By-laws of the Deposit Protection Fund

Section 2 – Master agreement for payment commitments
(1) The master agreement shall form the basis for concluding agreements on the
assumption of payment commitments in accordance with Section 3 of this
annex in each assessment year. The master agreement shall specify the content
of the agreements on the assumption of payment commitments, the procedure
for concluding the agreements and the further conditions for exercising this
option.
(2) The Banking Association shall use a standard template for the master
agreement.
Section 3 – Agreements on the assumption of payment
commitments
(1) The agreements on the assumption of payment commitments shall specify the
extent to which the bank will assume payment commitments. The agreements
shall also specify, in particular,
(a) that payment commitments shall be irrevocable and non-terminable,
(b) that each payment commitment shall be secured by certain types of financial
collateral in accordance with Sections 6 to 11 of this annex,
(c) that the bank shall undertake to pay upon the first request and
(d) that it shall be permissible to transfer payment commitment agreements to
other banks in accordance with Section 5 of this annex.
(2) The Banking Association shall use a standard template for agreements on the
assumption of payment commitments.
By-laws Annex to Section 5a (10)
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