By-laws of the Deposit Protection Fund
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Section 4 – Termination <strong>of</strong> participation in <strong>the</strong> <strong>Fund</strong><br />
1. Participation in <strong>the</strong> <strong>Fund</strong> shall terminate<br />
(a) upon termination <strong>of</strong> membership <strong>of</strong> <strong>the</strong> bank in <strong>the</strong> Banking Association or<br />
(b) upon termination <strong>of</strong> membership <strong>of</strong> <strong>the</strong> bank in <strong>the</strong> Auditing Association or<br />
(c) upon exclusion from participation in <strong>the</strong> <strong>Fund</strong>.<br />
2. A bank may be excluded from participation in <strong>the</strong> <strong>Fund</strong><br />
(a) if <strong>the</strong> bank does not meet, or no longer meets, <strong>the</strong> conditions for its<br />
participation in <strong>the</strong> <strong>Fund</strong> set out in Section 3 (1), subclauses (a) - (e) or if it<br />
does not submit <strong>the</strong> declaration in accordance with Section 5 (10), sentence<br />
3, even upon request, or<br />
(b) if, following <strong>the</strong> credit rating procedure pursuant to Section 4a, it has been<br />
placed in category B- or a lower category and an improvement in <strong>the</strong> credit<br />
rating is not anticipated, or<br />
(c) if, following <strong>the</strong> deposit rating procedure pursuant to Section 4b, it has been<br />
placed in <strong>the</strong> category DR 6 or a lower category and an improvement in <strong>the</strong><br />
deposit rating is not anticipated.<br />
The provisions in Section 12 must be applied in order to exclude a bank from<br />
participating in <strong>the</strong> <strong>Fund</strong> as a disciplinary measure in <strong>the</strong> event <strong>of</strong> a breach <strong>of</strong> duty.<br />
3. Exclusion from participation in <strong>the</strong> <strong>Fund</strong> shall be threatened with six months’<br />
notice.<br />
(a) In <strong>the</strong> case <strong>of</strong> subsection (2), subclause (b), exclusion may only be threatened if<br />
(i) according to <strong>the</strong> credit rating, <strong>the</strong> bank belongs to rating category B- or<br />
a lower category for more than two years in succession or<br />
(ii) according to <strong>the</strong> credit rating, <strong>the</strong> bank (A) belongs to rating category<br />
B- or lower and (B) before <strong>the</strong> two-year deadline has passed, pursuant<br />
<strong>By</strong>-<strong>laws</strong> Section 4<br />
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