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 assessment basis for the redemption price. The value of the shares of the bank shall be calculated on the basis of their open market value by the auditor elected at the general meeting of the bank. (3) The purchase price shall be paid or deposited no later than 3 days after said redemption has been requested from the shareholders. This shall also apply to the purchase sum for shares called up in accordance with the Danish Official Gazette, cf. the provisions regarding this in the Public Companies Act. (4) The redemption and transfer of shares are regarded as final at the time of payment or deposit of the purchase sum, cf. subsection (3). In cases of disagreement regarding the pricing of the shares, said pricing shall be determined upon the request of either party by two auditors appointed by the Institute of State Authorized Public Accountants in Denmark. The decision may be brought before the courts no later than 2 weeks after receipt of the auditors' decision. Part 11 Placement and liquidity of funds Regulations for banks and mortgage-credit institutions as well as investment companies and investment management companies regarding the placement and liquidity of funds 145.-(1) An exposure, cf. section 5(1), no. 16, with a customer or group of mutually connected customers may not, after subtracting particularly secure claims, exceed 25 per cent of the capital base, cf. section 128. (2) The sum of exposures that, after subtracting particularly secure claims amount to 10 per cent or more of the capital base, may not add up to more than 800 per cent of the capital base. (3) Exposures that amount to 10 per cent or more of the capital base shall be notified to the Danish FSA each quarter. (4) If exposures exceed the limits laid down in subsection (1) or (2), the Danish FSA shall be notified immediately. The Danish FSA may allow the limit under subsection (1) to be exceeded temporarily under special circumstances. (5) The limits mentioned in subsections (1) and (2) shall not apply to exposures with undertakings which are fully included in the consolidation. (6) If an exposure is guaranteed by a credit institution in Zone A, the guaranteed part of the exposure shall be considered as an exposure with the credit institution that has provided the guarantee, cf. however, section 155. (7) Amounts subtracted from the capital base under section 139(1), no. 1 shall not be included in exposures with subsidiary companies or associated companies that carry out insurance activities. EXCLUDING MINOR AMENDMENTS (8) Amounts deducted from the capital base pursuant to section 139(1), nos. 2, 3 and 5, shall not be included in the exposure with the issuer of the equity investments.
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 146.-(1) Equity investments in other companies held by banks, mortgage-credit institutions, investment companies and investment management companies may not exceed 100 per cent of the capital base. Equity investments acquired for funds for performance-related pay shall not be included in the calculation under the 1st clause. (2) Share-trading activities shall be included in calculations of the limit under subsection (1). (3) Equity investments that shall be subtracted from the capital base and equity investments in undertakings that are fully included in consolidation shall not be included in the limit under subsection (1). (4) The Danish FSA may grant exemptions from subsection (1). 147.-(1) Banks, mortgage-credit institutions, investment companies and investment management companies may not own real property or hold equity investments in property companies amounting to more than 20 per cent of the capital base. The real property of banks and mortgage-credit institutions shall include loans and guarantees to subsidiary companies that are property companies. Properties acquired by a bank, mortgage-credit institution, investment company, or investment management company in order to carry out main or ancillary activities shall, however, not be included in these provisions. (2) The Danish FSA may allow exemptions from the provisions of subsection (1), 1st clause. 148. The Danish FSA shall lay down more detailed regulations for 1) calculation of an exposure, 2) notification of exposures exceeding 10 per cent of the capital base, 3) subtraction of particularly secure claims from exposures, and 4) calculation, notification, and limits for total currency and other market risks. Special regulations for banks regarding the placement and liquidity of funds 149.-(1) A bank may not have a residual risk under leasing agreements, cf. subsection (2), the value of which, together with real property and equity investments covered by section 147, amounts to more than 25 per cent of the capital base. (2) Residual risk under a leasing agreement shall mean the difference between the cost of the leased asset and the current value of the liability of the lessee to the bank under the leasing agreement. (3) If a third party is liable for part of the residual risk, such part may be deducted in the calculation of the residual risk. The liability of the third party shall be added to the exposure of the relevant person in accordance with section 145. (4) The Danish FSA may grant exemptions from subsection (1). EXCLUDING MINOR AMENDMENTS 150. Loans for subscribing to the share capital, cooperative share capital, or guarantee capital of a bank in excess of 5 per cent of the total share capital, cooperative share capital, or guarantee capital may only be granted if collateral is provided for the excess amount. Such collateral shall be at least of the same nature as the particularly secure claims.
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Financial Business Act.pdf

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