THE REAL DECREE-LAW FOUR/THOUSAND NINE HUNDRED AND EIGHTY, OF TWENTY-EIGHT MARCH, GRANTS LEGAL PERSONALITY AND FULL CAPACITY TO THE FUND OF DEPOSIT GUARANTEE IN BANKING ESTABLISHMENTS, DETERMINES THE CONSTITUTION OF ITS PATRIMONY AND IT EXTENDS THE OBJECT OF THE FUND SO THAT THIS IS NOT ONLY A DEPOSIT INSURANCE SYSTEM, BUT ALSO AN APPROPRIATE INSTRUMENT TO STRENGTHEN THE SOLVENCY OF BANKS IN DEFENCE OF DEPOSITORS.

FOR THE GREATER EFFECTIVENESS OF THE FUND IN THE PERFORMANCE OF ITS FUNCTIONS IT IS NECESSARY TO INTRODUCE CERTAIN MODIFICATIONS IN ITS CURRENT REGULATIONS. IN THIS SENSE, THE PRESENT ROYAL DECREE INCREASES THE GUARANTEED AMOUNT OF DEPOSITS BY FIFTY PERCENT, PASSING THE GUARANTEED LIMIT OF FIVE HUNDRED THOUSAND TO SEVEN HUNDRED THOUSAND PESETAS.

THE NEED TO BUILD A FUND OF SUFFICIENT ENTITY HAS MOTIVATED THE ESTABLISHMENT WITH AN ANNUAL CHARACTER OF THE CONTRIBUTIONS OF THE BANKS, WHICH IN THE CURRENT REGULATIONS UNTIL NOW WERE DEMANDED ONLY ONCE. THESE CONTRIBUTIONS ALSO CEASE TO BE COMPUTABLE IN THE CASE-RATIO OF THOSE ENTITIES.

ON THE OTHER HAND, THE FUND MAY PROVIDE THE RESOURCES NECESSARY TO ESTABLISH THE ASSETS SITUATION OF THE BANKS, IN THE EVENT THAT THEIR SHAREHOLDERS DO NOT PROVIDE SUCH RESOURCES IN THE CASE OF CAPITAL INCREASES PROVIDED BY THE MODIFICATIONS INTRODUCED BY THE AFOREMENTIONED ROYAL DECREE-LAW.

FINALLY, AN AWARD SYSTEM IS PROVIDED FOR THE SALE OF THE SHARES ACQUIRED BY THE FUND, UNDER CONDITIONS OF ADVERTISING AND COMPETITION, AND TO ENTITIES WITH SUFFICIENT CAPACITY AND SOLVENCY, SO THAT THE BANKS CONCERNED CAN TO RECOVER ITS NORMAL OPERATION, MAINTAINING THE RIGHT OF PREFERENTIAL ACQUISITION BY THE STATE THAT IS CURRENTLY ESTABLISHED.

IN ITS VIRTUE, ON A PROPOSAL FROM THE MINISTRY OF ECONOMY AND AFTER DELIBERATION BY THE COUNCIL OF MINISTERS AT ITS MEETING ON 28 MARCH, I HAVE:

ARTICLE FIRST.-ONE. THE DEPOSIT GUARANTEE FUND IN BANKING ESTABLISHMENTS, WHICH WAS CREATED BY THE ROYAL DECREE THREE THOUSAND AND FORTY-ONE THOUSAND NINE HUNDRED AND SEVENTY-SEVEN, OF ELEVEN OF NOVEMBER, AND ENDOWED WITH LEGAL PERSONALITY BY THE ROYAL DECREE-LAW FOUR/THOUSAND NINE HUNDRED AND EIGHTY-EIGHT MARCH WILL BE GOVERNED AND ADMINISTERED BY A MANAGEMENT COMMISSION MADE UP OF FOUR REPRESENTATIVES OF THE BANK OF SPAIN AND FOUR OF THE BANKS. ONE OF THE REPRESENTATIVES OF THE BANK OF SPAIN WILL HOLD THE PRESIDENCY. THE REPRESENTATIVES OF THE BANK WILL BE APPOINTED BY THE MINISTRY OF ECONOMY ON A PROPOSAL FROM THE BANK OF SPAIN. THE AGREEMENTS SHALL BE TAKEN BY A MAJORITY OF THE REPRESENTATIVES AND THE PRESIDENT SHALL HAVE A VOTE. ALTERNATE REPRESENTATIVES MAY BE APPOINTED, WHO SHALL REPLACE THE HOLDERS IN THE CASE OF VACANCIES OR ABSENCES.

TWO. THE MANAGEMENT COMMITTEE SHALL MEET, IN THE LIGHT OF THE SPECIAL NATURE OF ITS TASK, AT THE REQUEST OF ITS CHAIRMAN, ON ITS OWN INITIATIVE OR AT THE REQUEST OF ANY OF ITS MEMBERS, WITHOUT FURTHER NOTICE THAN IS NECESSARY TO ENABLE THEM TO BE INFORMED OF THE CALL.

THREE. AS SOON AS IT IS NOT LEGALLY ESTABLISHED, THE MANAGEMENT COMMISSION SHALL DETERMINE THE RULES OF ITS OWN OPERATION AND MAY AGREE TO THE DELEGATIONS IT CONSIDERS APPROPRIATE FOR THE PROPER EXERCISE OF ITS FUNCTIONS.

FOUR. THE MANAGEMENT COMMISSION, IN ADDITION TO THE FUNCTIONS LISTED IN OTHER ARTICLES OF THIS ROYAL DECREE, WILL HAVE THE FOLLOWING:

A) INFORMATION AND GENERAL ADVICE TO THE BANK OF SPAIN REGARDING THE OPERATION AND BEST FULFILMENT OF THE PURPOSES OF THE FUND.

B) DRAFTING OF THE BALANCE SHEET THAT THE FUND MUST PAY ANNUALLY TO ITS MEMBERS AND THE BANK OF SPAIN.

C) TO BE INFORMED BY THE BANK OF SPAIN OF THOSE BANKS THAT ARE IN ECONOMIC DIFFICULTIES AND CAN DETERMINE THE NEED FOR THE ACTION OF THE FUND, EITHER AT THE INITIATIVE OF THE BANK OF SPAIN ITSELF, MANAGEMENT COMMITTEE.

ARTICLE SECOND. -ONE. THE ANNUAL CONTRIBUTIONS OF THE BANKS INTEGRATED INTO THE FUND SHALL BE ONE PER THOUSAND OF THE DEPOSITS EXISTING AT THE END OF EACH FINANCIAL YEAR, LIMITING THE ECONOMIC AND LEGAL RESPONSIBILITY THEREOF TO THE DISBURSEMENT OF THIS ANNUAL CONTRIBUTION. THE BANK OF SPAIN WILL CONTRIBUTE AN ANNUAL AMOUNT EQUAL TO ALL OF THE BANKS ' CONTRIBUTIONS.

TWO. THE ANNUAL CONTRIBUTIONS OF THE IRANIAN BANKS TO COVER THE FUNCTIONS ATTRIBUTED TO THE FUND AND SHALL BE ENTERED IN THE BANK OF SPAIN FROM THE 10TH OF THE MONTH OF FEBRUARY FOLLOWING THE CLOSING OF EACH FINANCIAL YEAR, IN ONE OR MORE DISBURSEMENTS, ACCORDING TO CRITERIA OF THE MANAGEMENT COMMITTEE OR IN THE LIGHT OF THE NEEDS OF THE FUND. THESE CONTRIBUTIONS SHALL NOT BE COMPUTABLE WITHIN THE RESPECTIVE ENTITY ' S CASH RATIO.

THREE. TO ALL THE EFFECTS OF THIS ROYAL DECREE WILL BE THE CONSIDERATION OF DEPOSITS THE AMOUNTS WHICH, IN ACCORDANCE WITH THE CURRENT RULES OF THE BANK BALANCE LOOK IN THE HEADINGS "CREDITORS IN PESETAS" AND "CREDITORS IN FOREIGN CURRENCY" OF THE BUSINESS IN SPAIN OF THE BANKS MEMBERS OF THE FUND.

FOUR. IF THE FUND REACHES AN AMOUNT DEEMED SUFFICIENT FOR ITS PURPOSES, THE BANK OF SPAIN MAY AGREE TO A DECREASE IN THE ANNUAL CONTRIBUTION REFERRED TO IN PARAGRAPH 1 OF THIS ARTICLE.

FIVE. THE BANK OF SPAIN, AFTER REPORTING BY THE MANAGEMENT COMMISSION, MAY GRANT TO THE FUND ADVANCES, WITH OR WITHOUT INTEREST, UP TO THE AMOUNT OF FOUR ANNUITIES OF THE CONTRIBUTIONS OF THE MEMBER BANKS AND THEIR OWN CONTRIBUTIONS.

ARTICLE THIRD. -ONE. ALL THE BANKS CURRENTLY REGISTERED MAY BELONG TO THE FUND OR THEY WILL BE REGISTERED IN THE FUTURE IN THE REGISTER OF BANKS AND BANKERS, INCLUDING THE FOREIGN BANK OF SPAIN. MEMBERSHIP OF THE FUND WILL BE A PREREQUISITE FOR ACCESS TO THE FINANCING OF THE BANK OF SPAIN.

TWO. THE BANKS THAT ARE CREATED FROM THE DATE OF THE PUBLICATION OF THIS ROYAL DECREE WILL BE ABLE TO REQUEST THEIR INCORPORATION INTO THE FUND AND THE MANAGEMENT COMMISSION WILL ESTABLISH THE CONDITIONS AND REQUIREMENTS THAT MUST BE SATISFIED TO ACCESS THE REQUESTED.

THREE. ANY BANK ENTITY THAT WISHES TO DO SO MAY REQUEST ITS EXCLUSION FROM THE FUND PRIOR TO THE CANCELLATION OF THE FINANCING RECEIVED FROM THE BANK OF SPAIN.

FOUR. THE COMMISSION MAY AGREE THAT THE BANKS INTEGRATED INTO THE FUND SHALL BE SUBJECT TO AN ACCOUNTING AUDIT WITH THE FREQUENCY AND SCOPE TO BE ESTABLISHED. SUCH AN AUDIT MAY BE EXTENDED TO THE SUBSIDIARIES OF THE BANK OR THE GROUP OF COMPANIES CONTROLLING THE BANK.

FIVE. THEY WILL BE PUBLISHED IN THE "OFFICIAL STATE BULLETIN", AS SOON AS THE HIGH AND LOW LEVELS OF THE FUND ' S MEMBER BANKS OCCUR. THE BANKS INTEGRATED INTO THE FUND WILL MAKE THIS CIRCUMSTANCE PUBLIC IN THE FORM DETERMINED BY THE BANK OF SPAIN. THE COMMISSION SHALL INSERT INTO THE 'OFFICIAL STATE BULLETIN' THE RELATIONSHIP OF THOSE ENTITIES ANNUALLY.

SEIS. WHERE A BANK CAUSES A LOSS AS A MEMBER OF THE FUND, THE GUARANTEE OF THE FUND SHALL BE LIMITED TO THE BALANCES OF THE EXISTING PROTECTED DEPOSITS AT THE TIME OF ITS RELEASE, FOR THE PERIOD OF THREE MONTHS FOR THE CURRENT ACCOUNT AND SAVINGS ACCOUNTS, AND UP TO THEIR RESPECTIVE MATURITIES THE FIXED TERM IMPOSITIONS.

SIETE. BANKS WHICH, FOR ANY REASON, ARE LOW AS MEMBERS OF THE FUND, WILL NOT BE ENTITLED TO THE REPAYMENT OF THE AMOUNTS CONTRIBUTED TO IT AND WILL CONTINUE TO MAKE ANNUAL CONTRIBUTIONS UNTIL THE FUND ' S LOSSES ARE COVERED BY THE ACTIONS. INITIATED BY THE SAME UNTIL THE DATE OF THE DISCHARGE.

ARTICLE FOURTH. -ONE. THE DEPOSIT GUARANTEE WILL HAVE THE LIMIT OF SEVEN HUNDRED AND FIFTY THOUSAND PESETAS PER DEPOSITOR, WHETHER NATURAL OR LEGAL PERSON AND WHATEVER THE NUMBER AND CLASS OF DEPOSITS IN WHICH YOU ARE LISTED AS HOLDER IN THE SAME BANK. THIS LIMIT SHALL ALSO APPLY TO DEPOSITORS HOLDING DEPOSITS FOR THE HIGHEST AMOUNT.

TWO. THE FUND SHALL SATISFY THE HOLDERS OF THE AMOUNT OF THE DEPOSITS GUARANTEED IN THE CASE OF SUSPENSION OF PAYMENTS OR BANKRUPTCY OF A BANK, PRODUCING, FOR THE SAKE OF PAYMENT, THE SUBROGATION IN FAVOUR OF THE FUND IN ALL THE RIGHTS OF THE BANK. Creditor.

THREE. WHERE, IN THE CASE OF THE MANAGEMENT COMMITTEE, THERE ARE CIRCUMSTANCES IN WHICH THE RELATIONSHIP OR PARTICIPATION OF A DEPOSITOR MAY BE PRESUMED WITH THE REASONS FOR THE ENTRY INTO OPERATION OF THE FUND, THE REIMBURSEMENT OF THE THEIR RESPECTIVE DEPOSITS, AS LONG AS THEY ARE NOT LEGALLY DECLARED, AT THE REQUEST OF A PARTY, SUCH RELATIONSHIP OR PARTICIPATION.

THE OBLIGATION TO REPAY THE GUARANTEED DEPOSITS SHALL NOT INCLUDE THOSE MADE UP OF THE PROVISIONS IN FORCE.

ARTICLE QUINTO. -ONE. THE BANK OF SPAIN, AFTER A REPORT BY THE MANAGEMENT COMMISSION, MAY CONMINE THE DIRECTORS OF A BANK TO TAKE THE NECESSARY MEASURES WITHIN A MAXIMUM OF ONE MONTH IN ORDER TO RESTORE ITS PATRIMONIAL SITUATION, WHEN IT CONSIDERS, TO THE VIEW OF THE BALANCE SHEET AND INFORMATION OBTAINED BY AUDIT OR BY OTHER MEANS, WHICH GIVE RISE TO THE ASSUMPTIONS REFERRED TO IN ARTICLES 90 AND NINE AND ONE HUNDRED AND FIFTY THREE OF THE LAW ON PUBLIC LIMITED LIABILITY COMPANIES OR WHICH THEIR EXPRESS OR TACIT LOSSES ARE OF SUCH A MAGNITUDE JEOPARDISING THE NORMAL FUNCTIONING AND THE NECESSARY SOLVENCY OF THE INSTITUTION.

TWO. FAILURE TO COMPLY WITH THE STATEMENT REFERRED TO IN THE PRECEDING PARAGRAPH SHALL ENTAIL THE EXCLUSION OF THE INSTITUTION CONCERNED FROM THE FUND.

ARTICLE SIXTH. -ONE. THE FUND MAY SUBSCRIBE TO THE CAPITAL INCREASES APPROVED BY THE BANKS REQUIRED BY THE BANK OF SPAIN TO RESTORE ITS ASSETS IN THE EVENT THAT THEY ARE NOT COVERED BY THE SHAREHOLDERS OF THE BANK.

TWO. WITHIN ONE YEAR AND UNDER SUFFICIENT CONDITIONS OF PUBLICITY AND COMPETITION, THE FUND WILL OFFER TO SELL TO INSTITUTIONS WITH CAPACITY AND SOLVENCY THE SHARES ACQUIRED THROUGH THE SUBSCRIPTION OF THE EXTENSIONS REFERRED TO IN THE PREVIOUS PARAGRAPH, DECIDING IN FAVOUR OF THE LATTER TO PRESENT MORE ADVANTAGEOUS TERMS OF ACQUISITION. THIS DECISION SHALL BE COMMUNICATED TO THE MINISTRY OF ECONOMY SO THAT BY THE STATE, AND WITHIN A PERIOD OF 15 DAYS, A RIGHT OF PREFERENTIAL ACQUISITION MAY BE EXERCISED IN RESPECT OF SUCH SHARES.

THREE. IN ORDER TO ENABLE THE SHARES TO BE AWARDED IN THE CASE REFERRED TO IN THE PRECEDING PARAGRAPH, THE FUND MAY ASSUME LOSSES AND ACQUIRE LOANS OR LOANS OF DOUBTFUL RECOVERY WHICH APPEAR ON THE BANK ' S BALANCE SHEET, AS WELL AS LIABILITY. THE ECONOMIC OUTCOME OF THE FILES OR PROCEDURES OF DIFFERENT ORDER THAT ARE IN PROGRESS OR MAY BE SUBSEQUENTLY INITIATED TO THE AFFECTED ENTITY.

FOUR. THE FUND MAY ENTRUST TO "BANK CORPORATION, S. A.", THE ADMINISTRATION AND MANAGEMENT OF THE BANKS IN WHICH IT ACQUIRES THE MAJORITY OF THE CAPITAL AND THE ASSETS ACQUIRED IN ACCORDANCE WITH THE PREVIOUS PARAGRAPH.

ARTICLE SEVENTH. -THE MINISTER OF ECONOMY IS EMPOWERED TO DICTATE THE RULES THAT ARE NECESSARY FOR THE DEVELOPMENT OF THIS ROYAL DECREE, WHICH SHALL ENTER INTO FORCE ON THE DAY FOLLOWING ITS PUBLICATION IN THE "OFFICIAL STATE BULLETIN".

TRANSIENT DISPOSITION

THE FIRST ANNUAL CONTRIBUTION OF THE BANKS WILL BE MADE ON THE BASIS OF THE DEPOSITS THAT LOOK IN THEIR BALANCE SHEETS OF THE THIRTY-ONE OF DECEMBER OF ONE THOUSAND NINE HUNDRED AND SEVENTY-NINE. WITHOUT PREJUDICE TO THE PROVISIONS OF ARTICLE 2 (1) OF THIS ROYAL DECREE FOR SUCCESSIVE FINANCIAL YEARS, THE BANKS SHALL DISBURSE THIS FIRST CONTRIBUTION FOR THE FINANCIAL YEAR OF A THOUSAND NINE HUNDRED AND SEVENTY NINE FROM THEIR ALLOCATION. PRESENT TO THE FUND, CONSTITUTED BY VIRTUE OF THE PROVISIONS OF THE ROYAL DECREE THREE THOUSAND AND FORTY-ONE THOUSAND NINE HUNDRED AND SEVENTY-SEVEN, OF ELEVEN OF NOVEMBER. HOWEVER, THE FUND MAY MAINTAIN, YOU HAVE DEEMED IT APPROPRIATE TO CANCEL, ANY FINANCING GRANTED UNTIL THE ENTRY INTO FORCE OF THIS ROYAL DECREE.

REPEAL PROVISION

WERE REPEALED FROM THE DATE OF ENTRY INTO FORCE OF THIS ROYAL DECREE THE ROYAL DECREES THREE THOUSAND AND FORTY-ONE THOUSAND NINE HUNDRED AND SEVENTY-SEVEN, OF ELEVEN OF NOVEMBER, AND FIFTY-FOUR-THOUSAND NINE HUNDRED AND SEVENTY EIGHT, OF SIXTEEN JANUARY.

GIVEN IN MADRID TO TWENTY-EIGHT OF MARCH OF A THOUSAND NINE HUNDRED AND EIGHTY. -JUAN CARLOS R.-THE MINISTER OF ECONOMY, JOSÉ LUIS LEAL MALDONADO.