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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The present Royal Decree aims to develop the legal system of deposit insurance funds in banking institutions, savings and credit unions.

The new regulation, which is now set, brings cause of Directive 94/19/EC of the European Parliament and of the Council of 30 may, on deposit-guarantee schemes, that was already the subject of partial transposition, essentially through the Royal Decree-Law 12/1995 of 28 December, on urgent budgetary, tax and financial measures where he introduced the first important innovations such as compulsory membership of Spanish credit institutions to a guarantee fund of deposits, the cases of exemption from such obligation as well as the causes of exclusion.

Another novelty of the aforementioned Royal Decree-Law was the determination of contributions to funds as well as their reduction and suspension system, so that funds are nourished through annual contributions of credit institutions that are integrated into each of them and, exceptionally, be expected contributions of the Bank of Spain, determining that the amount should be fixed by law.

On the other hand expanded the assumptions that give rise to the payment of compensation (including, in addition to the default and bankruptcy, administrative Declaration of non-payment of deposits). Finally, profiling is the regime of accession of branches of foreign credit institutions.

The present Royal Decree, in which complete the transposition of Directive 94/19/EC, is to develop the above, being one of its most outstanding features to integrate into a single legislative text the regulation of the various funds, singular, until the present moment by a profuse dispersion.

In our country, deposit guarantee funds have been characterized, traditionally, by its dual purpose to make deposits and the sanitation and turnaround of credit institutions in difficulty. Both traits are not abandoned in the current management.

Most novel that presents the current regulation is focused on the following issues: firstly, and with regard to the governing bodies of the funds, required the regime of election by the representative associations of credit of their representatives in the Commission the respective deposit-guarantee fund. The concept of the representativeness of associations shall be set according to two criteria: represent more than 80 by 100 institutions adhering to the relevant background and more than 90 per 100 of deposits in these entities. Not achieved such percentages, the designation of the representatives will be held by direct vote of all entities attached to the relative Fund.

Secondly, and in relation to the material aspects of the Fund, they deserve to highlight several issues. Thus, the definition of guaranteed deposits takes place a delimitation both positive and negative, in accordance with the guidelines laid down in the directive, which was transposed. Deposits not guaranteed by their very nature and that they therefore do not count for the calculation of the contributions of those others who, even though they are covered in principle and, consequently, are taken into account for the computation, can be excluded from the obligation of payment by the concurrence of circumstances are.

On the other hand, the guaranteed amount of deposits has as limit equivalent in pesetas from 20,000 ECU, but until the 31 December 1999 it shall be fixed at ECU 15 000.

In this sense, there is the assumption of the so-called 'warranty by the country of origin principle' involving the compulsory coverage by funds of branches of Spanish credit institutions deposits in other countries of the European Union. However, includes the limitation known as 'the most favourable schemes export ban clause', which prevents that the level and scope of coverage exceeds the maximum offering of the host Member State guarantee scheme.

Adhesive system of branches of foreign credit institutions a deposits guarantee fund banking institutions, engaged in a necessary distinction is also determined. With respect to the community, supported a voluntary assignment, and this for the simple reason that can offer a complementary guarantee of their own to their depositors.

On the other hand, the regime of branches of credit institutions non-Community varies in terms of its compulsory depending on if there is or not coverage in the country of origin, and if occurs or does not differ in the level or scope.

Thirdly, is the regulation of procedural aspects related with causes or circumstances giving rise to the obligation of the payment and actual payment.

The second classical purpose of our funding has been to ensure the stability of the financial system, preventing a credit institution crisis impact in the rest of entities operating in the market. Highlights in the new regulation called 'Action Plan' which may contain both preventive sanitation measures, and these involve a whole series of actions of restructuring of the capital of the entity including the outstanding subscription by the Fund of enlargement of capital and various types of financial management measures as aid.

The Royal Decree defines the specific functions of the Bank of Spain and the management committees of funds in connection with the adoption of the executive measures and sanitation both the approval of the action plan. This regulation aims to prevent competence overlaps and systematize the public or private actions aimed to overcome crises of financial nature of credit institutions.

By virtue, on the proposal of the second Vice President of the Government and Minister of economy and finance, according to the Council of State and after deliberation by the Council of Ministers at its meeting of December 20, 1996, D I S P O N G O: article 1. Object and legal personality.

1. the present Royal Decree develops the legal system of deposit insurance funds in banking institutions, savings and credit unions.

2. the funds of guarantee of deposits in banking institutions, savings and credit unions will have legal personality, with full capacity for the development of its purposes, under private law and subject to the rules governing the autonomous State entities and State-owned companies.

Article 2. Governing bodies of the funds.

1. the funds of guarantee of deposits in banking institutions, savings and credit unions will be governed and administered, respectively, by a Committee of management consisting of eight members appointed by the Minister of economy and finance, of which four will be representing the Bank of Spain and four on behalf of credit institutions attached to the funds.

The representatives of the Bank of Spain will be proposed by the Executive Committee. One of them will be the Deputy Governor, who will hold the Presidency of the commissions management of each of the funds; his vacancy, absence or illness will be covered by one of the representatives of holders of the Bank of Spain, appointed by the Management Committee.

The representatives of the entities will be proposed by associations representing banks, savings banks and credit cooperatives, provided that they reach the thresholds set out in the following paragraph. The appointees shall be persons of recognized commercial and professional repute and possess expertise and experience appropriate for the exercise of their functions. In the determination of the conditions will attend the criteria referred to in article 2 of the Royal Decree 1245 / 1995, of July 14, about creation of banks, cross-border activity and other issues relating to the legal regime of credit institutions. Accreditation must be made at the time of his appointment, resulting in unnecessary renewals thereof.

If at the time of proceeding to the election of representatives in the respective deposit guarantee funds Management Committee, credit members of any of the above mentioned associations represent more than 80 per 100 of the attached to the corresponding Fund, and deposits in members of those institutions they constitute more than 90 per 100 of the constituted in these the representative associations will be responsible for appointments of representatives proposals to the Minister of economy and finance. The Bank of Spain will verify compliance with the percentages of representation previously mentioned and, in case of compliance, it shall notify the Association in question. In the case that the above percentages are not reached, they shall designate by direct vote of all entities attached to the bottom and the appointment will be proposed by them. Each entity will have as many votes as deposits expressed in millions of euros, can only designate individuals who meet the 20 per 100 or more of the votes cast. The Bank of Spain will organize and set the criteria for voting. For the purposes of this article, shall be deemed deposits liabilities that may benefit from the guarantee of the funds, according to the existing regulation, regardless of its amount by holder.

By the same procedure be named two deputy representatives of the Bank of Spain and two entities, which will replace the holders in the event of vacancy, absence or illness; in the case of representatives of institutions, also must be replaced by indication of the Chairman of the Committee of the respective Fund Manager, when the management Commission will discuss issues directly affecting an entity or group of entities with which it is linked as administrator, Manager, contract labour, civil or commercial or any other relationship that could impair the objectivity of their decisions determining their abstention.

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

Representatives of credit institutions attached to the Fund shall be terminated in office by the following causes: a) expiry of the term of his mandate. (b) resignation accepted by the Minister of economy and finance.

(c) separation agreed by the Minister of economy and finance for serious breach of its obligations, permanent disability for the exercise of its function or fraudulent offense conviction.

The representatives of the Bank of Spain will cease, in addition to for the same reasons provided for in the previous paragraph, on the proposal of the Executive Committee.

2. Managing commissions shall meet upon the call of the Chairman, at its own initiative or at the request of any of its members. In addition, they will be empowered to establish its own regime of calls.

3. Managing commissions will determine its own operating procedures and may agree to those delegations which considered convenient for the due exercise of its functions.

4 each project manager shall, in addition to the functions referred to in other provisions of this Royal Decree, the following: to) information and advice to the Bank of Spain in matters within the competence of the funds.

(b) approval of the accounts the funds must pay annually to its members and to the Bank of Spain.

5. the managing committees will seek Bank of Spain much information needed regarding the entities attached to the performance of their duties. In particular, they will be informed by him which are in economic difficulties that can determine the need for performance of the respective funds.

6. for the validity of meetings of management committees will require the assistance of half of its members. Agreements shall be adopted by a majority of its members present, enjoying its Chairman's casting vote.

By exception, in the case of measures contained in a plan of action, as provided for in article 10 for which financing not contemplating any contribution by the Bank of Spain, the agreement shall adopt by a two-thirds majority.

7. the members of the Management Committee will be required to keep secret the information know under its participation in the work of the Fund, not making use of the same for purposes other than those related to the exercise of his office in the Committee. For these purposes, will be what has article 6 of the Royal Legislative Decree 1298 / 1986, of 28 June, on adaptation of law in force in the field of credit institutions to the European communities, in the wording given to it by article 5 of law 3/1994, of 14 April, which adapt Spanish legislation in the field of credit institutions to the second banking coordination directive and is they introduce other amendments relating to the financial system.

Article 3. Assets of the funds.

1. the annual contributions of the entities in the funds will be 2 per 1,000 deposits that extends your existing warranty at the end of each fiscal year.

2. contributions annual related entities will be designed to meet the needs arising from the functions attributed to the funds and will be credited into the account of the relevant Fund in the Bank of Spain, the date of the closing of each fiscal year, one or more disbursements, in view of the needs of the Fund, and within the time limits fixed by the Commission appropriate management.

3 when a Fund's assets reached one amount sufficient for the fulfilment of its purposes, the Minister of economy and finance, on the proposal of the Bank of Spain, may agree to the decrease of contributions referred to in number 1 of this article. In any case, these contributions will be suspended when the capital fund not engaged in operations of the object of the funds equals or exceeds 1 per 100 of deposits from entities related to them, which shall be communicated by the Commission management as the same set.

4. exceptionally, and to the effect of safeguarding the stability of the set of related entities, a fund can be nurtured with contributions of the Bank of Spain, whose amount shall be fixed by law.

5. the unencumbered assets of funds must be embodied in public debt or other assets of high liquidity and low risk.

Article 4. Definition of guaranteed deposits.

1. for all purposes of this Royal Decree, they shall be regarded as guaranteed deposits the credit balances held in account, including funds from temporary situations by trafficking operations and certificates of deposit nominee that the entity have must repay under the legal and contractual conditions applicable, anyone who is the currency in which they are nominated and inasmuch as are made in Spain or in another Member State of the European Union.

2 deposits guaranteed for the purposes of this Royal Decree shall not be considered, and therefore will be not taken into account for the computation of contributions: to) deposits made by other credit institutions on own account and in his own name, as well as those carried out by the subjects and the following financial institutions: 1 societies and securities agencies.

2. the insurance entities.

3rd interest investment companies.

4th the management of collective investment companies, as well as the management companies of funding pensions, securitization and risk capital funds and deposits from entities that manage.

5 the portfolio management companies.

6 the venture capitalists.

7th entities whose main activity is the holding of shares.

8th entities, any that is its name or status, which, according to the rules applicable, exercise the typical activities of the above.

9th any financial institution subject to prudential supervision.

(b) debt securities issued by the lender, including promissory notes and negotiable.

(c) certificates of deposit, bearer, temporary transfers of assets and financing with subordination clause.

(d) deposits by companies belonging to the same economic group as the credit institution.

(e) deposits by public administrations.

(f) deposits consisting of those who hold positions of directors or management in the entity arising from the performance of the Fund as set out in article 1(4) of law 26/1988, of July 29, on discipline and intervention of credit institutions; by persons who have a significant stake in the capital of the entity as set out in article 56 of the Law 26/1988, or a participation in enterprises of the economic group according to the criteria contained in article 4 of law 24/1988, of 28 July, the securities market, as well as spouses and relatives in the first degree of each other.

3 in addition, and without prejudice to that are taken into account for the calculation of contributions, the obligation to pay the guaranteed amounts shall not include to the constituted: to) with breach of the provisions in force, in particular, the originated in operations in relation to which there has been a criminal conviction for resulting crimes of money-laundering operations.

(b) by customers who have obtained a personal financial conditions that have contributed to aggravate the situation of the entity, provided that such circumstances have been determined by final judgment.

4. However, the time limits laid down in article 9(1) of this Royal Decree, when in the opinion of the Management Committee exist circumstances allowing to boast about the relationship or participation of any depositor with motivating the obligation to compensate, causes the corresponding compensation may be suspended while not declare judicially, on request, the absence of that relationship or participation. Funds will have equal faculty when a depositor or any person with right or interest on a deposit has been processed or order had issued opening of trial for crimes related to money-laundering operations, when you have been instituted the abridged procedure which is regulated in title III of book IV of the Criminal Procedure Act and to finish the procedure.

Article 5. Secondment to the funds.

1 they must adhere to respective guarantee funds of credit institutions registered in the records special of the Bank of Spain pertaining to banks, General Popular savings and credit unions.

2. the branches of foreign credit institutions will have the following regime:

(a) branches of credit institutions authorised in another Member country of the European Union may accede to the Fund of guarantee of deposits in banking institutions.

(b) branches of credit institutions authorized in a non-member country of the European Union will have the following scheme: 1 their allegiance to the Fund of guarantee of deposits in banking establishments is mandatory when the deposits in Spain are not covered by a system of deposit insurance in the country of origin.

2nd must be ascribed to the Fund of guarantee of deposits in banking institutions to cover the difference in level or scope, when the warranty of the system of the country of origin is less to cover that.

3rd not their allegiance to the Fund of guarantee of deposits in banking institutions shall be obligatory when the deposits are covered in the country of origin.

For the purposes of determining the course that corresponds to each branch office, these credited, in his case, the coverage provided by the system of warranty of their country of origin.

The Fund may establish agreements with systems of guarantee of deposits of other countries in order to organize, where appropriate, the payment of compensation.

3. the Manager of each Fund Commission inserted in the «Official Gazette», annually, the relationship of the entities belonging to the same.

4. institutions integrated into the funds must not use membership to them in advertising, although they may include a mention that without adding any further details or information on the funds. Also, will have in their offices, available to the public, information on the characteristics of the background, with the indication, in the case of branches of credit institutions foreign, that the guaranteed amounts are limited to those established in Spanish law.

5 entities that cause low as members of their respective funds, from any cause is not entitled to a refund of the amounts provided to them.

Article 6. Exclusion of the funds.

1 credit institutions not properly performing their contributions to the guarantee fund for deposits to which they are attached or fail to comply with the obligations laid down in paragraph 4 of the preceding article, may be excluded from the Fund once, required to effect, not have regularized their situation within the period which will see them, which may not be less than one month. It will be competent to agree on exclusion the Minister of economy and finance, on the proposal of the Bank of Spain, report Commission Manager of the affected Fund and after hearing of the person concerned, in accordance with the provisions of article 84 of the law 30/1992, of 26 November, the legal regime of public administrations and common administrative procedure.

2 when a branch of a credit institution from a country of the European Union failed to comply the obligations which are incumbent on him as a member of the Fund, this, through the Bank of Spain, shall inform the supervisor of the State of origin of the entity authority, take the appropriate measures. If in spite of this, the entity continue in breach of these obligations, the Fund may propose to that authority the exclusion of the branch. The express authorization of the said authority, Fund notify branch their exclusion, which will be effective twelve months after notification.

3 deposits, both Spanish credit institutions and branches of credit institutions foreign, until the exclusion to be effective, will continue to be covered by the Fund until maturity. In the case of current accounts, the balance covered shall not exceed the existing at the date of the exclusion, less debits which have taken place between that date and the Declaration of the event giving rise to the payment of compensation. The withdrawal of coverage shall be communicated to the depositors through the «Official Gazette» and two newspapers of national.

Article 7. Scope of the guaranteed amount.

1. the guaranteed amount of deposits will limit the equivalent in pesetas from 20,000 ECU, the exchange rates of the day occurs any of the facts referred to in article 8 of this Royal Decree, or the of the previous business day was when festive.

In the case of deposits in branches of Spanish credit institutions in other countries of the European Union, coverage shall not exceed, or at their level or in your reach, established by the guarantee system of the country where such branches were established.

This guarantee applies per depositor, whether natural or legal person and any that are the numbers and types of deposits that figure as the holder of the same entity. This limit shall apply also to depositors holding deposits exceeding the maximum guaranteed amount.

2 when an account has more than one holder, the amount will be divided among the owners, according to the deposit agreement, and, in their absence, in equal parts.

3. when a deposit-holders acting as representatives or agents of third parties, provided that this condition existed at the time of the formalization of the tank and has been formally declared to the entity until occur the circumstances described in article 8, the coverage of the Fund shall apply to third party beneficiaries of the deposit in the part corresponding.

4 deposits existing at the time of the revocation of the authorization to an entity under a fund will remain covered until extinction of the entity, and the entity will be obliged to perform the legally required contributions. In the case of current accounts, the balance covered will be the existing at the date of the revocation.

Article 8. Causes for the execution of the guarantee.

The funds will satisfy their holders the guaranteed amount of the deposits when any of the following events occurs: to) that the entity has been declared bankrupt.

(b) may have legally for requested the Declaration of bankruptcy of the entity.

(c) that, having produced non-payment of deposit due and payable, the Bank of Spain determined that, in his opinion, and reasons directly derived of the financial situation of the entity in question, this is unable to restore them and doesn't seem to have prospects to do so in the immediate future. The Bank of Spain, heard the Manager of the Fund Commission, must resolve as soon as, and more within twenty-one days of the latest to be tested for the first time that the entity has failed to restore deposits due and payable, after giving audience to the interested entity, in accordance with the provisions of article 84 of the law 30/1992 dated November 26, of the legal regime of public administrations and common administrative procedure, without which that interruption of the period designated.

Article 9. Payment and its effects.

((1. funds shall be able to satisfy the claims properly checked within the three months following the date at which the Bank of Spain take the determination referred to in paragraph c) of the preceding article, or the judicial authorities handed down any of the decisions referred to in paragraphs a) and b) of this article, and without prejudice to the provisions of paragraph 4 of article 4 of this Royal Decree.

When dgss that they may not make payments on time, they may ask on the Bank of Spain the grant of up to three extensions of time limits not exceeding three months each, indicating the reasons for the request. The Bank of Spain may authorize them when you appreciate that exceptional reasons justifying the delay, such as the high number of depositors, the existence of accounts in other countries, or the finding of extraordinary, technical or legal difficulties, to check the effective balance of guaranteed deposits or the appropriateness of the compensation are.

2. the payment of guaranteed deposits shall not extend to the deposits made after the date that have occurred the causes referred to in the preceding article or deposits or amounts removed subsequent to that date, without prejudice to the provisions of article 7.1 of Royal Decree.

3. the funds may not be eligible to the time limits referred to in the preceding paragraphs to deny the benefit of guarantee to a depositor who has not been able to assert his right in time. The amounts not satisfied, within the prescribed period or its extensions, will be in funds available to their holders, without prejudice to their prescription according to law.

4. by the mere fact of the payment of the guaranteed amounts, the funds is surrogated, by operation of law, the rights of depositors, up to an amount equal to the payments made, being sufficient title the document evidencing the payment.

Article 10. Other performances of the deposit guarantee funds.

1. exceptionally, where the situation of a credit institution, according to the information provided by the Bank of Spain, is so predictable that the Fund is liable to pay, in accordance with the reasons provided for in article 8 of the present Royal Decree, making the Fund adopt sanitation and preventive measures to facilitate the feasibility of the entity to overcome the crisis situation within the framework of an action plan agreed by the Agency and approved by the Bank of Spain.

(2) a plan of action containing measures that require approval of the Board or general Assembly of the affected entity, shall be considered conditional and will not run until fall the agreements that make it possible. Meanwhile, if the situation of the entity required, guarantee funds may provide temporary aid, provided that they are duly guaranteed, in the opinion of the Management Committee.

3. to adopt these measures Fund shall take into account the financial cost of the same office, where he compared with the expenditures that would have to be eligible, at the time of the adoption of the plan, payment of the amounts guaranteed deposits instead.

Article 11. Sanitation and preventive measures contained in the action plans.

1 the plan of action of the Organization in crisis, provided that it contains a deposit guarantee fund supports, may include the following actions: to) financial aid, which may consist of grants to repayable, granting of guarantees, loans at favourable conditions, subordinate financing, acquisition by the Fund of assets damaged or not profitable appearing on the balance sheet of the entity and any other financial support.

(b) restructuring of the capital of the entity, which may entail, inter alia, the proper application of the own resources of the entity to absorb their losses, according to the uniqueness of each case; facilitate processes of merger or absorption with other entities of recognised solvency or the transfer of its business to another credit institution; subscription by the Fund banking institutions of enlargement of capital, in accordance with the provisions of the following paragraphs, and the adoption by the relevant bodies of the affected entity of all agreements that ensure the proper implementation of the aid provided by the respective deposit guarantee fund.

(c) management measures that will improve the Organization and systems of internal control of the authority and procedure.

2. the reorganisation measures shall be designed to ensure the viability of the entity within a reasonable time, in the opinion of the deposit guarantee fund, strengthening heritage and solvency of the same, well facilitating their merger or absorption by another of recognized solvency or the transfer of its business to another credit institution.

3. the Fund of guarantee of deposits in banking institutions can subscribe the capital increases that approved banking institutions in a plan of action pursuant to the preceding article, to restore their patrimonial situation on the assumption that they are not covered by the shareholders of the entity.

Means, however, that the increases in capital referred to in the preceding paragraph are not covered by the shareholders of the entity when the General meeting of the agreed total or partial exclusion of the right of pre-emption, as provided for in the applicable legislation.

Within a maximum period of one year the Fund will offer for sale shares subscribed in the extensions referred to in the preceding paragraph. This offer of sale shall be carried out in such a way that they can attend to it, at least, of credit institutions that are integrated into the Fund than by their conditions of economic capacity, activity and other payable, in relation to the importance and size of the Bank in sanitation, ensure the definitive restoration of the solvency and normal operation of this. The minimum commitments that must accept the eventual entity shall be specified in the offer awarded.

The award shall be made by the Fund on behalf of the entity submitting the most advantageous purchase conditions. For this purpose may take into account, in addition to economic conditions, capacity and economic and organizational means of each offeror entity.

The offer for sale of the shares and their conditions, as well as the decision to award those, shall be published in the «Official Gazette».

4 guarantee of deposits in savings funds can sign the emissions of participatory assessments that approved institutions in a plan of action pursuant to the preceding article, to restore their patrimonial situation on the assumption that the same are not covered during the subscription period.

5. with the aim of enabling the allocation of shares, or participatory quotas provided for in paragraphs 3 and 4 above, as well as to make it possible to overcome the State of suspension of payments admitted by the judicial authority, Fund can assume losses, provide guarantees and acquire assets listed on the balance sheet of the affected entities as well as responsible for economic balance records or procedures of different order that are in progress or can subsequently instituted those. The Fund may also acquire assets to those entities which, in the opinion of the Management Committee, this acquisition will help substantially to avoid other measures for the restoration of the patrimonial situation of an entity integrated in the background, action which does not preclude the requirement to administrators of the entity for the adoption of other measures that will contribute to strengthening equity and solvency , as well as the necessary balance of the account of profit and loss of the relevant credit institution.

6. in no event shall apply to the deposit guarantee fund banking institutions the statutory limitations of the right to vote with regard to the actions which that fund purchase or subscribe within the framework of the action plans which includes the present Royal Decree.

First transitional provision. Regime applicable to branches in Spain of credit institutions of other States of the European Union who no longer belong to the Fund.

The entry into force of this Royal Decree, branches in Spain from other States of the European Union credit institutions may stop belonging to the guarantee fund of deposits in banking institutions, unless they have the right to return of contributions already made or obligation to continue making contributions by reason.

Second transitional provision. Amounts guaranteed until December 31, 1999.

Until December 31, 1999, the amount guaranteed by virtue of article 7, paragraph 1, shall be the equivalent in ECU 15 000 pesetas.

Third transitional provision. Designation and renewal of representatives of credit institutions in the management committees of deposit guarantee funds.

Deposit guarantee fund shall appoint or renew the representatives of credit institutions in their management committees within the three months following the entry into force of this Royal Decree. To this effect, and in relation to the provisions of article 2, paragraph 1, paragraph third, shall be considered as representative associations: banks, the Asociación Española de Banca Privada (AEB); of the savings, the Spanish Confederation of savings (CECA), and boxes of credit unions, the National Union of credit cooperatives (UNACC).

Sole repeal provision. Scope of the regulations repeal.

The entry into force of this Royal Decree shall be repealed all provisions of equal and lower rank who are opposed to it and, in particular, shall be repealed: a) Royal Decree 567/1980, of 28 March, whereby it is perfected and extends the Fund of guarantee of deposits in banking institutions.

b) Real Decree 1620 / 1981, of 13 July, whereby the Royal Decrees 567/1980 and 2860 are partially modified / 1980 on guarantee funds banking institutions and in savings deposits, respectively.

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

(d) Royal Decree 2576 / 1982, of October 1, on a background of guarantee of deposits in credit unions, developing Royal Decree-Act 18/1982, of 24 September.

e) Royal Decree 740/1985, of 24 April, on a background of guarantee of deposits in banking institutions.

(f) article 2 of Royal Decree 437/1994, of March 11, that amending the Royal Decree 1197 / 1991, 26 of July, on regime of the public offers of acquisition of securities, and 567/1980, of 28 March, on a background of guarantee of deposits in banking institutions.

(g) the additional provision of Royal Decree 2024 / 1995, of 22 December, amending Royal Decree 1343 partially / 1992, of November 6, which develops the law 13/1992 of June 1, own resources and Supervision on a consolidated basis of the financial institutions, and included a new title V on the special surveillance rules applicable to mixed groups not consolidated for financial institutions.

First final provision. Faculty of development.

It empowers the Minister of finance to issue standards that are accurate to the development of the present Royal Decree.

The Bank of Spain is authorized to develop the procedure of election of their representatives in the management committees of the funds as well as appraisals of the concepts of guarantee deposit and unencumbered equity issues.

Second final provision. Basic character.

The provisions of this Royal Decree are declared basic in accordance with the provisions of article 149.1.11. 2nd and 13th of the Constitution.

Third final provision. Entry into force.

This provision shall enter into force the day after its publication in the "Official Gazette".

Given in Madrid, on December 20, 1996.


The second Vice President of the Government and Minister of economy and finance, RODRIGO DE RATO Y FIGAREDO

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