S.L. 371.9 Art. 4Establishment of the Depositor Compensation Scheme.

(1) There shall be established a Depositor Compensation Scheme.

(2) The Scheme shall be a body corporate having a distinct legal personality and shall be capable, subject to the provisions of the Banking Act and of these regulations, of entering into contracts of borrowing or otherwise incurring indebtedness for the purposes of its functions, of acquiring, holding and disposing of any kind of property for the purposes of its functions, of suing or being sued and of doing all such things and entering into all such transactions as are incidental or conducive to the exercise or performance of its functions.

(3) The legal and judicial representation of the Scheme shall vest in the chairperson of the Management Committee or, in the event that another member is designated to carry out the functions of chairperson in accordance with regulation 5(12) of the Investor Compensation Scheme Regulations, applicable by virtue of regulation 5, such legal and judicial representation shall, for the duration of the term for which he is designated as chairperson, vest in such other member:

Provided that, and without prejudice to the foregoing, the Management Committee may vest any one or more of its members or of the officers or agents of the Scheme with legal or judicial representation.

(4) The establishment of the Depositor Compensation Scheme pursuant to regulation 4 (1) shall not preclude the merger with a DGS or DGSs of a different Member State or Member States or the establishment of a cross-border DGS within the meaning of article 4 (1) of the Directive: Provided that the approval of such cross-border or merged DGSs shall be obtained from the competent authority or the Member States where the DGSs concerned are established.