 from Government Emergency Ordinance nr. 97/2000 will appoint an auditor who will audit the annual financial statements, including restated, drawn up by credit cooperative organizations for the financial year 2003, with the deadline for submission on 30 November 2004.
  

(2) the mandate of the auditor appointed by credit unions, according to art. 68 from Government Emergency Ordinance nr. 97/2000, will be limited from the date of appointment of auditor the financial performance of the obligation of the certification of annual financial statements for the financial year of 2003. The auditor's term of Office shall cease on the date of the financial statements.
  


Article IV (1) cooperative credit Organizations will be able to organize a corps of specialists, whose activities will be strictly linked to the bringing into force of the securities belonging to cooperative organisations executors.
  

(2) the status of this body of executors will be approved by order of the Minister of Justice.
  


Article V Banca Naţională a României shall issue regulations pursuant to this Act, within four months from the date of entry into force of the latter.


Article VI provisions of the Government Emergency Ordinance nr. 97/2000, approved with amendments and completions by law No. 200/2002, with subsequent amendments and additions relating to the censors to credit unions and their activities, shall be repealed with effect from the date of entry into force of this law.


Article VII of the law throughout the phrase liberal professions shall be replaced by the phrase professions.


Article VIII Government Emergency Ordinance nr. 97/2000, approved with amendments and completions by law No. 200/2002, as amended and supplemented, as well as with the changes and additions brought about by this law, will be republished in the Official Gazette of Romania, part I, posing a new texts.
This law was adopted by the Senate at its meeting on March 11, 2004, in compliance with the provisions of art. 76 para. (1) of the Constitution of Romania, republished.
SENATE PRESIDENT NICOLAE VĂCĂROIU this law was adopted by the Chamber of deputies at its meeting on 30 March 2004, in compliance with the provisions of art. 76 para. (1) of the Constitution of Romania, republished.

PRESIDENT of the CHAMBER of DEPUTIES VALER DANNER Bucharest, 19 April 2004.
No. 122.
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