Securities deposits

PAYMENT OF DEPOSITS GUARANTEED

The FGD, after making the relevant checks, will proceed to pay the guaranteed amount of the deposits within three months of any of the circumstances cited in the foregoing paragraph arising. Payment shall be made under the terms of Article 9 of Royal Decree 2606/1996, December 20. This period can be extended for exceptional reasons by the Central Bank´s authorizations.

Whenever in the opinion of FGD’s Management Committee circumstances exist to suspect the relationship or participation in any depositor motivating causes of the obligation to indemnify, may suspend payment of compensation for until declared ex parte court, the absence of that relationship or involvement. The FGD have, the same power when a depositor or any person with any right or interest on a deposit has been processed or has been issued for trial for crimes related to money laundering operations, when it had initiated proceedings abridged is regulated under Title III of Book IV of the Criminal Procedure Act and until the procedure ends.

By the mere fact of payment of amounts secured, DGF is subrogated by law on the rights of depositors, up to an amount equivalent to payments will be sufficient title document evidencing the payment.

Regardless of the power to go to the respective FGD has any depositor at a credit institution which is in one of the reasons for the implementation of the guarantee, FGD be addressed individually to each depositor in order to proceed to the payment of amounts guaranteed under the conditions set by law.

In the event that the securities or other financial instruments entrusted to the institution were restored by it subsequent to the payment of a sum under the investment guarantee system, the FGD may seek reimbursement for the amount paid, in whole or in part, if that amount, valued in accordance with Article 7.1 of Royal Decree 2606/1996, at the time of the payment to the investor, is greater than the difference between the value of the securities entrusted to the institution, valued at the time the events listed in article 8.2 of Royal Decree 2606/1996, occurred, and the amount paid to the investor. When the value of the amount returned was greater than that of the securities or instruments calculated on the date stated in article 8.2 of Royal Decree 2606/1996, the excess shall be divided between the Fund and the investor on a pro rata basis according to their respective credit.

Repayment shall be made to the corresponding FGD, which shall hand over the sums due to the investor in accordance with the provisions of the preceding paragraph. The FGD shall be empowered, for this purpose, to sell the securities for the sum that is applicable.