S.L. 371.9 Art. 11Temporary high balances.

(1) In order to qualify as a temporary high balance, a part of an eligible deposit in excess of EUR 100,000 must meet any one of the following additional criteria:

(a) it comprises:

(i) monies deposited in preparation for the purchase of a private residential property by the depositor; or

(ii) monies which represent the proceeds of sale of a private residential property of the depositor; or

(b) it comprises sums paid to the depositor in respect of:

(i) a separation, divorce or dissolution of their civil union; or

(ii) benefits payable on retirement; or

(iii) a claim for compensation for unfair dismissal; or

(iv) a claim for compensation for redundancy; or

(v) benefits payable for death or bodily injury; or

(vi) a claim for compensation for wrongful conviction.

(2) In the notice published pursuant to regulation 8(3), the Scheme shall inform depositors of the credit institution concerned of the following:

(a) that depositors may be entitled to additional compensation if all or part of the eligible deposit in excess of EUR 100,000 qualifies as a temporary high balance;

(b) that in order to claim such additional compensation, a depositor must provide the Scheme with a written application and evidence supporting the depositor’s claim that all or part of the eligible deposit in excess of EUR 100,000 qualifies as a temporary high balance;

(c) that a depositor may make more than one claim if there are multiple events giving rise to temporary high balances; and

(d) the date by which such written application and supporting evidence should be submitted to the Scheme.

(3) The Scheme shall pay compensation to a depositor in respect of a temporary high balance in accordance with regulation 10(3) if it is satisfied that there is a sufficient link between an event giving rise to a temporary high balance and the part of the eligible deposit in excess of EUR 100,000, taking into account the following considerations:

(a) the written application and evidence provided by the depositor under sub-regulation (2); and

(b) any other information that the Scheme considers relevant.

(4) The Scheme shall pay compensation to a depositor in accordance with regulation 10(3) in respect of each temporary high balance that the depositor has with any one member.

(5) The protection for temporary high balances under regulation 10(3) shall run for a period of six months from the later of:

(a) the first date on which a temporary high balance is credited to a depositor’s account, or to another account on a person’s behalf; and

(b) the first date on which the temporary high balance becomes legally transferable to the depositor.

(6) The Scheme shall, within three months of the compensation date, pay to the depositor a sum representing the amount due to the depositor in respect of the temporary high balance unless one or more of the provisions of sub-regulations (7) and (8) applies.

(7) The Scheme may defer payment in respect of a temporary high balance for a period in excess of the period specified in sub-regulation (6) where:

(a) the depositor provides the written application and evidence referred to in sub-regulation (2) to the Scheme more than two months following the date of the written notice from the Scheme under sub-regulation (2); or

(b) one or more of the circumstances set out in regulation 14 arise.

(8) If the Scheme considers that the written application and evidence provided by a depositor under sub-regulation (2) does not demonstrate a sufficient link between an event giving rise to a temporary high balance and the eligible deposit in excess of EUR 100,000, the Scheme shall write as soon as reasonably possible to that depositor to:

(a) request, within such time as the Scheme may specify, any additional information that the Scheme considers necessary to determine the claim; or

(b) confirm that the Scheme has determined that the deposit is not a temporary high balance, setting out the reasons for its determination and a summary of any right for reconsideration or appeal.