I. Subsidiary application of the law on prosecution

¹ Subject to the following restrictions, the Federal Act of April 11, 1889 on the Prosecution of Debts and Bankruptcy ¹ Applies to the prosecution of debts directed against municipalities and other communities governed by cantonal public law.

² This Law shall not apply to the Cantons themselves.

II. Pursuit Procedure

1. Prosecution Mode

A. Federal Law

¹ The pursuit of debts can only extend to the seizure or realization of a pledge.

² The following are excluded from bankruptcy proceedings, including the pursuit of foreign exchange effects, as well as the receiver. The provisions on the concordat, as well as the provisions which, by their nature, cannot be governed by the aforementioned communities, shall likewise be inapplicable.

³ No acts of default of property shall be issued. On the other hand, any seized creditor who has not been paid in full receives, for the unpaid amount, a certificate of discovery that is worth recognizing debt in the sense of s. 82 of the Federal Act of April 11, 1889 on the Prosecution of Debts and Bankruptcy ¹ .

⁴ The quality of the action required under s. 285 to 292 of the Federal Act of 11 April 1889 on the prosecution of debts and the bankruptcy belongs to the creditor carrying a certificate of discovery, as well as to the management within the meaning of the art. 28 ff of this Law and the cantonal government.

B. Cantonal law

¹ The cantons have the right to enact provisions on concordat.

² A concordat is lawful only if stewardship has been instituted and has not achieved its purpose within a reasonable period of time. Restrictions on the rights of creditors cannot go beyond the measures provided for in s. 13.

³ In order to be valid, the restrictions on the rights of creditors must have been approved by two-thirds of the creditors and representatives of creditors present at the meeting, with the majority of creditors having to hold two-thirds of the creditors. Claims represented and at least half of all commitments not covered by security rights.

⁴ If this majority is not reached, the higher cantonal prosecuting authority (supervisory authority) may, on appeal, exceptionally declare a decision approved by the simple majority of the Creditors present or represented at the meeting and having half of the claims represented, provided that this is necessary to enable the remediation. ¹

⁵ ... ²

2. Jurisdiction

¹ The canton shall designate, taking into account the art. 10 of the Federal Act of April 11, 1889 on the Prosecution of Debts and Bankruptcy ¹ , the authority responsible for performing the functions of the Office of the Prosecution.

² The persons concerned and the cantonal government may, within ten days, resort to the decisions of that authority before the supervisory authority for breaches of law or inexpediency. ²

³ The complaint for denial of justice and undue delay may be filed at any time.

⁴ ... ³

3. Mandatory Communications

¹ In the event of a complaint, the opportunity must be provided to the cantonal government to give its opinion.

² A shipment of any notice of seizure and of any requisition for sale must be sent to it.

4. Suspension of prosecution

¹ The supervisory authority may temporarily suspend the prosecution if the cantonal government provides that the situation of the creditors is not aggravated by the suspension.

² The prosecuting creditor may, at any time, request the supervisory authority ¹ Continuation of the prosecution where the measures taken by the cantonal government are not or are no longer sufficient.

III. Property that is garnisheed and can be pledged

1. Property garnishable

A. In general

¹ All the heritage properties of a community referred to in s. 1 may be seized, subject to existing rights. 1.

² Re-enter heritage assets that are not administrative assets.

B. Relatively garnishable goods

¹ The establishments and undertakings of a community which are assigned to a public service, as well as the forests, pastures and public alpages, can be seized and carried out only with the consent of the cantonal government.

² The latter may make the seizure or enforcement subject to conditions.

³ Is reserved for art. 23 of the Federal Act of 11 October 1902 concerning the High Surveillance of the Confederation on the Police of Forests ¹ .

2. Exempt Assets

¹ For the purposes of this Act, the administrative assets of a community under public law are all those who are directly engaged in the performance of their duties under public law. Administrative goods cannot be seized or subjected to forced enforcement, even with the consent of the debtor, as long as they remain assigned to a public service.

² Tax claims may not be subject to seizure or enforcement.

3. Property that can be pledged

A. In general

¹ Unfit goods cannot be validly constituted as a pledge as long as they remain assigned to a public service. If the law makes the seizure subject to the consent of the cantonal government, such consent is also necessary for the formation of a pledge.

² Where the pledge is lawful, it shall be effected in the form and with the effects provided for in civil law.

B. In the case of the conversion of heritage properties to administrative goods

¹ When a private property or a return to the economic assets of the public law community is encumbered by contract and is to be assigned to a public service, it is necessary, upon request, to disengage the gaining creditor or provide it with security rights.

² In the meantime, the building must be treated as a heritage property.

4. Property for a specified purpose

¹ Property earmarked for a specified purpose in favour of third parties (funds analogous to foundations, public officer suretyships, pension funds, etc.) can only be pledged, seized and realised as a result of commitments resulting from this Assignment.

² The prosecution for such undertakings is directed against the public law community.

I. Restrictions on bond rights

1. Principle

When a community referred to in s. 1 issued directly or indirectly, as a result of a public subscription, a loan by bonds subject to uniform conditions and that it is not in a position to meet its liabilities resulting from the loan, the restrictions The following may be applied to bond rights in accordance with the procedure set out in this Act:

A.

An extension of five years at the most of the time limit for the amortization of a loan by reducing the amount of each annuity and increasing the number of annuities, or full suspension of the depreciation;

B.

A stay of up to five years from the decision of the meeting of creditors to the repayment of loans or shares of borrowed or matured borrowings within the period of one year;

C.

A stay of up to five years for the payment of a portion or, in exceptional cases, the total amount of interest due or due within five years;

D.

The creation of a lien on new capital to be paid to the debtor, with a right of priority over an earlier loan, and modification of security rights to guarantee a loan or a partial waiver of such security rights;

E.

Exceptionally, reducing, to a maximum of half, the interest rate to maturity within five years;

F.

In exceptional cases, remitting overdue interest to a maximum of half.

2. Additional provisions

¹ Measures under s. 13 cannot be validly excluded either by the terms of the loan or by other conventions.

² Many of these measures can be combined.

³ The measures provided for under let. A To C And E May, at least one year before the expiration of the time limit, be renewed twice and every time for five years.

II. Opening of the proceedings

1. Query

¹ The request for commencement of proceedings shall be sent by the debtor to the cantonal government, who shall forward it to the supervisory authority by including its opinion.

² The request shall contain a detailed statement of the financial situation of the debtor and be accompanied by the current year's budget, as well as the accounts and, where appropriate, the annual reports of the last five years.

³ The authority may request additional information.

2. Review of the Financial Position

¹ The supervisory authority shall immediately take measures to establish exactly the financial situation of the debtor. For this purpose and after consulting the Swiss National Bank, it shall appoint, if necessary, a committee of experts of up to three members. It submits the report of that committee to the cantonal government for its opinion.

² If the debtor is governed by a stewardship instituted under the cantonal law or this Act, the supervisory authority may adhere to the findings of the stewardship.

³ The supervisory authority may order that it be temporarily suspended for the payment of the matured debt of the bondholders and, as it deems necessary, the payment of other claims.

III. Assembly of Creditors

1. General Rules

¹ If it is clear from a preliminary examination that the debtor's financial position cannot, at the present time, be restored by other means, the supervisory authority shall convene a meeting of the bondholders to whom it is to be requested. Sacrifices.

² When several borrowings are considered, it is appropriate to convene a separate meeting of creditors for each of them.

³ A member of the supervisory authority directs the meetings of creditors, ensures that decisions are recorded in the minutes and ensures their execution. ¹

2. Participation in the Assembly

¹ The bondholders or their representatives who meet in a meeting of creditors must, before the commencement of the proceedings, justify their right to participate.

² The representation of a bond may be exercised only by virtue of written powers, unless it derives from the law.

³ The organs of the debtor are not permitted to represent obligations.

3. Right to vote

¹ The right to vote shall belong to the owner of an obligation or to his representative; if the obligation is encumbered by usufruct, it shall, however, belong to the usufructuary or his representative.

² The obligations of which the debtor is an owner or usufructuary do not confer any voting rights and do not count for the calculation of the capital in circulation or for that of the capital represented at the meeting of creditors.

4. Required Majority

A. In general

¹ Restrictions on the rights of creditors under s. 13 may be decided only with the consent of creditors holding two-thirds of the capital stock represented at the meeting and at least the simple majority of the capital-bonds in circulation.

² Where a decision cannot be taken at the meeting of creditors in the absence of the necessary number of votes, the debtor may, within two months after the meeting, complete the number of votes by handing over to the supervisory authority Written and legalized statements by creditors, and thus obtain a majority vote.

³ Where a decision has been approved by a simple majority, not of the capital in circulation, but of the capital represented at the meeting of creditors, the supervisory authority may exceptionally declare it mandatory for all bondholders.

B. Plurality of creditor communities

¹ If there are several communities of creditors, each of them may make its decisions conditional on the condition that other communities of creditors make equal or corresponding sacrifices.

² Where, in such cases, a proposal by the debtor has been approved by a simple majority of the capital in circulation of all the communities of creditors, the supervisory authority may declare the decision compulsory even for the communities which do not Have not joined.

5. Conditions

¹ Measures under s. 13 may be decided only if they are necessary and proper to the recovery of the debtor's situation and if, for that purpose, everything that can be fairly demanded has already been accomplished.

² They must be applied equally to all bondholders who are in the same legal position, unless some of them expressly agree to be treated less favourably.

³ The promises made or the benefits granted to certain creditors to the detriment of the other members of the community are void.

IV. Force Required

¹ Decisions of the community of creditors shall be binding only after they have been approved by the supervisory authority; they shall also bind the bondholders who have not acceded to it.

² Approval can only be granted if the decision fulfils the legal requirements, sufficiently safeguards the common interests of the bondholders and has not intervened in the wake of unfair manoeuvres.

³ Approval of a stay decision may be subject to the condition that the financial administration of the debtor be monitored for the duration of the stay.

V. Extension to other creditors

1. Principle

¹ The supervisory authority may, for reasons of fairness, extend the procedure to other creditors than bondholders and impose equal or corresponding sacrifices on them.

² In particular, it can do so in order to allow for a consolidation required by equity, but which could not be ensured without that.

³ However, where these creditors represent more than one-third of the obligations in question, the supervisory authority may make sacrifices to them only if they accept them by a simple majority and if the acceptor creditors are more than Half of the total amount of claims covered by the procedure.

2. Hearing. Equal treatment

¹ The supervisory authority will hear these creditors before submitting them to the proceedings.

² Between them, they must be treated equally, bearing in mind, however, the rights of pledge or other privileges that exist in their favour and, where appropriate, the sacrifices they have already made.

3. Exceptions

These measures do not apply to the statutory liability of the debtor under the Act, or to insurance premiums, wages, salaries, pensions, or other liabilities of the debtor that represent exempt debts.

VI. Revocation of the Stay

¹ Where a stay has been granted, the supervisory authority shall, at the request of a bond or other creditor subject to that procedure, revoke it in the following cases:

A.

Whether the circumstances that made it necessary have ceased to exist;

B.

The debtor contravening the conditions of the stay;

C.

If, during the period of the stay, the financial situation of the debtor has substantially worsened, to the extent that the rights of the creditors are seriously endangered.

² Similarly, the supervisory authority shall, at the request of a bond or other creditor subject to the procedure, cancel in future the reduction in the interest rate, where the circumstances justifying the reduction have ceased to exist Or the debtor is in contravention of the conditions imposed.

I. Stewardship Institution

1. Mandatory Stewardship

¹ When a community referred to in s. 1 declares itself insolvent or will not be able, according to any forecast, to fulfil its financial commitments for a long time, and where administrative management of cantonal law is nevertheless not instituted within a suitable time or is revealed The supervisory authority shall establish, at the request of an interested party, a stewardship within the meaning of this Act.

² It may, however, waive it if the creditor community procedure can be applied and sufficient, or if the interests of the creditors can be sufficiently safeguarded in a different manner.

³ Have the quality to require the institution of a stewardship of the debtor itself, the cantonal government and any creditor who justifies a legitimate interest.

2. Optional Stewardship

¹ To avoid, within the meaning of s. 6, the continuation of a prosecution, the supervisory authority may also, at the request of the debtor or the cantonal government, institute a stewardship if the realization of the pledge does not appear to be appropriate and the interests of the creditors can be Also backed up by stewardship.

² If the result of the seizure is insufficient, or if it is feared that the unsecured creditors will be adversely affected, or if it is accepted that the bondholders will have to consent to a restriction of their rights in accordance with Art. 13, the authority may institute proceedings on the request of one of these creditors or a bond.

3. Duration. Restrictions

¹ Stewardship may be instituted for a period of up to three years.

² However, if the circumstances so require, it may be extended, at the earliest six months before the expiry of the period, for a period of not more than three years.

³ Stewardship may be limited to part of the administrative task of the debtor.

4. Query

¹ The request for the establishment of a stewardship shall be addressed to the Supervisory Authority.

² Where the request emanates from creditors, it shall be communicated for reply to the debtor and to the cantonal government, given that it will be decided on the request if the creditors in question are not disinterested within the period of one month.

³ Where the request is made by the debtor, the cantonal government must give its opinion. The request shall contain a detailed statement of the financial situation of the debtor, to which the current year's budget will be attached and, where appropriate, the annual accounts and reports of the last five years. The authority may request additional information.

5. Decision

¹ The Supervisory Authority shall act on the institution of stewardship. ¹

² The institution of a stewardship must be notified in writing to the debtor, as well as to the cantonal government. It must be published.

³ Prior to the institution of stewardship, the supervisory authority may, as a provisional measure, grant the debtor a stay of up to three months and, after consulting the cantonal government, restrict for the duration of the stay the powers conferred The ordinary organs of the debtor or suspend them from their duties.

6. Appointment of Managers

¹ The supervisory authority, in agreement with the cantonal government, entruss the stewardship to one or more persons.

² The cantonal government sets the compensation for the managers. This compensation is allocated to them at the expense of the debtor.

³ The responsibility of the managers is regulated by the s. 5 ff of the Federal Act of April 11, 1889 on the Prosecution of Debts and Bankruptcy ¹ .

II. Stewardship Tasks

1. In general

¹ Without prejudice to the administrative tasks of the debtor, stewardship ensures that, within the limits of the financial plan, matured debts are paid as quickly as possible and treated equally, taking into account the order of maturity And security rights that guarantee them.

² It puts financial order and, as far as possible, reduces expenditure and increases revenue.

2. Recovery of claims and realization of assets

¹ In particular, stewardship will include tax arrears and other unpaid claims.

² It is authorized to carry out the necessary legal operations and, if necessary, to carry out the economic assets. It can carry out its own achievements. But it affects the product of wages in the first place to the payment of secured claims by pledge, according to their rank.

3. Responsibility and Revocation Actions

Stewardship carries out liability actions and revocatory actions, unless the supervisory authority acquiesce in the abandonment of the action or a transaction.

4. Taxes and taxes

¹ If it is necessary and appropriate, the management shall, ex officio or at the request of a creditor and with the consent of the cantonal government, increase taxes and other contributions and create taxes for the benefit of Public services or the provision of public goods or suitably augment those that exist. In this case, it is not bound by the common provisions.

² Similarly, it may, with the consent of the cantonal government, introduce taxes or other contributions and taxes that the debtor would have the power to waive under the cantonal law.

5. Balance sheet and financial plan

¹ At the beginning of its activity and unless special circumstances justify an exception, the stewardship issues an appeal to the creditors, establishes an inventory listing separately the property and values returning to the property, establishes a Review and develop a plan of planned measures to clean up finances. It shall draw up a balance sheet at the end of each annual financial year.

² It shall communicate to the debtor and the cantonal government a copy of the balance sheet and the financial plan, together with a report on the situation of the debtor.

³ The financial plan must be publicly filed for 30 days, giving notice to creditors. Any person concerned may, during that period, attack him before the supervisory authority.

III. Powers

¹ By establishing stewardship, the supervisory authority sets out exactly the powers. As the competent authority, it exercises the powers of the ordinary administrative bodies and their supervisory administrative authorities in financial management.

² Unless it is a matter of covering current expenditure by means of existing income, ordinary bodies may not, without the consent of the management, make no decisions or measures relating to expenditure and income or to dispose of or To encumber assets or values or to enter into new commitments. The rights of the purchaser in good faith are reserved.

³ The measures taken by management are not subject to the municipal referendum, and the municipal right of initiative cannot be exercised in respect of them.

⁴ Stewardship may, with the consent of the supervisory authority, delegate some of its powers to the ordinary organs of the debtor.

IV. Debtor obligations

¹ The ordinary organs of the debtor are required to carry out the orders that are given to them within these limits through stewardship.

² In the event of misconduct, the authors of the violation of these requirements are personally liable.

³ As to the revocability of prior legal acts in the institution of stewardship, s. 285 to 292 of the Federal Act of April 11, 1889 on the Prosecution of Debts and Bankruptcy ¹ Are applicable by analogy.

Suspension of prosecution and time limits

¹ During the tenure of the stewardship, no action can be taken against the debtor for the commitments it entered into prior to the institution of stewardship.

² Remaining suspended, for such undertakings, the prescription or the lapse which may be interrupted by an act of prosecution.

VI. End of Stewardship

1. Cause

¹ Stewardship shall terminate upon the expiration of the time for which it has been instituted, unless that time has been extended.

² The supervisory authority, on request or ex officio, shall terminate it earlier, as soon as the circumstances permit, in particular when the restoration of the financial balance appears assured.

2. Consequences

¹ The supervisory authority may decide that some of the measures taken during the course of the stewardship will be maintained for a specified period of time.

² A stay of the obligations of the debtor, however, may be granted only for a period expiring not later than three years after the end of the stewardship.

³ The supervisory authority must revoke the stay if the conditions set out in s. 27 are completed.

VII. Recourse

1. To the Supervisory Authority

Any interested person may, within ten days, refer the decisions of the stewardship to the supervisory authority when they violate the law or are simply not appropriate to the circumstances, as well as for the denial of justice or undue delay.

2. At the Federal Court

¹ The decisions of the Supervisory Authority may be the subject of civil proceedings before the Federal Court, in accordance with the Law of 17 June 2005 on the Federal Court ² .

² The quality to be used includes:

A.

To the debtor or to the cantonal government if the appeal is for the decision establishing or refusing to put an end to the proceedings, or the decision refusing to grant a stay as a consequence of the management or revocation of such a stay;

B.

To any person who has submitted a valid proposal if the action is the subject of the decision on:

1.

Rejection of a proposal for stewardship,

2.

The refusal to revoke a stay of stewardship,

3.

The refusal to introduce or increase taxes and other contributions or taxes,

4.

Refusal to request, in accordance with s. 37, the agreement of the cantonal government;

C.

To any creditor who warrants a legitimate interest if the purpose of the appeal is the decision to terminate the stewardship before the expiration of the time limit, or the decision to grant a stay of management.

I. Execution Orders

¹ The Federal Council shall issue the implementing provisions. ¹

² ... ²

³ The cantons may, by order, delegate to a special authority the powers conferred on the supervisory authority by this Act.

II. Entry into Force and Repeal Clause

¹ The Federal Council shall fix the date of entry into force of this Law.

² The Act repeals all federal and cantonal requirements to the contrary.

³ In particular, the Federal Order of 5 October 1945 to protect the rights of creditors of loans issued by corporations governed by public law ¹ .

⁴ The provisions of chap. Thirty-fourth of the Code of Obligations ² And the requirements of the Order of 20 February 1918 on the Community of Creditors in Bond Borrowings ³ Are not applicable to the borrowings of the Confederation, the cantons and the municipalities, as well as those of other communities or institutions of public law.