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The FGD will pay out, from the deposit guarantee compartment, the covered amount of the deposits to depositors upon any of the following events:
- When an institution has been declared insolvent or a request has been filed through the courts for insolvency.
- If the institution has not been declared insolvent as indicated in the previous paragraph and, following non-payment of due and payable deposits, Banco de España determines that, in its view, the institution is unable, for reasons directly related to its financial circumstances, to repay the deposits and has no current prospect of being able to do so. After hearing the views of the FGD's Management Committee, Banco de España will make a determination as soon as possible and, in any case, within five working days after having verified that the institution has failed to repay the due and payable deposits. Banco de España shall do so after hearing the views of the institution concerned, without this interrupting that five-day period.