Financial Business Act.pdf

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While this translation was carried out by a professional translation agency, the text is to be regarded as an unofficial translation based on the latest official Consolidated Act no. 286 of 4 April 2006. Only the Danish document has legal validity. October 2006, GlobalDenmark Translations III Good practice etc. Part 6 Good practice, price information and contract conditions General regulations regarding good practice, price information and contract conditions 43.-(1) Financial undertakings and financial holding companies shall be operated in accordance with honest business principles and good practice within the field of activity. (2) The Minister for Economic and Business Affairs shall lay down detailed regulations on honest business principles and good practice for financial undertakings. (3) The Minister for Economic and Business Affairs shall lay down more detailed regulations on price information regarding financial services. 44. In Denmark it is not allowed to participate in direct insurance for commercial purposes for persons resident in Denmark, Danish ships, or other risks pertaining to Denmark arranged by others than 1) Danish insurance companies, and 2) foreign insurance companies which fulfil the conditions in section 30(1) or section 31(1), as well as foreign insurance companies which have been licensed by the Danish FSA. Special regulations regarding contract conditions for banks, mortgage-credit institutions, and insurance companies 45. If hybrid core capital, cf. section 132, or subordinate loan capital is issued in the form of mass debt instruments, the financial undertaking shall designate these capital certificates. 46. When a bank, mortgage-credit institution, or insurance company arranges a capital injection covered by section 132 and section 136(1), the undertaking may not simultaneously offer loan financing to purchase the capital injection. Special regulations regarding banks 47. If, within a commercial relationship, a guarantee is provided for a loan granted by a bank and the borrower neglects to pay the principal, instalments, or interest, a written notification shall be forwarded to each guarantor or to a party authorised by the guarantors to receive notifications on their behalf collectively, no later than six months after the due date of the relevant repayment. Omission to do so shall imply that the bank loses its claim against the guarantors to the extent that the guarantors' recourse claim against the borrower has been impaired by the omission. EXCLUDING MINOR AMENDMENTS 48.-(1) If a guarantor outside a commercial relationship has provided a guarantee for a loan granted by a bank and the borrower neglects to pay the principal, instalments, or interest, a written notification shall be forwarded to the guarantor no later than three months after the due date of the relevant repayment. The provision under the 1st clause shall apply
While this translation was carried out by a professional translation agency, the text is to be regarded as an unofficial translation based on the latest official Consolidated Act no. 286 of 4 April 2006. Only the Danish document has legal validity. October 2006, GlobalDenmark Translations correspondingly if the bank grants the borrower an extension of time without the specific consent of the guarantor. (2) In the event that the time limit in subsection (1) is exceeded, the obligations as guarantor shall only apply to the guarantor for the amount of the debt of the borrower after the secured amount that would have been outstanding if all instalments had been paid on time up to a date three months prior to the date notification was issued. (3) If the time limit is subsection (1) is exceeded, the bank shall lose its claim against the guarantors to the extent that the recourse claim of the guarantors against the borrower has been impaired, even after taking account of the obligations as guarantor under subsection (2). (4) A guarantor may not be liable for an amount greater than the principal of the loan or the maximum credit on establishment of the guarantee agreement. (5) Guarantee agreements under subsection (1) shall be in writing to be valid. (6) Obligations as guarantor under subsection (1) shall lapse after 10 years or after 5 years if the guarantee agreement is established to secure credit of variable amounts or to secure a loan without a fixed repayment date, unless the obligations are previously enforced by the bank. (7) For guarantee agreements under subsection (1) the bank shall notify the guarantor each year and in writing of the size of the debt secured by the guarantee. 49.-(1) In the event that a savings bank has lost part of its guarantee capital, the savings bank shall notify such circumstance to persons who wish to stand as guarantors. (2) In the event that a cooperative savings bank has lost part of its cooperative capital, the cooperative savings bank shall notify such circumstance to persons who wish to subscribe to cooperative capital. (3) The regulations on reductions in share capital that apply to limited companies shall, with the necessary modifications apply to reductions in cooperative capital by cooperative savings banks. 50.-(1) Capital pensions, instalment savings accounts, own pension arrangements, children's savings accounts, and home savings accounts with a bank may be placed in a deposit account either as cash or as pool deposits, and may also be placed in a designated custody account. (2) The Danish FSA shall lay down more detailed regulations for savings in pools in banks, including regulations on placing funds, management, accounting, audit, and customer information. The Danish FSA shall also lay down more detailed regulations for placing funds in securities, including registration with a central securities depository, bank statements, valuation, and custody. 51. Capital pensions, regular payment savings accounts, own pension arrangements, children's savings accounts, and home savings accounts placed in a deposit account shall be fully covered by the Guarantee Fund for Depositors and Investors, or by a corresponding scheme in the home country of the bank, or a combination of both schemes, in the event the bank goes into suspension of payments or goes bankrupt. EXCLUDING MINOR AMENDMENTS
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