DECISION OF EXECUTIVE DIRECTORATE OF FUND OF GUARANTEEING HOUSEHOLD DEPOSITS OF UKRAINE

of July 5, 2012 No. 2

About approval of the Regulations on removal of insolvent bank from the market

According to Item 10 parts one and Item of 1 part five of Article 12, and also in pursuance of Item 13 of the Section X "Final and transitional provisions" of the Law of Ukraine "About system of guaranteeing household deposits" executive directorate of Fund of guaranteeing household deposits of RESHILA:

1. Approve Regulations on removal of insolvent bank from the market which are applied.

2. To provide to department of questions of strategy and transformation of Fund together with Legal department submission of this decision to the Ministry of Justice of Ukraine for state registration.

3. In case of adoption by the National Bank of Ukraine of the decision on withdrawal of the banking license and liquidation of bank on the bases determined by part two of article 77 of the Law of Ukraine "About banks and banking activity" and the Law of Ukraine "About simplification of procedures of reorganization and capitalization of banks" the Fund performs liquidation of bank according to the procedure, the established Section V and Chapters 1 and 2 of the Section VI of the Regulations on removal of insolvent bank from the market approved by this decision.

4. This decision becomes effective at the same time with the introduction in operation of the Law of Ukraine "About system of guaranteeing household deposits", but not earlier than day of its official publication.

5. To department of public relations and the international organizations to provide placement of this decision on the official page of Fund of guaranteeing household deposits on the Internet after it to state registration.

Approved by the Decision of Executive directorate of Fund of guaranteeing household deposits of Ukraine of July 5, 2012 No. 2

Regulations on removal of insolvent bank from the market

І. General provisions

1. Subject and purpose of the Provision

1.1. This Provision is developed based on Civil and Economic codes of Ukraine, the Laws of Ukraine "About system of guaranteeing household deposits" (further - the Law), "About banks and banking activity" and establishes procedure for decision making and making of actions by Fund of guaranteeing household deposits (further - Fund) concerning removal from the market of bank which is acknowledged the insolvent decision of the National Bank of Ukraine (farther than the NBU).

1.2. This Provision governs the relations which arise in the course of removal of insolvent bank from the market, namely: preparation, approval and implementation of the settlement plan, method of removal of insolvent bank, developed on the basis of least costly for Fund, from the market.

1.3. Action of this Provision extends to all banks registered according to the legislation of Ukraine in case of their reference to category insolvent, except "Government Savings Bank of Ukraine" public joint stock company (before adoption of the relevant law concerning participation of such bank in Fonda) and the sanatsionny bank created to the introduction in operation of the Law.

1.4. The fund does not perform removal from the market of branches of the foreign banks accredited in the territory of Ukraine by the NBU.

1.5. The purpose of this Provision is settlement of process of removal of separate insolvent bank from the market according to the Law. In the course of removal of insolvent bank from the market the Fund performs functions of the temporary administrator or liquidator of insolvent bank.

2. Determination of terms

2.1. In this Provision terms are used in such values:

assets - the resources controlled by bank as a result of last events which use, as expected, will lead to receipt of economic benefits in the future;

balance (the report on financial condition) - the report on financial condition of bank which displays its assets, obligations and the capital for certain date;

Conclusion of insolvent bank from the market - actions which are performed by Fund concerning the bank referred to category insolvent for conclusion from the market by one of the methods determined by article 39 of this Law;

Goodwill - the data collected by Fund on compliance of activities of legal entity or physical person, including heads of the legal entity and owners of essential participation in it legal person, to requirements of the law, business practice and professional ethics, and also data on decency, professional and managerial skills of physical person;

the investor - person who expressed intention also provided to Fund the commitment letter about share acquisition (shares) of insolvent bank or transitional bank in the course of conclusion of insolvent bank from the market;

the information room - the specially allotted placement on the territories of insolvent bank in which there is information of legal and financial nature, studying and which analysis shall give opportunity to the skilled investor to create the final financial offer concerning removal of insolvent bank from the market by the method determined by the settlement plan;

Essential participation - immediate and/or indirect possession by one person independently or together with other persons 10 and more percent of the authorized capital and/or voting power of shares, shares of the legal entity or possibility of considerable influence, independent of formal ownership, on management or activities of the legal entity. Person is recognized the owner of the mediated essential participation irrespective of, person exercises it control of the direct owner of participation in the legal entity or control any of other person in chain of ownership of corporate laws of such legal entity;

the skilled investor - the potential investor whom the Fund for results of consideration of the documents filed by it recognizes such which answers the criteria established to investors for participation in removal of specific insolvent bank from the market by the elected Fund by the least costly method for Fund;

the end of liquidation procedure - decision date of executive directorate of Fund about the beginning of process of completion of the procedure of liquidation of bank which is accepted after approach of one of the next events: book value of assets of bank for current date makes less than 5 percent from estimated value of assets of such bank which are included in liquidating weight during liquidation procedure; maintenance costs of bank exceed the amount of the expected receipts from management (lease, sale, etc.) its assets; all accepted requirements of creditors are met. Such decision shall be made not later than 60 days to reporting date of the liquidation balance sheet of bank;

The controller - physical person or legal entity concerning which there are no controllers - physical persons and which has opportunity to perform decisive influence on management or activities of the legal entity by the direct and/or mediated ownership independently or together with other persons of shares in the legal entity that corresponds to equivalent of 50 or more percent of the authorized capital and/or voices of the legal entity, or irrespective of formal ownership to perform such influence on the basis of the agreement or any other image;

liquidation of bank - the procedure of the termination of bank as legal entity according to the legislation;

the least costly method of removal of insolvent bank for Fund from the market - method of removal of insolvent bank from the market as a result of which realization the amount of the cash costs of Fund which are directly connected with implementation of removal of insolvent bank from the market, minus any predicted amounts of cash compensation in connection with such removal, is expected to be the smallest;

Insolvent bank - bank on which the NBU made the decision on reference to category insolvent according to the procedure, provided by the Law of Ukraine "About banks and banking activity";

The organization of realization of property of the liquidated bank, - the measures taken by Fund for pre-sale preparation, repair, completion, implementation of developer projects, withdrawal from property of separate details, unsuitable for operation, nodes, aggregates, etc. for their further realization, assessment, the choice of method, procedure for forming of lots (including consolidation of assets of several banks) and property acquisition conditions by adoption of relevant decisions which implementation is assigned to the authorized person of Fund on liquidation of bank;

transitional bank - the bank created in the course of conclusion of insolvent bank from the market which single shareholder and the managing director of shares is the Fund about day of sale of this bank to the investor;

the settlement plan - the decision of Fund which determines method, economic case, terms and conditions of conclusion of insolvent bank from the market;

The faces tied with bank are:

bank inspectors;

persons having essential participation in bank and persons through whom these persons perform indirect possession by essential participation in bank;

heads of bank, head of service of internal audit, heads and members of committees of bank;

related and affiliates of bank, including members of banking group;

persons having essential participation in related and affiliates of bank;

heads of legal entities and heads of banks which are related and affiliates of bank, the head of service of internal audit, heads and members of committees of these persons;

associated persons of the physical persons specified in paragraphs the seventeenth - the twenty second this Item;

legal entities in whom the physical persons specified in paragraphs the seventeenth - the twenty fifth this Item, are heads or owners of essential participation;

any person through who operation for the benefit of persons specified in paragraphs the seventeenth - the twenty fifth this Item is performed, and on which exert impact when carrying out such transaction of person, specified in paragraphs the seventeenth - the twenty fifth this Item, through employment, civil and other relations;

The physical persons and legal entities determined by the National Bank of Ukraine when implementing banking supervision specified in paragraphs the seventeenth - the twenty fifth this Item, in the presence of the signs determined in regulatory legal acts of the National Bank of Ukraine taking into account nature of relations, transactions and availability of other communications with bank;

The accepting bank - bank which does not belong to the category problem or insolvent and which in the course of conclusion of insolvent bank from the market accepts assets and liabilities from insolvent bank;

problem bank - bank on which the NBU made the decision on reference to category problem according to the procedure, provided by the Law of Ukraine "About banks and banking activity" and regulatory legal acts of the NBU;

sale of bank - sale of all shares of transitional bank or insolvent bank;

the register of members of Fund - the register which is kept by Fund and contains data on participation of bank in system of obligatory guaranteeing household deposits;

the potential investor - person (the investor accepting bank) who addressed to Fund based on the public message made according to this Provision concerning search of potential investors for the purpose of determination of the settlement plan;

System of guaranteeing household deposits - set of the relations regulated by the Law which subjects are Fund, the Cabinet of Ministers of Ukraine, the NBU, banks and investors;

temporary administration - the procedure of removal of bank from the market implemented by Fund concerning insolvent bank according to the procedure, established by the Law;

the settlement document - the document for money transfer which is used for initiation of the transfer from the account of the payer into the account of the receiver;

the authorized person of Fund on liquidation of bank - the worker Fonda who on behalf of Fund and within the powers provided by the Law performs operations on ensuring removal of bank from the market during implementation of liquidation of bank;

the authorized person of Fund on temporary administration - the worker Fonda who on behalf of Fund and within the powers provided by the Law performs operations on ensuring removal of bank from the market during implementation of temporary administration of insolvent bank;

Specialized agency - the legal entity created by Fund for the purpose of transfer of assets and liabilities of insolvent bank to it in the cases and procedure determined by the Law

2.2. The terms "contribution" and "investor" are used in the value given in the Law of Ukraine "About system of guaranteeing household deposits".

Other terms are used in the value given in the legislation of Ukraine.

ІІ. Functions of Fund in case of realization of methods of removal of insolvent bank from the market

1. Methods of removal of insolvent bank from the market

1.1. Removal of insolvent bank from the market is performed by Fund one of such methods:

liquidation of bank with compensation from Fund of means for household deposits;

liquidation of bank with alienation in the course of liquidation of all or part of its assets and liabilities for benefit of the accepting bank;

alienation of all or parts of assets and liabilities of insolvent bank for benefit of the accepting bank with withdrawal of the banking license of insolvent bank and its further liquidation;

creation and sale to the investor of transitional bank with transfer of assets and liabilities of insolvent bank to it and further liquidation of insolvent bank;

sale of insolvent bank to the investor.

1.2. Liquidation of bank with compensation from Fund of means for household deposits - method of removal of insolvent bank from the market which provides withdrawal of the banking license, payment (compensation) to investors of the deposits belonging to them according to the procedure, determined by the Law and regulatory legal acts of Fund, with the further termination of insolvent bank as legal entity (liquidation).

1.3. Liquidation of insolvent bank with alienation in the course of liquidation of all or part of its assets and liabilities for benefit of the accepting bank - method of removal of insolvent bank from the market which provides withdrawal of the NBU of the banking license of insolvent bank, transfer to the skilled investor bank (the accepting bank) to the winner of open tender of all or part of assets and liabilities of insolvent bank, with the further termination of insolvent bank as the legal entity (liquidation).

1.4. Alienation of all or parts of assets and liabilities of insolvent bank for benefit of the accepting bank with withdrawal of the banking license of insolvent bank and its further liquidation - method of removal of insolvent bank from the market which provides transfer to the skilled investor bank (the accepting bank) to the winner of open tender of all or part of assets and liabilities of insolvent bank, with further decision making of the NBU about withdrawal of the banking license and liquidation of insolvent bank (the termination of insolvent bank as legal entity).

1.5. Creation and sale to the investor of transitional bank - method of removal of insolvent bank from the market which provides creation of transitional bank, transfer of assets and obligations of insolvent bank with transfer to their transitional bank which is on sale further - to the winner of open tender, and liquidation of insolvent bank.

1.6. Sale of insolvent bank to the investor - method of removal of insolvent bank from the market which provides transition of the property right to shares of insolvent bank from owners of such bank to the winner of open tender.

2. Preparation of Fund for implementation of temporary administration

2.1. From the date of reference of the NBU of bank to category problem the Fund begins to perform monitoring of problem bank.

Item 2.2. No. 370, with respect thereto Items 2.3 is excluded according to the Decision of executive directorate of Fund of guaranteeing household deposits of Ukraine of 18.03.2016 - 2.6 to consider respectively Items 2.2 - 2.5.

2.2. Monitoring is carried out by Fund in the way:

appointments of employees of Fund into which power carrying out monitoring of observance by bank of requirements of procedure for forming and maintaining databases about investors is included, carrying out banking activities by bank, including information collection and copies of the documents necessary for preparation of the draft of the settlement plan, ensuring evaluating assets of bank according to the procedure, established by Fund (including credit debts before bank, availability and cost of ensuring obligation fulfillment according to credit agreements, debt on the securities which are in property of bank, requirements of bank to the client on cancelled debt and availability and cost of ensuring accomplishment of the obligation on such debt, etc.);

receipts of information from clients, investors and other creditors of bank for the purpose of accomplishment of the functions and powers assigned to Fund;

receipts of copies of documents and databases.

Monitoring is carried out according to the procedure, established by regulatory legal acts of Fund.

The fund also has the right:

receive the reporting from problem bank according to the Law and regulatory legal acts of Fund;

participate in inspection checks of problem banks (according to the separate verification plan constituted by Fund) according to the petition of Fund and/or for the offer of the NBU;

carry out unscheduled inspection for the purpose of information collection on other questions of activities, than are provided in part one of article 32 of the Law which list affirms executive directorate of Fund.

2.3. The analysis of changes in the main indicators of activities of problem bank includes, in particular, dynamics of changes in deposit portfolio (on components, terms, subjects, interest rates and so forth), credit portfolio (on components, terms, interest rates, delay level), improvements/deteriorations in its financial condition, observance of economic standard rates, dynamics of components of the capital, sufficiency of forming of reserves on active transactions.

2.4. Participation of employees of Fund in inspection checks which are performed by the NBU in problem banks is performed according to the procedure approved by executive directorate of Fund.

Item 2.6. No. 370, with respect thereto Item 2.7 is excluded according to the Decision of executive directorate of Fund of guaranteeing household deposits of Ukraine of 18.03.2016 to consider Item 2.6.

2.5. In case of acceptance of the NBU of the decision on recognition of activities of bank such which answers the legislation the Fund stops implementation of monitoring of such bank.

3. Actions of Fund concerning implementation of temporary administration of insolvent bank

3.1. The procedure of implementation of temporary administration of bank is applied by Fund concerning bank which is referred by the decision of the NBU to category insolvent, for the purpose of removal of such bank from the market.

3.2. The temporary administration is entered for the term which is not exceeding one month. In case of conclusion of insolvent bank from the market by the method provided by Items 3 - 5 parts two of article 39 of the Law, temporary administration can be prolonged for a period of up to one month. In case of conclusion of insolvent bank from the market by the method provided by Items 1, 2 parts two of article 39 of the Law, the term of temporary administration can be prolonged for five days with the termination no later than day of receipt of the decision on withdrawal of the banking license and liquidation of bank.

In case of compliance of bank to criteria, stipulated in Item 2.12 Chapters 2 of the Section IV of this provision, executive directorate Fonda approves the settlement plan in which it is specified that the least costly method of removal of bank from the market is the method, of stipulated in Item 1 article 39 of the Law, and submits to the NBU the proposal on withdrawal of the banking license and liquidation of such bank. In that case the temporary administration stops in day of receipt of the decision on withdrawal of the banking license and liquidation of bank.

3.3. The fund begins removal of insolvent bank with the market and implementation of temporary administration in insolvent bank the next working day after official receipt of the decision of the NBU on reference of bank to category of insolvent.

3.4. The executive directorate of Fund not later than the next working day after receipt of the decision of the NBU on reference of bank to category of insolvent designates from number of persons employed of Fund the authorized person of Fund on temporary administration. The authorized person of Fund on temporary administration shall meet the requirements established by the Law this by the Provision.

If powers of Fund as temporary administrator of bank are performed directly by Fund, such powers are implemented:

 regarding the powers determined by part five of article 12 of the Law (except the powers delegated to the collegiate organs formed by executive directorate of Fund), - executive directorate of Fund;

regarding the powers of executive directorate of Fund delegated to the collegiate organs formed by it - the relevant collegiate organs;

regarding other powers - the managing director of Fund, and also employees of Fund in the amounts determined by the decision of executive directorate of Fund on implementation of powers of the temporary administrator of bank directly Fund.

3.5. The decision of executive directorate of Fund on implementation of temporary administration and appointment of the authorized person of Fund to temporary administration shall contain:

name of the document, place and date of its edition;

date, number, the name of the document of the NBU which makes the decision on reference of bank to category of insolvent;

the name, the location, code on EGRPOU, code of insolvent bank in which implementation of temporary administration is begun;

surname, name, middle name, position of the employee of Fund which is appointed the authorized person of Fund to temporary administration, for ensuring implementation of temporary administration;

the term for which the temporary administration is entered.

3.6. From the date of appointment of the authorized person of Fund to temporary administration:

all powers of governing bodies of bank stop (general meeting, the supervisory board, board (board of directors) and control facilities (audit committee and internal audit);

The executive directorate of Fund presents the order to authorized structural division of Fund to organize the notification of banks, Public service of financial monitoring of Ukraine, the National commission on securities and the stock market, the National commission performing state regulation in the sphere of the markets of financial services, the Ministries of Finance of Ukraine, the Public fiscal service of Ukraine, the Ministry of Internal Affairs of Ukraine, the Prosecutor General's Office of Ukraine, the Security Service of Ukraine, the Pension fund of Ukraine, specialized non-bank mortgage financial institutions of the second level, the relevant structural division of the Ministry of Justice of Ukraine which tasks include ensuring forming and realization of state policy in the sphere of the organization of forced execution of decisions of the courts and other bodies (officials) about implementation of temporary administration of insolvent bank by Fund and the authorized person of Fund on temporary administration to which implementation of powers of governing bodies of bank is delegated (in case of delegation). Notifications go Fund on behalf of Fund.

3.7. The decision on appointment of the authorized person of Fund to temporary administration happens Fund of the main office of insolvent bank immediately by the direction of the message on system of e-mail of the NBU.

3.8. The copy of the decision on implementation of temporary administration and appointment of the authorized person of Fund to temporary administration certified by the signature of the managing director of Fund and official stamp of Fund is transferred by the authorized person of Fund to temporary administration to insolvent bank in which the temporary administration is entered, and is registered in insolvent bank.

3.9. The fund places information on input in insolvent bank of temporary administration:

on the official page on the Internet (not later than the next working day after the beginning of implementation of temporary administration);

in the Uryadovy Kuryer or Golos Ukrainy newspapers (not later than in ten calendar days after the beginning of temporary administration).

 in case of conclusion of insolvent bank from the market with participation of the state the Fund places information on introduction of temporary administration and the method of conclusion of insolvent bank from the market determined by the decision of the Cabinet of Ministers of Ukraine no later than the next working day after decision making about reference of bank to category of insolvent.

The authorized person of Fund on temporary administration places information on implementation in insolvent bank of temporary administration on the page of such bank on the Internet not later than the next working day after the beginning of accomplishment of the powers.

3.10. Information on introduction shall contain in insolvent bank of temporary administration:

name, date and number of the decision of executive directorate of Fund on introduction of temporary administration and appointment of the authorized person of Fund;

date and number of the decision of the NBU on reference of bank to category of insolvent;

the name and details of insolvent bank in which the temporary administration is entered;

surname, name, middle name of the authorized person of Fund on temporary administration;

the term for which the temporary administration is entered.

3.11. The temporary administration stops after accomplishment of the settlement plan or in other cases according to the decision of executive directorate of Fund.

4. Actions of the authorized person of Fund on temporary administration

4.1. Implementation of temporary administration of insolvent bank and liquidation of bank performs Fund through the authorized person of Fund designated by executive directorate of Fund.

The authorized person of Fund on temporary administration shall be the worker Fonda with full legal capacity who is citizen of Ukraine, has high professional and moral qualities, perfect goodwill, complete higher education in industry of economy, finance or the right (not below the qualification specialist level) and the working experience necessary for accomplishment of actions within implementation of temporary administration.

4.2. Person who cannot be the authorized person of Fund on temporary administration:

is creditor, the connected person or the member of bank concerning which the temporary administration is performed;

has the criminal record which is not extinguished and not removed in the procedure established by the law or is person accused on criminal case;

did not fulfill the obligations to any bank;

has conflict of interest with bank concerning which the temporary administration is performed.

4.3. Conflict of interest is availability at the corresponding employee of Fund or his / her wife (husband), the father, mother, children, brothers and sisters of private or business interests in the relevant bank, in particular relatively:

debts to bank, debts of bank;

possession of any property rights concerning property of bank;

the relations for the last five years with bank as his connected person;

failures to carry out of any obligations in relation to any bank for the last five years;

possession of property which competes with property of bank;

stay in employment relationships with bank for the last five years;

other interests which can do much harm to impartial accomplishment of functions within implementation of temporary administration.

4.4. The executive directorate of Fund shall be convinced of no conflict of interest with insolvent bank at the employee of Fund which is appointed the authorized person of Fund to temporary administration.

4.5. In case of identification of circumstances which constitute conflict of interest after the beginning of implementation of temporary administration the executive directorate of Fund shall not later than the next working day:

discharge the corresponding employee of Fund of accomplishment of obligations of the authorized person of Fund on temporary administration;

designate from number of persons employed of Fund other authorized person of Fund on temporary administration which has no conflict of interest.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info