Law no. 311/2015 on Deposit Guarantee Schemes and the Bank...
Law no. 311/2015 on Deposit Guarantee Schemes and the Bank Deposit Guarantee Fund
Law no. 311/2015 on Deposit Guarantee Schemes and the Bank Deposit Guarantee Fund
Takes effect on December 14, 2015
Published in the Official Gazette, Part I no. 918 of December 11, 2015
Romania’s Parliament adopts the present law.
TITLE I
Deposit Guarantee Schemes
CHAPTER I
Scope and Definitions
SECTION 1
Scope
Art. 1. – (1) The present Title shall regulate the setting up and operation of deposit guarantee schemes as schemes officially recognised within Romania’s territory for the purpose of guaranteeing deposits.
(2) Official recognition of deposit guarantee schemes shall be granted by law or may be given by the National Bank of Romania, as the designated authority, in compliance with the requirements laid down in the present Title.
(3) Within Romania’s territory, the National Bank of Romania shall be the designated authority and the administrative authority competent to classify deposits as unavailable according to Article 3 paragraph (6) letter a).
(4) Deposits at credit institutions headquartered in other member states and operating in Romania shall be guaranteed according to legislation in the home countries of the respective credit institutions.
Art. 2. – (1) The present Title shall apply to the deposit guarantee schemes officially recognised within Romania’s territory, as well as to the credit institutions in their membership.
(2) The provisions under Article 11 paragraph (1) and Article 82 shall apply correspondingly also to contractual guarantee schemes and institutional protection systems that are not officially recognised according to Article 1 paragraph (2).
(3) The provisions under Articles 54 and 56 shall apply correspondingly to credit institutions, including when they are members of contractual guarantee schemes or institutional protection systems that are not recognised officially according to Article 1 paragraph (2).
SECTION 2
Definitions
Art. 3. – (1) For the purposes of the present Title, the terms and phrases below have the following meaning:
a) low-risk assets – items falling into the first or second category listed in Table 1 under Article 336 of Regulation (EU) no. 575/2013 of the European Parliament and of the Council of June 26, 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) no. 648/2012, or any assets which are considered to be equally safe and liquid by the National Bank of Romania, as the competent authority, and are referred to in the regulations issued for the application of the present Title;
b) payment commitments – any payment commitments of a credit institution towards a deposit guarantee scheme that are fully collateralised, provided that the collaterals comply with the requirements laid down in paragraph (4);
c) designated authority – a public body that administers a deposit guarantee scheme or, if the operation of the deposit guarantee scheme is administered by a private entity, the public authority designated to supervise the respective scheme;
d) compensation – the amount of money determined according to the present Title, within the guarantee level, which a deposit guarantee scheme pays to each guaranteed depositor if deposits, no matter their number, become unavailable;
e) joint account – an account opened in the name of two or more persons or an account over which two or more persons have rights and in which operations can be made on the signature of at least one of those persons;
f) depositor – the holder or, in the case of a joint account, each of the holders of a deposit;
g) guaranteed depositor – the holder of an eligible deposit or, in the case of a joint account, the holders of an eligible deposit or, as the case may be, the person entitled to amounts from an eligible deposit;
h) deposit - any credit balance, including the due interest, which results from funds left in an account or from temporary situations deriving from normal banking transactions and which a credit institution must repay in the legal and contractual conditions applicable, including term deposits and savings deposits, which is in none of the situations described in paragraph (5);
i) covered deposits – the part of eligible deposits which does not exceed the guarantee ceiling laid down in Article 61 paragraph (3) or, as the case may be, in Article 62;
j) eligible deposits – deposits that are not excluded from the scope of guarantee, according to Annex no. 1;
k) unavailable deposit – the deposit that is due and payable but has not been paid, according to applicable legal and contractual conditions, by a credit institution facing any of the situations described in paragraph (6);
l) credit institutions authorised by the National Bank of Romania – credit institutions, Romanian legal persons, and the branches in Romania of credit institutions of third states;
m) target level – the amount of available financial resources that the deposit guarantee scheme must hold, according to Article 13, expressed as a percentage of the guaranteed deposits of its member credit institutions;
n) guarantee ceiling – the maximum level of coverage per guaranteed depositor per credit institution applicable according to Article 61 paragraph (3) or, as the case may be, to Article 62;
o) available financial resources – cash, deposits and other low-risk assets which can be liquidated within a period that should not exceed the time frame stipulated in Article 65 paragraph (1);
p) deposit guarantee scheme – the statutory deposit guarantee scheme, set up according to the law, as well as the contractual deposit guarantee scheme and the institutional protection system officially recognised as deposit guarantee schemes;
q) institutional protection systems – the institutional protection systems referred to in Article 113 paragraph (7) of Regulation (EU) no. 575/2013
(2) For the purposes of the present Title, the terms and phrases: credit institution, home member state, host member state, competent authority and branch have the meanings assigned to them in Article 4 paragraph (1) of Regulation (EU) no. 575/2013.
(3) The terms and phrases used in the present Title, whose definition is not given in paragraphs (1) and (2), have the meanings assigned to them in Article 7 paragraph (1) of Government Emergency Ordinance no. 99/2006 on credit institutions and capital adequacy approved with amendments and completions by Law no. 227/2007, with subsequent amendments and completions, in Article 4 paragraph (1) of Regulation (EU) no. 575/2013, as well as in legislation on the recovery and resolution of credit institutions and investment firms.
(4) The collaterals specified in paragraph (1) letter b) should meet the following requirements:
a) they should consist of low-risk assets;
b) they should be unencumbered by any third-party rights and should be at the disposal of the deposit guarantee scheme.
(5) The category of deposits defined in paragraph (1) letter h) excludes a credit balance where:
a) its existence can only be proved by a financial instrument, as defined in Article 2 paragraph (1) point 11 of Law no. 297/2004 on capital markets, with subsequent amendments and completions, unless it is a savings product evidenced by a certificate of deposit made out to a named person which exists on July 2, 2014;
b) its principal is not repayable at par;
c) its principal may be repaid at par only under a particular guarantee or agreement provided by the credit institution or by a third party.
(6) The situations paragraph (1) letter k) refers to are the following:
a) The National Bank of Romania, as the administrative authority competent to classify deposits as unavailable, has determined that the respective credit institution, for reasons directly linked to its financial situation, is unable to repay the deposit and has no immediate prospects of being able to do so;
b) a court decision on the opening of bankruptcy proceedings for the respective credit institution had been issued before the National Bank of Romania could assess the situation described under letter a)
CHAPTER II
Minimum Requirements for the Access and Operation of Deposit Guarantee Schemes
SECTION 1
General Provisions
Art. 4. – (1) For the purpose of guaranteeing the deposits in Romania there is operating the Bank Deposit Guarantee Fund, as a statutory deposit guarantee scheme set up under Government Ordinance no. 39/1996 on the setting up and operation of the Bank Deposit Guarantee Fund, republished, with subsequent amendments and completions, officially recognised within Romania’s territory, whose operation is regulated under Title II of the present law. Without prejudice to Title II provisions, the provisions of the present Title shall apply correspondingly to the Bank Deposit Guarantee Fund, with the exception of Article 33, Article 35 paragraph (1) letters b) and c) and paragraph (3), Article 36, Article 37 paragraph (1) and Article 38 paragraph (2), Article 42 paragraph (5) and Article 82.
(2) Within Romania’s territory there may be officially recognised contractual deposit guarantee schemes and institutional protection systems. The officially recognised contractual deposit guarantee schemes and institutional protection systems are legal persons that may not pursue activities other than deposit guarantee, according to the present Title, and, respectively, activities specific to institutional protection systems, according to Regulation (EU) no. 575/2013.
(3) Contractual guarantee schemes and institutional protection schemes shall be officially recognised by the National Bank of Romania, as the designated authority.
(4) The National Bank of Romania shall officially recognise a contractual guarantee scheme only if that scheme meets the conditions set for its operation in compliance with the requirements laid down in the present Title and the regulations issued for its application.
(5) The National Bank of Romania shall officially recognise an institutional protection system only if it trusts that the respective system can operate in compliance with the criteria laid down in Article 113 paragraph (7) of Regulation (EU) no. 575/2013, with the requirements contained in the present Title and in the regulations issued for its application. In officially recognising an institutional protection system, the National Bank of Romania shall combine its function of prudential supervision of credit institutions, as the competent authority, with the function of supervision of the deposit guarantee scheme, as the designated authority.
(6) If the guarantee scheme no longer meets the conditions set for its operation in compliance with the requirements laid down in the present Title and with the regulations issued for its application, including the situation in which its size and structure can no longer provide for an adequate operation, the National Bank of Romania may revoke the official recognition granted to the contractual guarantee scheme or the institutional protection system.
(7) The National Bank of Romania shall publish on its official website the list of officially recognised deposit guarantee schemes in Romania.
Art. 5. – (1) In order to receive official recognition, contractual guarantee schemes and institutional protection schemes shall submit an application for official recognition, along with supporting documents, to the National Bank of Romania.
(2) The National Bank of Romania shall issue regulations on the documentation that should support an application for official recognition as a deposit guarantee scheme.
Art. 6. – (1) The National Bank of Romania shall reach a decision on the application for official recognition of a contractual guarantee scheme or an institutional protection system within three months of the date it received the application for recognition and the documentation established according to Article 5.
(2) Within five working days after receiving the application, the National Bank of Romania shall notify the applicant, where appropriate, of the documents under Article 5 that have not been submitted according to paragraph (1), so that they may be handed in. The applicant shall have three months from the date of receipt of the National Bank of Romania notification to hand in the missing documentation according to Article 5.
(3) Within the time frame set in paragraph (1), but not later than 45 days after receiving an application for recognition fulfilling the requirement laid down in paragraph (1), the National Bank of Romania may request, in writing, any additional information or documents if those previously submitted are insufficient or irrelevant for an assessment or if the documentation is otherwise deficient.
(4) The applicant shall have one month after receiving the request made according to paragraph (3) to submit the required information and/or documents and to correct the detected deficiencies, a period during which the 3-month deadline set in paragraph (1) shall be suspended. The applicant may voluntarily submit any other information and/or documents deemed relevant, which, however, shall be handed in at the latest 30 days before the deadline for a decision on recognition by the National Bank of Romania expires.
(5) The information and documents submitted after the appropriate deadlines shall not be considered in processing the recognition application and shall be returned to the applicant.
(6) Within the time limit stipulated in paragraph (1), the National Bank of Romania shall notify the applicant in writing of its decision, stating the reasons behind it if the recognition application has been denied.
Art. 7. – The National Bank of Romania shall reject an application for official recognition as a deposit guarantee scheme if during the assessment of the fulfilment of the requirements laid down in the present Chapter one of the following situations arises:
a) the entity is unable to meet set targets in compliance with the requirements laid down in the present Chapter, including in point of its size and structure;
b) the organisation of the entity, the management of activities, risk management and monitoring procedures, internal control mechanisms and the systems, IT systems included, which the entity operates are not comprehensive and adequate for achieving the goals for the which the entity was created;
c) the administrator of the deposit guarantee scheme fails to meet the requirements laid down in Articles 33-38;
d) the members of the supervisory board and of the executive board of the entity that administers the deposit guarantee scheme do not enjoy a good reputation, nor do they have the knowledge and experience needed in their activity;
e) the documentation submitted according to the provisions of Article 5 is either incomplete or otherwise deficient or the additional information referred to in Article 6 paragraph (3) was not supplied following the request of the National Bank of Romania.
Art. 8. – (1) The merger between a deposit guarantee scheme in Romania and a deposit guarantee scheme in another member state, resulting in a guarantee scheme that operates within Romania’s territory, as well as the functioning within Romania’s territory of deposit guarantee schemes that operate in other member states too shall be subject to the prior approval of the National Bank of Romania as the designated authority.
(2) The approval mentioned in paragraph (1) shall be given based on confirmation that the deposit guarantee scheme to operate within Romania’s territory complies with the requirements laid down in the present Title and in the regulations issued for its application.
(3) Subsequent to the approval granted by the National Bank of Romania, the deposit guarantee scheme that operates in other member states as well shall carry on its activity within Romania’s territory in line with the provisions of the present Title and of the regulations issued for its application.
Art. 9. – The changes in the situation of a deposit guarantee scheme officially recognised according to Article 4 paragraph (2), which require the prior approval of the National Bank of Romania, respectively those for which a subsequent notification suffices, shall be established under regulations issued for the application of the present Title.
Art. 10. – (1) In exercising its supervisory powers over a deposit guarantee scheme administered by private entities, the National Bank of Romania may conduct on-site inspections and may request the deposit guarantee scheme and its member credit institutions to provide information and data needed to verify their compliance with the requirements laid down in the present Title.
(2) The on-site inspections shall be conducted by National Bank of Romania personnel empowered for this purpose.
(3) Deposit guarantee schemes shall be under an obligation to allow the National Bank of Romania personnel’s inspections and examination of their systems of collecting the information needed to calculate compensations, of their records, accounts and operations and also to supply all the documents and information pertaining to their activity as requested.
(4) Deposit guarantee schemes shall provide the National Bank of Romania with any information it has requested to be able to assess their compliance with the requirements laid down in the present Title and in the regulations issued for its application. The internal control mechanisms and the accounting and administrative procedures of deposit guarantee schemes must allow for the verification of compliance with these requirements at all times.
(5) Deposit guarantee schemes shall be under an obligation to report to the National Bank of Romania the data and information needed to assess their compliance with the provisions of the present Title and of the regulations issued for its application.
(6) The National Bank of Romania shall issue regulations on deadlines and formats for reporting the data and information referred to in paragraph (5).
(7) The National Bank of Romania may order measures for deposit guarantee schemes to improve their administrative framework, internal processes of identifying, managing and monitoring risks and their internal control mechanisms and to ensure a proper organisation of their activities. Deposit guarantee schemes shall notify the National Bank of Romania of actions taken to comply with the instituted measures within the time limit it set.
(8) In exercising its powers, as laid down in Article 1 paragraph (3), the National Bank of Romania shall combine its functions including prudential supervision, supervision of deposit guarantee schemes, resolution of credit institutions and classification of deposits as unavailable, all while cooperating with other authorities in Romania and other competent authorities and resolution authorities in other states, as well as with designated authorities and administrative authorities in other states which have the power to classify deposits as unavailable.
(9) With a view to supervising the cross-border deposit guarantee schemes referred to in Article 8, the National Bank of Romania, as the designated authority, shall exercise due diligence to conclude cooperation agreements with the designated authorities in the other member states where the credit institutions in the membership of the respective schemes have been authorised, in which details shall be offered on modalities of supervising deposit guarantee schemes through the agency of the representatives of the designated authorities in the respective member states.
SECTION 2
Financial Resources of Deposit Guarantee Schemes
Art. 11. – (1) The available financial resources of deposit guarantee schemes shall be proportionate to their potential liabilities.
(2) To determine those liabilities, deposit guarantee schemes shall operate adequate systems, including IT systems.
Art. 12. – (1) The financial resources of a deposit guarantee scheme consist of:
a) the annual contributions and the extraordinary contributions of member credit institutions;
b) earnings from claims recovered by the deposit guarantee scheme;
c) revenues from investments of available financial resources;
d) loans taken by deposit guarantee schemes;
e) payment commitments in the meaning of Article 3 paragraph (1) letter b);
f) other resources, according to the legal document of establishment of a deposit guarantee scheme.
(2) Deposit guarantee schemes shall have access to adequate alternative financial mechanisms allowing them to get the short-term funding needed to meet their payment commitments according to the present Title.
Art. 13. – The available financial resources of a deposit guarantee scheme shall at least reach a target level of 0.8 percent of the amount of the guaranteed deposits of member credit institutions.
Art. 14. – (1) Each credit institution affiliated to a deposit guarantee scheme shall pay an annual contribution calculated as a percentage of the value, in its leu equivalent, of the deposits the respective deposit guarantee scheme covers and the credit institution has in its records on December 31 of the contribution assessment year. The respective percentage is set by the deposit guarantee scheme and approved by the National Bank of Romania. In the case of cooperative credit organisations, the value of guaranteed deposits is calculated based on the aggregate value of the guaranteed deposits in the records of their central bodies and of the affiliated central cooperatives. In approving the percentage set by the respective deposit guarantee scheme, the National Bank of Romania shall combine its function of prudential supervision of credit institutions, as the competent authority, with the function of supervision of deposit guarantee schemes, as the designated authority.
(2) Credit institutions pay their contributions to the deposit guarantee scheme in the national currency – the leu.
Art. 15. – (1) Starting January 1, 2016, the annual and extraordinary contributions owed to a deposit guarantee scheme shall be calculated on the basis of the amount of covered deposits and the risk associated to each member credit institution.
(2) For the purpose laid down in paragraph (1), deposit guarantee schemes shall use their own methods of calculating risk-based contributions for each credit institution in their membership, duly taking into account the relevant guidelines of the European Banking Authority.
(3) The contributions calculated according to the methods referred to in paragraph (2) shall reflect the risk each member credit institution incurs, taking due account of the risk profiles of various business models.
(4) The methods set out in paragraph (2) may also take into account the level, structure and quality of the asset side of each credit institution’s balance sheet, as well as other risk indicators, such as capital adequacy and liquidity.
(5) Each of the methods deposit guarantee schemes use shall be submitted to the National Bank of Romania for approval according to a procedure the National Bank of Romania established through regulations. In approving the methods of calculating risk-based contributions, the National Bank of Romania shall combine its function of prudential supervision of credit institutions, as the competent authority, with the function of supervision of the deposit guarantee scheme, as the designated authority, and shall inform the European Banking Authority of the methods it has approved.
Art. 16. – In the case of credit institutions permanently affiliated to a central body, according to Article 10 paragraph (1) of Regulation (EU) nor. 575/2013, risk shall be assessed on a consolidated basis for the central body and its affiliated entities, in line with Article 15
Art. 17. – (1) Payment of annual contributions to a deposit guarantee scheme may be suspended only with the approval of the National Bank of Romania and shall resume when available financial resources fall below the target level, at least until that level is reached again. With the approval of the National Bank of Romania or based on its decision, payment of contributions shall be resumed prior to that moment.
(2) If the available financial resources decrease to less than two thirds of the target level, the deposit guarantee scheme shall set the annual contribution at a level allowing the target level to be reached again within six years.
(3) In fulfilling its duties stated in paragraph (1), the National Bank of Romania shall combine its function of prudential supervision of credit institutions, as the competent authority, with the function of supervision of the deposit guarantee scheme, as the designated authority.
Art. 18. – When setting the annual contributions of credit institutions in its membership, a deposit guarantee scheme shall take account of the phase of the business cycle, as well as of the negative impact procyclical contributions might have.
Art. 19. – (1) With the approval of the National Bank of Romania, as the designated authority, a deposit guarantee scheme may decide that part of the annual contribution of each credit institution in its membership may consist of payment commitments, within the meaning of Article 3 paragraph (1) letter b), in favour of the respective deposit guarantee scheme. The share of payment commitments shall not exceed 30 percent of the total amount of available financial resources of the respective deposit guarantee scheme.
(2) For the purposes of paragraph (1), deposit guarantee schemes shall take due account of the guidelines the European Banking Authority issued in this respect.
Art. 20. – (1) If the available financial resources of a deposit guarantee scheme are insufficient to repay depositors when deposits become unavailable, each member credit institution shall pay the respective deposit guarantee scheme an extraordinary contribution, whose level in a calendar year, set by the deposit guarantee scheme with the approval of the National Bank of Romania, cannot exceed 0.5 percent of the guaranteed deposits at the respective credit institution on December 31 of the previous year.
(2) By way of exception to the provisions of paragraph (1), in exceptional circumstances and with the consent of the National Bank of Romania, deposit guarantee schemes may require member credit institutions to pay extraordinary contributions higher than the maximum level stipulated in paragraph (1).
(3) In fulfilling the duties laid down in paragraph (1), the National Bank of Romania shall combine its function of prudential supervision of credit institutions, as the competent authority, with the function of supervision of the deposit guarantee scheme, as the designated authority.
Art. 21. – (1) Upon the request of a credit institution, the National Bank of Romania, as the competent authority, may defer, in whole or in part and for no longer than six months, the payment of the extraordinary contribution stipulated in Article 20 if that payment would jeopardise the liquidity or solvency of the respective credit institution.
(2) Following the credit institution’s request, the National Bank of Romania may extend the deferment period if the risk referred to in paragraph (1) persists.
(3) The respective credit institution shall pay the contributions deferred pursuant to paragraphs (1) and (2) as soon as payment no longer jeopardises its liquidity and solvency.
Art. 22. – (1) The National Bank of Romania shall issue regulations for the application of Articles 14, 15 and 20.
(2) Credit institutions’ contributions to deposit guarantee schemes shall be recognised as fiscally deductible expenses.
Art. 23. – (1) If a credit institution ceases to participate in a deposit guarantee scheme and joins another deposit guarantee scheme, in compliance with the provisions of Article 44 paragraph (1), the deposit guarantee scheme of which the credit institution is no longer a member shall transfer to the new deposit guarantee scheme the contributions the credit institution paid over the 12 months preceding the termination of its membership, with the exception of the extraordinary contributions under Article 20, within 15 calendar days after the information under paragraph (3) has been received. This provision shall not apply if a credit institution has been excluded from a deposit guarantee scheme pursuant to Article 85 paragraph (3).
(2) If some of the activities of a credit institution are transferred to another entity and, following that transfer, another deposit guarantee scheme assumes responsibility for protecting deposits linked to the respective activities, the deposit guarantee scheme to which the credit institution contributed prior to the move shall transfer to the guarantee scheme that assumes the task of deposit coverage, within 15 calendar days after receiving the information under paragraph (3), a share of the contributions the respective credit institution paid in the 12 months prior to the transfer, with the exception of the extraordinary contributions referred to in Article 20, in proportion to the amount of guaranteed deposits transferred.
(3) The credit institutions in one of the situations stated in paragraph (1) or, as the case may be, in paragraph (2) are responsible for providing the two deposit guarantee schemes involved the necessary information allowing them to calculate the amount of transferred guaranteed deposits and the contributions that need to be transferred to the deposit guarantee scheme pursuant to the present Article.
(4) The available financial resources of a deposit guarantee scheme whose official recognition has been revoked upon request or as a sanction, according to the present Title, shall be transferred to the deposit guarantee schemes that take over the duty of guaranteeing deposits, in proportion to the amount of covered deposits, which each deposit guarantee scheme accepts to protect.
(5) In order to apply the present Article, deposit guarantee schemes shall operate according to the cooperation agreements concluded according to Article 76 paragraph (1).
Art. 24. – If a credit institution intends to move from one deposit guarantee scheme to another, in line with the provisions of the present Title, it shall notify the deposit guarantee scheme of which it is a member of its intention at least six months prior to the transfer. Over the period from the date of the notification to the date of the transfer, credit institutions shall remain under the obligation to pay their annual and extraordinary contributions to deposit guarantee schemes according to Articles 14 and 20.
SECTION 3
Use of the Financial Resources of Deposit Guarantee Schemes
Art. 25. – The financial resources built according to Articles 11-24 shall be primarily used to repay guaranteed depositors pursuant to the provisions of the present Title.
Art. 26. – (1) The financial resources of a deposit guarantee scheme shall also be used to finance the resolution of the credit institutions in the membership of the respective deposit guarantee scheme in compliance with legislation on the recovery and resolution of credit institutions and investment firms.
(2) In the resolution of a credit institution, the deposit guarantee scheme shall be accountable for the amount decided, after prior consultation with the National Bank of Romania, as the resolution authority
(3) Where eligible deposits held at a credit institution under resolution are transferred to another entity through the sale of business tool or the bridge institution tool, according to legislation on the recovery and resolution of credit institutions and investment firms, depositors are not entitled to compensations according to the present Title in connection with any part of their deposits at the institution under resolution that has not been transferred provided that the amount of transferred funds is at least equal to the guarantee ceiling stipulated in Article 61 paragraph (3) and, respectively, Article 62. If the value of eligible deposits at a credit institution under resolution is at least equal to the guarantee ceiling and the amount of transferred funds is lower than the coverage level, depositors are entitled to compensations representing the difference between the guarantee ceiling and the transferred amount.
Art. 27. – (1) A deposit guarantee scheme may offer loans to another deposit guarantee scheme only if the borrowing scheme meets the following cumulative conditions:
a) it is not able to fulfil its obligations pursuant to Article 65 paragraph (1) or, as the case may be, to the national legislation of the relevant member state transposing Article 8 paragraph (1) of Directive 2014/49/EU of the European Parliament and of the Council of April 16, 2014 on deposit guarantee schemes (recast) for lack of available financial resources within the meaning of Article12 paragraph (1) or, as the case might be, of provisions in the national legislation of the relevant member state transposing Article 10 of Directive 2014/49/EU;
b) it has made recourse to the extraordinary contributions referred in Article 20 or, as the case may be, in the provisions under the national legislation of the relevant member state transposing Article 10 paragraph (8) of Directive 2014/49/EU;
c) it undertakes the legal commitment to use the borrowed funds solely to pay claims according to Article 65 paragraph (1) or, as the case might be, to provisions under the national legislation of the relevant member state transposing Article 8 paragraph (1) of Directive 2014/49/EU;
d) it is not currently subject to an obligation to repay a loan taken pursuant to the present Article and to Articles 28 and 29 or, as the case may be, to the provisions of the national legislation of the relevant member state transposing