← Lietuva

THE LAW OF THE REPUBLIC OF LITHUANIA

THE LAW OF THE REPUBLIC OF LITHUANIA official translation REPUBLIC OF LITHUANIA LAW ON THE INSURANCE OF DEPOSITS OF INDIVIDUALS 21 December 1995 No.I-1152 (As amended by 24 June 1997 VIII-296) CHAPTER ONE GENERAL PROVISIONS Article 1. Objective of the Law The objective of this law is to establish the procedure for the compulsory insurance of individuals’ deposits kept at the banks of Lithuania and for the compensation of these deposits out of the resources of Deposit Insurance Fund (hereinafter referred to as Fund). Article 2. Definitions As used in this law: Individuals means citizens of the Republic of Lithuania, persons permanently residing in the Republic of Lithuania, as well as foreign nationals and stateless persons; Insurance indemnity means the amount covered by insurance payable to an individual in the occurrence of insurance event; Insurance contribution means a contribution paid by the insured to the Deposit Insurance Fund in the manner established by this Law; The insured means a commercial bank which has paid into the Fund the whole first annual insurance contribution and which pays the subsequent contributions in the established manner; Insurance event means the instituting of bankruptcy proceedings against the insured in the manner established by the Law on Commercial Banks; Deposit means one or several personal deposits in the same bank, belonging to one and the same person; Insurance sum means the amount of insured deposit. CHAPTER TWO DEPOSIT INSURANCE Article 3. Object of Insurance and Insurance Sum The object of insurance are litas-denominated deposits and foreign currency -United States dollars and currency of the EU member states (hereinafter referred to as foreign currency)- deposits of individuals kept with the banks of Lithuania. Foreign currency deposits of individuals placed in the subsidiaries and branches of the banks of Lithuania, operating outside the territory of the Republic of Lithuania shall not be insured. The insurance sum shall be equal to the balance of the deposit in litas and/or foreign currency, which was in the bank on the day of the occurrence of insurance event, however, the amount may not be in excess of: 1) LT25000 from 1 January 1998; 2) LT45000 from 1 January 1999; and 3) LT65000 from 1 January 2000. Article 4. Insurance Indemnity The individual shall become entitled to insurance indemnity from the day of occurrence of the insurance event. Amounts of insurance indemnity: 1) from 1 January 1998:

  1. a)100% of the deposit in litas up to LT5000 of the insurance amount;
  2. b)90% of the deposit in litas from LT5000 to LT10000 of the insurance amount;
  3. c)70%of the deposit in litas from LT10000 to LT25000 of the insurance amount;
  4. d)90%of the deposit in foreign currency up to LT5000 of the insurance amount;
  5. e)80% of the deposit in foreign currency from LT5000 to LT10000 of the insurance amount;
  6. f)60% of the deposit in foreign currency from LT10000 to LT25000 of the insurance amount; 2) from 1 January 1999:
  7. a)100% of the deposit in litas up to LT10000 of the insurance amount;
  8. b)90% of the deposit in litas from LT10000 to LT25000 of the insurance amount;
  9. c)70% of the deposit in litas from LT25000 to LT45000 of the insurance amount;
  10. d)90% of the deposit in foreign currency up to LT10000of the insurance amount;
  11. e)80% of the deposit in foreign currency from LT10000 to LT25000 of the insurance amount;
  12. f)60% of the deposit in foreign currency from LT25000 to LT45000 of the insurance amount; 3) from 1 January 2000:
  13. a)100% of the deposit in litas up to LT250000 of the insurance amount;
  14. b)90% of the deposit in litas from LT250000 to LT45000 of the insurance amount;
  15. c)70% of the deposit in litas from LT45000 to LT65000 of the insurance amount;
  16. d)90% of the deposit in foreign currency up to LT25000of the insurance amount;
  17. e)80% of the deposit in foreign currency from LT25000 to LT45000 of the insurance amount;
  18. f)60% of the deposit in foreign currency from LT45000 to LT65000 of the insurance amount. Insurance indemnity shall be paid out within three months from the occurrence of the insurance event. The Fund Council may extend the period for up to three months. The payment of insurance indemnities shall start not later than within three months from the date of occurrence of insurance event. The Fund Council may extend this term for no longer than three months. Insurance indemnities shall be paid to individuals without restrictions, with the exception of cases specified in Article 5 of this law. The procedure for the payment of insurance indemnities shall be announced by the Fund Council in “Valstybës þinios” (Official Gazette). Article 5. Restrictions on the Payment Insurance of Indemnity The Fund shall not pay indemnities on : 1) interest on deposit accounts; 2) deposits declared by court decision as obtained by illegal means; 3) deposits of affiliated to the bank persons; 4) deposits of a bank borrower, if their amount is not in excess of the principal and interest owed to the bank. If the deposit of a bank borrower is in excess of the principal and interest owed to the bank, the difference between the deposit and the principal and interest but not in excess of the amount specified in paragraph 1 of Article 4 of this law shall be indemnified; 5. deposits kept in anonymous and codified accounts; 6. deposits up to 10 litas or the equivalent thereof in foreign currency; 7. deposits placed in the banks in which at least 51% of share capital is held by the state by the right of ownership. The Fund Council shall suspend the payment of indemnities to those individuals relative to the legality of the acquisition of the deposit funds thereof law enforcement institutions have been addressed, but the decision has not yet been adopted. Article 6. Insurance Contribution Annual insurance contribution shall be in the amount of 1.5% of all deposits of individuals, kept with a bank in litas or foreign currency. Beginning from 1 January 2000, annual insurance contribution shall amount to 1% of all deposits of individuals kept with the bank in litas and foreign currency. The procedure for the calculation and payment of the contribution as well as the term of payment shall be established by the Fund Council. The banks of Lithuania, with the exception of cases specified in paragraph 2 of Article 3 and Article 25, must insure with the Fund the deposits of individuals and pay annual insurance contributions specified in paragraph 1 hereof. If the insured fails to pay an annual insurance contribution or a part thereof to the Fund's account, an interest at 0.2% shall be charged for each overdue day on the sum not paid when due. Article 7. Termination of Insurance If the Bank of Lithuania suspends or revokes the license of the insured to perform one or all operations, suspends the powers of the bank council, removes from office the bank board, head of the bank administration, and appoints temporary administrator of the bank, restricts the use of the insured’s accounts at the Bank of Lithuania, and in other cases when the risky activities of the insured threatens the liquidity of the Fund, the Fund Council shall have the right to terminate the insurance of new deposits accepted by the insured. The Fund must give to the insured at least 6 months notice of the termination of the deposit insurance. If the insured fails to eliminate the violations within this period, the deposit insurance shall be terminated by the decision of the Fund Council. If the bank in which deposit insurance is terminated, goes bankrupt, the Fund shall pay indemnities to those individuals whose deposits were kept in the bank prior to the announcement of the decision to terminate deposit insurance in the “Valstybës þinios” (Official Gazette). CHAPTER THREE DEPOSIT INSURANCE FUND Article 8. Status of the Fund The Fund is a state enterprise registered in the Republic of Lithuania, having the rights of a legal person, independent balance sheet and an account in the Bank of Lithuania, a seal with the state emblem and its name "Deposit Insurance Fund". The founder of the Fund is the Ministry of Finance of the Republic of Lithuania. The Fund shall be registered in accordance with the procedure established by the Law on the Register of Enterprises. In its activities the Fund shall be governed by the Law on State and Municipal Enterprises and other legal acts unless this law does not provide otherwise, as well as by its statutes. The Fund shall not be liable for the obligations of the state. The state shall be liable only for the insurance liabilities of the Fund, established in this law. Article 9. Statutes of the Fund The Statutes of the Fund must specify the functions of the Fund, the rights and duties of its council and administration, as well as other requirements set forth in Article 6 of the Law on State and Municipal Enterprises of the Republic of Lithuania. The Statutes of the Fund shall be approved by the Government of the Republic of Lithuania. Article 10. Functions of the Fund While implementing this Law, the Fund shall perform the following functions: 1) accumulate, manage and dispose of the funds collected in the manner prescribed by this law; 2) pay insurance indemnities to individuals; 3) supervise whether the insured do not violate the deposit insurance procedure; 4) perform other functions established in the Fund Statutes. Article 11. Activities of the Fund The Fund shall insure the deposits of individuals, invest the resources of the Fund and carry out other activities provided for in the Statutes of the Fund. Article 12. Rights of the Fund While performing the functions assigned to it, the Fund shall have the right to: 1) have an account with the Bank of Lithuania; 2) conclude agreements and assume obligations; 3) use the funds and property of the Fund; 4) terminate deposit insurance in the cases specified in Article 7 of this law; 5) verify the payment of insurance contributions; 6) obtain information from the insured and the Bank of Lithuania necessary for the performance of the functions of the Fund; 7) take loans necessary for the fulfillment of the obligations of the Fund, which are guaranteed by the Government of the Republic of Lithuania; 8) receive part of the assets of the bank which is being liquidated under the Law on Commercial Banks of the Republic of Lithuania; 9) recover overdue contributions from the insured without suit; 10) engage in other activities provided for in the Statutes of the Fund. Article 13. Management of the Fund Management bodies of the Fund shall be the Council and the Administration. Article 14. The Fund Council The Council shall consist of five members appointed by the Government of the Republic of Lithuania. The Ministry of Finance and the Bank of Lithuania shall nominate two candidates each, whereas the Budget and Finance Committee of the Seimas shall nominate one candidate. The Council shall be formed for the term not exceeding 4 years. Its composition shall be renewed every two years by replacing at least two members. Only citizens of the Republic of Lithuania may be members of the Council. The Fund Council shall be headed by a chairperson of the Council. He /she shall be appointed by the Government of the Republic of Lithuania. The Fund Council shall: 1) appoint and dismiss from office the head of the Fund administration and chief financier; 2) submit proposals to the Government, concerning the amendments to the Statutes of the Fund; 3) establish capital adequacy ratio of the Fund; 4)establish the procedure for the calculation and payment of insurance contributions and the term of payment; 5) establish the procedure for the calculation and payment of insurance indemnities; 6) establish the procedure for the investment of the resources of the Fund; 7) adopt decisions on the termination of deposit insurance; 8) approve annual report of the Fund; 9) approve the estimate of expenditure not associated with the payment of indemnities; 10) establish the procedure for the satisfaction of individuals’ claims concerning the payment of insurance indemnities; 11) determine what is the secret of the Fund; 12) fix the remuneration of the head of administration and chief financier of the Fund; 13) consider applications of individuals, concerning the actions of the Administration. Article 15. The Administration of the Fund The Administration shall manage the Fund as prescribed by its Statutes. The activities of the Administration shall be run by the head of the Administration, who shall be answerable to the Council. The head of the Administration shall conclude and terminate employment contracts with the employees of the Fund, in the manner prescribed by laws. Pursuant to the Statutes of the Fund, the head of the Administration shall have the right to enter into contracts on behalf of the Fund, to represent the Fund at state power and governing institutions, the court, in maintaining relations with other persons as well as may have other rights specified in the Statutes of the Fund. The head of the Administration and the employees must compensate the Fund for the damages caused through their fault, in the manner prescribed by the laws of the Republic of Lithuania. Article 16. Confidentiality of the Secrets of the Fund The information that is deemed a secret of the Fund may be furnished only to the institutions established by laws and in the manner prescribed by laws. The secret of the Fund may be divulged to relevant institutions of other states only provided the confidentiality of such information is guaranteed by the laws of those states. For the disclosure of information deemed a secret of the Fund the members of the Fund Council and its employees shall be liable in accordance with the procedure established by laws. Article 17. Capital of the Fund The capital of the Fund shall consist of authorised and reserve capital. The authorised capital of the Fund shall be formed out of the funds of the state budget. The authorised capital of the Fund must be increased over 1997 and 1998 up to 50 m litas. If the assets of the Fund fall below its liabilities, the funds for their increase up to the amount of its authorised capital shall be provided for when approving the state budget for the coming year. The reserve capital shall be formed out of the profit of the Fund. Article 18. Revenue of the Fund Revenue of the Fund shall consist of : 1) insurance contributions; 2) late charges and penalties; 3) revenue from investment of the funds of the Fund; 4) funds recovered from the bank under liquidation in the manner prescribed by laws; 5) revenue from other activities provided for in this law and the Statutes of the Fund. Article 19. Expenses of the Fund Expenses of the fund shall consist of: 1) insurance indemnities; 2) labour costs; 3) expenses of operations in securities; 4) interest on loans taken by the fund; 5) other expenses of activities that do not contradict the laws of the Republic of Lithuania and the Statutes of the Fund. Article 20. Profit (Loss) of the Fund The Profit (loss) of the financial year of the Fund shall be calculated by subtracting from the revenue of the Fund its expenses. The total profit of the Fund shall be used for the increase of the Fund’s reserve capital. The financial year shall start on 1 January and end on 31 December. Article 21. Investment of the Fund’s Resources The resources of the Fund may be invested only into securities of the Government of the Republic of Lithuania and other states. Article 22. Supervision of Financial Activities Annual financial account of the Fund must be examined by an independent auditor and made available to the public not later than within three months from the end of the financial year. Article 23. Exemption of the Fund from Taxation The Fund shall be exempt from the profit tax of legal persons and payment of interest into the state budget, on the capital used. Article 24. Appeal against the Decisions of the Fund The actions of the Fund may be appealed against to court within one month from the day of the commitment of such action. CHAPTER FOUR FINAL PROVISIONS Article 25. Participation of the Operating Banks in the System of Compulsory Insurance The following banks shall not be eligible to participate in the compulsory deposit insurance system: 1) banks which do not accept deposits from individuals; 2) banks in respect of which measures specified in subparagraphs 3, 7, 8, and 9 of paragraph 1 of Article 37 of the Law on Commercial Banks have been applied or the bankruptcy proceedings have been instituted. The Fund Council may allow the banks in respect of which measures specified in subparagraph 3 of paragraph 1 of Article 37 of the Law on Commercial Banks have been applied, to participate in the compulsory deposit insurance system, taking into account the bank’s financial position and the nature of the committed violation. After the Bank of Lithuania revokes the measures referred to in this Article, the banks must insure deposits of individuals in the manner prescribed by this law. To establish that subparagraph 7 of paragraph 1 of Article 5 of this law will become invalid as of 1 January 1997. Article 26. Eligibility for Insurance Indemnity Deposit holders shall become eligible to receive insurance indemnities specified in paragraph 2 of Article 4 of this law, after the bank pays the total annual insurance contribution. Article 27. Proposals to the State Institutions of the Republic of Lithuania To propose to the Government of the Republic of Lithuania to draft by 10 January 1996 the amendments and supplements to the laws of the Republic of Lithuania, regulating the activities of commercial banks and other credit institutions, which would provide for strict and effective supervision of these banks and would guarantee the stability of the national banking system, the security of households’ deposits and the preservation of the funds of the Deposit Insurance Fund, established by this law, and after the approval by the Bank of Lithuania, to submit them to the Seimas. To propose to the Ministry of Finance by 1 April 1996, to establish the state enterprise “Deposit Insurance Fund” in the manner established by this law. I promulgate this law passed by the Seimas of the Republic of Lithuania. PRESIDENT OF THE REPUBLIC ALGIRDAS BRAZAUSKAS

🔗 Į oficialų šaltinį

DI paaiškinimas pagal oficialų įstatymo tekstą. Orientacinis, nepakeičia teisinės konsultacijos.