S.L. 330.9 Art. 103Ex-ante contributions.

(1) In order to reach the target level specified in regulation 102, contributions shall be raised at least annually from the institutions licensed in Malta including Union branches.

(2) The contribution of each institution shall be to the pro rata amount of its liabilities (excluding own funds) less covered deposits, with respect to the aggregate liabilities (excluding own funds) less covered deposits of all the institutions licenced in Malta: Provided that those contributions shall be adjusted in proportion to the risk profile of institutions, in accordance with the criteria adopted under Article 103(7) of the BRRD.

(3) The available financial means to be taken into account in order to reach the target level specified in regulation 102 may include irrevocable payment commitments which are fully backed by collateral of low risk assets unencumbered by any third party rights, at the free disposal and earmarked for the exclusive use by the Resolution Committee for the purposes specified in regulation 101(1). The share of irrevocable payment commitments shall not exceed 30% of the total amount of contributions raised in accordance with this regulation.

(4) The obligation to pay the contributions specified in this regulation is enforceable under Maltese law, and due contributions shall be fully paid. Appropriate regulatory, accounting, reporting and other obligations shall be set up to ensure that due contributions are fully paid. There shall be measures for the proper verification of whether the contributions have been paid correctly, which measures shall prevent evasion, avoidance and abuse.

(5) The amounts raised in accordance with this regulation shall only be used for the purposes specified in regulation 101(1).

(6) Subject to regulations 37, 38, 40, 41 and 42, the amounts received from the institution under resolution or the bridge institution, the interest and other earnings on investments and any other earnings may benefit the financing arrangements.