2.Legal acts of the supervisory institution may establish the cases when supervision on a consolidated basis shall not be exercised in respect of the financial institutions belonging to a financial group, also establish the cases when supervision on a consolidated basis of a financial group shall be exercised also in respect of the undertakings not belonging to the financial group.
\n
Article 58Drawing up of Consolidated Accounts for Supervision Purposes
\n
1.A bank which is the parent institution of a group or a bank belonging to a financial group (where the parent institution of the group is a financial holding company) must prepare and submit to the supervisory institution the consolidated financial reports and reports meant for supervision of the whole financial group. The said reports must be submitted quarterly within the time limits set by the supervisory institution.
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2.The undertakings subject to supervision on a consolidated basis, the mixed-activity holding companies and the undertakings controlled by them, also the undertakings controlled by the parent institutions of a group not subject to supervision on a consolidated basis must submit to the bank indicated in paragraph 1 of this Article the reports, data and information required for the drawing up of consolidated accounts and the exercise of supervision on a consolidated basis.
\n
Article 59Supervision on a Consolidated Basis
\n
1.The supervisory institution specified in Article 64 of this Law shall exercise supervision of the whole financial group on a consolidated basis, except in the cases referred to in paragraphs 2 and 3 of this Article.
\n
2.Where a bank holding the licence issued by the supervisory institution belongs to a financial group consisting of at least one foreign bank licensed in another Member State of the European Union, the institution exercising supervision of the whole financial group on a consolidated basis shall be determined by the agreements concluded with the supervisory institutions of other Member States of the European Union or the criteria set by legal acts of the supervisory institution.
\n
3.Where a bank holding the licence issued by the supervisory institution belongs to a financial group wherein the parent undertaking of the group falls under the jurisdiction of a state other than a Member State of the European Union, the supervisory institution specified in Article 64 of this Law shall supervise on a consolidated basis only the part of the financial group wherein the bank holding the issued licence is the parent undertaking of the group.
\n
4.The supervisory institution exercising supervision of a financial group on a consolidated basis may, for the purposes of consolidated supervision and by addressing directly or via the bank under supervision, request that the persons indicated in paragraph 2 of Article 58 of this Law submit, and they must submit, the reports, data or information necessary for the supervisory institution. The financial reports submitted upon the request of the supervisory institution must be approved by an auditor. The supervisory institution shall enjoy the same right to obtain information also in the case when it does not exercise supervision of the financial group on a consolidated basis itself, but the information is requested by the supervisory institution of another Member State of the European Union exercising supervision of the financial group on a consolidated basis. The right to obtain information as specified in this paragraph shall not mean that the supervisory institution exercises supervision of activities of the persons which are indicated in paragraph 2 of Article 58 of this Law and which are not banks.
\n
5.Prudential requirements set for a bank by Articles 48 and 49 of this Law shall, on a consolidated basis, be applied to the whole financial group.
\n
6.A financial group which is subject to supervision on a consolidated basis must have a risk management and internal control system, including sound procedures for keeping of accounts and drawing up of accounts, which would ensure access to all reports, data and information of members of that financial group which are relevant for the drawing up of consolidated accounts and for the exercise of supervision on a consolidated basis.
\n
7.Where the parent undertaking of a bank is a mixed-activity holding company, the supervisory institution shall have the right to exercise the supervision of the transactions concluded between the bank and the mixed-activity holding company as well as between the bank and other undertakings whose parent undertaking is the company by assessing their risk management and the internal control system.
\n
8.In exercising supervision on a consolidated basis, the supervisory institution must closely co-operate and exchange the information required for performing the supervisory function with the supervisory institutions of Lithuania and other Member States of the European Union exercising supervision of the activities of the undertakings which are subject to supervision on a consolidated basis. Where the supervisory institution is responsible for supervision on a consolidated basis of a financial group consisting of the foreign banks licensed in other Member States of the European Union, it shall perform other tasks in addition to the supervision exercised on a consolidated basis under this Law. Co-operation with the supervisory institutions of other Member States of the European Union and additional tasks shall be regulated by legal acts of the supervisory institution.
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CHAPTER IX
\n
ACCOUNTING, ACCOUNTS AND AUDIT OF A BANK
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Article 60Accounting
\n
1.A bank must keep accounts in compliance with laws of the Republic of Lithuania and other legal acts as well as the accounting policy selected by the bank, which is implemented by taking account of specific circumstances, the nature of the business pursued and in conformity with the international accounting standards.
\n
2.Accounting policy must cover general accounting principles, accounting methods and regulations designed to keep the accounts of a bank and to draw up and submit accounts. Where supervision on a consolidated basis is exercised of a financial group, the bank must ensure that the common accounting policy of the financial group is formulated.
\n
3.The accounting organisation of a bank must such that:
\n
1)accounts reflect the actual financial situation and results of the activity of the bank;
\n
2)it provides conditions for the heads of the bank to safely and soundly use and manage the bank’s assets and to dispose thereof;
\n
3)it provides conditions for shareholders of the bank and the institutions authorised by law to carry out verifications and to control the activities and financial situation of the bank, heads and other employees thereof having the right to take decisions which give rise to the bank’s obligations to other persons.
\n
4.A bank’s Board shall be held liable for the organisation of accounting and the preservation of accounting documents in accordance with the requirements set by this Law and other legal acts of the Republic of Lithuania.
\n
Article 61Accounts
\n
1.The accounts of a bank and financial group shall comprise interim accounts and annual accounts.
\n
2.Interim accounts shall be accounts drawn up after summarising the data of a time period shorter than the financial year. The composition and periodicity of submitting of interim accounts to the supervisory institution shall be established by legal acts of the supervisory institution.
\n
3.Annual accounts shall consist of:
\n
1)balance sheet;
\n
2)profit and loss account;
\n
3)cash flow statement;
\n
4)statement of changes in equity capital;
\n
5)notes on the accounts.
\n
4.At the close of the financial year, a bank must:
\n
1)within 3 months of the close of the financial year, but not later than 15 days prior to the annual general meeting of the shareholders, submit to the supervisory institution the annual accounts (annual financial reports) checked by an audit firm, a draft decision on the appropriation of profit and the auditor’s report;
\n
2)within 3 months of the close of the financial year, but not later than 10 days prior to the annual general meeting of the shareholders, provide access for the shareholders of the bank to the annual accounts (annual financial reports) checked by an audit firm, a draft decision on the appropriation of profit and the auditor’s report;
\n
3)within 3 months of the close of the financial year, approve annual accounts by a decision of the general meeting of the bank’s shareholders and take a decision on the appropriation of profit;
\n
4)within 3 days of the taking of a decision by the general meeting of the bank’s shareholders on the approval of annual accounts, submit to the supervisory institution the annual accounts approved by the meeting and a decision on the appropriation of profit;
\n
5)within 4 months of the close of the financial year, provide to the public annual accounts and an auditor’s report;
\n
6)within 4 months of the close of the financial year, the parent bank of other financial institutions and insurance undertakings belonging to a financial group must publish consolidated annual accounts.
\n
5.The general meeting of a bank’s shareholders may not consider and approve the annual accounts which have not been audited.
\n
6.The general meeting of a bank’s shareholders may not take a decision on the appropriation of profit where annual accounts have not been audited.
\n
7.A bank’s board shall be held liable for the accuracy of the information provided in annual accounts according to the procedure set forth by laws.
\n
8.The procedure for applying the provisions of this Article to the branches of foreign banks shall be set forth by legal acts of the supervisory institution.
\n
Article 62Audit
\n
1.An audit firm must audit a bank’s annual financial reports and consolidated financial reports (where they must be drawn up) and, on the basis of the audit, provide an auditor’s opinion on these reports and an auditor’s report. In an auditor’s report, an auditor must present information as to whether a bank and a financial group:
\n
1)have accurately and in a qualified manner valued the assets;
\n
2)have made mandatory adjustments of the value of the assets and performed write-offs;
\n
3)have formed mandatory and required capitals, reserves and provisions to reduce the operational risk;
\n
4)comply with capital requirements set by this Law and legal acts of the supervisory institution;
\n
5)efficiently and soundly manage assets and ensure safe and sound activities of the bank;
\n
6)have in place adequate internal control and information systems.
\n
2.The general meeting of a bank’s participants shall select an audit firm to perform audit of annual financial reports. An auditor, also another person participating together with the auditor in the performance of audit may not perform the audit of the same bank for more than 3 successive financial years.
\n
3.A bank must, until the end of the first half of the current financial year, conclude an agreement with the audit firm selected at the general meeting of the bank’s shareholders on carrying out of the audit of annual financial reports and submit it to the supervisory institution.
\n
Note. The period indicated in paragraph 2 of Article 62 shall include the financial year commencing prior to the entry into force of Law No X-1678 in respect of the audit whereof a contract for audit of financial reports has been concluded.
\n
Article 63Requirements for an Auditor and an Audit Firm, Duties and Liability Thereof
\n
The requirements set for an auditor and an audit firm, duties and liability thereof shall be set by the Law on Financial Institutions.
\n
CHAPTER X
\n
SUPERVISION OF BANKS
\n
Article 64Supervisory Institution
\n
1.The Bank of Lithuania shall be the supervisory institution.
\n
2.The supervisory institution shall exercise supervision of the banks holding a licence issued according to the procedure set forth by this Law, including establishments thereof in the Republic of Lithuania and in foreign states, as well as of the branches of the foreign banks holding a licence issued according to the procedure set forth by this Law. Where a bank holding a licence issued according to the procedure set forth by this Law is controlled by a foreign bank licensed in a Member State of the European Union, the supervisory institution shall have the right, under a bilateral agreement, to transfer powers to exercise supervision of such a bank to the supervisory institution of the Member State of the European Union which has issued to the parent foreign bank an authorisation to pursue business and which exercises supervision of the parent foreign bank in such a manner that responsibility is assumed for supervision of the bank holding the licence issued according to the procedure set forth by this Law.
\n
3.The supervision of the branches of banks in foreign states and of the branches established in the Republic of Lithuania by the foreign banks licensed in a state other than a Member State of the European Union shall be exercised under the agreements concluded with the supervisory institution of the relevant foreign state.
\n
4.The supervision of the foreign banks licensed in the Member States of the European Union and providing services in the Republic of Lithuania without establishing a branch as well as of the branches established in the Republic of Lithuania by the foreign banks licensed in the Member States of the European Union shall be exercised in compliance with the provisions of Article 70 of this Law.
\n
5.Supervision shall be exercised in compliance with this Law, the Law on Financial Institutions, the Law on the Bank of Lithuania and legal acts of the supervisory institution.
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Article 65Protection of the Information Obtained for Supervision Purposes
\n
1.Information obtained for supervision purposes may not be publicly announced, divulged or made otherwise accessible, except in the cases specified by in this Law.
\n
2.The supervisory institution, current or former employees thereof, the auditors acting on behalf thereof or third parties as well as any other persons whereto the information obtained for supervision purposes has been communicated must comply with the requirement set in paragraph 1 of this Article.
\n
3.Paragraph 1 of this Article shall not be applied to the information which has already been publicly announced or made accessible or on the basis whereof data on specific persons cannot be directly or indirectly established.
\n
4.The supervisory institution shall have the right to use the information obtained for supervision purposes, including the information obtained from the supervisory institutions of foreign states, for the purpose of exercising supervisory functions, including the imposition of sanctions, also where, according to the procedure set forth by laws, a decision of the supervisory institution has been appealed against or an action of the supervisory institution on the forced sale of a bank’s shares is being considered in court.
\n
5.The information obtained for supervision purposes may be communicated:
\n
1)on the grounds laid down in the Code on Criminal Proceedings, where it is required to conduct a pre-trial investigation or to hear a criminal case in court, also in the cases and according to the procedure set forth in the Law on the Prevention of Money Laundering;
\n
2)to courts, where it is required in the course of bank’s bankruptcy proceedings or proceedings for the compulsory winding up of a bank;
\n
3)to the Lithuanian institutions exercising the supervision of the provision of financial services, insurance activities and the financial markets, where it is required for the exercise of the supervisory function;
\n
4)to the institutions exercising the supervision of the provision of services of the credit institutions of foreign states and other financial services, insurance activities and the financial markets, where it is required for the exercise of the supervisory function;
\n
5)to the State undertaking “Deposit and Investment Insurance”, where it is required for the exercise of functions thereof;
\n
6)to the auditors of a bank or the undertakings of the financial group whereto the bank belongs, where it is required for the exercise of functions thereof;
\n
7)to the European Central Bank and central banks of the Member States of the European Union as well as to other institutions exercising similar functions, where it is required for the exercise of functions thereof;
\n
8)to other State institutions, where such information is required for the exercise of functions thereof and where this is necessary for credit institutions’ supervision purposes.
\n
6.The information obtained for supervision purposes may be communicated to the institutions referred to in subparagraphs 3-8 of paragraph 5 of this Article where the requirements set for them on the protection of the information are not lower than provided for under this Law.
\n
7.Pursuant to subparagraph 4 of paragraph 5 of this Article, information may be communicated to the supervisory institution of a foreign state which is not a Member State of the European Union where an agreement has been concluded therewith providing for the exchange of the information obtained for supervision purposes and where under the laws of that state, the requirements set for the supervisory institution of the foreign state on the protection of the information are not lower than provided for under this Law.
\n
8.The information obtained for supervision purposes by an institution exercising the supervision of the provision of financial services, insurance activities and the financial markets from the supervisory institution of a foreign state which is a Member State of the European Union or the information obtained in another Member State of the European Union during an inspection (verification) may be communicated pursuant to subparagraph 8 of paragraph 5 of this Article or paragraph 7 of this Article upon the receipt of a consent of the institution which has submitted the information or of the supervisory institution of the Member State of the European Union in which the inspection (verification) has been carried out and solely for the purpose for which the consent has been granted.
\n
Article 66
\n
Consideration of Applications for the Issuance of a Licence, Granting of an Authorisation, Consent or for Carrying out of Other Actions and Decisions of the Supervisory Institution 1. Detailed terms of and the procedure for submitting and examining applications for the issuance of the licences, granting of the authorisations, consents provided for under this Law or for carrying out of other actions (hereinafter referred to is this Article as “authorisations”) and issuing authorisations as well as detailed requirements for the submitted documents shall be set by legal acts of the supervisory institution.
\n
2.An application for the granting of an authorisation shall be examined and a decision thereon shall be taken within the time limits laid down in this Law or, where the time limits have not been laid down in this Law, within the time limits laid down by legal acts of the supervisory institution. The supervisory institution shall have the right to request additional documents and information required to take the decision. Where the supervisory institution requests additional documents and information or where they are provided on a voluntary basis by a person applying for the application, the time limit for the examination of the application and taking of the decision shall be counted from the receipt of the additionally requested documents and information, unless otherwise provided for by this Law.
\n
3.A supervisory institution shall have the right to refuse the granting of an authorisation where there is a sufficient ground to believe that the granting of the authorisation will violate the property interests of a bank’s depositors and other creditors of the bank or will pose a threat to the stability and soundness of the bank or the entire banking system, also in the presence of other grounds for refusing the granting of an authorisation as specified by laws.
\n
4.The supervisory institution shall notify applicants of a decision taken on the granting of an authorisation within 5 working days of the taking of the decision, unless otherwise provided for by this Law. Reasons must be given for the refusal of the supervisory institution to grant an authorisation.
\n
Article 67Duties and Rights of a Supervisory Institution
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1.In addition to other duties and rights laid down in this Law and other legal acts, the supervisory institution shall have the right:
\n
1)to provide to a bank the instructions specified in paragraph 2 of this Article, and the bank must implement them within the time limit laid down by the supervisory institution and forthwith give written notice thereof to the supervisory institution;
\n
2)where the decisions taken by bodies of a bank pose a threat to the stability and soundness of activities of the bank, to apply to the courts, according to the procedure set forth by laws, to declare them void on the statutory grounds;
\n
3)to conclude agreements on the verification of a bank with audit firms, property appraisers or other persons holding appropriate qualifications in order to determine the value of the bank’s assets, financial situation of the bank, to assess the risks taken or verify other areas of the bank’s activities. The bank shall pay for the work of these persons and cover other expenses related thereto. The persons acting in accordance with the agreements concluded with the supervisory institution and referred to in this subparagraph shall have the rights referred to in paragraphs 2 and 3 of Article 69 of this Law;
\n
4)to demand that an audit firm auditing a bank’s accounts is changed, where it or the auditor does not meet (comply with) the requirements set forth by laws.
\n
2.The supervisory institution, upon discovering infringements of legal acts or shortcomings in activities of a bank or where activities of the bank pose a threat to the stability and soundness of activities of the bank, shall have the right to provide in writing to the bank the following instructions:
\n
1)to eliminate the infringements of the legal acts or shortcomings in the activities of the bank within the time limit laid down by the supervisory institution;
\n
2)not to conclude certain transactions or to reduce the scope of such transactions, including transactions on the purchase ancillary banking services, acquisition of holdings in other legal persons’ authorised capital and/or voting rights or real estate, or to sell or otherwise transfer to third parties the holding held in other legal persons’ authorised capital and/or voting rights or real estate;
\n
3)to carry out an audit of interim accounts of the bank within the time limit laid down by the supervisory institution;
\n
4)to prepare and implement, within the time limit laid down by the supervisory institution, an acceptable action plan for the restructuring of activities of the bank and/or the elimination of discovered infringements and/or shortcomings;
\n
5)to convene the general meeting of the bank’s shareholders or a meeting of the bank’s supervisory board or the board and to discuss at it the issues proposed by the supervisory institution;
\n
6)for the heads of the bank to appear before the supervisory institution and provide clarifications. The supervisory institution shall have the right to publicly announce its instruction for the heads of the bank to appear before the supervisory institution;
\n
7)to carry out other actions or not to carry out certain actions in order to bring infringements of legal acts to an end or to eliminate shortcomings in activities of the bank or to ensure the stability and soundness of the activities of the bank.
\n
3.The supervisory institution, upon discovering infringements of legal acts or shortcomings in activities of a bank or where activities of the bank pose a threat to the stability and soundness of activities of the bank, shall have the right to temporarily set for the bank individual prudential ratios or additional prudential requirements.
\n
4.The instructions referred to in paragraphs 2 and 3 of this Article may also be given by simultaneously imposing sanctions.
\n
5.The employees of the supervisory institution shall have the right, according to the procedure set forth by the supervisory institution, to participate in the work of bodies of a bank and committees of the bank – to attend meetings or sittings in the capacity of observers or otherwise observe activities of the bodies, committees and heads of the bank.
\n
6.The supervisory institution, according to the procedure set forth by it and in compliance with the legal acts regulating the protection of personal data, shall have the right to store and otherwise process data on debtors of banks. Banks must provide to the supervisory institution data on debtors of a bank and shall have the right to use these data according to the procedure set forth by legal acts of the supervisory institution.
\n
7.The supervisory institution shall also have the rights referred to in this Article in respect of a branch of a foreign bank holding a licence issued according to the procedure set forth by this Law.
\n
Article 68Appeal against Decisions, Acts (Omissions) of the Supervisory Institution
\n
1.The persons whose rights or interests protected under law have been violated shall have the right to file an appeal to court against decisions, acts (omissions) of the supervisory institution according to the procedure set forth by laws.
\n
2.Filing of an appeal to court shall not have suspensory effect on a decision or an action appealed against until its resolution.
\n
Article 69Inspection (Verification) of a Bank
\n
1.A bank shall be inspected (verified) by the employees of the supervisory institution. The supervisory institution, when inspecting (verifying) the bank, shall also have the right to engage third parties.
\n
2.A bank must provide the following facilities to carry out an inspection (verification):
\n
1)to supply to inspecting (verifying) persons all information and documents requested by them;
\n
2)to provide an opportunity for the inspecting (verifying) persons to use data of the information systems of the bank;
\n
3)to provide the inspecting (verifying) persons with separate premises equipped with a telephone network.
\n
3.Inspecting (verifying) persons shall have the right:
\n
1)to have unimpeded access to the premises of a bank and establishments thereof during the office hours of the bank under inspection (verification);
\n
2)to request and obtain the information and documents (originals or certified copies thereof) required to carry out an inspection (verification), oral or written clarifications of the heads and other employees of a bank;
\n
3)to request copies of submitted documents or to make copies thereof themselves at the expense of the bank;
\n
4)to have other rights laid down by legal acts.
\n
4.After carrying out an inspection (verification) of a bank, its results shall be provided to the bank in writing. Members of the bank’s supervisory board and the board, the head of the administration must familiarise themselves with the results of the inspection (verification) by affixing their signature thereto.
\n
5.Legal acts of the supervisory institution shall set forth a detailed procedure for inspecting (verifying) and recording results thereof.
\n
6.According to the procedure set forth by this Article, the supervisory institution shall also have the right to inspect (verify) the establishments set up in the Republic of Lithuania by a foreign bank and for the purposes of supervision on a consolidated basis – the persons referred to in paragraph 2 of Article 58 of this Law as well as a mixed-activity holding company and the undertakings controlled by it. Where, for the purposes of supervision on a consolidated basis, it is required to verify the persons referred to in paragraph 2 of Article 58 of this Law as well as a mixed-activity holding company and the undertakings controlled by it falling under the jurisdiction of another Member State of the European Union, the supervisory institution shall request that the verification be carried out by the supervisory institution of this Member State of the European Union or, subject to a consent of this supervisory institution, the verification shall be carried out by the Lithuanian supervisory institution or by the persons referred to in paragraph 9 of this Article.
\n
7.The supervisory institution of a foreign state which is a Member State of the European Union or the auditors or experts specified by it shall have the right to inspect (verify) an establishment set up in the Republic of Lithuania by a foreign bank falling under the jurisdiction of the said state upon giving prior notice to the Lithuanian supervisory institution. Where, for the purposes of supervision on a consolidated basis, the supervisory institution of another Member State of the European Union needs to verify the persons referred to in paragraph 2 of Article 58 of this Law as well as a mixed-activity holding company and the undertakings controlled by it falling under the jurisdiction of the Republic of Lithuania, the said verification shall, upon its request, be carried out by the supervisory institution of the Republic of Lithuania or, subject to a consent of the Lithuanian supervisory institution, by the requesting supervisory institution of another Member State of the European Union or the auditors or experts specified by it. Where, upon the request of the supervisory institution of another Member State of the European Union, the verification is carried out by the Lithuanian supervisory institution, the requesting supervisory institution of another Member State of the European Union shall have the right to participate in the carrying out of the said verification.
\n
8.The supervisory institution of a foreign state other than a Member State of the European Union shall have the right to inspect (verify) the establishments set up in the Republic of Lithuania by a foreign bank and the persons referred to in paragraph 2 of Article 58 of this Law as well as a mixed-activity holding company and the undertakings controlled by it falling under the jurisdiction of the Republic of Lithuania where an agreement has been concluded between it and the Lithuanian supervisory institution providing for such a right and regulating the procedure for organising inspection (verification).
\n
9.The supervisory institution shall have the right to conclude agreements on the verification or audit of a bank and other persons referred to in paragraph 6 of this Article with audit firms or other persons holding appropriate qualifications. Where verification or an audit is carried out by the said persons, the provisions of paragraphs 2 and 3 of this Article shall be applied.
\n
Article 70
\n
Supervision of the Foreign Banks Licensed in the Member States of the European Union and Providing Services in the Republic of Lithuania without Establishing a Branch and of the Branches Established in the Republic of Lithuania by the Foreign Banks Licensed in the Member States of the European Union 1. The supervision of the foreign banks licensed in the Member States of the European Union and providing services in the Republic of Lithuania without establishing a branch and of the branches established in the Republic of Lithuania by the foreign banks licensed in the Member States of the European Union shall be exercised by the supervisory institution of the Member State of the European Union under whose jurisdiction a foreign bank falls. However, the rights of the Lithuanian supervisory institution to exercise supervision thereof in accordance with the provisions of this Article shall not be thereby restricted.
\n
2.Where the supervisory institution discovers that a foreign bank licensed in a Member State of the European Union and providing financial services in the Republic of Lithuania without establishing a branch or a branch established in the Republic of Lithuania by a foreign bank licensed in a Member State of the European Union does not comply with this Law, legal acts of the supervisory institution or other legal acts regulating the provision of financial services, the supervisory institution shall in writing instruct the foreign bank and/or the branch of the foreign bank to bring the infringements of legal acts to an end within the time limit laid down by the supervisory institution.
\n
3.Where the instructions issued pursuant to paragraph 2 of this Article are ignored, the supervisory institution shall notify thereof the supervisory institution of a foreign state under whose jurisdiction a foreign bank falls requesting to take all possible measures to bring the infringements to an end.
\n
4.Where, disregarding actions of the supervisory institution of a foreign state, a foreign bank or a branch of the foreign bank persists in failing to comply with the requirements of legal acts of the Republic of Lithuania referred to in paragraph 2 of this Article, the supervisory institution, upon giving prior notice thereof the supervisory institution of the foreign state, shall have the right to impose the sanctions provided for by this Law.
\n
5.In cases of urgency, the supervisory institution shall have the right to impose sanctions disregarding the provisions of paragraphs 2-4 of this Article.
\n
Article 71Cooperation with the Commission of the European Communities and the Supervisory Institutions of the Member States of the European Union
\n
The supervisory institution shall notify the Commission of the European Communities of the licences issued and withdrawn according to the procedure set forth by this Law and provide it and the supervisory institutions of the Member States of the European Union with other information. The cases of and procedure for providing notifications and information shall be set forth by legal acts of the supervisory institution.
\n
Article 72Sanctions
\n
1.The supervisory institution shall have the right to impose the following sanctions on a licensed bank or a branch of a foreign bank:
\n
1)to warn of infringement of this Law and other legal acts regulating safe and sound activities or of nonfeasance of instructions of the supervisory institution;
\n
2)to impose penalties provided for under this Law;
\n
3)to temporarily remove from office a member (members) of the bank’s supervisory board, a member (members) of the bank’s board, head (heads) of the bank’s administration, head (heads) of the branch of the foreign bank or to remove from office a member (members) of the bank’s supervisory board, a member (members) of the bank’s board, head (heads) of the bank’s administration, head (heads) of the branch of the foreign bank and to require that they be removed from office and/or a contract concluded therewith be terminated or they be divested of their powers;
\n
4)to temporarily prohibit the provision of one or several financial services;
\n
5)to temporarily or permanently prohibit activities of one or several branches of the bank or other establishments of the bank or the foreign bank. Where the supervisory institution takes a decision on the temporary prohibition of activities of a branch or other establishment, the branch or other establishment shall not have the right to provide financial services, and where a decision is taken to permanently prohibit activities of a branch or other establishment, a bank must additionally forthwith take a decision on the termination of the activities of the branch or other establishment;
\n
6)to announce a restriction (moratorium) on activities of a bank or a branch of a foreign bank;
\n
7)to temporarily restrict the right to dispose of the funds in accounts in the Bank of Lithuania and in other credit institutions and of other assets;
\n
8)to withdraw the issued licence or to temporarily suspend validity thereof.
\n
2.The supervisory institution shall have the right to impose the following sanctions on the representative office of a foreign bank;
\n
1)to warn the representative office of infringement of this Law and legal acts of the supervisory institution;
\n
2)to prohibit activities of the representative office in the Republic of Lithuania. Upon imposing this sanction, a decision must be taken forthwith on the termination of the activities of the representative office.
\n
3.The supervisory institution shall have the right to impose the following sanctions on a foreign bank licensed in a Member State of the European Union and providing financial services in the Republic of Lithuania without establishing a branch or on a branch established in the Republic of Lithuania by a foreign bank licensed in a Member State of the European Union:
\n
1)to warn of infringement of this Law and other legal acts regulating safe and sound activities of banks or shortcomings in the activities;
\n
2)to temporarily restrict the right of a branch of a foreign bank to dispose of the funds in accounts in the Bank of Lithuania and in other credit institutions and of other assets;
\n
3)to temporarily or permanently prohibit the provision of financial activities in the Republic of Lithuania.
\n
4.The supervisory institution must take a decision on the imposition of the sanctions referred to in subparagraphs 2 and 3 of paragraph 3 of this Article on a foreign bank licensed in a Member State of the European Union providing financial services in the Republic of Lithuania without establishing a branch or on a branch established in the Republic of Lithuania by a foreign bank licensed in a Member State of the European Union where this is requested by the supervisory institution of the said Member State of the European Union.
\n
5.The supervisory institution shall have the right to impose one or several sanctions.
\n
6.The supervisory institution, when taking a decision on the imposition of sanctions and selecting a specific sanction (sanctions), shall take account of the content, scope, recurrence of discovered infringements and shortcomings in activities, influence thereof on the interests of depositors and other creditors, the financial situation of a person whereon the sanction is imposed, the preparedness and possibilities of a founder, shareholders and heads to bring the infringements to an end and to eliminate the shortcomings, consequences of the discovered infringements and shortcomings in the activities as well as of the sanction (sanctions) to be imposed for the stability and soundness of a person whereon the sanction is imposed and the banking system.
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7.A decision of the supervisory institution on the imposition of a sanction (sanctions) on a bank shall come into force on the day following that of taking of the decision, except where this Law or the decision provides otherwise.
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8.A decision of the supervisory institution on the imposition of a sanction (sanctions) must be substantiated and may be, according to the procedure set forth by laws, appealed against to court. An appeal against the decision, with the exception of a decision on the imposition of the penalties provided for under this Law, shall not have suspensory effect on the decision. A court shall not give its opinion on and resolve a dispute over the selection of the type of a sanction and expedience of imposition thereof.
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9.Temporarily imposed sanctions shall remain in force until the expiry of the time limit referred to in a decision of the supervisory institution on the imposition of the sanctions. This time limit may be defined by a specific date, period or related to the rise of certain circumstances (disappearance of circumstances), except where the supervisory institution takes a decision on the lifting of the sanctions before the expiry of the fixed time limit.
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Article 73Basic Principles of and Procedure for Imposing Sanctions
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1.The supervisory institution shall have the right to impose the sanctions provided for by this Law, with the exception of the penalties specified in this Law, in the presence of any of the following grounds:
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1)the information defined or requested by this Law or legal acts of the supervisory institution and required to exercise supervision is not supplied within the fixed time limits or incorrect information is supplied;
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2)the instructions given by the supervisory institution in compliance with this Law are not carried out in the prescribed manner;
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3)the requirements set for the granting of an authorisation to establish a bank or a branch of a foreign bank or for the issuance of a licence are no longer met;
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4)the requirements of the laws regulating safe and credible activities of banks as well as of legal acts of the supervisory institution are violated or activities or the financial situation of a bank or a branch of a foreign bank pose a threat to public interests and/or interests of clients or the functioning of the banking system of the Republic of Lithuania.
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2.The supervisory institution, prior to considering the imposition of a sanction, shall give notice, within a reasonable time limit, to a person subject to the sanction of the venue and time of the consideration of the issue and supply him with information on the discovered facts forming the basis for the imposition of the sanction or grant access with the said facts to the heads of a person subject to the sanction. The person who has received the notification shall have the right to provide written clarifications prior to the consideration of the issue. The issue of the imposition of the sanction shall be considered in the presence of the heads of a person who is subject to the sanction. Failure to appear or to provide clarifications shall not preclude the consideration of the imposition of the sanction. In cases of urgency, the supervisory institution shall have the right to resolve the issue on the imposition of the sanction disregarding the provisions of this paragraph. Where after imposition thereof a person who is subject to the sanction submits in writing motivated clarifications that there was no basis for the imposition of the sanctions, the supervisory institution shall consider the lifting of the sanction.
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3.Sanctions may be imposed after the lapse of not more than 2 years from the day of the commission of an infringement, in the event of a continuous infringement - from the day of the commission of the last acts of the continuous infringement or from the day of the termination of the continuous infringement.
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4.A decision to impose a sanction shall be communicated to a person who is subject to the sanction. Information on the sanction imposed shall be announced in accordance with the procedure set forth by legal acts of the supervisory institution, however, the supervisory institution may take a decision not to announce such information publicly, where announcing thereof publicly may have a detrimental effect on the stability and soundness of a bank, a branch of a foreign bank or the banking system of the Republic of Lithuania.
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Article 74Penalties
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1.The supervisory institution shall have the right to impose the following penalties on a bank or a branch of a foreign bank:
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1)for a failure to supply the information or documents specified or requested by this Law or legal acts of the supervisory institution within the fixed time limit or for the supply of incorrect information - up to 0.5 per cent of annual gross income;
\n
2)for a failure to carry out the instructions given by the supervisory institution in accordance with this Law or for improper carrying out thereof – up to 1 per cent of annual gross income or up to LTL 5000 for each day of non-implementation of an instruction or improper carrying out thereof;
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3)for carrying out of the actions which it has the right to carry out only upon obtaining an authorisation of the supervisory institution without the authorisation of the supervisory institution – up to 1.5 per cent of annual gross income;
\n
4)for the actions or activities prohibited by this Law or for the provision of financial services where such a right has been restricted under this Law - up to 2 per cent of annual gross income;
\n
5)for other infringements of legal acts regulating safe and sound activities of a bank or a branch of a foreign bank - up to 0.1 per cent of annual gross income.
\n
2.The specific amount of a penalty to be imposed shall be determined by taking account of the nature of an infringement, duration thereof, previously imposed sanctions and other important circumstances.
\n
3.Penalties shall be paid into the State budget within 1 month of the receipt of a decision of the supervisory institution on the imposition of a penalty. A penalty imposed in accordance with subparagraph 2 of paragraph 1 of this Article shall be paid into the State budget daily for each day of nonfeasance or misfeasance of an instruction. Where the penalty is not paid within the fixed time limits or, where the decision of the supervisory institution has been appealed against to court, within 10 days from entering into force of the decision, it shall be recover, upon a decision of the supervisory institution, without suit (without an instruction, by a person who is subject to the penalty, to debit funds) from the funds held in credit institutions by the person who is subject to the sanction, or the decision of the supervisory institution shall be implemented according to the procedure set forth by the Code of Civil Procedure.
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Article 75
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Removal from Office of a Member (Members) of a Bank’s Supervisory Board, a Member (Members) of the Bank’s Board, Head (Heads) of the Bank’s Administration, Head (Heads) of a Branch of a Foreign Bank 1. As of the day of the delivery to a bank of a decision by the supervisory institution to temporarily remove from office a member (members) of the bank’s supervisory board, a member (members) of the bank’s board, head (heads) of the bank’s administration, head (heads) of a branch of a foreign bank, the person removed from office shall not have the right to exercise his functions and all decisions taken by him after entering into force of the said decision shall be void.
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2.Where the supervisory institution takes a decision to remove from office of a member (members) of a bank’s supervisory board, a member (members) of the bank’s board, head (heads) of the bank’s administration, head (heads) of a branch of a foreign bank and to require that they be removed from office and/or a contract concluded therewith be terminated or they be divested of their powers, a body of the bank which has such a right or the foreign bank which has established the branch must, within the time limit laid down in the decision of the supervisory institution, remove the person from office and/or terminate the contract concluded therewith or divest him of his powers.
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3.A decision taken to remove a member (members) of a bank’s supervisory board, a member (members) of the bank’s board, head (heads) of the bank’s administration, head (heads) of a branch of a foreign bank shall be communicated to the bank and to the Register of Legal Persons and published in the supplement Informaciniai pranešimai to the official gazette Valstybės žinios.
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Article 76Moratorium on Activities of a Bank
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1.A moratorium on activities of a bank shall be a temporary partial restriction on the activities of the bank. Restrictions on the activities of the bank shall be set by this Law and a decision of the supervisory institution on the announcement of a moratorium on the activities of the bank.
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2.In addition to other grounds laid down in Article 73 of this Law, the supervisory institution shall have the right to announce a moratorium on activities of a bank where the bank fails, within 5 working days, to settle at least one reasonable financial claim of a creditor (due to a deficit of funds in the bank’s accounts, it fails to process a client’s payment order, to return deposits or other borrowed funds or to perform other financial obligations, etc.) or there is a reasonable basis to believe that it will not be able to settle it soon.
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3.The time limit for a moratorium on activities of a bank shall be laid down by the supervisory institution. This time limit may not exceed 6 months. Where the supervisory institution approves the conclusions and proposals submitted by a temporary administrator on the restoration of the stability and soundness of the activities of the bank, the time limit for the moratorium on the activities of the bank may be extended for a period of up to 6 months by a decision of the supervisory institution.
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4.The supervisory institution, when taking a decision on the announcement of a moratorium on activities of a bank, shall appoint the temporary administrator of the bank.
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5.A legal or natural person may be appointed a temporary administrator. Where a natural person is appointed a temporary administrator, one or several assistants of the temporary administrator may be appointed. Salaries of the temporary administrator and assistants thereof, taking account of the scope of activities, qualifications and duration of the activities of the temporary administrator, shall be determined by the supervisory institution. The salaries shall be paid from the funds of a bank. An employee of the supervisory institution may not be appointed the temporary administrator of a bank.
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6.A decision taken on the announcement of a moratorium on activities of a bank and the appointment of the temporary administrator of the bank shall, on the working day following that of taking of the decision at the latest, be communicated to the bank and the Register of Legal Persons and published in the supplement Informaciniai pranešimai to the official gazette Valstybės žinios.
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7.As of the day of submission to a bank of a decision on the announcement of a moratorium on activities of the bank and the appointment of the temporary administrator of the bank:
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1)powers of the bank’s supervisory board, the bank’s board and heads of the administration shall be suspended. The powers shall be transferred to the temporary administrator of the bank. All decisions of the bodies of the bank referred to in this subparagraph and taken after the entry into force of the decision to announce a moratorium on the activities of the bank and to appoint the temporary administrator shall be void and unenforceable;
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2)decisions of the general meeting of the bank’s shareholders shall enter into force only after agreeing them with the temporary administrator of the bank and the supervisory institution. They shall present their opinion on a decision of the general meeting of the shareholders submitted for agreement within 15 days of receipt of the decision of the general meeting of the shareholders;
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3)the bank shall be prohibited from performing payment obligations or transfer assets of the bank where these obligations result from the transactions concluded or other legal facts arising prior to the announcement of the moratorium on the activities of the bank, except for the payments necessary to ensure activities of the bank during the moratorium. During the moratorium on the activities of the bank, penalties for nonfeasance or misfeasance of an obligation of the bank shall not be calculated and paid. Interest on the bank’s obligations shall be calculated, but shall be paid only after the expiry of the time limit for the moratorium on the activities of the bank;
\n
4)it shall be prohibited to set off any claims of the bank and clients thereof;
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5)cases pending in court in which material claims have been filed to the bank, also execution cases or recoveries made otherwise where the bank is the debtor, shall be suspended.
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8.The prohibitions referred to in subparagraphs 3 and 4 of paragraph 7 of this Article shall not be applied where laws of the Republic of Lithuania regulating the functioning of the payment and securities settlement systems as well as other laws establish that a bank must perform obligations also when its activities are restricted.
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9.The temporary administrator of a bank, inter alia:
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1)must, when exercising the functions of the bank’s supervisory board, the bank’s board and the heads of the administration, seek that activities of the bank again become stable and sound or propose to the general meeting of the bank’s shareholders to take relevant decisions;
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2)must, within the time limit laid down by the supervisory institution, examine and assess the financial situation of the bank, possible means of restoration of the stability and soundness of activities of the bank and present to the supervisory institution his conclusion and proposals. The conclusion and proposals of the temporary administrator must, inter alia, provide for a comparative probability of the successful implementation of the possible means of restoration of the stability and soundness of activities of the bank, the expenses of the implementation of each possible means, time limits and their assessment as well as possible results, also the need to extend the time limit for a moratorium on the activities of the bank and/or to take other decisions allowing to implement the means of restoration of the stability and soundness of activities of the bank. Where there are no real possibilities to restore the stability and soundness of activities of the bank, the temporary administrator may propose in his conclusion and proposals to consider the bank’s winding up or opening of bankruptcy proceedings;
\n
3)shall have the right to terminate, without warning, the contracts concluded with members of the bank’s board and the heads of the administration. Severance pay shall not be granted to the said persons;
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4)must provide information on the process of administration to the supervisory institution according to the procedure set forth by the supervisory institution and to the general meeting of the bank’s shareholders according to the procedure set forth by the general meeting.
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10.The temporary administrator of a bank shall not have the right to sell or otherwise transfer as well as to pledge the assets of the bank without the consent of the general meeting of the bank’s shareholders.
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11.The temporary administrator of a bank must exercise his functions prudently, in good faith and with due respect to the interests of the bank and all creditors of the bank. The temporary administrator of the bank may not exercise the rights granted to him for his personal needs or those of third parties. The temporary administrator shall be held liable for incurred damage under law.
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12.The supervisory institution, taking account of proposals of the temporary administrator of a bank, shall take one of the following decisions prior to the expiry of the time limit for a moratorium on activities of the bank:
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1)lift the moratorium on the activities of the bank, where the bank, before the expiry of the time limit for the moratorium on the activities of the bank, meets the requirements set by legal acts and can operate in a stable and sound manner;
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2)to extend the time limit for the moratorium on the activities of the bank or lift the moratorium on the activities of the bank, where the supervisory institution approves the conclusions and proposals presented by the temporary administrator on the restoration of the stability and soundness of activities of the bank;
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3)withdraw a licence.
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13.A sanction referred to in this Article may also be imposed on a branch of a foreign bank holding a licence.
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Article 77Temporary Restriction on the Right to Dispose of Funds and Other Assets
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1.Upon the imposition by the supervisory institution of a sanction referred to in subparagraph 7 of paragraph 1 or in subparagraph 2 of paragraph 3 of Article 72 of this Law, a person who is subject to the sanction shall not have the right to dispose of funds in his accounts in the Bank of Lithuania and in other credit institutions and of other assets specified in the decision of the supervisory institution.
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2.The supervisory institution may temporarily restrict the right to dispose of all funds in accounts in the Bank of Lithuania and in other credit institutions and of all other assets or of part of the funds and other assets.
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3.A decision of the supervisory institution to temporarily restrict the right to dispose of funds in accounts in the Bank of Lithuania and in other credit institutions established in the Republic of Lithuania and of other assets in the territory of the Republic of Lithuania shall be considered a property seizure act. In the cases and according to the procedure set forth by legal acts, it shall be registered in the Register of Property Seizure Acts. The decision of the supervisory institution must include the data required to register the decision of the supervisory institution in the Register of Property Seizure Acts. In the cases specified by the legal acts regulating the Register of Property Seizure Acts, the decision of the supervisory institution may be temporarily registered in the Register of Property Seizure Acts.
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CHAPTER XI
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TERMINATION OF A BANK
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Article 78Legal Regulation of Procedure for the Reorganisation, Restructuring and Winding up of a Bank
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1.A bank shall be reorganised, restructured and wound up according to the procedure set forth by the Civil Code, this Law, the Law on Financial Institutions and, except where this Law provides otherwise, the Law on Companies.
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2.The provisions of this Chapter, unless they contradict the essence of a branch of a foreign bank and except where this Law provides otherwise, shall also be applied to terminate activities of a branch of a foreign bank established in the Republic of Lithuania.
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Article 79Reorganisation of a Bank
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1.When reorganising a bank by way of merger, another entity participating in the reorganisation or undergoing reorganisation may only be a bank or another financial institution.
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2.When reorganising a bank by way of division, at least one of the legal persons whereto a bank’s rights and obligations are transferred or who are established must be a bank.
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3.Where a new bank is established as a result of the reorganisation of a bank, the new bank must obtain a licence according to the procedure set forth by this Law. In such a case, an application for the issuance of the licence, the documents and data required to issue the licence shall be submitted to the supervisory institution together with the application for the granting of an authorisation to reorganise the bank. Alongside a decision on the granting of an authorisation to reorganise the bank, a decision on the issuance of the licence shall be taken.
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4.The banks participating in a reorganisation or undergoing reorganisation must, in the cases specified by this Law, obtain the consent of the supervisory institution to reorganise and an authorisation of the supervisory institution to reorganise a bank.
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Article 80Consent to Reorganise a Bank
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1.Where a bank is to be reorganised by way of merger, the supervisory institution must be notified of the planned reorganisation, and its consent to reorganise the bank must be obtained.
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2.In order to obtain a consent to reorganise a bank, the banks participating in the reorganisation or undergoing reorganisation must submit to the supervisory institution an application and the documents specified by legal acts of this institution. A consent to reorganise a bank shall be granted by the supervisory institution according to the procedure set forth by this Law and legal acts of the supervisory institution. A decision on the granting of a consent shall be taken by taking account of criteria for the assessment of the systemic risk level laid down by legal acts of the supervisory institution.
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3.The supervisory institution shall take a decision on the granting of a consent within 1 month of the receipt of an application for the granting of the consent.
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Article 81Authorisation to Reorganise a Bank
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1.The reorganisation of a bank may be completed only upon obtaining an authorisation of the supervisory institution to reorganise the bank.
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2.An authorisation to reorganise a bank shall be granted by the supervisory institution according to the procedure set forth by laws and legal acts of the supervisory institution.
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3.Upon taking a decision on the reorganisation of a bank, the bank participating in the reorganisation or undergoing reorganisation, in order to obtain an authorisation to reorganise the bank, shall submit to the supervisory institution an application and the documents and data specified by legal acts of the supervisory institution, including:
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1)terms of the reorganisation (a reorganisation project);
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2)a report of the bank’s board;
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3)assessment of the terms of the reorganisation (the reorganisation project);
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4)a decision of a body of the bank on the reorganisation of the bank;
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5)the documents and data evidencing that the bank meets the requirements set for obtaining of an authorisation to establish the bank where a new bank is to be established as a result of the reorganisation;
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6)the documents and data evidencing that the bank meets the requirements set for obtaining a licence where the bank is to continue its activities after the reorganisation.
\n
4.The supervisory institution must examine submitted documents and take a decision on the granting of an authorisation to reorganise a bank within 3 months of the receipt of an application.
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5.The supervisory institution may refuse to grant an authorisation to reorganise a bank where:
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1)submitted documents do not meet the requirements set in this Law and legal acts of the supervisory institution, not all data specified by the legal acts or additionally required have been submitted or they are incorrect;
\n
2)there are the grounds referred to in paragraphs 5 of Article 8 of this Law, where a new bank is established as a result of the reorganisation,;
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3)there are the grounds referred to in paragraphs 10 of Article 9 of this Law where a bank continues its activities after the reorganisation.
\n
6.The supervisory institution shall give written notice to the Register of Legal Persons of a decision taken to grant or not to grant an authorisation to reorganise a bank.
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Article 82Winding up of a Bank
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1.A bank may be wound up by a decision of shareholders or on other statutory grounds.
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2.The general meeting of a bank’s shareholders may take a decision on the termination of activities and winding up of the bank only upon obtaining an authorisation of the supervisory institution to wind up the bank.
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3.An authorisation to wind up a bank shall be granted by the supervisory institution according to the procedure set forth by laws and legal acts of the supervisory institution.
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4.In order to obtain an authorisation to wind up a bank, the bank shall submit to the supervisory institution an application and the documents and data specified by legal acts of the supervisory institution as well as a plan prepared by the bank’s board and agreed with the bank’s supervisory board on the winding up of the bank and settlement with creditors and setting out, inter alia, the time limits and sources of settlement with the creditors as well as conclusions of experts on the value of the bank’s assets. An application to withdraw a licence must be attached thereto.
\n
5.The supervisory institution must examine submitted documents and take a decision on the granting of an authorisation to wind up a bank within 3 months of the receipt of a relevant application.
\n
6.A bank may be wound up by a decision of the general meeting of the bank’s shareholders only where it is able to fully settle with its creditors.
\n
7.The supervisory institution may refuse to grant an authorisation to wind up a bank where:
\n
1)submitted documents do not meet the requirements set by this Law and legal acts of the supervisory institution, not all data specified by the legal acts or additionally required have been submitted or they are incorrect;
\n
2)a conclusion may be made that the bank is unable to fully settle with creditors (the bank’s assets are insufficient to satisfy all claims of the creditors).
\n
8.The supervisory institution shall give written notice to the Register of Legal Persons of a decision taken to grant or not to grant an authorisation to wind up a bank.
\n
9.A bank must, within 3 working days, notify the supervisory institution of a decision taken at the general meeting of the bank’s shareholders on the wind up of the bank and the appointment of the liquidator of the bank.
\n
10.Where a licence is withdrawn by a decision of the supervisory institution, the general meeting of a bank’s shareholders must take a decision on the termination of activities of the bank. In this case, paragraph 2 of this Article shall not be applied.
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11.A bank shall be wound up upon a decision of court, where the bank’s licence is withdrawn and the general meeting of shareholders thereof does not take a decision on the termination of activities of the bank within the time limit laid down by the supervisory institution. The right to apply to the courts on the winding up of a bank shall be vested in the supervisory institution, the supervisory board, the board or a shareholder of the bank. The court must take a decision on the winding up of a bank within 15 days of the receipt of an application.
\n
12.Prior to taking a decision on the winding up of a bank on the grounds other than those referred to in paragraph 11, a court must notify thereof the supervisory institution and obtain its conclusion on the winding up of the bank.
\n
13.In all cases, a court, upon taking a decision on the winding up of a bank, must notify thereof the supervisory institution within 3 working days of the taking of the decision.
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CHAPTER XII
\n
BANKRUPTCY OF A BANK
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Article 83Legal Regulation of the Bank Bankruptcy Procedure
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Bank bankruptcy procedures shall be regulated by this Law, the Law on Financial Institutions and the Enterprise Bankruptcy Law, except where this Law and the Law on Financial Institutions provide otherwise.
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Article 84Conditions for the Recognition of a Bank Insolvent
\n
1.The conditions under which a bank may be recognised as insolvent as well as the procedure for calculating and assessing the insolvency of the bank shall be set forth by legal acts of the supervisory institution.
\n
2.Bank bankruptcy proceedings shall be opened by the court only where there is a conclusion of the supervisory institution on the insolvency of the bank.
\n
Article 85Bank Bankruptcy Proceedings
\n
1.Upon the handing down of a ruling on the opening of a bank’s bankruptcy proceedings, creditors of the bank shall be forthwith notified thereof in the manner prescribed in the court’s ruling, and the court hearing the bankruptcy case, case number, requisites of a bank in bankruptcy and time limits for the acceptance of creditors’ claims shall be published in the two daily national newspapers with the largest circulation. The court or a judge may authorise the bank’s administrator to carry out the actions referred to in this paragraph.
\n
2.The time limit laid down by court for the lodging of claims by a bank’s creditors shall not exceed 3 months of the entering into force of the court’s ruling on the opening of bankruptcy proceedings.
\n
3.Upon the handing down of a ruling on the opening of bank bankruptcy proceedings:
\n
1)the administrator shall commence the exercise of his functions, and powers of bodies of the bank shall be suspended. Where a court of appeals reverses the ruling on the opening of the bank bankruptcy proceedings, the bodies of the bank shall continue to exercise their functions;
\n
2)performance of all financial obligations not performed prior to the opening of bankruptcy proceedings, including the payment of interest, penalties, taxes and other mandatory payments as well as recovery of debts from the bank in bankruptcy through court or without suit shall be prohibited;
\n
3)calculation of penalties and interest on all obligations of the bank, including on a default in payments related to employment relationship, shall be terminated. A judgement mortgage may not be imposed.
\n
4.The prohibitions referred to in subparagraph 2 of paragraph 3 of this Article shall not be applied in the cases specified by the laws regulating the functioning of the payment and securities settlement systems and by other laws where a bank has been directly instructed to perform its obligations after the institution of bankruptcy proceedings.
\n
5.The administrator of a bank must, within 5 days of the handing down of a court’s ruling to open bank bankruptcy proceedings, submit to the court for approval the amount of the bank’s funds which the administrator shall have the right to use to cover administration expenses pending the approval of an estimate of administration costs.
\n
6.Where the number of creditors of a bank against which bankruptcy proceedings have been opened, according to the list approved by court, exceeds 50, the creditors’ committee shall alone enjoy all the rights granted by the Enterprise Bankruptcy Law to the creditors’ meeting, with the exception of the right to form and change the composition of the creditors’ committee. The creditors’ committee shall have not more than 15 members. The State undertaking “Deposit and Investment Insurance” must be one of the members of the creditors’ committee.
\n
7.The administrator must regularly provide the supervisory institution, according to the procedure and within the time limits laid down by it, with information on the progress of a bank’s bankruptcy proceedings.
\n
8.Upon the opening of a bank’s bankruptcy proceedings, a composition may not be concluded.
\n
Article 86Winding up of a Bankrupt Bank
\n
1.Court shall declare a bank bankrupt and hand down a ruling on the winding up of the bank within 3 months of the entering into force of a ruling to satisfy creditors’ claims.
\n
2.A bank’s rights of claim not sold in the prescribed manner and not taken over by creditors shall be gratuitously transferred to the institution specified by the Government.
\n
3.Prior to each settlement with creditors, the administrator of a bank shall submit to court for approval a plan of settlement with the creditors. The plan shall indicate the dates when a payment is due, amounts to be paid and the scope of the satisfaction of the creditors’ claims in respect of transferring to the creditors assets, including rights of claim.
\n
4.Claims of a bank’s creditors in a foreign currency shall be satisfied in the national currency of the Republic of Lithuania according to the official exchange rate of the national currency and the foreign currency on the day of handing down of a ruling by court on the opening of the bank’s bankruptcy proceedings.
\n
Article 87Order of Satisfaction of Creditors’ Claims
\n
1.The claims of employees related to employment relationship, the claims to compensate for damage done due to mutilation or other bodily injury, contraction of an occupational disease or death as a result of an accident at work shall be satisfied first.
\n
2.The claims of the State undertaking “Deposit and Investment Insurance” on the expenses related to the payment of insurance benefits to the depositors or investors of a bank referred in the Law on Insurance of Deposits and Liabilities to Investors shall be satisfied second.
\n
3.The claims related to the payment of taxes and making other payments to the budget and benefits of compulsory State social insurance and compulsory health insurance as well as to the granted loans received on behalf of the State and with the guarantee of the State shall be satisfied third.
\n
4.Other claims of a bank’s creditors, with the exception of the claims referred to in paragraphs 1, 2, 3, 5 and 6 of this Article, shall be satisfied fourth.
\n
5.The claims of creditors according to the transactions having all characteristics of a subordinated loan shall be satisfied fifth.
\n
6.The claims of a bank’s shareholders holding a qualifying holding in the bank’s authorised capital and/or voting rights, members of the bank’s supervisory board, members of the bank’s board and the heads of the administration shall be satisfied sixth.
\n
CHAPTER XIII
\n
ADDITIONAL PROVISIONS ON MEASURES RESTRICTING ACTIVITIES OF A BANK AND WINDING-UP PROCEEDINGS
\n
Article 88Measures Restricting Activities of a Bank and Winding-up Proceedings
\n
1.In this Chapter, restrictions on the activities of a bank or a foreign bank adopted by institutions of the Republic of Lithuania or another Member State of the European Union as well as by its courts shall be considered the measures restricting activities of a bank where the aim is to preserve or to restore the stability and soundness of a branch of a bank established in that state or of a foreign bank, including branches thereof in the Republic of Lithuania or other Member States of the European Union, or of a branch of a bank of another foreign state established in that Member State of the European Union and where these restrictions may influence the exercise of the rights of third parties, with the exception of shareholders of the bank and the heads of the bank, held before the adoption of a measure restricting their activities.
\n
2.In this Chapter, the compulsory winding up or bankruptcy of a bank or a foreign bank established in the Republic of Lithuania or another Member State of the European Union, including branches thereof in the Republic of Lithuania or in other Member States of the European Union, or a compulsory termination of activities of a branch of a bank of another foreign state established in the Republic of Lithuania or another Member State of the European Union shall be considered winding-up proceedings.
\n
Article 89Application of Provisions of Chapter XIII
\n
1.The provisions of this Chapter shall be applied in the cases where the measures restricting activities of a bank are adopted or winding-up proceedings are opened against a bank established in the Republic of Lithuania which in another Member State of the European Union operates without establishing a branch or has established a branch in the said state (hereinafter referred to in this Chapter as the host Member State of the European Union). Article 93 of this Law shall also be applied in the cases where the measures restricting activities of a bank are adopted or winding-up proceedings are opened against a bank established in the Republic of Lithuania which does not operate in another Member State of the European Union without establishing a branch or has not established a branch in the said state.
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2.The provisions of this Chapter shall also be applied in the cases where the measures restricting activities of a bank are adopted or winding-up proceedings are opened against a foreign bank established in another Member State of the European Union which operates without establishing a branch or has established a branch in the Republic of Lithuania or against a branch of the said foreign bank established in the Republic of Lithuania and subject to the measures restricting activities of the bank adopted in another Member State of the European Union.
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3.The provisions of paragraphs 1 and 2 of Article 91 and paragraphs 1 and 2 of Article 92 of this Chapter shall also be applied in the cases where measures restricting activities of a bank are adopted or winding-up proceedings are opened against a branch established in the Republic of Lithuania by a foreign bank not licensed in a Member State of the European Union where a branch of the said foreign bank has not been established only in the Republic of Lithuania, but also in at least one more Member State of the European Union. Moreover, in such cases a court of the Republic of Lithuania, the supervisory institution, the liquidator (if any has been appointed), where this is required and where this is possible, shall co-ordinate actions related to the adoption of the measures restricting activities of a bank or to the winding-up proceedings, with the relevant institutions or the liquidator of other host Member States of the European Union.
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Article 90Decision on the Adoption of the Measures Restricting Activities of a Bank or the Opening of Winding-up Proceedings and Governing Law
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1.A court of the Republic of Lithuania and the supervisory institution shall alone be empowered to decide on the adoption of the measures restricting activities of a bank or on the opening of winding-up proceedings in respect of a bank established in the Republic of Lithuania, including branches thereof in the Member States of the European Union.
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2.Pursuant to paragraph 1 of this Article, the measures restricting activities of a bank as specified by a decision of a court of the Republic of Lithuania or the supervisory institution shall be applied and the winding-up proceedings opened by a decision of a court of the Republic of Lithuania shall be carried out in compliance with law of the Republic of Lithuania, unless otherwise provided for by paragraph 6 of this Article.
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3.The decisions taken by institutions of another Member State of the European Union on the adoption of the measures restricting activities of a bank or on the opening of winding-up proceedings against a bank established in that Member State of the European Union and against branches thereof in the Republic of Lithuania shall be recognised in the Republic of Lithuania without any further formalities as of the entering into force of the adopted measures restricting activities of the bank or of a court decision in that Member State of the European Union. The said measures restricting activities of a bank shall be adopted and the instituted winding-up proceedings be carried out in compliance with law of that other Member State of the European Union, unless otherwise provided for by paragraph 6 of this Article.
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4.The provisions of paragraph 3 of this Article shall not restrict the right of the Lithuanian supervisory institution, in the cases and according to the procedure set forth in this Law, to impose sanctions on a branch established in the Republic of Lithuania by a foreign bank licensed in a Member State of the European Union.
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5.Where it is provided for by legal acts of the Republic of Lithuania or other Member State of the European Union, a decision on the adoption of the measures restricting activities of a bank or a decision on the opening of winding-up proceedings must be registered in the public register of the relevant state.
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6.Irrespective of the institutions of which Member State of the European Union, including the Republic of Lithuania, have taken a decision on the adoption of the measures restricting activities of a bank or a decision on the opening of winding-up proceedings:
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1)employment relationships shall be governed by the law of the Member State of the European Union applicable to an employment contract concluded;
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2)a contract conferring the right to make use of or acquire an immovable shall be governed by the law of the Member State of the European Union within the territory of which the immovable is situated;
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3)rights in respect of an immovable, a ship or an aircraft subject to registration in a public register shall be governed by the law of the Member State of the European Union under the authority of which the public register is kept;
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4)the enforcement of the proprietary and other rights in the financial instruments specified in Section C of Annex I of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC the transfer or acquisition of which presupposes their being recorded in a public register, an account or a depository of securities shall be governed by the law of the Member State of the European Union where the public register, account or depository of securities is held or located;
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5)set-off agreements shall be governed by the law of the contract which regulates such agreements;
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6)without prejudice to provisions of subparagraph 4 of paragraph 6 of this Article, repurchase agreements as well as transactions carried out in the context of a regulated market shall be governed by the law of the contract which regulates such transactions;
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7)where, after the taking of a decision on the adoption of the measures restricting activities of a bank or a decision on the opening of winding-up proceedings, the bank transfers, for consideration, an immovable, a ship or an aircraft subject to registration in a public register, or the financial instruments specified in Section C of Annex I of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC, or rights in the financial instruments (financial instruments or rights in such instruments) which are subject to registration in a public register, an account or a depository of securities, the validity of such a transaction shall be governed by the law of the Member State of the European Union within the territory of which the immovable is situated or under the authority of which the public register, account or depository of securities is kept;
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8)the effects of a decision on the adoption of the measures restricting activities of a bank or a decision on the opening of winding-up proceedings on a lawsuit pending in respect of the bank’s assets or right of claim shall be governed by the law of the Member State of the European Union in the lawsuit is pending.
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Article 91Notification of Measures Restricting Activities of a Bank
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1.A court of the Republic of Lithuania must notify the supervisory institution of the planned adoption of the measures restricting activities of a bank before taking a decision on the adoption thereof or, if not possible, notify immediately the supervisory institution of a decision already taken on the adoption of the measures restricting activities of the bank.
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2.The supervisory institution must notify the supervisory institutions of other host Member States of the European Union of the planned adoption of the measures restricting activities of a bank by a court or the supervisory institution or, if not possible, notify immediately of the measures already adopted and specify possible effects of the adoption of the said measures on the natural and legal persons of the host Member State of the European Union.
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3.Where the measures restricting activities of a bank are likely to affect the exercise of the rights of third parties in another host Member State of the European Union and where an appeal may be filed against a decision on the adoption of the measures restricting activities of the bank according to the procedure set forth by laws of the Republic of Lithuania, the institution which takes the decision on the adoption of the measures restricting activities shall publish information on the decision taken in the official gazette of the European Union and in two national newspapers in each other host Member State of the European Union.
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4.The information published pursuant to paragraph 3 of this Article shall specify, in the official language (languages) of the host Member State of the European Union, the purpose and legal basis of a decision, the time limits for filing appeals and the address of the court competent to hear an appeal.
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5.The measures restricting activities of a bank shall apply and be effective irrespective of whether the information thereof has been published according to the procedure set forth by this Article.
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Article 92Notification of Winding-up Proceedings
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1.A court of the Republic of Lithuania, prior to taking a decision on the opening of winding-up proceedings, must notify thereof the supervisory institution or, if not possible, notify immediately the supervisory institution of a decision already taken on the opening of the winding-up proceedings.
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2.The supervisory institution must notify the supervisory institutions of other host Member States of the European Union of a decision planned to be taken by a court on the opening of winding-up proceedings or, if not possible, notify immediately of a decision already taken on the opening of the winding-up proceedings and specify possible effects of the taking of the said decision on the natural and legal persons of the host Member State of the European Union.
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3.A court, upon taking a decision on the opening of winding-up proceedings, or, by its assignment, the liquidator (administrator) of a bank shall publish information on the decision taken in the official gazette of the European Union and in two national newspapers in each other host Member State of the European Union.
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4.Where laws of the Republic of Lithuania provide for an obligation of the institution which opened winding-up proceedings or the liquidator (administrator) of a bank to notify creditors of the bank of a decision on the opening of the winding-up proceedings, the creditors of the bank in other host Member States of the European Union must also be notified thereof. A notification of the decision on the opening of the winding-up proceedings shall specify the time limits for the lodging of claims, consequences of a failure to lodge a claim or delayed lodgement of the claim, the institution whereto the claim must be lodged and other important circumstances. Information on a decision on the opening of winding-up proceedings shall be provided in the Lithuanian language. The document providing such information must be entitled “Proposal to Lodge a Claim. Terms of Lodgement” in all official languages of the European Union.
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5.Requirements set in paragraph 4 of this Article for the language and title of provided information shall also be applied to the provision of information referred to in paragraph 3 of this Article.
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6.A creditor of a bank who has his domicile or office in a host Member State of the European Union shall have the right to lodge claims in the official language or one of the official languages of that state, however, a translation into the Lithuanian language must be attached. In addition to lodging a claim, a creditor must also submit copies of the documents substantiating the claim (if any), specify the nature of the claim, date of arising thereof, amount and information on enforcement measures.
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7.The liquidator (administrator) of a bank must timely and in an appropriate manner notify the bank’s creditors of the process of the winding up of the bank.
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Article 93Rights of Third Parties
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1.A decision taken in the Republic of Lithuania or in another Member State of the European Union on the adoption of the measures restricting activities of a bank or a decision on the opening of winding-up proceedings shall not restrict the rights in rem of the bank’s creditors or third parties to the assets belonging to the bank by the right of ownership and situated, at the time of taking the mentioned decisions, in a Member State of the European Union other than the state in which the mentioned decisions have been taken. The right of third persons registered in the public register to acquire the right in rem referred to in paragraph 1 of this Article shall also be held the right in rem.
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2.A decision taken in the Republic of Lithuania or in another Member State of the European Union on the adoption of the measures restricting activities of a bank or a decision on the opening of winding-up proceedings shall not restrict the rights of ownership of the seller of assets in respect of a bank purchasing assets where at the time of taking the mentioned decisions the assets were situated in a Member State of the European Union other than the state in which the said decisions have been taken.
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3.A decision taken in the Republic of Lithuania or in another Member State of the European Union on the adoption of the measures restricting activities of a bank or a decision on the opening of winding-up proceedings may not be a basis for a bank selling its assets to terminate the contract of sale of the assets or not to comply with it and shall not restrict the rights of a purchaser of the assets to acquire the assets where at the time of taking the mentioned decisions the assets were situated in another Member State of the European Union other than the state in which the mentioned decisions have been taken.
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4.A decision taken in the Republic of Lithuania or in another Member State of the European Union on the adoption of the measures restricting activities of a bank or a decision on the opening of winding-up proceedings shall not restrict the right of the bank’s creditors to set off their claims against the claims of the bank, where such a set-off is permitted by the laws regulating the bank’s claim.
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5.The provisions of paragraphs 1-4 of this Article shall not restrict the right, according to the procedure set forth by laws of the Republic of Lithuania, to resolve through court issues on the voidness, voidability or unenforceability of the transactions violating the interests of a bank’s creditors.
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6.The transactions referred to in paragraph 5 of this Article may not be considered void, recognised as voidable and unenforceable where the person concerned presents evidence that:
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1)the law of another Member State of the European Union rather than that of the Republic of Lithuania is applicable to the said transaction, and
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2)the law applicable to the said transaction does not provide for a possibility to dispute the said transaction in the case pending in court.
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Article 94Appointment of the Liquidator (Administrator)
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1.A court of the Republic of Lithuania, upon appointing the liquidator (administrator) of a bank, must issue to him a copy of a decision on his appointment. A decision issued by an institution of another Member State of the European Union on the appointment of the liquidator (administrator) shall also be valid in the Republic of Lithuania, however, a translation of the decision into the Lithuanian language must be attached thereto. This translation need not be legalised.
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2.The liquidator (administrator) of a bank appointed by a court of the Republic of Lithuania shall have the right to exercise the powers granted to him by laws of the Republic of Lithuania in all other Member States of the European Union. The liquidator (administrator) appointed by an institution of another Member State of the European Union shall have the right to exercise the powers granted to him by laws of the said Member State of the European Union in the Republic of Lithuania. The liquidators (administrators) referred to in this paragraph shall have the right to authorise other persons to exercise their functions in other Member States of the European Union.
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3.The liquidator (administrator) of a bank appointed by a court of the Republic of Lithuania, when exercising his powers in another Member State of the European Union, and the liquidator (administrator) appointed by an institution of another Member State of the European Union, when exercising his powers in the Republic of Lithuania, must comply with the legal acts of the state wherein he exercises his powers, in particular the legal acts setting forth the procedure for the sale of assets and notification of the employees.
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CHAPTER XIV
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FINAL PROVISIONS
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Article 95Entry into Force of the Law
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This Law shall enter into force on 1 May 2004.
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Article 96Application of the Law to Banks in Operation and Establishments of Foreign Banks
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1.Where this Law sets stricter or additional requirements for banks in operation or for establishments of foreign banks compared with the legal acts in force prior to the entering into force of this Law and where, on the basis of these requirements, activities of a bank or an establishment of a foreign bank must be restructured, these requirements must be complied with within one year of the entering into force of this Law. Until activities of the bank are restructured in accordance with all requirements of this Law, the bank shall not have the right, according to the procedure set forth by this Law, to establish a branch or to provide financial services without establishing a branch in another Member State of the European Union.
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2.The provisions of this Law regulating the reorganisation, restructuring, winding up and bankruptcy of banks shall be applied to the proceedings opened after the entering into force of this Law. The Law on Commercial Banks in force prior to the entering into force of this Law shall be applied to bank reorganisation, winding up and bankruptcy procedures where decisions on the reorganisation, winding up or bankruptcy of a bank were taken prior to the entering into force of this Law.
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3.Where prior to the entering into force of this Law the supervisory institution has received applications for the granting of authorisations, they shall be examined and decisions shall be taken according to the procedure set forth by the legal acts in force at the time of submitting of an application.
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4.Upon entering into force of this Law, it shall be held that the banks holding a bank licence and branches of the foreign banks licensed in states other than the Member States of the European Union, where the branches hold an authorisation granted by the Bank of Lithuania to operate in the Republic of Lithuania, shall have the right to provide all financial services, unless this right is restricted by the issued bank licence or authorisation to operate or unless this right is otherwise restricted prior to the entering into force of this Law. Upon entering into force of this Law, a licence or authorisation held by the banks holding a bank licence and branches of the foreign banks licensed in states other than the Member States of the European Union, where the branches hold an authorisation granted by the Bank of Lithuania to operate in the Republic of Lithuania, shall be replaced by a licence of a new format according to the procedure set forth and the time limits laid down by the supervisory institution without requiring additional documents.
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5.Upon entering into force of this Law, branches of the foreign banks licensed in the Member States of the European Union, where the branches hold an authorisation granted by the Bank of Lithuania to operate in the Republic of Lithuania, shall have the right to provide financial services and shall be supervised in the same manner as the branches of foreign banks established pursuant to Article 20 of this Law, and the authorisation granted by the Bank of Lithuania to operate in the Republic of Lithuania shall become invalid. Where, taking account of the decisions taken by institutions of the European Union, legal acts of the supervisory institution do not provide otherwise, such a foreign bank licensed in a Member State of the European Union must, within 6 months of the entering into force of this Law, carry out the actions to ensure compliance with the provisions of paragraph 2 of Article 20 of this Law.
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Article 97Repealed Laws
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Upon entering into force of this Law, the following laws shall be held repealed:
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1)Republic of Lithuania Law on Commercial Banks (Official Gazette, 1995, No. 2-33);
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2)Republic of Lithuania Law Supplementing the Republic of Lithuania Law on Commercial Banks (Official Gazette, 1995, No. 107-2411);
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3)Law Amending and Supplementing Article 34 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 1996, No. 19-495);
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4)Law Amending Articles 40 and 47 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 1996, No. 41-989);
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5)Law Amending and Supplementing Articles 2, 6, 7, 10, 11 and 14 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 1996, No. 57-1337);
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6)Law Amending and Supplementing Articles 34 and 40 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 1996, No. 65-1535);
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7)Law Supplementing Article 37 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 1996, No. 105-2397);
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8)Law Supplementing Article 30 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 1997, No. 33-811);
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9)Law Amending Article 31 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 1997, No. 64-1504);
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10)Law Supplementing the Republic of Lithuania Law on Commercial Banks with Article 53(1) and Amending Articles 17, 37, 39, 40, 53 and 54 of the Law (Official Gazette, 1997, No. 66-1595);
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11)Law Amending Article 6 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 1997, No. 84-2092);
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12)Law Amending Article 28 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 1997, No. 117-3004);
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13)Law Amending and Supplementing Articles 6, 53 and 54 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 1999, No. 66-2119);
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14)Law Amending Article 6 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 2000, No. 28-768);
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15)Law Supplementing Articles 6 and 26 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 2000, No. 29-804);
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16)Law Amending Articles 6, 7, 8 and 34 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 2000, No. 61-1836);
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17)Law Amending Articles 2, 6, 7, 14, 18, 24, 27, 33 and 34 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 2001, No. 16-492);
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18)Law Amending Articles 40 and 47 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 2001, No. 21-695);
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19)Law Amending Article 53 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 2001, No. 23-761);
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20)Law Amending Articles 6 and 8 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 2001, No. 28-896);
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21)Law Amending Articles 10 and 11 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 2001, No. 39-1354);
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22)Law Amending Articles 44, 46, 47, 53 and 53(1) of the Republic of Lithuania Law on Commercial Banks and Repealing Articles 50, 51 and 52 (Official Gazette, 2001, No. 60-2140);
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23)Law Amending Article 54 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 2002, No. 13-476);
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24)Law Amending Article 31 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 2002, No. 33-1253);
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25)Law Amending Article 1 of the Law Amending Article 54 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 2002, No. 65-2637);
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26)Law Amending Article 53 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 2002, No. 65-2638);
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27)Law Amending Article 14 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 2003, No. 38-1691);
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28)Law Supplementing Article 46 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 2003, No. 61-2756);
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29)Law Amending Article 34 of the Republic of Lithuania Law on Commercial Banks (Official Gazette, 2004, No. 4-50).
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I promulgate this Law passed by the Seimas of the Republic of Lithuania.
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ACTING PRESIDENT OF THE REPUBLIC ARTŪRAS PAULAUSKAS Annex to the Republic of Lithuania Law on Banks EU LEGAL ACTS IMPLEMENTED BY THE REPUBLIC OF LITHUANIA LAW ON BANKS 1. Seventh Council Directive 83/349/EEC of 13 June 1983 based on the Article 54 (3) (g) of the Treaty on consolidated accounts (OJ 2004 special edition, Chapter 17, Volume 1, P. 58).
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2.Council Directive 86/635/EEC of 8 December 1986 on the annual accounts and consolidated accounts of banks and other financial institutions (OJ 2004 special edition, Chapter 6, Volume 1, P. 157).
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3.Council Directive 89/117/EEC of 13 February 1989 on the obligations of branches established in a Member State of credit institutions and financial institutions having their head offices outside that Member State regarding the publication of annual accounting documents (OJ 2004 special edition, Chapter 6, Volume 1, P. 213).
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4.Directive 94/19/EC of the European Parliament and of the Council of 30 May 1994 on deposit-guarantee schemes (OJ 2004 special edition, Chapter 6, Volume 2, P. 252).
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5.Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions (OJ 2004 special edition, Chapter 6, Volume 3, P. 343).
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6.Directive 2001/24/EC of the European Parliament and of the Council of 4 April 2001 on the reorganisation and winding up of credit institutions (OJ 2004 special edition, Chapter 6, Volume 4, P. 15).
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7.Directive 2001/65/EC of the European Parliament and of the Council of 27 September 2001 amending Directives 78/660/EEC, 83/349/EEC and 86/635/EEC as regards the valuation rules for the annual and consolidated accounts of certain types of companies as well as of banks and other financial institutions (OJ 2004 special edition, Chapter 17, Volume 1, P. 245).
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8.Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (recast) (OJ 2006 L 177, p. 1).
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9.Directive 2006/49/EC of the European Parliament and of the Council of 14 June 2006 on the capital adequacy of investment firms and credit institutions (recast) (OJ 2006 L 177, p. 201).
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10.Directive 2007/44/EC of the European Parliament and of the Council of 5 September 2007 amending Council Directive 92/49/EEC and Directives 2002/83/EC, 2004/39/EC, 2005/68/EC and 2006/48/EC as regards procedural rules and evaluation criteria for the prudential assessment of acquisitions and increase of holdings in the financial sector (OJ 2007 L 247, p. 1).