By-laws of the Deposit Protection Fund

created through transformation within the meaning of Section 1 (1) of
the German Transformation Act (Umwandlungsgesetz) or a commercially
comparable transformation or restructuring is involved, the protection ceiling
may be raised in accordance with the preceding subsection if
− the transferor entity previously participated in the Fund and
− its protection ceiling was determined on the basis of subclause (a),
sentence 1 and
− the transferor entity (i) is assigned, in accordance with the rating
procedure under Section 4a, to category BBB+ or a higher category
and (ii) is not subject to a higher annual contribution because of the
own funds factor and/or the loss buffer ratio and
− the business transferred largely characterises the business of the transferee
entity and, in the opinion of the Auditing Association, the risk
profile of the newly admitted institution must be regarded as at least
largely equivalent to the previous risk profile of the transferor entity.
(c) Where a bank displays a special risk profile, the Auditing Association may
lower its protection ceiling to EUR 250,000. This may, in particular, happen if
− the Auditing Association has made negative audit findings which
substantiate the danger of recourse to the Fund or
− the bank has been assigned to category B- or a lower category under
the rating procedure or
− any other material increases in risk have occurred.
(d) Compensation of creditors shall be based on the protection ceiling which
has been notified to the bank as the result of the assessment made by
the Auditing Association and which is available on the internet at www.
bankenverband.de. Any reduction of the protection ceiling shall become
effective as of the time it is made available on the internet. The Banking
Association may publish the new protection ceiling at the expense of the
bank in the Federal Gazette and in a daily newspaper at the registered office
By-laws Annex to Section 6 (18)
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