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Law No. 178 Of 17 May 2004 Amending And Supplementing Government Ordinance No. 39/1996 On The Establishment And Functioning Of The Deposit Guarantee Fund In The Banking System

Original Language Title:  LEGE nr. 178 din 17 mai 2004 pentru modificarea şi completarea Ordonanţei Guvernului nr. 39/1996 privind înfiinţarea şi funcţionarea Fondului de garantare a depozitelor în sistemul bancar

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LEGE no. 178 178 of 17 May 2004 to amend and supplement Government Ordinance no. 39/1996 establishing and functioning of the Deposit Guarantee Fund in the banking system
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR no. 489 489 of 1 June 2004



The Romanian Parliament adopts this law + Article I Government Ordinance no. 39/1996 on the establishment and functioning of the Deposit Guarantee Fund in the banking system, republished in the Official Gazette of Romania, Part I, no. 141 of 25 February 2002, shall be amended and supplemented as follows: 1. Paragraph 2 of Article 1 shall read as follows: " (2) The Fund shall be constituted as a legal person under public law. Its organization and functioning shall be established by its own status approved by the Board of Directors of the National Bank of Romania, at the proposal of the Board of Directors of the Fund, with the advisory opinion of the Romanian Association of Banks. 2. Article 2 shall read as follows: "" Art. 2. -(1) The purpose of the Fund a) guaranteeing deposits constituted with credit institutions authorized under the law and making payments in the form of compensations to individuals, legal entities or entities without legal personality, according to the conditions and limits set out in this Ordinance; b) carrying out the activity, in the case of its designation as a special administrator or as liquidator of credit institutions; the way of designation and the activity of the Fund in such qualities are those established by law. (2) For the purposes of this ordinance, the following terms and expressions shall be defined as follows: a) deposit-any creditor balance, including interest due, in a bank account of any type, including joint account, or transient situations arising from banking operations and which a credit institution owes to the account holder, in compliance with the applicable legal and contractual conditions, as well as any debt of the credit institution highlighted by a certificate issued by it, with the exception of bonds purchased by collective investment undertakings. credit balance, rules and regulations on compensation apply under the legal and contractual conditions applicable to a deposit b) guaranteed deposit-the deposit of which the refund is guaranteed up to the guarantee ceiling; c) unsecured deposit-the deposit whose refund is not guaranteed by the Fund-deposit excluded-and which is recovered from the wealth of the credit institution declared bankrupt in the liquidation process, in accordance with the legal provisions; d) unavailable deposit-the deposit due and payable, which was not honored by a credit institution until the date of opening of the bankruptcy procedure of the credit institution; e) the date of freezing of deposits-the date of opening the bankruptcy procedure of the debtor credit institution; f) compensation-the amount of the guaranteed deposit which, in the case of its unavailability, is payable by the Fund to the guaranteed depositor, up to the competition of a credit institution's total obligation to the guaranteed depositor, but no more than the limit maximum of the guarantee ceiling, regardless of currency, number or size of guaranteed deposits, opened at a credit institution; g) guaranteed depositor-holder of the guaranteed deposit; h) guarantee ceiling-maximum level of guarantee per depositor, established according to the law; i) the basis for calculating the contribution-the total balance in lei, representing the guaranteed deposits, in lei and in convertible currency, in the records of banks, Romanian legal entities, branches in Romania of banks, foreign legal entities, networks of cooperative credit institutions and central banks of credit cooperatives and their related credit cooperatives, other credit institutions. The total balance in lei is set for December 31 of each year. The equivalent in lei of deposits in foreign currency is calculated by using the exchange rates for the respective currencies, courses communicated by the National Bank of Romania for this date; j) contribution-the non-reimbursable amount due to the Fund, according to the law, by credit institutions authorized to attract deposits, which are calculated by applying a percentage share on the calculation base defined in lett. i), set for the previous year payment of the contribution k) joint account-the account opened on behalf of two or more persons or the account on which two or more persons have the right to operate, as may be exercised under the signature of at least one of these persons; l) the credit institution, the branch, the Member State shall have the meaning provided by Law no. 58/1998 on banking, with subsequent amendments and completions. " 3. Article 3 shall read as follows: "" Art. 3. -(1) All credit institutions authorized by the Romanian competent authority to receive deposits from the public, including their branches based abroad, are obliged to participate in the formation of financial resources of The Fund, in accordance with the provisions of 7. Exception make the credit institutions for which there is the state guarantee for attracted deposits. ((2) The Romanian branches of credit institutions having their headquarters in the Member States of the European Union will cease to participate in the establishment of the financial resources of the Fund, starting with the date of Romania's accession to the European Union. Participation may continue, on request, only if that branch participates in a guarantee scheme in the country of origin, a member of the European Union, which ensures a guarantee level below that provided for by this Ordinance; Participation will only be for the difference of guarantee for the two levels. ((3) The foreign branches of credit institutions based in Romania, starting with the date of accession of Romania to the European Union, may participate, on request, for the guarantee difference, to the deposit guarantee scheme in the state where they carry out the activity, if the Fund ensures a guarantee level below that of the State in which the branch operates. '; 4. Paragraph 2 of Article 4 shall read as follows: "(2) The list of unsecured deposits is set out in the Annex which forms an integral part of the law approving this ordinance." 5. After paragraph 2 of Article 4, paragraphs 3 to 6 shall be inserted as follows: " (3) At the opening of the accounts, the account holders shall declare, on their own responsibility, the classification or not in the category of clients whose deposits are guaranteed or not, according to the law. ((4) The holders of accounts that have accounts opened in the records of credit institutions, within 3 months from the entry into force of this law, shall submit to the credit institution's counter where they opened the account the declaration on their own responsibility provided in par. ((3). (5) The holders of accounts that have accounts opened in the records of credit institutions and to which, after the submission of the declaration on their own responsibility, have appeared changes that led to the change of initial classification, have the obligation that, within 30 days after the change, submit a new statement to the credit institution stating the new framing. ((6) The credit institutions shall take the necessary measures to record the declarations and the time limits for their submission. " 6 paragraphs 1 and 2 of Article 5 shall read as follows: "" Art. 5. --(1) If the bankruptcy procedure has been opened for a credit institution, the Fund shall pay the deposits guaranteed in the national currency-leu, in the form of compensations, within the guarantee ceiling, to the guaranteed depositors, regardless of of the deposit setting currency or the number of deposits. As of July 1, 2004, the depositors guaranteed are both natural persons and legal entities, including entities without legal personality, other than the holders of the deposits mentioned in the Annex to the law amending and supplementing this ordinance. The guaranteed ceiling per depositor shall be determined as follows: a) starting with the date of entry into force of the law amending and supplementing this ordinance, the equivalent in lei of 6,000 euros; b) as of January 1, 2005, the equivalent in lei of 10,000 euros; c) as of January 1, 2006, the equivalent in lei of 15,000 euros; d) as of January 1, 2007, the equivalent in lei of 20,000 euros. (2) The equivalent in lei of the guarantee ceiling and deposits in foreign currency shall be calculated on the date of freezing of deposits, respectively on the date of opening of bankruptcy procedure, by using currency exchange rates for currencies respective, courses communicated by the National Bank of Romania for this date. " 7. paragraphs 4 and 5 of Article 6 shall read as follows: " (4) In the case of a joint account, if there are several depositors, the share of each depositor will be considered for the determination of the limits provided in par. ((1), art. 5 5 para. ((1) and (2), and art. 18 18 para. ((1). In the absence of a contrary provision, the balance of the common account will be divided into equal parts among depositors. For the calculation of the said limits, the deposits of the common account will be treated as if they were placed by a single depositor. (5) If the depositor is not entitled to the amounts in an account, the person who is entitled is covered by the guarantee, provided that this person has been identified or is identifiable before the date of freezing Deposits. If there are several persons who are entitled, the share of each, according to the mechanisms by which the amounts are administered, is taken into account when establishing the limits provided in par. ((4). This provision shall not apply to collective investment firms. " 8. Paragraph 1 of Article 7 shall read as follows: "" Art. 7. -(1) The Fund has the following financial resources: a) initial, annual contributions, including the increased and special contributions of credit institutions; b) proceeds from the recovery of the Fund's claims, arising from the payment of compensation to the guaranteed deposits, as a result of subrogation in the rights of the depositors guaranteed or as a result of the recoveries from payments made as administrator special or in the framework of the winding-up activity, where the Fund has been designated in these qualities; c) loans: 1. from credit institutions, from financial companies and other institutions, with the exception of the National Bank of Romania; 2. obligatory loans, by issue of securities of the Fund; d) other resources-donations, sponsorships, financial assistance; e) income from the investment of available financial resources f) other income, established according to the law. " 9. The paragraphs (1) to (3) of Article 8 shall read as follows: "" Art. 8. -(1) Credit institutions shall pay to the Fund the contributions provided in art. 7 7 para. ((1) in national currency-leu. ((2) The payment of the annual initial contributions, the increased annual contributions and the special contributions of credit institutions shall be made by crediting the current accounts of the Fund. The amount of the initial contribution to be paid by credit institutions shall be determined as follows: a) banks, Romanian legal entities, pay an initial contribution equivalent to 1% of the subscribed and paid share capital, provided for in the articles of association; b) branches of banks, foreign legal entities, authorized to operate in Romania, pay an initial contribution equivalent to 1% of the endowment capital provided in the authorization documents; c) the central banks of the credit cooperatives pay an initial contribution of 1% of the paid aggregate capital of the network; d) the other credit institutions shall pay an initial contribution equivalent to 1% of the subscribed and paid-up share capital provided for in the Articles of Association. (3) The initial contribution shall be paid within 30 calendar days from the date of obtaining the operating authorization issued by the National Bank of Romania. " 10 paragraphs 1, 2, 3, 5 and 6 of Article 9 shall read as follows: "" Art. 9. -(1) Each credit institution, with the exceptions provided in art. 3 3, will pay the Fund an annual contribution representing the following allowances from the basis of calculation of the contribution established for the year preceding the year of payment, as follows: a) 0,5% in 2005; b) 0,4% in 2006; c) 0,3% since 2007. (2) The annual contribution of each credit institution shall be determined on the basis of the statements submitted by this Fund, by means of a form, the format of which and the reporting date will be determined by the Fund. (3) The annual contribution that a newly-authorized credit institution must pay during the reporting year will be calculated by multiplying the share of 1/365 of the contribution determined according to the provisions of par. (1) with the number of days that have passed since the date of obtaining the operating authorization from the National Bank of Romania until the end of the year. If a credit institution is declared bankrupt, the annual contribution to be paid shall be calculated by multiplying the share of 1/365 of the contribution determined according to the provisions of par. (1) by the number of days from the beginning of the year until the date of opening of the bankruptcy procedure; in this situation, if not paid, the annual contribution shall be recovered by the Fund under the conditions of art. 8 8 para. (4) or from the wealth of the credit institution in bankruptcy, when it could not recover under the conditions of art. 8 8 para. ((4). ................................................................... (5) The Fund is authorized to increase the annual contribution to be paid by a credit institution up to the following levels in the calculation basis of the contribution set for the year preceding the year of payment if, according to the regulations issued by The fund and prudential regulations established by the National Bank of Romania, result that it has engaged in risky and unhealthy policies: a) 1,0% in 2005; b) 0,8% in 2006; c) 0.6% since 2007. (6) If the Board of Directors of the National Bank of Romania will decide to increase the annual contribution under the conditions provided in par. ((5), that credit institution shall be notified of its decision at least one month before the expiry of the reporting year. " 11 paragraphs 1 and 2 of Article 10 shall read as follows: "" Art. 10. --(1) If, at the request of the Fund, the Board of Directors of the National Bank of Romania considers that the Fund's resources are insufficient to honour the payment obligations, it may establish the payment of a special contribution of to each credit institution, equal to up to the level of the annual contribution for the respective financial year. 8 8 para. ((4). (2) The actual amount of the special contribution, as well as the payment term thereof shall be determined by the Board of Directors of the National Bank of Romania. " 12. Article 11 shall be repealed. 13. Paragraph 1 of Article 12 shall read as follows: "" Art. 12. -(1) If the Fund has accumulated a level of resources exceeding 10% of the total guaranteed deposits in the banking system at that time, the Board of Directors of the National Bank of Romania may decide to suspend the payment annual contributions. ' 14. Paragraph 1 of Article 14 shall read as follows: "" Art. 14. -(1) The Fund may contract the loans provided for in art. 7 7 para. ((1) lit. c) only if its resources are not sufficient to cover payment obligations. " 15 paragraphs 2 and 4 of Article 14 shall be repealed. 16. Article 15 shall read as follows: "" Art. 15. -(1) The Fund may open accounts, as the case may be, with credit institutions and financial institutions in the country and abroad. (2) The financial resources available, provided in art. 7 7 para. (1), may be invested by the Fund in: a) government securities, government-guaranteed securities and securities issued by the National Bank of Romania; b) term deposits with credit institutions, deposits that cannot exceed 25% of the volume of available resources. The selection of credit institutions for term deposits will be aimed at minimizing the risk of the respective placements according to the norms established by the National Bank of Romania. The exposure of the Fund to each credit institution may not exceed 10% of the available resources; c) government securities issued by the Member States of the European Union, securities issued by their central banks and securities issued by the Treasury of the United States of America, investments that may be made from the date of Romania's accession to the Union European. (3) The profit of the Fund, obtained as a difference between the income referred to in 7 7 para. ((1) lit. e) and its expenses, is non-taxable and is assigned for the establishment of an annual profit participation fund, within the limit of a quota of up to 1% of the profit, with the approval of the Board of Directors of the Fund, and the difference will be fully used to replenish the Fund's resources for the payment of guaranteed deposits. " 17. Article 16 shall read as follows: "" Art. 16. -(1) The Fund will make the payment of compensation for guaranteed deposits when they become unavailable. ((2) The deposits are considered unavailable from the date of opening of the bankruptcy procedure. (3) The designation of credit institutions, according to the criteria established by the Board of Directors of the Fund, will be made, within up to 10 days from the date of opening of the procedure, by public auction. " 18. Article 17 shall read as follows: "" Art. 17. --(1) Within 30 days from the date of designation by the court of the liquidator, other than the Fund, it shall submit to the Fund the list of individuals and legal entities, according to the law, which constituted guaranteed deposits, the amount total of the guaranteed deposits of each depositor and its obligations to the credit institution, in accordance with the needs and requests of the Fund. The 30-day deadline for drawing up the list is also valid for the Fund, if it has been designated liquidator. (2) The Fund is obliged to publish at the headquarters of all the territorial units of credit institutions for which the bankruptcy procedure was opened, on the Fund's website and in at least two national circulation newspapers both information on the non-availability of deposits, as well as information on the payment of compensation, the period during which the payment of compensation will take place, credit institutions, including their territorial units, which will be mandated to make payment. They will also be made public, respectively will be communicated to depositors, on request, information about the documents and conditions to be fulfilled, as well as the formalities to be followed for obtaining compensation. " 19. Article 18 shall read as follows: "" Art. 18. -(1) Based on the data from the list drawn up according to art. 17 17 para. (1) The Fund shall establish for each depositor the compensation, namely the list of payment of compensation, which will be sent to the institution/credit institutions mandated to make the payments to the guaranteed depositors. The payment of compensation to the guaranteed depositors will be made no later than two months after the date of receipt from the liquidator of the list provided for in art. 17 17 para. (1), but not more than 3 months after the date of freezing of deposits. Paid compensation is exempted from any payments, such as commissions, taxes or fees. (2) In exceptional circumstances and in special cases the Fund may ask the National Bank of Romania for an extension of the payment deadline. No such extension may exceed 3 months. The National Bank of Romania may, at the request of the Fund, grant at most two extensions. (3) The extensions of payment terms provided in par. ((2) they will not be able to be relied upon by the Fund to refuse the benefit of the guarantee of a depositor who has not been able to make use of his right to pay compensation within the above deadlines. The Fund will be able to pay the compensation after the above deadlines, but not later than 3 years after the payment of the compensation. (4) If a depositor or any person entitled or interested in the amount in an account is in criminal investigation in connection with a crime arising out of or in connection with money laundering, the Fund may suspend any payment, at the request of the legal competent bodies, pending a final court decision. " 20. Article 19 shall read as follows: "" Art. 19. -The fund is subroted in the rights of depositors for an amount equal to the guaranteed amount. To this end the Fund registers, according art. 88 88 para. ((2) of Law no. 64/1995 on the procedure of judicial reorganization and bankruptcy, republished, in the register of the court Registry, the amount of deposits to be paid by depositors, resulting from the situation prepared by the liquidator of the bank, according to art. 17 17 para. ((1). ' 21. Article 20 shall read as follows: "" Art. 20. -The Fund will provide depositors, through at least two national circulation newspapers and on the Fund's website, information on: a) the end of the payment period through the units of the credit institutions mandated b) the possibility of obtaining directly from the Fund the unpaid compensation, as well as the payment methods; c) the time limit for obtaining compensation; d) the documents, conditions and formalities necessary for obtaining the compensation. " 22. Article 24 shall be inserted after Article 24 with the following contents: "" Art. 24 24 ^ 1. -(1) In order to achieve the objectives of the liquidation procedure, the Fund may contract by contract individuals, companies or institutions specialized in the liquidation or consultancy activity in this field. The appointment of the institution or company will be made by public auction (2) In the case of individuals, the payment of the benefits will be determined by negotiation, in the form of a lump sum or percentages of the recovered value, percentages that can be differentiated according to the conditions established by the Fund for those benefits. '; 23. The title of Chapter VII shall read as follows: " management and Administration of the Fund 24. Article 26 shall read as follows: "" Art. 26. -(1) The Fund shall be administered by a Management Board of 7 members. (. The Management Board shall be composed of: a) 3 members appointed by the National Bank of Romania, one of whom will be appointed the Chairman of the Board of Directors of the Fund; b) 2 members appointed by the Romanian Association of Banks; c) a member appointed by the Ministry of Public Finance; d) a member appointed by the Ministry of Justice (3) The members of the Board of Directors of the Fund shall be appointed for a term of 3 years, renewable. (4) Members of the board of directors whose mandates have expired will remain in office until the appointment of their successors. (5) The Chairman of the Board of Directors of the Fund may be replaced, in case of absence or temporary impossibility to participate, by a board member appointed by him or, in the absence of this appointment, by the oldest Member of the Management Board. (6) In case of incompatibility or definitive impossibility of exercising the mandate by one of the members of the Board of Directors of the Fund, the appointment of the replacement shall be made under the conditions of par. (. for the remainder of the term of office. It shall be considered as permanent impossibility to exercise the mandate of any circumstance that creates an unavailability with a duration of 90 consecutive days. ((7) Members of the Management Board of the Fund shall receive an allowance within 20% of the salary of the Executive Director-General of the Fund. " 25. Article 27 shall read as follows: "" Art. 27. -The members of the Board of Directors of the Fund must be resident in Romania, licensed in the economic or legal field, with a good reputation and honorability and with professional experience of at least 5 years in the financial-banking field, not to The approval of the leaders, in the case of those who were previously appointed heads of financial institutions, has been withdrawn in the last 5 years. " 26. Article 29 shall read as follows: "" Art. 29. -(1) The membership of the Board of Directors of the Fund shall cease in the following situations: a) at the end of office b) by resignation; c) in case of incompatibility; d) by replacement, according to art. 26 26 para. ((6); e) in the cases provided in art. 28 28 para. ((1); f) by revocation. (2) The return from office of any member of the Board of Directors of the Fund shall be made under the same conditions as upon their appointment, in which case the head of the institution whose representative has been revoked will make a new proposal within 10 10 days. " 27. Paragraph 9 of Article 30 shall read as follows: "(9) The minutes of the hearing, which shall contain the order of the deliberations, the decisions taken, the number of votes in question and the separate opinions, if any, shall be signed by all the members present at the meeting." 28. Article 31 shall read as follows: "" Art. 31. -The duties of the Fund's Management Board are as follows: a) analyzes, endorses and proposes to the Council of Administration of the National Bank of Romania for approval: 1. the status of the Fund and regulations developed by the Fund in law enforcement; 2. the organizational and personnel structure, as well as the salary policy; 3. the Fund's revenue and expenditure budget; 4. increase of contributions, in accordance with art. 9 9 para. ((5); 5. suspension and resumption of contributions, in accordance with art. 12 12; 6. establishment of special contributions, their level and the payment deadline, in accordance with the provisions of art. 10 10 para. ((1) and (2); 7. the proposals on the making of loans, including through the issuance of securities, by the Fund; 8. annual activity report and annual financial statements; b) analyze and approve: 1. appointment and dismissal of the Director-General and his deputies; 2. the modalities, maximum ceilings, terms and conditions of placement, in order to capitalize on the available financial resources of the Fund, as well as the reports on the operations to invest its financial resources; 3. designation of the Fund as special administrator or as liquidator at credit institutions; 4. contracting, with natural and legal persons, Romanian or foreign, of services regarding the liquidation activity, specialized assistance and consulting services, on the basis of public auction; 5. the offer requests and the offers of credit institutions, in the case of transactions regarding the purchase of assets and the assumption of liabilities, according to the legal regulations on the bankruptcy procedure; 6. the reports prepared by the Fund, as liquidator or special administrator, according to the legal provisions; 7. the report on the selection of financial auditors on the basis of auction; 8. the internal control system, including internal audit; 9. the implications for the Fund of the judgment on the commencement of bankruptcy proceedings and the determination of the measures to be taken, on the basis of the proposals of the Director-General, on the modalities in the state of bankruptcy, respectively with regard to the payment of compensation to depositors; 10. The Fund's requests regarding the receipt from the National Bank of Romania and from the participating credit institutions of the documents and information necessary for its proper functioning; 11. shall exercise any other tasks provided by law or data by the Board of Directors of the National Bank of Romania. " 29. Article 32 shall read as follows: "" Art. 32. -(1) The Chairman of the Board of Directors of the Fund shall: a) establishes the agenda and convenes the board of directors in accordance with the provisions of the law; b) conduct the meetings of the Board of Directors of the Fund; c) request the Director-General or, failing that, his or her substitutes, the presentation of the materials covered by the agenda d) appoint a member of the Board of Directors of the Fund, which replaces him in the case of temporary impossibility of participation; e) make appointment proposals for the Director-General and his/her deputies; f) sign the employment contracts with the members of the executive management and set them the framing salaries, as well as the respective allowances; g) grants premiums and other incentives to the executive management and approves the proposals for the staff awards presented by the Director-General; h) ensures the presentation to the Board of Directors of the Fund of the revenue and expenditure budget, annual financial statements, annual activity report, as well as the proposal on the allocation of the Fund's profit; i) control the activity of the Director j) ensure the fulfilment of the decisions of the Board of Directors of the Fund and the information in plenary on how to achieve them; k) exercise any other tasks in application of legal provisions or given by the Board of Directors of the National Bank of Romania or the Board of Directors of the Fund. (2) The Chairman of the Board of Directors of the Fund together with the Director-General shall submit and submit, as the case may be, to the Board of Directors of the National Bank 31 lit. a). Propose for approval to the Board of Directors of the Fund the necessary measures for carrying out the tasks outlined by the Board of Directors of the National Bank of Romania. " 30. Article 33 shall read as follows: "" Art. 33. -The Managing Director of the Fund shall conduct its current activity, ensure that the decisions of the Board of Directors of the National Bank of Romania and the Board of Directors of the Fund are fulfilled and inform the Their achievement. The Managing Director of the Fund shall: a) represents the Fund in relations with the National Bank of Romania, credit institutions, ministries and other specialized bodies of the central public administration, local public administration authorities, other natural and legal persons, novels or foreign, as well as before the courts and arbitrals; b) proposes to the Board of Directors of the Fund, for approval, respectively for approval, the documents provided in art. 31 lit. a) and b); c) ensure the publication of the list of credit institutions whose clients benefit from guaranteeing the repayment of deposits and its subsequent changes; d) ensure the fulfilment of all necessary procedures for making payments provided by law, in case of deposit preservation; e) supervise the processes of special administration, liquidation and payment of the compensation of the guaranteed depositors and dispose of the measures to be taken; f) conclude, modify and unwrap the individual employment contracts of the Fund's employees; g) commits the expenses related to the operation h) ensure the organization and exercise of internal control and internal audit, in accordance with the rules issued by the Fund; i) conclude service contracts on the activity of liquidation, assistance and specialized consulting services with Romanian and foreign individuals and legal entities; j) performs any other task given in the application of the legal provisions or given in its charge by the Board of Directors of the Fund. " 31. Article 34 shall read as follows: "" Art. 34. -The fund has the obligation to organize and maintain accounting, according to Accounting Law no. 82/1991 , republished, and of its own regulations in the field endorsed by the National Bank of Romania and the Ministry of Public Finance. " 32. Article 34 shall be inserted after Article 34, with the following contents: "" Art. 34 34 ^ 1. -In order to carry out its tasks, the Fund shall have adequate internal control and internal audit mechanisms, which shall be established by its own rules, in accordance with the legal regulations. " 33. Article 35 shall be repealed. 34. Article 36 shall read as follows: "" Art. 36. -(1) For the purpose of auditing financial statements, the Fund will conclude a contract with a financial auditor, a legal entity authorized by the Chamber of Financial Auditors in Romania, according to the law. (2) The financial auditor's report, together with his opinion, will be presented to the Board of Directors of the Fund and to the Board of Directors of the National Bank of Romania. " 35. Article 37 shall be repealed. 36. Article 38 shall read as follows: "" Art. 38. -The Fund's financial year begins on 1 January and ends on 31 December of each year. The first financial year shall begin on the date of establishment of the 37. Article 39 shall read as follows: "" Art. 39. -(1) The annual financial statements shall be approved by the Board of Directors of the National Bank of Romania, at the proposal of the Board of Directors of the (2) The annual activity report, together with the annual financial statements, approved by the Board of Directors of the National Bank of Romania, as well as the financial auditor's report shall be released according to the law. " 38. Article 40 shall read as follows: "" Art. 40. -(1) At the request of the Board of Directors of the Fund, the National Bank of Romania will communicate any available information that it considers necessary for the performance of the Fund's tasks ((2) At the request of the Board of Directors of the Fund, the credit institutions shall communicate any information necessary for the performance of the Fund's tasks and not available at the National Bank of Romania. (3) The information obtained will be used by the Fund, exclusively for the performance of its tasks. " 39. Paragraph 1 of Article 41 shall read as follows: "" Art. 41. -(1) For the performance of his duties, the Fund will be able to conclude contracts with financial auditors, legal entities, members of the Chamber of Financial Auditors in Romania, for the examination of the accounting records of a credit institution. The need to examine and appoint auditors will be subject to the approval of the National Bank of Romania. 40. Article 42 shall read as follows: "" Art. 42. -The members of the Board of Directors of the Fund, the employees of the Fund, as well as the other persons employed by the Fund are required not to disclose professional secrecy over the information obtained during their activity, except under the conditions provided by Law no. 58/1998 ,, as amended and supplemented. " 41. Paragraph 1 of Article 43 shall read as follows: "" Art. 43. -(1) Credit institutions are obliged to communicate to depositors all information relating to the guarantee scheme they need, in particular those relating to the types of guaranteed deposits, i.e. the types of deposits excluded from the payment of compensation-unsecured deposits-, the level of the guarantee ceiling, the calculation of the compensation, the documents, conditions and formalities to be fulfilled in order to benefit from the compensation paid by the Fund, the time frame in which compensation for guaranteed deposits may be paid. '; 42. Article 45 shall read as follows: "" Art. 45. -(1) If a credit institution does not comply with its obligations as a participant in the Fund, it will notify the National Bank of Romania, in order to take all necessary measures, including limiting the right of the institution to credit to attract deposits from the public and the withdrawal of the operating authorization. ((2) The deposits constituted at the respective credit institution before taking the measures provided in par. ((1) shall remain guaranteed by the Fund until the date on which they become unavailable. " 43. Article 46 shall read as follows: "" Art. 46. -The credit institution to which the sanctions provided for in art. 45 45 para. ((1) will continue to be obliged to pay its corresponding obligations for the financial year during which these sanctions have been applied. " 44. Article 46 shall be inserted after Article 46 (1) with the following contents: "" Art. 46 46 ^ 1. -The Fund and the National Bank of Romania, as the case may be, are empowered to issue the necessary regulations to implement and enforce the provisions of the legislation on the activity of the Fund. The regulations developed by the Fund may be in the form of regulations, norms, orders, circulars and communiqués and shall be published in the Official Gazette of Romania, Part I. Regulations in the form of regulations and norms shall be approved by the National Bank of Romania. " 45 articles 47 and 49 shall be repealed. 46. Article 50 shall read as follows: "" Art. 50. -The first meeting of the Board of Directors of the Fund shall be held within 30 days from the date of entry into force of the law amending and supplementing this ordinance. " 47. Article 51 shall read as follows: "" Art. 51. -The Fund will develop its status and regulations in application of the provisions of the law amending and supplementing this ordinance, within 60 days from the date of its entry into force. " 48. Article 52 shall be repealed. + Article II The synagms of the banking company/bank and their derivatives Government Ordinance no. 39/1996 , republished, will be replaced by the phrase credit institution. + Article III (. This Law shall enter into force on 1 July 2004. ((2) Government Ordinance no. 39/1996 , republished, as amended, including with the amendments and completions brought by this law, will be republished in the Official Gazette of Romania, Part I, giving the texts a new numbering. This law was adopted by the Senate at the meeting of April 22, 2004, in compliance with the provisions of art 76 76 para. (2) of the Romanian Constitution, republished. p. SENATE PRESIDENT, DORU IOAN TARACILA This law was adopted by the Chamber of Deputies at its meeting on April 27, 2004, in compliance with the provisions of 76 76 para. (2) of the Romanian Constitution, republished. p. CHAMBER OF DEPUTIES PRESIDENT, VIOREL HREBENCIUC Bucharest, May 17, 2004. No. 178. + Annex LIST OF UNSECURED DEPOSITS 1. Warehouses placed by persons in special relations with the credit institution in bankruptcy, respectively: administrators, including heads, directors, censors, independent auditors, significant shareholders, depositors with similar status within other companies of the same group, the families of the individuals above-the spouses, as well as the first-degree relatives and affins, the third persons acting on behalf of the said depositors, as well as the companies of the same group 2 2. Deposit of natural and legal persons, including entities without legal personality that obtained, on an individual basis, interest rates and financial concessions that contributed to the aggravation of the financial situation of the credit institution 3. Deposit of credit institutions, including those from their own funds 4. Deposit of financial institutions 5 5. Deposit of insurance-reinsurance companies, including insurance intermediaries 6 6. Deposit of collective investment undertakings such as mutual funds, investment firms 7. Deposit of pension funds 8. Warehouses of central and local public authorities 9. Warehouses of autonomous regions, national companies, national companies, companies other than micro, small and medium-sized enterprises 10. Non-nominative deposits 11. Collateral deposits, representing guarantees constituted for operations that were carried out by depositor with the credit institution declared bankrupt 12. Dators of an obligatory nature, as well as obligations that arise from their own accept and promissory notes issued by the credit institution 13. Warehouses resulting from transactions for which final court decisions were handed down for the crime of money laundering. ---------