S.I. No. 168/1995 - European Communities (Deposit Guarantee Schemes) Regulations, 1995.

S.I. No. 168 of 1995.

EUROPEAN COMMUNITIES (DEPOSIT GUARANTEE SCHEMES) REGULATIONS, 1995.

I, RUAIRÍ QUINN, Minister for Finance, in exercise of the powers conferred on me by section 3 of the European Communities Act, 1972 , (No. 27 of 1972), and for the purpose of giving effect to Council Directive 94/19/EC of 1994⁽¹⁾, hereby make the following regulations:

1. (1) These Regulations may be cited as the European Communities (Deposit Guarantee Schemes) Regulations, 1995.

(2) These Regulations shall come into operation on the 1st day of July, 1995.

2. (1) In Part II of the Central Bank Act, 1989 , Chapter V is hereby repealed.

(2) Part IX of the Building Societies Act, 1989 , is hereby repealed.

(3) In Part II of the Central Bank Act, 1971 , Section 7 (1) is hereby amended by the deletion of paragraph (b).

(4) The European Communities (Licensing and Supervision of Credit Institutions) Regulations, 1992 are amended by the deletion of:

( a ) the words "53 and 55, sections 57 to 60, sections 62 and 63, sections 65 to 71 and sections 73" in Regulation 38, paragraph (1), subparagraph (a), sub-subparagraph (ii);

( b ) paragraphs (2) and (3) in Regulation 38.

⁽¹⁾O.J. No. L135, 31.5.94, p.5.

3. (1) In these Regulations

"accounts" means the balance sheet, profit and loss account and any notes on the accounts or statements forming part of the accounts whether or not required by law:

"authorisation", in relation to a credit institution, means an authorisation by the Bank to carry on the business of a credit institution in accordance with the provisions of any of the supervisory enactments, and references to authorised, in relation to such an institution, shall be construed accordingly;

"the Bank" means the Central Bank of Ireland;

"branch" means a place of business which forms a legally dependent part of a credit institution and which conducts directly all or some of the operations inherent in the business of credit institutions and any number of branches set up in the same Member State by a credit institution which has its head office in another Member State shall be regarded as a single branch;

"building society", for the purposes for these regulations, means a building society authorised or deemed to be authorised under the Building Societies Act, 1989 , or a building society authorised under the Building Societies Act, 1986 of the United Kingdom of Great Britain and Northern Ireland;

"child" includes a person of full age;

"Community" means the European Community, including members of the European Economic Area;

"connected person" in relation to another person, means a person maintaining deposits (including deposits, if any, on current accounts) with a credit institution authorised or formerly authorised by the Bank which has been the subject of a determination by the Bank or a ruling by the court in accordance with Regulation 9 and where the person is—

( a ) the spouse of that other person,

( b ) the child or grandchild of that other person or the child or grandchild of the spouse of that other person,

( c ) the parent or grandparent of that other person,

( d ) the brother, sister, stepbrother or stepsister of that other person,

( e ) a partner of that other person to whom, together, the Partnership Act, 1890, applies (whether or not with any other persons),

( f ) the spouse of a connected person to whom paragraph (b), (d) or (e) applies in relation to the appropriate other person to whom the relevant paragraph relates.

"the competent authority"—

( a ) in relation to the State, means the Bank, and

( b ) in relation to any other Member State, means a body or bodies charged with the supervision of credit institutions;

"the Court" means the High Court;

"credit institution" means an undertaking, other than a credit union or friendly society, whose business it is to receive deposits or other repayable funds from the public and to grant credit on its own account;

"credit union" means a society which is registered as a credit union under the Industrial and Provident Societies Acts, 1893 to 1978, by virtue of the Credit Union Act, 1966 ;

"deposit" means, for the purposes of these Regulations, any credit balance with a credit institution which results from funds left in an account or from temporary situations deriving from normal banking transactions and which a credit institution must repay under the legal and contractual conditions applicable, and any debt evidenced by a certificate issued by a credit institution, and includes share accounts with building societies (other than shares which fall within the definition of "own funds" in Article 2 of Council Directive No. 89/299/EEC of 17 April 1989);

"deposit protection account" means the account established by virtue of section 54 of the Central Bank Act, 1989 and maintained by virtue of Regulation 4 of these Regulations;

"the Directive" means Council Directive No. 94/19/EC of 30 May 1994 on deposit-guarantee schemes;

"ECU" means the European Currency Unit;

"eligible deposits" has the meaning assigned to it by regulation 16;

"excluded depositor" means a person maintaining deposits (including deposits, if any, on current accounts) with a credit institution authorised or formerly authorised by the Bank which has been the subject of a determination by the Bank or a ruling by the Court in accordance with Regulation 9 and, in relation to that credit institution is—

( a ) a chief officer, secretary or member of any board or other committee of management, by whatever name called,

( b ) a relevant beneficial owner of that credit institution,

( c ) together with connected persons, a relevant beneficial owner of that credit institution,

( d ) subject to Regulation 17, a connected person to a person specified in paragraph (a), (b) or (c),

( e ) subject to Regulation 17, a trustee of a trust for the benefit of a person specified in paragraph (a), (b), (c) or (d),

( f ) (i) where the credit institution is a building society, a subsidiary of the society or a body corporate (not being a subsidiary of the society) in respect of which the society is the relevant beneficial owner;

(ii) in circumstances other than those specified in subparagraph (i), a holding company, a subsidiary company, another subsidiary company of the same holding company or a company (not being a subsidiary company) in respect of which the credit institution is a relevant beneficial owner;

"financial institutions" means financial institutions as defined in Regulation 2 of the European Communities (Licensing and Supervision of Credit Institutions) Regulations, 1992 ( S.I. No. 395 of 1992 );

"home Member State" in relation to an undertaking incorporated in or formed under the law of another Member State, means that Member State;

"interbank deposits" means deposits with a credit institution by other credit institutions on their own behalf and on their own account;

"joint account" means an account opened in the names of two or more persons or over which two or more persons have rights that may operate against the signature of one or more persons;

"own funds" means all instruments which would fall within the definition of 'own funds' in Article 2 of Council Directive 89/299/EEC of 17 April 1989 on the own funds of credit institutions;

"relevant beneficial owner", in relation to a body corporate, means a person who is beneficially entitled (either directly or indirectly) to 20 per cent. or more in nominal value of either the allotted share capital or the shares carrying voting rights (other than voting rights which arise only in specified circumstances) in the body corporate, except where such shares are to be considered as deposits for the purposes of these Regulations;

"supervisory enactments" means the Central Bank Acts, 1942 to 1989, the Building Societies Act, 1989 (No. 17 of 1989), the Trustee Savings Banks Act, 1989 (No. 21 of 1989), the ACC Bank Act, 1992 (No. 6 of 1992), the ICC Bank Act, 1992 (No. 21 of 1992), or any other enactment relating to supervision by the Bank and for the time being in force;

"unavailable deposit" has the meaning assigned to it by Regulation 9;

"undertaking" has the same meaning as it has in Regulation 3 of the European Communities (Companies: Group Accounts) Regulations, 1992 ( S.I. No. 201 of 1992 ).

(2) A word or expression that is used in these Regulations and is also used in the Directive has, unless the contrary is indicated, the same meaning in these Regulations as it has in the Directive.

(3) In these regulations, unless the context otherwise requires, a reference to a regulation is to a regulation of these Regulations, and a reference to a paragraph is to the paragraph of the Regulation in which the reference occurs.

4. (1) The account established and maintained by the Bank immediately before the coming into operation of these Regulations by virtue of section 54 of the Central Bank Act, 1989 shall continue to be maintained by the Bank and shall continue to be known as the deposit protection account.

(2) The deposit standing maintained with the Bank immediately before the coming into operation of these Regulations by each holder of a licence in accordance with Chapter V of the Central Bank Act, 1989 or building society in accordance with Part IX of the Building Societies Act, 1989 shall be maintained in the deposit protection account in respect of that holder or society and the said account shall continue to operate in relation to holders of licences and building societies in common.

5. (1) A credit institution authorised by the Bank shall not carry on the business of a credit institution unless it maintains on deposit with the bank an amount determined in accordance with this Regulation.

(2) The amount of a deposit maintained by a credit institution authorised by the Bank under these Regulations shall, subject to paragraph (5), be 0.2 per cent. of total deposits (including deposits on current accounts but excluding interbank deposits and negotiable certificates of deposit), denominated in the ECU or any currency and issued or held at offices in Member States of the credit institution, but shall not be less than £20,000.

(3) The amount of the deposit shall be recalculated by the Central Bank as soon as possible after the coming into operation of these Regulations or at the time of granting an authorisation as may be appropriate and shall be recalculated in respect of every credit institution authorised by the Bank annually after the coming into operation of these Regulations by reference to such returns as are made by the credit institution at the request of the Bank.

(4) The amount of a deposit under these Regulations shall, where necessary, be increased to the appropriate amount calculated under paragraph (2) by the credit institution concerned not later than 7 days, or such longer period as the Bank may agree to in writing, after the date of receipt by it of notification from the Bank of the amount required to effect the increase.

(5) The Bank may settle the amount of a deposit under these Regulations at the nearest round figure in hundreds of pounds and by rounding up to such a figure where the amount calculated under paragraph (2) is divisible in pounds by £50.

(6) A deposit under these Regulations shall carry interest at such rate or rates and payable in such a manner and at such times as may be determined by the Bank from time to time.

(7) Any charge purported to be created on a deposit under these Regulations other than by the Bank shall be void.

(8) A deposit under these Regulations shall not be subject to any form of execution in satisfaction of any claim, or any judgment, order or decree of any court in the State in favour of any creditor, otherwise than under and in accordance with the provisions of these Regulations and the supervisory enactments.

6. (1) Credit institutions authorised or formerly authorised by the Bank shall make available to actual and intending depositors the information specified in Article 9 (1) of the Directive in a manner and form to be agreed with the Bank, save where the provisions of paragraph (2) apply.

(2) Where a branch of a credit institution authorised or formerly authorised by the Bank is established in another Member State, the information provided for in paragraph (1) shall be made available in the manner prescribed by national law in the official language or languages of the Member State in which the branch is established.

(3) Except with the prior written consent of the Bank, a credit institution authorised or formerly authorised by the Bank shall not advertise or cause to be advertised the fact (however expressed) that deposits or funds placed with the credit institution are protected by or through the deposit protection account.

7. The Bank shall keep the operation of the deposit protection account under review and may, if it considers it expedient to do so after having regard to such factors as it considers relevant, from time to time make recommendations to the Minister for Finance and to the Minister for the Environment in relation to the amount of the deposit to be maintained by a credit institution under Regulation 5.

8. (1) Where a credit institution authorised or formerly authorised by the Bank ceases to carry on business in circumstances other than those provided for by Regulation 9, the Bank may retain the full amount, or such lesser amount as the Bank considers appropriate, of the credit institution's deposit in the deposit protection account until it is satisfied that all liability of that credit institution in respect of every person maintaining deposits with it have been or will be discharged.

(2) Every payment to which this section relates shall be charged on the deposit protection account in the general fund.

9. (1) In these Regulations "unavailable deposit" means a deposit that is due and payable but has not been paid by a credit institution under the legal and contractual conditions thereto, where either

( a ) the relevant competent authorities have determined that in their view the credit institution concerned appears to be unable for the time being, for reasons which are directly related to its financial circumstances, to repay the deposit and to have no current prospect of being able to do so; or

( b ) a judicial authority has made a ruling for reasons which are directly related to the credit institution's financial circumstances which has the effect of suspending depositors' ability to make claims against it, should that occur before the aforementioned determination has been made.

(2) For the purposes of these Regulations, the appointment of a liquidator by the Court shall be considered a judicial ruling in accordance with paragraph (1) (b).

10. (1) Where a credit institution authorised or formerly authorised by the Bank is unable to pay its debts and is being wound up, either voluntarily or as a consequence of a ruling by the Court under Regulation 9, the Court may, on the application of the liquidator concerned, order that the amount standing deposited by the credit institution in the deposit protection account shall, together with any interest accrued and interest that may accrue, and subject to the other provisions of these Regulations, vest in the liquidator by his official name.

(2) Where, after payment of all eligible deposits, any balance of the amount vested in the liquidator by virtue of paragraph (1) remains, it shall be treated for the purposes of the Companies Acts, 1963 to 1990, as an asset of the credit institutions vesting in the liquidator by his official name.

11. (1) This Regulation applies where a liquidator has been appointed either voluntarily or as a consequence of a ruling by the Court or a determination by the Bank under Regulation 9.

(2) The liquidator shall deliver to the Bank within one month of the date of his appointment, or such extended period as the Court may order—

( a ) a copy of the statement of affairs of the credit institution authorised or formerly authorised by the Bank made out and filed in accordance with section 224 of the Companies Act, 1963 , or, where the credit institution is being wound up voluntarily, a statement which would be so filed if the credit institution were being wound up by the Court,

( b ) an estimate of the amount (excluding any amount in the deposit protection account) likely to be available for the payment of amounts due to persons maintaining deposits, and

( c ) a statement of when he expects to be in a position to make those payments.

(3) ( a ) The amount payable out of the amount vesting in the liquidator in accordance with Regulation 10 to each person maintaining eligible deposits with the credit institution concerned shall, subject to paragraph (b), be 90 per cent. of any amount of eligible unavailable deposits subject to a maximum amount payable equivalent to 15,000 ECUs.

( b ) Where the aggregate amount so payable would be greater than the amount vesting in the liquidator in accordance with Regulation 10 then the amount payable to each person concerned shall be in the same proportion to the amount payable under paragraph (a) as the amount so vesting is to the said aggregate amount.

( c ) Reference in this Regulation or in Regulation 13 to the amount vesting in the liquidator in accordance with Regulation 10 shall be construed as the amount so vesting after the deduction for any remuneration or expenses permitted, by virtue of Regulation 23, to be paid out of the amount vesting in the liquidator.

12. (1) This Regulation applies where a judicial authority has made a ruling, or the Bank has made a determination under Regulation 9, and a liquidator has not been appointed.

(2) There shall be paid, out of the deposit protection account, to each person maintaining an eligible unavailable deposit with the credit institution concerned—

( a ) where the deposit is maintained in the State, an amount equivalent to that calculated in accordance with Regulation 11 (3) (a);

( b ) where the deposit is maintained in another member State,

the lesser of

(i) the amount calculated in accordance with paragraph (a), or

(ii) an amount equivalent to that which would be paid to that person under the deposit guarantee scheme established under the Directive in that other Member State,

subject to the provisions of Regulation 26.

(3) Where the provisions of paragraph (2) apply, every person with eligible deposits concerned may, subject to Regulation 14, claim as an ordinary creditor of the credit institution in respect of so much of those deposits (other than shares which are included in the definition of deposits for the purposes of these Regulations) as remains unpaid.

(4) Subject to paragraph (5), the Bank shall be in a position to pay duly verified claims by depositors in respect of eligible unavailable deposits within three months of the date on which the Bank made a determination or the court made a ruling under Regulation 9.

(5) In wholly exceptional circumstances and in special cases the Bank may provide for up to three extensions of the time limit in paragraph (4), each of which extensions shall not exceed three months.

(6) The time limits in paragraphs (4) and (5) shall not be invoked in order to refuse payment under this section to any person maintaining eligible deposits who has not been able to assert this claim to payment in time.

(7) Notwithstanding the time limits laid down in paragraphs (5) and (6), where any person entitled to or with an interest in sums held in an account has been charged with an offence under Part IV or section 57 or 58 of the Criminal Justice Act, 1994 (No. 15 of 1994) or otherwise arising out of or in relation to money laundering as defined in Article 1 of Directive 91/308/EEC, the Bank may suspend any payment pending the judgement of the court concerned in respect of the charge or charges.

(8) The Bank shall take all reasonable steps to ensure that payments to which this regulation relates are paid as expeditiously and with the least expense to the Bank as is possible consistently with the provisions of these Regulations and with the orderly winding up.

(9) Where moneys have been provided by the Bank for the payment of persons maintaining eligible deposits, proof of those payments shall be given to the Bank by the person to whom the moneys were so provided.

(10) Every payment to which this regulation relates shall be charged on the deposit protection accounts in the general funds.

(11) Where the liability of a credit institution to a person maintaining eligible deposits with the institution is related to both deposits (other than shares) with and shares in the institution which are included in the definition of deposit for the purposes of these Regulations, the amount of the payment to the person under this Regulation shall be applied to reducing the liability of the institution to the person in respect of the deposits (other than shares) and shares respectively in the same proportion as that which the amount of the deposits bears to the amount of the shares within the same liability.

13. (1) There shall be paid, out of the amount vesting in the liquidator under Regulation 10, to each person maintaining an eligible deposit with the credit institution concerned—

( a ) where the deposit is maintained in the State,

(i) the amount calculated in accordance with Regulation 11 (3) (a), or

(ii) if the amount so vesting is insufficient for such purpose, a proportion of that person's eligible deposit which is calculated in accordance with Regulation 11 (3) (b);

( b ) where the deposit is maintained in another member State, the lesser of

(i) the amount calculated in accordance with paragraph (a), or

(ii) an amount equivalent to that which would be paid to that person under the deposit guarantee scheme established under the Directive in that other Member State,

subject to the provisions of Regulation 26.

(2) Where the provisions of paragraph (1) apply, every person with eligible deposits concerned may, subject to Regulation 14, claim as an ordinary creditor of the credit institution in respect of so much of those deposits (other than shares which are included in the definition of deposits for the purposes of these Regulations) as remains unpaid.

(3) Where it appears to the Bank that the amount available, or likely to become available, to the liquidator concerned (including the amount vesting in the liquidator in accordance with Regulation 10) will be insufficient to enable each person maintaining eligible deposits with the credit institution to be paid in respect of such deposits the amount calculated in accordance with Regulation 11 within the period of time specified in paragraph (4) then there shall be provided by the Bank out of the deposit protection account a sum sufficient to pay in respect of each such person the difference between the amounts calculated in accordance with paragraphs (3) (a) and (3) (b) of Regulation 11.

(4) Subject to paragraph (5), the liquidator shall be in a position to pay duly verified claims by depositors in respect of eligible unavailable deposits within three months of the date on which the Bank made a determination or the Court made a ruling under Regulation 9.

(5) In wholly exceptional circumstances and in special cases the liquidator may apply to the Bank for up to three extensions of the time limit in paragraph (4), each of which extensions shall not exceed three months.

(6) The time limits in paragraphs (4) and (5) shall not be invoked in order to refuse payment under this section to any person maintaining eligible deposits who has not been able to assert his claim to payment in time.

(7) Notwithstanding the time limits laid down in paragraphs (5) and (6), where any person entitled to or with an interest in sums held in an account has been charged with an offence under Part IV or section 57 or 58 of the Criminal Justice Act, 1994 (No. 15 of 1994) or otherwise arising out of or in relation to money laundering as defined in Article 1 of Directive 91/308/EEC, the Bank may suspend any payment pending the judgement of the court concerned in respect of the charge or charges.

(8) The manner and mode of making payments for the purposes of paragraph (1) from the moneys vesting in the liquidator concerned by virtue of Regulation 10 shall be as agreed between the liquidator and the Bank or, in the event of disagreement, as the court shall order on an application by either or both the liquidator and the Bank.

(9) The Bank shall take all reasonable steps to ensure that payments to which this regulation relates are paid as expeditiously an with the least expense to the Bank as is possible consistently with the provisions of these Regulations and with the orderly winding up.

(10) Where moneys have been provided by the Bank for the payment of persons maintaining eligible deposits, proof of those payments shall be given to the Bank by the person to whom the moneys were so provided.

(11) Every payment to which this regulation relates shall be charged on the deposit protection account in the general fund.

(12) Where the liability of a credit institution to a person maintaining eligible deposits with the institution is related to both deposits (other than shares) with and shares in the institution which are included in the definition of deposit for the purposes of these Regulations, the amount of the payment to the person under this Regulation shall be applied to reducing the liability of the institution to the person in respect of the deposits (other than shares) and shares respectively in the same proportion as that which the amount of the deposits bears to the amount of the shares within the same liability.

(13) ( a ) The documents relating to the conditions to be fulfilled and the formalities to be completed to be eligible for a payment to which this regulation or Regulation 12 relates shall, subject to paragraph (b), be drawn up in detail by the Bank or, at the Bank's discretion, by each credit institution which maintains a deposit in the deposit protection account in a manner and form to be agreed with the Bank.

( b ) Where the eligible deposit is maintained in another Member State, the documents drawn up in accordance with paragraph (a) shall be drawn up in the manner prescribed by national law in the official language or languages of the Member State in which the eligible deposit is maintained.

14. (1) Where the Bank has made or becomes liable to make a payment under Regulation 12 or Regulation 13 to persons maintaining eligible deposits, then as regards the amount of the payment in respect of each such person that amount shall be admitted by the Court (or, in the case of a voluntary winding-up by the liquidator) as a proved debt due to the Bank and the Bank shall have the same priority as would be enjoyed by the person were no such amount paid or payable.

(2) In distributing any relevant assets, the liquidator concerned shall pay to the Bank any dividend which would have been payable to a person to whom paragraph (1) relates and, accordingly, the person concerned shall not be entitled to such a dividend or any part thereof until the Bank has been paid by the liquidator the full amount paid to that person by the Bank and to which paragraph (1) relates.

15. Deposits held when the authorisation of a credit institution authorised pursuant to Article 3 of Directive 77/780/EEC is withdrawn shall continue to be subject to the provisions of these Regulations.

16. (1) In this Chapter "eligible deposits", in relation to every person maintaining deposits (including deposits on current accounts) with the authorised or formerly authorised credit institution, means the amount of the total liability of the credit institution remaining due to every such person in respect of deposits denominated in the ECU or any currency at offices or branches in the Community of the credit institution together with any interest or other premium accrued thereon up to and including the day of the determination made under Regulation 9 (1) (a) or the ruling made under Regulation 9 (1) (b), as appropriate, but does not include—

( a ) any amount to which subsection (2) relates,

( b ) any deposit maintained by an excluded depositor,

( c ) any deposit which relates to moneys due to the Bank,

( d ) interbank deposits,

( e ) negotiable certificates of deposit,

(f) any deposit which relates to moneys due to any body or category of persons to whom section 7 (4) (as amended by the Central Bank Act, 1989 ) of the Act of 1971 applies, other than a credit union or a friendly society,

( g ) own funds of credit institutions,

( h ) deposits arising out of transactions in respect of which an offence has been committed under Part IV or sections 57 or 58 of the Criminal Justice Act, 1994 (No. 15 of 1994) or there has been a criminal conviction for money laundering as defined in Article 1 of Council Directive 91/308/EEC of 10 June 1991 on prevention of the use of the financial system for the purpose of money laundering, and

( i ) deposits for which the depositor has, on an individual basis, obtained from the same credit institution rates and financial concessions which have helped to aggravate its financial situation.

(2) In calculating the amount of an eligible deposit—

( a ) there shall be deducted from the total liability of the authorised or formerly authorised credit institution to the person maintaining a deposit to which paragraph (1) relates, the amount of any liability of any person to that credit institution in respect of which a right of set-off against the said deposit existed immediately before the determination by the Bank or ruling by the Court under Regulation 9 or in respect of which such a right would have existed had—

(i) the said deposit been repayable on demand, and

(ii) such liability fallen due,

immediately before such determination or ruling, and

( b ) no account shall be taken of any debt—

(i) of the credit institution concerned unless it has been proved in accordance with sections 283 and 284 of the Companies Act, 1963 , and

(ii) where the authorisation of the credit institution has been revoked, for any sum deposited by a person with that credit institution after such revocation where the Bank is satisfied that, at the time the deposit was made, the person knew or could be reasonably be expected to have known that the authorisation had been revoked.

17. (1) Where the Bank is of the opinion that a person is an excluded depositor by virtue of—

( a ) being a connected person to whom paragraph (c) or (d) of the definition of "excluded depositor" in regulation 3 applies, or

( b ) being a trustee of a trust for the benefit of a connected person to whom paragraph (e) of the definition of "excluded depositor" in Regulation 3 applies.

or that a person is a person to whom Regulation 16 (1) (i) or Regulation 16 (2) relates, then the Bank shall, except where paragraph (2) (b) of this regulation applies, give notice in writing to the person of that opinion, the reasons therefor and the steps that may be taken by the person under paragraph (2).

(2) ( a ) A person to whom a notice under paragraph (1) has been given in accordance with this regulation may, within 21 days of being so given, apply to the Court to have the relevant exclusion or deduction to which the notice relates set aside.

( b ) Where the Bank is of the opinion that a person is an excluded depositor by virtue of subparagraph (a) or (b) of paragraph (1) but is satisfied that, in the circumstances, it would be just and equitable to have his exclusion as an eligible depositor set aside, the Bank may apply to the Court to have the exclusion set aside.

( c ) Where, on an application under subparagraph (a) or (b), the Court is satisfied that, in the circumstances, it would be just and equitable to do so, it shall set aside the exclusion or deduction, as the case may be, but only for the purposes of any relevant deposit made by that person.

(3) Notice of any application to the Court under paragraph (2) (a) shall be given to the Bank and to the liquidator concerned by the person making the application and notice of any application to the Court under paragraph (2) (b) shall be given by the Bank to both the liquidator and the person concerned.

(4) For the purposes of this regulation, notice shall be duly given by the Bank if the notice is—

( a ) sent by prepaid post to the last known address of the person concerned as ascertained by the Bank directly from that person or from the liquidator,

( b ) otherwise given in accordance with any direction of the Court upon application being made to it by the Bank for the purposes of this subsection.

18. (1) Where—

( a ) a person maintaining deposits (including, if any, deposits on current accounts) with a credit institution authorised or formerly authorised by the Bank which has become insolvent and is being wound up does so as trustee, and

( b ) any beneficiary of the trust concerned is beneficially entitled against the trustees to any identifiable part of that amount, either absolutely or jointly with a fixed number of other beneficiaries,

then, the amount the beneficiary is so entitled to shall be treated, but only for the purpose of ascertaining an appropriate calculation—

(i) where the beneficiary is entitled absolutely, as if it were deposited in a separate account maintained by the beneficiary and legal ownership had passed to the beneficiary,

(ii) where the beneficiary is entitled jointly with a number of other beneficiaries, as if it were deposited in a separate account in the nature of a joint account maintained by the beneficiaries and legal and joint ownership had passed to the beneficiaries concerned.

(2) Where persons (being persons other than trustees or persons to whom paragraph (1) applies) maintaining, or treated by virtue of paragraph (1) as maintaining, deposits in a joint account (whether a joint deposit account or otherwise with the credit institution authorised or formerly authorised by the Bank which has become insolvent and is being wound up) are entitled to the deposit by virtue of their joint ownership of the moneys on deposit, then they shall, in the absence of special terms and conditions, each be treated, but only for the purpose of ascertaining an appropriate calculation, as having a separate deposit equal to the amount that would be produced by dividing the moneys concerned by the number of persons to whom the joint account relates.

(3) A deposit to which two or more persons are entitled as members of a partnership, association or similar grouping of a similar nature, without legal personality, (whether or not in equal shares) shall be treated as a single deposit.

(4) The Bank and, where necessary for the purposes of ascertaining an appropriate calculation, the liquidator concerned may require any person maintaining a deposit to which this regulation may relate to supply sufficient information to enable a determination to be made as to whether the provisions of this regulation apply to such a deposit.

(5) Where, in a case to which paragraph (1) or (2) applies, there are other eligible deposits in relation to the person concerned, those other deposits shall, for the purpose of ascertaining the appropriate calculation, be aggregated with any amount treated as deposits maintained by that person for the purpose of either or both paragraph (1) and (2) and the amount so ascertained shall be divided and duly paid to the person concerned and either or both (as the circumstances may require) the trustees concerned and the said person jointly with others, in the same proportion or proportions as the amounts so aggregated bear to each other.

(6) In the section "appropriate calculation" means a calculation for the purposes of paragraph (2) of Regulation 12 or paragraph (1) or (3) of Regulation 13.

19. (1) Subject to paragraph (2) and whether or not payments have been made to which Regulation 12 or Regulation 13 relates, the Bank may, at its discretion and to such extent as it may deem proper from time to time charge on the deposit protection account any other payment out of the general fund which, in the opinion of the Bank, was applied—

( a ) to protect the interest of persons or any class of persons maintaining deposits with one or more credit institutions authorised or formerly authorised by the Bank, or

( b ) to promote the orderly and proper regulation of banking.

(2) The Bank shall, from time to time, keep the Minister for Finance and the Minister for the Environment and every credit institution authorised by the Bank informed of the general principles which guide the Bank in respect of the exercise of its discretion and shall consider any representation which may be made on those principles by any credit institution authorised by the Bank.

20. (1) Subject to Regulation 21, the Bank shall from time to time apportion among credit institutions authorised by the Bank, in proportion to the amounts of their respective deposits required to be maintained at the time of such apportionment in the deposit protection account, and any other credit institutions maintaining deposits in the deposit protection account under Regulation 26, any payments charged on that account (other than any repayment or part thereof for the purposes of these Regulations) in accordance with Regulation 12 or Regulation 13 or Regulation 19 together with any moneys due but to but not paid to the credit institutions in accordance with Regulation 22 and the amount so ascertained in respect of each credit institution shall, subject to paragraph (2) be debited against or credited to, as the case may be, that credit institution's deposit in the said account.

(2) ( a ) The aggregate of the amounts debited by virtue of paragraph (1) in any period (being a period between a calculation or recalculation under Regulation 5 and the first or subsequent recalculation, respectively, thereunder) in respect of a credit institution shall not exceed the amount of the credit institution's deposit maintained in accordance with these Regulations in the deposit protection account during that period.

( b ) Where amounts which, but for subparagraph (a), would have been debited against the credit institutions in the deposit protection account are not so debited because of that subparagraph, then the total of the amounts not so debited shall be aggregated and apportioned in the next following year or, where necessary, the succeeding years in accordance with paragraph (1) in proportion to the amounts of relevant deposits at the time it is so apportioned.

(3) Each credit institution authorised by the Bank shall lodge with the Bank for the purpose of maintaining its calculated deposit, or where recalculated as last recalculated, in the deposit protection account, an amount to maintain that deposit and that credit institution shall comply with such requirement within 7 days or such longer period as the Bank may agree to in writing.

21. Where the Bank is satisfied that a reconstitution of the deposit protection account by apportionment solely in accordance with Regulation 20 would have a material and detrimental effect on the financial position or viability of a credit institution, the Bank may in its discretion but only to such extent or for such period and subject to such conditions as it considers appropriate, exclude the credit institution from such a reconstitution in which case the amount involved may be apportioned among the other credit institutions maintaining deposits in the deposit protection account.

22. (1) In addition to amounts representing deposits maintained under Regulation 5 or Regulation 26 (including amounts duly lodged for the purposes of Regulations 20 (3)) there shall be credited to the deposit protection account any sum paid to the Bank,

( a ) by a liquidator for the purposes of Regulation 14, or

( b ) in respect of the repayment of the principal of any moneys provided by virtue of Regulation 12 or Regulation 19 or of any interest thereon, or

( c ) which, in its opinion, ought to be lodged to that account.

(2) Where any sum has been credited to the deposit protection account in accordance with paragraph (1), it shall—

( a ) in the first instance be applied towards repayment of any liability to the Bank charged or chargeable to that account, and

( b ) subject to paragraph (3), thereafter be distributed (whether by way of payment or by reducing the amount to be lodged on a reconstitution of that account under Regulation 20) among the credit institutions maintaining deposits in the said account in proportion to the amounts by which each of their deposits were affected by the liability to which the said sum so relates.

(3) Where any sum distributable under paragraph (2) relates to a deposit (at any time) in the deposit protection account by a credit institution which has been wound up, then such a sum shall—

( a ) accrue to the Bank unless, upon ceasing to carry on that business, that credit institution's business as a credit institution was amalgamated with or transferred to another credit institution in which case it shall accrue to that other credit institution, or

( b ) where the provisions of this subsection also primarily apply to that other credit institution (being also a credit institution which has been wound up), be traced through that other credit institution and any other credit institutions until it accrues to either the Bank or a credit institution maintaining a deposit in the deposit protection account at that said time.

(4) Whenever any sum accrues to the Bank by virtue of paragraph (3), the Bank may, if it thinks proper to do so, waive, in whole or in part and in favour of such person and upon such terms as it thinks proper having regard to all the circumstances of the case, the right of the Bank to such sum or such part thereof.

23. (1) Subject to paragraph (2), no deduction shall be made from assets vesting in the liquidator by virtue of Regulation 10 for expenses incurred or remuneration claimed by the liquidator in respect of matters to which these Regulations relate and accordingly, such expenses and remuneration shall be dealt with as if they related to the winding up of the credit institution under the Companies Acts, 1963 to 1990.

(2) Where, on the application of a liquidator to whom these Regulations relate, the Bank is satisfied that there are insufficient assets out of which expenses and remuneration can be paid in accordance with paragraph (1), then the Bank may permit all reasonable expenses properly incurred and such remuneration to the liquidator as the Bank considers appropriate to be paid out of the amount vesting in the liquidator under Regulation 10, or otherwise out of the deposit protection account, but only to the extent of that insufficiency.

24. Should any of the credit institutions listed in Annex III to the Directive establish or have established a branch in the State, then such a branch shall be required to maintain a deposit in the deposit protection account on the same terms and conditions as a credit institution authorised by the Bank and shall be subject to the provisions of the European Communities (Deposit Guarantee Schemes) Regulations, 1995, as if that branch were such a credit institution.

25. (1) This regulation applies where a credit institution authorised by the Bank has established a branch in another Member State and has joined an officially-recognised deposit guarantee scheme within the territory of that Member State in order to supplement the provisions of these Regulations, in accordance with Article 4 of the Directive.

(2) Where the Bank has been notified that a branch established in another Member State and has joined a scheme in accordance with paragraph (1) does not comply with the obligations incumbent on it as a consequence of its membership of that deposit guarantee scheme in that other Member State, the Bank shall, in collaboration with that guarantee scheme, take all appropriate measures to ensure that those obligations are complied with.

(3) A credit institution authorised by the Bank which has established a branch in another Member State and has joined the scheme in accordance with paragraph (1) shall be bound by Article 4 of the Directive and by the Guiding Principles laid down in Annex II to the Directive.

(4) The Bank and the liquidator appointed as a consequence of a determination or ruling under Regulation 9 shall be bound by Article 4 of the Directive and by the Guiding Principles laid down in Annex II to the directive.

26. (1) Where a credit institution which is authorized in another Member State establishes or has established a branch in the territory of the State, and the level or scope or both of payments under these Regulations would exceed the level or scope or both of the corresponding payments provided under the deposit guarantee scheme established in accordance with the Directive in that other Member State in which the credit institution is authorised, that branch may maintain a deposit in the deposit protection account.

(2) The amount of the deposit to be maintained in the deposit protection account under paragraph (1) shall be determined by the Bank on an annual basis, having regard to the level or scope or both of payments provided under the deposit guarantee scheme established in the Member State in which the credit institution is authorised, so as to ensure that the level or scope or both of payments that may be made on eligible deposits with that branch shall be equivalent to but shall not exceed those which would be made were that branch a credit institution authorised by the Bank.

(3) Where a credit institution authorized in another Member State maintains a deposit in the deposit protection account in accordance with this regulation, the credit institution and the Bank shall be bound by the Guiding Principles laid down in Annex II to the Directive.

(4) Where deposits with a credit institution maintaining a deposit in the deposit protection account under this Regulation become unavailable deposits, the Bank shall make arrangements for payments to be made in accordance with the Directive and the Guiding Principles in Annex II to the Directive, which payments shall be charged on the deposit protection account in the general fund.

(5) Deposits held when the authorization of a credit institution is withdrawn may be retained by the Bank in the deposit protection account.

(6) If a branch maintaining a deposit in the deposit protection account in accordance with paragraph (1) does not comply with the obligations incumbent on it under this regulation, the competent authorities which issued the authorization shall be notified and, in collaboration with the Bank, shall take all appropriate measures to ensure that the aforementioned obligations be complied with.

(7) ( a ) If the measures in paragraph (6) fail to secure the branch's compliance with its obligations under this regulation, after a period of notice of not less than 12 months the Bank may, with the consent of the competent authorities which issued the authorization, exclude the branch from the provisions of this regulation.

( b ) Deposits made before the date of exclusion under this paragraph shall continue to be subject to the provisions of this regulation until the dates on which they fall due.

( c ) Depositors shall be informed of the withdrawal of the supplementary cover provided for under these Regulations.

27. (1) Any person who contravenes Regulation 5 (1) of these Regulations shall be guilty of an offence and shall be liable—

( a ) on summary conviction, to a fine not exceeding £1,000 or, at the discretion of the court, to imprisonment for a term not exceeding 12 months, or to both, or

( b ) on conviction on indictment, to a fine not exceding £50,000 or, at the discretion of the court, to imprisonment for a term not exceeding 5 years, or to both,

and, if the contravention in respect of which he was convicted is continued after conviction, he shall be guilty of an offence every day on which the contravention continues after conviction in respect of the original contravention and for such offence he shall be liable on summary conviction to a fine not exceeding £100 or on conviction on indictment to a fine not exceding £5,000.

(2) Any person who contravenes Regulation 6 (3) of these regulations shall be guilty of an offence and shall be liable—

( a ) on summary conviction to a fine not exceeding £1,000 or, at the discretion of the court, to imprisonment for a term not exceeding 12 months, or to both, or

( b ) on conviction on indictment to a fine not exceeding £50,000 or, at the discretion of the court, to imprisonment for a term not exceeding 5 years, or to both.

(3) A prosecution for an offence under these Regulations which is being tried summarily may be prosecuted by the Bank and a statement made by the person conducting such prosecution shall be sufficient evidence that the prosecution was so commenced.

(4) Where an offence under these Regulations has been committed by a body corporate or by a person purporting to act on behalf of a body corporate or an unincorporated body of persons and is proved to have been so committed with the consent or approval of, or to have been facilitated by any wilful neglect on the part of, another person (being a director, manager, secretary, member of any committee of management or other controlling authority of such body or official of such body) that other person shall, as well as the body corporate or the person so purporting to act, be guilty of an offence and shall be liable to be proceeded against and punished accordingly.

28. Nothing in section 16 of the Central Bank Act, 1989 , or section 44 of the Building Societies Act, 1989 , shall prohibit the disclosure of information by the Bank to any person in the State, or an authority in a foreign jurisdiction, duly authorised by law to supervise credit institutions, or a deposit guarantee scheme in another Member State established in accordance with the Directive where such disclosure is required by, or is necessary for, the discharge by the Bank of a function imposed by virtue of these Regulations or the Directive and is made in accordance with Article 12 of Directive 77/780/EEC of 12 December 1977.

GIVEN under my Official Seal, this 29th day of June, 1995

RUAIRÍ QUINN

Minister for Finance

EXPLANATORY NOTE.

The purpose of these Regulations is to give effect to Directive 94/19/EC of the European Parliament and the Council of 30 May 1994 on deposit-guarantee schemes. The Regulations amend the provisions of Chapter V of the Central Bank Act, 1989 (No. 16 of 1989) and Part IX of the Building Societies Act, 1989 (No. 17 of 1989), regarding deposit protection.

The Regulations provide for depositors to be compensated for 90% of their deposits up to a maximum equivalent to ECU 15,000. The scheme established under the Regulations applies to all deposits in any currency (including the ECU) at a branch in the European Union of any credit institution authorised in Ireland. The scheme must be in a position to pay within 3 months of:

—the Bank determining that a credit institution is unable to repay deposits due to its financial situation;

—a court making a ruling, for reasons directly related to a credit institution's financial circumstances, that suspends depositors' ability to make claims against the institution.

In exceptional circumstances, the scheme may have up to three extensions of three months.

All credit institutions (banks, building societies, the TSB, ACC Bank and ICC) authorised in Ireland must be part of the scheme. They are required to maintain, in the deposit protection account of the Central Bank, 0.2% of their total deposits in the area covered by the scheme to finance the scheme.

Branches of credit institutions authorised elsewhere in the European Union may, where the Irish scheme offers better cover than their home State, increase the level of their cover by joining the host scheme.

Certain deposits, which were excluded from compensation under the Central Bank Act, and the Building Societies Act, 1989 , are also excluded under these Regulations, together with those deposits required to be excluded under the Directive (own funds, interbank deposits and deposits in respect of which there has been a conviction for money laundering).

The regulations come into effect from July 1, 1995.