REPUBLIC OF SAN MARINO DECREE - LAW 11 October 2011 169 We the Captains Regent of the Most Serene Republic of San Marino Given the assumptions of need and urgency in art. 2, paragraph 2, point b) of the Constitutional Law 15 December 2005 n. 183 and art. 12 of the Qualified Law 15 December 2005 n. 184 and in particular the necessity and the urgency of ensuring the public interest in the protection of savings and, consequently, the stability of the banking sector in San Marino, through support for unavoidable system operations to protect depositors; Given the decision of the Congress of State # 1 adopted at its meeting of 11 October 2011; Having regard to Article 5, paragraph 2, of the Constitutional Law no. 185/2005 and Article 9 and Article 10, paragraph 2, of the Qualified Law n.186 / 2005; Promulgate and publish the following decree-law: URGENT MEASURES IN SUPPORT OF OPERATIONS FOR THE PROTECTION OF SAVINGS Art. 1 This Decree establishes in support of instruments of asset protection system operation and stability of the banking system against the start administrative compulsory winding-up procedures for banks. The lenders, in connection with transactions authorized by the Central Bank, acquired the assets and liabilities of financial entities Sammarinese places being wound up may access the tax benefits described in Article 2 and to the credit facilities described in Article 4. The maximum extent of the tax benefits for each member bank transaction is equal to the amount of any negative balance resulting from the difference between the assets and liabilities acquired at the acquisition date. The aforesaid amount is adjusted annually increase or decrease during the time period set forth in Article 3 on account of the losses incurred on the actual realization of the assets sold. For the determination of the loss will take into account any utilities that may arise to the transferee banks as part of the sales in the period or as a result of the actions of liability and damages even after the deadline referred to in Article 3. Art. 2 The banks participating in the operations referred to in Article 1, except as provided for in the third paragraph of the same article, are entitled to a tax rebate to be used: a) the payment of compensation payable by the bank on his income; b) a compensation payment to the State of withholding applied pursuant to Article 39 of Law 91 of October 13, 1984 and subsequent amendments made by the bank as the withholding agent. The application of the aforementioned benefits were taken into account in the determination of the estimated revenue on the State Budget. 2 Art. 3 The banks referred to in Article 1 may equally make use of the tax relief provided for in Article 2 in the following ways: - for the first six fiscal years including that in which the transaction takes place in Article 1 : up to competition, of each year, 15% of the total amount of benefits payable to them; - For the next two fiscal years up to the competition, of each year, 5% of the total amount of benefits payable to them. The shares referred to in the previous paragraph are adjusted on the basis of any adjustment referred to in Article 1, third paragraph. The use of the benefits must be indicated in the statement of income and in the statement of withholding tax relating to each fiscal year. Art. 4 In support of the transferee banks referred to in Article 1 and in the presence of potential liquidity strains of redemptions that the banks themselves might incur for liabilities acquired as part of the above operations, the Central Bank may grant lines of credit commensurate with their real cash requirements and subject to the submission of adequate collateral. Except as provided in the preceding paragraph, the aforementioned loans will be secured by the State guarantee to the maximum of 50% of the liabilities acquired and not exceeding the amount of the loan disbursed. The rules for issuing of the guarantee referred to above shall be provided for by regulations of the State Congress. Art. 5 The instrument of transfer of assets and liabilities to banks as part of the transactions referred to in Article 1, and any subsequent acts of transfer of the assets to special purpose vehicles, or mutual funds, to facilitate the realized gains are exempt from registration fees, stamp duty, transcription and perfecting.
The Secretariat of State for Finance and Budget will establish, by circular, application specific provisions of this Decree in view of the elements of contracts for the purchase of the assets and liabilities referred to in Article 1. As at Our Residence, this day of October 11 2011/1711 THE CAPTAINS REGENT Gabriele Gatti - Matteo Fiorini THE SECRETARY OF STATE FOR INTERNAL AFFAIRS Valeria Ciavatta