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Royal Decree 2606 / 1996, Of 20 December, On Deposits Of Credit Guarantee Funds.

Original Language Title: Real Decreto 2606/1996, de 20 de diciembre, sobre fondos de garantía de depósitos de entidades de crédito.

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This Royal Decree aims to develop the legal regime of deposit guarantee funds in banking establishments, savings banks and credit unions.

The new regulation, which is now being established, brings about Directive 94 /19/EC of the European Parliament and of the Council of 30 May on deposit guarantee schemes, which has already been the subject of partial transposition, In particular, it is through Royal Decree-Law 12/1995 of 28 December 1995 on urgent measures in the budgetary, tax and financial matters, in which the first important developments such as the compulsory accession of the European Union were introduced. Spanish credit institutions to a deposit guarantee fund, the exemption assumptions of such a obligation, as well as the causes of exclusion.

Another of the novelties of the aforementioned Royal Decree-Law was the determination of the system of contributions to the funds as well as their reduction and suspension, so that the funds are nurtured through the annual contributions of the credit institutions integrated into each of them and, exceptionally, contributions from the Banco de España are provided, determining that their amount should be fixed by law.

On the other hand, the assumptions that result in the payment of compensation were extended (including, in addition to the suspension of payments and bankruptcy, the administrative declaration of non-payment of deposits). Finally, the accession regime for branches of foreign credit institutions is outlined.

This Royal Decree, in which the transposition of Directive 94 /19/EC is completed, has developed the above, with one of its most important features being to integrate in a single normative text the regulation of the different funds, singularized, to the present moment by a profuse dispersion.

In our country, deposit guarantee funds have traditionally been characterized by their dual purpose of securing deposits and the consolidation and reflation of distressed credit institutions. Both traits are not abandoned in the current sort.

The most novel feature of the current regulation focuses on the following issues:

First, and with respect to the governing bodies of the funds, the regime of choice is specified by the associations representative of the credit institutions of their representatives in the management committee of the respective deposit guarantee funds. The concept of the representativeness of the associations is fixed according to two criteria: to represent more than 80 per 100 of the entities attached to the corresponding fund and more than 90 per 100 of the deposits constituted in those entities. If such percentages are not reached, the designation of the representatives shall be carried out by direct vote of all entities attached to the fund concerned.

Secondly, and as regards the material aspects of the fund, several issues deserve to be highlighted. Thus, in the definition of guaranteed deposits, a positive and negative delimitation is carried out in accordance with the guidelines laid down in the Directive which is transposed. Deposits not guaranteed by their own nature are distinguished and therefore do not count for the calculation of the contributions, of those other than, although, in principle, they are covered and are therefore taken into account for that purpose. They may be excluded from the obligation to pay for the concurrence of certain circumstances.

On the other hand, the guaranteed amount of deposits is limited to the pesetas equivalent of 20,000 ECUs, but up to 31 December 1999 is fixed at 15,000 ECUs.

In this regard, the assumption of the so-called "guarantee principle by the country of origin" implies the compulsory coverage by the funds of the deposits of branches of Spanish credit institutions. in other countries of the European Union. However, the limitation known as the 'export ban clause of the most favourable schemes' is included, which prevents the level and extent of the cover from exceeding the maximum offered by the guarantee scheme of the Member State concerned. host.

The system of accession of foreign credit institutions to the Deposit Insurance Fund in Bank Establishments is also determined, with a necessary distinction being made. In the case of the Community, voluntary membership is allowed, for the simple reason that they can provide their depositors with a supplementary guarantee of their own.

By contrast, the scheme of branches of non-Community credit institutions varies as to whether they are compulsory according to whether or not there is coverage in the country of origin, as well as whether or not there is a difference in the level or scope.

Third, it highlights the regulation of procedural aspects related to both the causes or assumptions that give rise to the obligation of payment as well as the payment itself.

The second classic objective of our funds has been to guarantee the stability of the financial system, preventing the crisis of a credit institution from having an impact on the other operating entities in the market. In the new regulation, the so-called "Action Plan", which can contain both preventive and sanitation measures, can be used to include a whole series of actions to restructure the capital of the institution, among which the subscription by the fund of capital increases and various types of financial aid as management measures.

The Royal Decree delimits the functions of the Banco de España and the management commissions of the funds in relation to both the approval of the action plan and the adoption of the concrete executive and sanitation measures. This regulation seeks to avoid overlapping and systematize public or private actions aimed at overcoming the financial crisis situations of credit institutions.

In its virtue, on the proposal of the Second Vice President of the Government and Minister of Economy and Finance, in agreement with the Council of State and after deliberation of the Council of Ministers at its meeting on 20 December 1996,

D I S P O N G O:

Article 1. Purpose and legal personality.

1. This Royal Decree develops the legal regime of deposit guarantee funds in banking establishments, savings banks and credit unions.

2. Deposit guarantee funds in banking establishments, savings banks and credit unions shall have legal personality, with full capacity for the development of their purposes, under the private law and without subject to the rules (a) the regulatory framework for State-owned entities and State-owned companies.

Article 2. Government bodies of the funds.

1. Deposit guarantee funds in banking establishments, savings banks and credit unions shall be governed and administered by a management committee composed of eight members appointed by the Minister for Economic Affairs and Finance, of which four will be represented by the Banco de España and four on behalf of the credit institutions attached to the funds.

The representatives of the Banco de España will be proposed by its executive commission. One of them will be the Deputy Governor, who will hold the Presidency of the managing committees of each of the funds; his vacancy, absence or illness will be covered by one of the representatives of the Bank of Spain appointed by the Commission. manager.

The representatives of the institutions shall be proposed by the representative associations of banks, savings banks and credit unions, provided that they meet the thresholds set out in the following paragraph. The designated persons shall be persons of recognised commercial and professional repute and shall possess appropriate knowledge and experience for the performance of their duties. In the determination of these conditions, the criteria referred to in Article 2 of Royal Decree 1245/1995 of 14 July 1995 on the creation of banks, cross-border activity and other matters relating to the legal system of credit institutions. Your accreditation will need to be done at the time of your appointment, resulting in unnecessary renewals.

If at the time of the election of representatives in the management committee of the respective deposit guarantee funds, the credit institutions members of any of the above mentioned associations represent more than 80 per 100 of the corresponding funds, and the deposits in the member institutions of those institutions more than 90 per 100 of those made up of them, the representative associations shall be responsible for carrying out the proposals of the appointments of the representatives to the Minister for Economic Affairs and Finance. The Banco de España will verify compliance with the above representation percentages and, in the event of compliance, will be notified to the association in question. If the percentages indicated are not reached, they shall be designated by direct vote of all the institutions attached to the fund and the appointment shall be proposed. Each entity shall have as many votes as deposits expressed in millions of pesetas, and may be designated only persons who meet 20 per 100 or more of the votes cast. The Bank of Spain will organise and set the voting criteria. For the purposes of this Article, deposits shall be deemed to be liabilities which may benefit from the guarantee of the funds, in accordance with the current rules, irrespective of the amount per holder.

By the same procedure, two alternate representatives of the Bank of Spain and two of the entities will be appointed, which will replace the holders in case of vacancy, absence or illness; in the case of the representatives of the institutions shall also be replaced by an indication of the Chairman of the managing committee of the respective fund, where the management committee is to deal with issues directly affecting an entity or group of entities with which it is linked as an administrator, manager, employment contract, civil or commercial contract or any other relationship which could undermine the objectivity of its decisions, by determining its abstention.

The term of office of the members of the managing committees shall be four years renewable, except the mandate of the Deputy Governor of the Bank of Spain, which shall last as long as he remains in office.

Representatives of the credit institutions attached to the fund will cease to be charged for the following reasons:

a) Expiration from the term of your term. b) Renunciation accepted by the Minister of Economy and Finance.

(c) Separation agreed by the Minister of Economy and Finance for gross non-compliance with his obligations, permanent incapacity for the exercise of his function or conviction for criminal offence.

The representatives of the Banco de España will cease, in addition to the same causes provided for in the previous paragraph, on a proposal from its Executive Committee.

2. The management committees shall meet at the request of their President, on their own initiative or at the request of any of its members. They shall also be empowered to establish their own system of calls.

3. The management committees shall lay down the rules of their own operation and may agree to the delegations which they consider appropriate for the proper exercise of their duties.

4. In addition to the functions provided for in other provisions of this Royal Decree, each managing commission shall have the following:

(a) Information and advice to the Banco de España in matters of the competence of the funds.

b) Approval of the accounts that the funds will have to pay annually to their members and to the Banco de España.

5. The management commissions will seek from the Banco de España how much information they need regarding the entities attached to the performance of their functions. In particular, they shall be informed by those of whom they are in economic difficulties who may determine the need for action by the respective funds.

6. For the validity of the meetings of the management committees, half of its members will be required to attend. Their agreements shall be adopted by a majority of their members present, with their Chair of vote of quality.

By way of derogation, in the case of the adoption of measures contained in an action plan, as provided for in Article 10 for which no contribution by the Bank of Spain is envisaged, the agreement shall be be adopted by a two-thirds majority.

7. The members of the management committee shall be obliged to keep secret of the information they know by virtue of their participation in the tasks of the fund, not being able to make use of it for purposes other than those related to the fund. exercise of his position in that committee. For these purposes, Article 6 of the Royal Decree of 28 June 1986 on the adaptation of the existing right in the field of credit institutions to that of the European Communities, in the wording given to it by the Commission, will be available. Article 5 of Law 3/1994 of 14 April, adapting the Spanish legislation on credit institutions to the Second Banking Coordination Directive and introducing other amendments concerning the financial system.

Article 3. Wealth of funds.

1. The annual contributions of the institutions integrated into the funds shall be 2 per 1,000 of the deposits to which their existing guarantee extends at the end of each financial year.

2. The annual contributions of the entities under consideration shall be made to cover the needs arising from the functions attributed to the funds and shall be entered into the account of the corresponding fund in the Banco de España, from the date of closure. for each financial year, in one or more disbursements, in the light of the needs of the Fund, and within the time limits set by the relevant managing commission.

3. Where the assets of a fund are sufficient to meet their objectives, the Minister for Economic Affairs and Finance, acting on a proposal from the Bank of Spain, may agree to the reduction of the contributions referred to in the Bank's number 1. Article. In any event, such contributions shall be suspended where the non-committed equity fund in respect of the purpose of the funds equals or exceeds 1 per 100 of the deposits of the entities attached to them, which shall be communicated by the the management commission in the form that it sets.

4. Exceptionally, and in order to safeguard the stability of all entities attached to it, a fund may be nurtured by contributions from the Banco de España, the amount of which shall be fixed by law.

5. The non-committed equity of the funds shall be materialised in public debt or in other assets of high liquidity and low risk.

Article 4. Definition of the guaranteed deposits.

1. For all purposes of this Royal Decree, the consideration of deposits secured will be taken into account, including funds from transitional situations for traffic operations and certificates of interest. Member States shall ensure that the institution has an obligation to reinstate in the applicable legal and contractual conditions, irrespective of the currency in which they are nominated and provided that they are constituted in Spain or another Member State of the Union. European.

2. Deposits guaranteed for the purposes of this Royal Decree shall not be considered and shall therefore not be taken into account for the calculation of contributions:

(a) deposits made by other credit institutions on their own account and on their own behalf, as well as those made by the following subjects and financial institutions:

1. Corporate and securities agencies.

2. º The insurance entities.

3. Corporate investment companies.

4. The management companies of collective investment institutions, as well as the pension fund management companies, the securitisation and venture capital funds and the deposits of the entities they manage.

5. º Portfolio management companies.

6. Risk Capital Companies.

7. The entities whose principal activity is the holding of shares or units.

8. The entities, whatever their denomination or status, which, according to the rules applicable to them, exercise the typical activities of the above.

9. º Any financial institution subject to prudential supervision.

(b) The representative debt securities issued by the credit institution, including promissory notes and marketable effects.

c) Certificates of deposit to the bearer, temporary disposals of assets and financings with subordination clause.

(d) deposits made up of companies belonging to the same economic group as the credit institution.

e) Deposits made up of public administrations.

(f) The deposits constituted by those holding positions of administration or management in the entity that originates the performance of the fund as set out in Article 1.4 of Law 26/1988 of July 29 on discipline and intervention by credit institutions; by persons who have a significant share in the capital of the institution as laid down in Article 56 of Law 26/1988, or a participation in undertakings in their economic group according to the criteria contained in Article 4 of Law 24/1988 of 28 July of the Stock Market and of the spouses and first-degree relatives of each other.

3. Also, and without prejudice to the fact that they are taken into account for the calculation of contributions, the obligation to pay the amounts secured shall not include the amounts set out:

(a) With a breach of the provisions in force, in particular those arising from operations in respect of which there has been a criminal conviction for offences resulting from money laundering operations.

(b) By clients who have obtained, in a personal capacity, financial conditions that have contributed to aggravating the situation of the entity, provided that such circumstance has been determined by a firm judgment.

4. However, the time limits laid down in Article 9.1 of this Royal Decree, when in the judgment of the management committee there are circumstances that allow the relationship or participation of a depositor with the motivating causes of the obligation to be presumed compensation, the payment of the corresponding compensation may be suspended until the absence of any such relationship or participation is declared judicially, at the request of a party. The funds shall have equal powers when a depositor or any other person with a right or interest on a deposit has been prosecuted or has been given the opening of an oral trial for offences relating to money laundering operations. capital, where the abbreviated procedure provided for in Title III of book IV of the Criminal Procedure Act has been initiated and until the end of the procedure.

Article 5. Attachment to the funds.

1. The credit institutions entered in the Special Records of the Bank of Spain for Banks, General Savings Banks and Credit Unions shall be attached to the respective guarantee funds.

2. Branches of foreign credit institutions shall have the following scheme:

(a) Branches of credit institutions authorised in another Member State of the European Union may join the deposit guarantee fund in banking establishments.

b) branches of credit institutions authorised in a non-member country of the European Union shall have the following scheme:

1. Your attachment to the deposit guarantee fund in banking establishments will be required when deposits in Spain are not covered by a deposit guarantee scheme in the country of origin.

2. º shall be attached to the deposit guarantee fund in banking establishments to cover the difference in level or scope, where the guarantee of the country of origin system is less than the cover for that country.

3. Your attachment to the deposit guarantee fund in banking establishments shall not be compulsory when the deposits are covered in the country of origin.

For the purposes of determining the case for each branch, they shall, where appropriate, prove the coverage provided by the guarantee scheme of their country of origin.

The fund may establish agreements with the deposit guarantee schemes of other countries in order to organise, where appropriate, the payment of compensation.

3. The managing commission of each fund will insert into the "Official State Gazette", annually, the relationship of the entities attached to it.

4. Institutions which are integrated into the funds may not use their membership in their advertising, but may include a mention to the fund without adding any other information or information about the funds. They shall also, in their offices, be available to the public for information on the characteristics of the fund, with the indication, in the case of branches of foreign credit institutions, that the amounts secured are limited to the established in Spanish legislation.

5. Entities which, for any cause, cause low as members of their respective funds, shall not be entitled to the return of the amounts provided to them.

Article 6. Exclusion of funds.

1. Credit institutions which do not properly make their contributions to the deposit guarantee fund to which they are attached or fail to meet the obligations laid down in paragraph 4 of the previous Article, may be excluded from the fund once, required for that purpose, they have not regularised their situation within the time limit which they are entrusted with, which may not be less than one month. The Minister for Economic Affairs and Finance, acting on a proposal from the Bank of Spain, shall be competent to agree to the exclusion from the management committee of the fund concerned and after hearing the person concerned in accordance with the provisions of Article 84 of Law No 30/1992 of 26 November of the Legal Regime of Public Administrations and of the Common Administrative Procedure.

2. Where a branch of a credit institution of a country of the European Union does not fulfil its obligations as a member of the fund, it shall, through the Banco de España, communicate it to the supervisory authority of the State of origin of the institution. entity, to take appropriate action. If, in spite of this, the institution continues to breach those obligations, the fund may propose to that authority the exclusion of the branch. Obtained the express authorisation of the said authority, the fund shall notify the branch of its exclusion, which shall be effective 12 months after the notification.

3. Deposits made, both in Spanish credit institutions and in branches of foreign credit institutions, before the exclusion is effective, will continue to be covered by the fund until maturity. In the case of current accounts, the balance covered shall not exceed the amount existing at the date of the exclusion, minus the debits which took place between that date and the date of the declaration of the assumption which would result in the payment of the compensation. The withdrawal of the coverage will be communicated to the depositors through the "Official State Gazette" and two national newspapers.

Article 7. Scope of the guaranteed amount.

1. The guaranteed amount of the deposits shall be equal to the equivalent in pesetas of 20,000 ECUs, to the exchange rates of the day in which one of the facts referred to in Article 8 of this Royal Decree is produced, or to those of the previous working day when it was festive.

In the case of deposits made in branches of Spanish credit institutions in other countries of the European Union, the coverage shall not exceed, at its level or in its scope, that established by the country's guarantee system. where such branches were established.

This guarantee shall be applied by depositor, whether natural or legal person, and whatever the number and class of deposits in which it is listed as the holder of the same entity. This limit shall also apply to depositors holding deposits of higher than the maximum guaranteed amount.

2. Where an account has more than one holder, its amount shall be divided between the holders, in accordance with the provisions of the deposit contract, and, failing that, equal parts.

3. Where the holders of a deposit act as representatives or agents of third parties, provided that this condition exists at the time of the formalisation of the deposit and has been formally declared to the entity before the deposit is made circumstances as described in Article 8, the coverage of the fund shall apply to the third-party beneficiaries of the deposit in the relevant party.

4. Existing deposits at the time of the revocation of the authorisation to an entity attached to a fund shall remain covered until the institution's extinction, and the entity shall remain obliged to make the legally enforceable contributions. In the case of current accounts, the remaining balance shall be that existing at the date of revocation.

Article 8. Causes for the execution of the warranty.

The funds will satisfy their holders the guaranteed amount of deposits when any of the following events occur:

a) That the entity has been declared bankrupt.

b) That the entity's payment suspension declaration is judicially requested.

(c) The Bank of Spain, having incurred non-payment of deposits which are due and payable, determines that, in its view, and for reasons directly arising from the financial situation of the institution concerned, it is located in the impossibility of restoring them and does not seem to have any prospect of being able to do so in the immediate future. The Bank of Spain, or the management committee of the fund, shall, at the latest, and at the latest within 21 days after having verified for the first time that the institution has failed to repay deposits which are due and payable, after hearing the interested party, in accordance with the provisions of Article 84 of Law No 30/1992 of 26 November 1992, of the Legal Regime of Public Administrations and of the Common Administrative Procedure, without Interrupt the deadline.

Article 9. The payment and its effects.

1. The funds shall be in a position to satisfy duly substantiated claims within three months of the date on which the Bank of Spain takes the determination referred to in paragraph (c) of the previous Article, or the judicial authority dictates any of the decisions referred to in paragraphs (a) and (b) of that Article, and without prejudice to the provisions of Article 4 (4) of this Royal Decree.

When the funds provide that they cannot make the payments within the prescribed period, they may ask the Banco de España to grant up to three extensions of time not exceeding three months each, indicating the reasons for the request. The Banco de España may authorise them when they appreciate exceptional reasons justifying the delay, such as the high number of depositors, the existence of accounts in other countries or the finding of extraordinary difficulties, technical or legal purposes, to check the actual balance of the guaranteed deposits or the source of the compensation.

2. The payment of the guaranteed deposits shall not be extended to deposits made after the date on which the causes referred to in the preceding Article have occurred or to the deposits or amounts withdrawn after that date, without prejudice to the provisions of Article 7.1 of this Royal Decree.

3. The funds shall not be eligible for the time limits referred to in the preceding paragraphs in order to refuse the benefit of a guarantee to a depositor who has not been able to enforce his right on time. Amounts not satisfied, within the time limit set or their carry-overs, shall be made available to the holders of the funds, without prejudice to their prescription in accordance with the law.

4. As a result of the payment of the amounts secured, the funds shall be subrogated, by the Ministry of the Law, to the rights of the depositors, up to an amount equal to that of the payments made, with sufficient title being the document in which it is established. the payment.

Article 10. Other actions of the deposit guarantee funds.

1. Exceptionally, where the situation of a credit institution, according to the information provided by the Banco de España, is such that it makes it foreseeable that the fund is obliged to pay, in accordance with the causes laid down in Article 8 of this Royal Decree, the fund may adopt preventive and sanitation measures to facilitate the viability of the institution to overcome the crisis situation, in the framework of an action plan agreed by the entity and approved by the Banco de España.

2. Any action plan containing measures that require approval by the Board or General Assembly of the affected entity shall be considered conditional and shall not be executed until the agreements that make it possible are carried out. In the meantime, if the situation of the institution so requires, the guarantee funds may provide provisional aid, provided that they are duly guaranteed, in the opinion of the management committee.

3. In adopting these measures, the fund will take into account the financial cost of the measures in question, which will compare with the disbursements it would have had to make, at the time of the adoption of the plan, for the payment of the the amounts corresponding to the guaranteed deposits.

Article 11. Preventive and sanitation measures contained in the action plans.

1. The action plan of the institution in difficulty, provided that it contains aid from a deposit guarantee fund, may include the following actions:

(a) Financial aid, which may consist of grants, guarantees, loans on favourable terms, subordinated financing, acquisition by the fund of damaged or unprofitable assets appearing in the the entity's balance sheet and any other financial support.

(b) Restructuring of the institution's capital, which may include, among other measures, the proper application of the entity's own resources to absorb its losses, taking into account the uniqueness of each case; processes of merger or absorption with other entities of recognised solvency or the transfer of their business to another credit institution; subscription by the fund in banking establishments of capital increases, in accordance with the provisions of the paragraphs the following, and the adoption by the relevant bodies of the affected entity of all those agreements which ensure the proper application of the aid provided by the respective deposit guarantee fund.

(c) Management measures that improve the organization and the systems of procedure and internal control of the entity.

2. The reorganisation measures shall be aimed at ensuring the viability of the institution within a reasonable time, in the judgment of the Deposit Insurance Fund, either by strengthening the assets and solvency of the institution or by facilitating its merger or absorption by another of a recognised solvency or the transfer of its business to another credit institution.

3. The Deposit Insurance Fund in Banking Institutions may subscribe to the capital increases approved by the banking institutions in an action plan under the previous Article, in order to restore their assets to the bank. Of course, they are not covered by the shareholders of the entity.

It is understood, in any event, that the capital increases referred to in the preceding paragraph are not covered by the shareholders of the entity when the General Board of the entity has agreed to the total or partial exclusion of the right of preferential subscription, as provided for in the applicable legislation.

Within the maximum period of one year, the Fund shall offer for sale the shares subscribed to in the extensions referred to in the previous paragraph. Such an offer of sale shall be made in such a way as to enable at least the credit institutions which are integrated in the fund to be able to meet the importance and size of their economic capacity, activity and other requirements. of the banking institution in sanitation, ensure the definitive restoration of the solvency and normal functioning of the bank. The offer shall specify the minimum commitments to be accepted by the eventual contracting entity.

The award shall be made by the fund in favour of the entity that presents the most advantageous conditions of acquisition. In addition to the economic conditions, the economic and organisational capacity and means of each offeror entity may be taken into account for this purpose.

The offering for sale of the shares and their conditions, as well as the decision to award them, must be published in the "Official State Gazette".

4. The deposit guarantee funds in savings banks may subscribe to the shares of equity shares approved by the institutions in an action plan in accordance with the previous Article, in order to restore their equity situation in the case that they are not covered during the subscription period.

5. In order to enable the shares to be awarded, or the participative shares referred to in paragraphs 3 and 4 above, as well as to enable the state of suspension of payments admitted by the judicial authority to be exceeded, the may assume losses, provide guarantees and acquire assets that appear on the balance sheet of the entities concerned, as well as be responsible for the economic balance of the files or procedures of different order that are in progress or may be initiated subsequently to those. The fund may also acquire assets from those entities where, in the view of the management committee, such acquisition substantially contributes to the avoidance of other measures to restore the assets of an entity incorporated in the In the case of the Bank's own funds, the Commission is not in a position to take into account the fact that the Commission has not taken into account the fact that the Commission has not taken into account the fact that the earnings from the corresponding credit institution.

6. In no case shall the statutory limitations of the right to vote be applied to the deposit guarantee fund in banking establishments in respect of the shares which the Fund acquires or subscribes to in the framework of the action plans which contemplates the present Royal Decree.

First transient disposition. Arrangements applicable to branches in Spain of credit institutions from other European Union States which cease to belong to the fund.

At the entry into force of this Royal Decree, branches in Spain of credit institutions from other European Union States may cease to belong to the Deposit Insurance Fund in Bank Establishments, without have the right to return the contributions already made and no obligation to continue making contributions for any reason.

Second transient disposition. Amount guaranteed until 31 December 1999.

Until 31 December 1999, the amount guaranteed under Article 7 (1) shall be the equivalent in pesetas of 15 000 ECU.

Transitional provision third. Designation and renewal of representatives of credit institutions in the management fees of deposit guarantee funds.

Deposit guarantee funds shall designate or renew the representatives of credit institutions in their managing committees within three months of the entry into force of this Royal Decree. To this effect, and in relation to the provisions of the third subparagraph of Article 2 (1), they shall be considered as representative associations: of the Banks, the Spanish Association of Private Banking (AEB); of the Savings Banks, the Spanish Confederation of the savings banks (ECSC), and the Credit Union, the National Union of Credit Union (UNACC).

Single repeal provision. Scope of regulatory repeal.

To the entry into force of this Royal Decree all the provisions of equal and lower rank that are opposed to the provisions in it and, in particular, are repealed:

(a) Royal Decree 567/1980 of 28 March, for which the deposit guarantee fund is refined and extended in banking establishments.

(b) Royal Decree 1620/1981 of 13 July amending in part the Royal Decrees 567/1980 and 2860/1980 on deposit guarantee funds in banking establishments and savings banks, respectively.

c) Royal Decree 2575/1982, of 1 October, on the deposit guarantee fund in savings banks, developing Royal Decree-Law 18/1982 of 24 September.

(d) Royal Decree 2576/1982 of 1 October 1982 on deposit guarantee fund in credit unions, developing Royal Decree-Law 18/1982 of 24 September.

e) Royal Decree 740/1985 of 24 April on deposit guarantee fund in banking establishments.

(f) Article 2 of Royal Decree 437/1994 of 11 March, amending the Royal Decree No 1197/1991 of 26 July 1991 on the arrangements for public tenders for the acquisition of securities, and 567/1980 of 28 March 1980 on the substance of the guarantee of deposits in banking establishments.

g) The one-off provision of Royal Decree 2024/1995 of 22 December 1995 partially amending Royal Decree 1343/1992 of 6 November 1992, for which Law 13/1992, of 1 June 1992, is developed Own and Supervision on Consolidated Base of Financial Entities, and a new Title V is included on special surveillance rules applicable to non-consolidated mixed groups of financial institutions.

Final disposition first. Faculty of development.

The Minister of Economy and Finance is empowered to dictate the rules that are necessary for the development of this Royal Decree.

The Bank of Spain is authorized to develop the procedure for the election of its representatives in the management committees of the funds, as well as the technical-accounting issues of the guaranteed deposit concepts and Net worth not committed.

Final disposition second. Basic character.

The provisions contained in this Royal Decree are declared basic in accordance with the provisions of Article 149.1.11. and 13. of the Constitution.

Final disposition third. Entry into force.

This provision shall enter into force on the day following that of its publication in the Official Gazette of the State.

Given in Madrid, 20 December 1996.

JOHN CARLOS R.

The Second Vice President of the Government

and Minister of Economy and Finance,

RODRIGO DE RATO Y FIGAREDO