By-laws of the Deposit Protection Fund of the Association of German Banks (Feb 2020)

Section 1 – <strong>Deposit</strong> <strong>Protection</strong> <strong>Fund</strong> A <strong>Deposit</strong> <strong>Protection</strong> <strong>Fund</strong> <strong>of</strong> <strong>German</strong> <strong>Banks</strong> (Einlagensicherungsfonds deutscher Banken), hereinafter referred to as <strong>the</strong> “<strong>Fund</strong>”, has been established as a dependent special fund within <strong>the</strong> <strong>Association</strong> <strong>of</strong> <strong>German</strong> <strong>Banks</strong> (Bundesverband deutscher Banken), hereinafter referred to as <strong>the</strong> “Banking <strong>Association</strong>”. Section 2 – Purpose <strong>of</strong> <strong>the</strong> <strong>Fund</strong> 1. The purpose <strong>of</strong> <strong>the</strong> <strong>Fund</strong> is to provide assistance in <strong>the</strong> in ter est <strong>of</strong> depositors in <strong>the</strong> event <strong>of</strong> imminent or actual finan cial difficulties <strong>of</strong> banks, particularly when <strong>the</strong> suspension <strong>of</strong> pay ments is imminent, in order to prevent <strong>the</strong> impairment <strong>of</strong> public confi dence in <strong>the</strong> private banks. 2. All measures apt to be <strong>of</strong> assistance may be taken in <strong>the</strong> implementation <strong>of</strong> <strong>the</strong> purpose described in Subsection (1), in particular payments to individual creditors, primarily in accor dance with Section 6 here<strong>of</strong>, payments to banks, <strong>the</strong> assumption <strong>of</strong> guarantees or <strong>the</strong> assumption <strong>of</strong> obli gations in connection with action taken under Section 46 <strong>of</strong> <strong>the</strong> <strong>German</strong> Bank ing Act (Kreditwesengesetz). Section 2a – Participation in <strong>the</strong> <strong>Fund</strong> 1. All banks (including domestic branches <strong>of</strong> foreign banks within <strong>the</strong> meaning <strong>of</strong> Section 53 (1) and Section 53b (1) respectively <strong>of</strong> <strong>the</strong> <strong>German</strong> Banking Act) which are members <strong>of</strong> <strong>the</strong> Banking <strong>Association</strong>, hereinafter referred to individually as “bank”, shall be obliged to participate in <strong>the</strong> <strong>Fund</strong> unless exempted from participation under Subsection (2). Domestic branches <strong>of</strong> foreign banks within <strong>the</strong> meaning <strong>of</strong> Section 53 (1) and Section 53b (1) respectively <strong>of</strong> <strong>the</strong> <strong>German</strong> Banking Act shall be additionally subject to <strong>the</strong> “Supplementary arrangements for <strong>the</strong> participation <strong>of</strong> branches <strong>of</strong> foreign banks in <strong>the</strong> <strong>Deposit</strong> <strong>Protection</strong> <strong>Fund</strong>” annexed to <strong>the</strong>se <strong>By</strong>-<strong>laws</strong>. 2. Upon application, exemption from participation in <strong>the</strong> <strong>Fund</strong> may be granted to branches <strong>of</strong> foreign banks. 3. <strong>Banks</strong> which are extraordinary members <strong>of</strong> <strong>the</strong> Banking <strong>Association</strong> shall not participate in <strong>the</strong> <strong>Fund</strong>. Section 3 – Conditions for participation in <strong>the</strong> <strong>Fund</strong> 1. The conditions for participation in <strong>the</strong> <strong>Fund</strong> shall be that (a) <strong>the</strong> bank has <strong>the</strong> resources needed for business operations that satisfy <strong>the</strong> requirements on <strong>the</strong> basis <strong>of</strong> which <strong>the</strong> competent supervisory authority grants licences to conduct banking business under Section 32 and 33 <strong>of</strong> <strong>the</strong> <strong>German</strong> Banking Act and (b) <strong>the</strong> bank has at least two managers who possess <strong>the</strong> necessary personal qualifications and trustworthiness; in this context, <strong>the</strong> necessary per sonal qualifications shall, in particular, require that <strong>the</strong> in dividuals in question have extensive banking experience and <strong>of</strong>fer assurance for a business policy which excludes <strong>the</strong> jeop ardising <strong>of</strong> deposits and complies with <strong>the</strong> principles laid down in subclause (d) and (c) no facts exist which indicate that <strong>the</strong> owner <strong>of</strong> a qualified participating interest (Section 1 (9) <strong>of</strong> <strong>the</strong> <strong>German</strong> Banking Act) or <strong>the</strong>ir legal representative or representative according to <strong>the</strong> articles <strong>of</strong> association or general partner is not trustworthy or for o<strong>the</strong>r reasons fails to satisfy <strong>the</strong> 4 <strong>By</strong>-<strong>laws</strong> Section 1 – Section 2a <strong>By</strong>-<strong>laws</strong> Section 3 5