S.L. 371.9 Art. 33Use of available financial means.

(1) The available financial means shall be primarily used in order to repay depositors pursuant to these regulations.

(2) The available financial means of the Scheme shall be used in order to finance the resolution of members in accordance with Directive 2014/59/EU. The Resolution Committee shall determine, after consulting the Scheme, the amount by which the Scheme is liable.

(3) The Scheme, in consultation with the competent authority, may use the available financial means for alternative measures in order to prevent the failure of a member provided that the following conditions are met:

(a) the Resolution Committee has not taken any resolution action under Directive 2014/59/EU;

(b) the Scheme has appropriate systems and procedures in place for selecting and implementing alternative measures and monitoring affiliated risks;

(c) the costs of the measures do not exceed the costs of fulfilling the statutory or contractual mandate of the Scheme;

(d) the use of alternative measures by the Scheme is linked to conditions imposed on the member that is being supported, involving at least more stringent risk monitoring and greater verification rights for the Scheme;

(e) the use of alternative measures by the Scheme is linked to commitments by the member being supported with a view to securing access to covered deposits;

(f) the ability of the members to pay the extraordinary contributions in accordance with sub-regulation (5) is confirmed in the assessment of the competent authority. The Scheme shall consult the Resolution Committee and the competent authority on the measures and the conditions imposed on the member.

(4) Alternative measures as referred to in sub-regulation (3) shall not be applied where the competent authority, after consulting the Resolution Committee, considers the conditions for resolution action under Directive 2014/59/EU to be met.

(5) If available financial means are used in accordance with sub-regulation (3), the members shall immediately provide the Scheme with the means used for alternative measures, where necessary in the form of extraordinary contributions, where:

(a) the need to reimburse depositors arises and the available financial means of the Scheme amount to less than two-thirds of the target level;

(b) the available financial means fall below 25% of the target level:

Provided that until the target level has been reached for the first time, the above thresholds shall apply in relation to the available financial means.

(6) The Scheme, in consultation with the competent authority, may decide that the available financial means may also be used to finance measures to preserve the access of depositors to covered deposits, including transfer of assets and liabilities and deposit book transfer, in the context of insolvency proceedings, provided that the costs borne by the Scheme do not exceed the net amount of compensating covered depositors at the member concerned.