Finance (Miscellaneous Provisions) Act 2015

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Amendment of section 1 of Act of 2009

7. Section 1 of the Act of 2009 is amended—

(a) by inserting before the definition of “Bank” the following:

“ ‘authorised’, in relation to a credit institution, means—

(a) in the case of a bank, a bank authorised, or deemed to be authorised, by the European Central Bank on application therefor under section 9 of the Central Bank Act 1971 ,

(b) in the case of a building society, a building society authorised, or deemed to be authorised, by the European Central Bank on application therefor under section 17 of the Building Societies Act 1989 , or

(c) in the case of a credit union, a credit union registered within the meaning of the Credit Union Act 1997 or deemed to be so registered by virtue of section 5(3) of that Act;”,

(b) by inserting after the definition of “Bank” the following:

“ ‘compensation event’, in relation to a credit institution, means the occurrence of one or more of the following:

(a) the Bank has determined that, for the time being, the credit institution appears to be unable, for reasons directly related to its financial circumstances, to repay a deposit or deposits and to have no current prospect of being able to do so;

(b) a court in the State has appointed a liquidator or examiner to the credit institution;

(c) a judicial authority in the State has made, for reasons directly related to the credit institution’s financial circumstances, any other ruling that has the effect of suspending depositors’ ability to make claims against it;

‘contributory fund’ means the fund established by the Deposit Guarantee Regulations;

‘covered deposits’ means the part of eligible deposits that does not exceed the coverage level laid down in the Deposit Guarantee Regulations;”,

(c) in paragraph (b) of the definition of “credit institution” by substituting “section 17” for “section 27”,

(d) by substituting for the definition of “Deposit Guarantee Regulations” the following:

“ ‘Deposit Guarantee Regulations’ means the regulations made under the European Communities Act 1972 (No. 27 of 1972) to give effect to the Directive of 2014;”,

(e) by substituting for the definition of “Directive” the following:

“ ‘Directive’ means, as the context requires, Directive 94/19/EC of the European Parliament and of the Council of 30 May 1994¹ on deposit guarantee schemes or the Directive of 2014;

‘Directive of 2014’ means Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014² on deposit guarantee schemes;”,

and

(f) by inserting after the definition of “eligible deposit” the following:

“ ‘legacy fund’ shall be construed in accordance with section 3(2);”.

¹OJ No. L135, 31.05.1994, p.1.

²OJ No. L173, 12.06.2015, p.149.