Financial Business Act.pdf

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