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Swiss Banking Law (Amendment)

 

 

Federal Law on the Banks and the Savings Associations

(Modification of October 3, 2003) – English Translation of the Content and Articles 26, 29, 37b, 37d, 37h and 39

 

 

I.                    

The law of November 8, 1934 on the banks is modified as follows:

 

[…………]

 

Chapter Eleven          Measures in case of the risk of insolvency

 

              Article 25             Conditions

 

              Article 26             Protection Measures

 

(1) The Banking Commission may take the following protection measures, among other things:

  a. to give instructions to the organs of the bank;

  b. to appoint an investigator in conformity with Article 23quater;

  c. to withdraw from the organs their power of representation or to dismiss them from their functions;

  d. [not translated]

  e. to limit the activities of the bank;

  f. to prohibit the bank from operating the payments, from accepting the payments or from carrying out transaction of securities;

  g. to close the bank;

  h. [not translated]

(2) It shall have these measures published in an appropriate manner when such publication is necessary for implementation of the measures or protection of third parties.

(3) [not translated]

 

              Article 27             Systematic Protection

              Article 28             Delegate for Normalization and Management of the Bank during the Procedure

 

Title precedent to Article 29 [Repealed]

 

Article 29             Normalization Plan

 

(1) The delegate for normalization shall elaborate a normalization plan which shall protect the best interests of the creditors and the proprietors.

(2) [not translated]

(3) The normalization plan must be submitted to the Banking Commission for approval.  It does not require an approval of the general meeting of the bank.

 

Article 30             Refuse of the Normalization Plan

Article 31             Homologation of the Normalization Plan

Article 32             Pretension

 

Chapter Twelve          Liquidation of Insolvent Banks (Bankruptcy of Banks)

 

              Article 33             Liquidation Order and Appointment of Liquidators

              Article 34             Effect and Procedure

              Article 35             Meeting of Creditors and Supervising Commission

 

Title precedent to Article 36 [Repealed]

 

              Article 36             Treatment of Claims; State of Collocation

              Article 37             Promises agreed at the time of Protection Measures

              Article 37a           Small Deposits

 

              Article 37b           Privileged Deposits

 

(1) The deposits which are not prepared for the holder, including the obligations of cash deposited to the bank in the name of the depositor shall be attributed to the second class in the meaning of Article 219, al. 4, LP, at the maximal sum of 30,000 francs per creditor.

(2) The deposits to enterprises exercising the banking activities without receiving the authorization from the Banking Commissions do not enjoy such privilege.

(3) A claim shall be privileged only once, even if it has several titles.

 

              Article 37c           Adaptation to the Devaluation of the Currency

 

              Article 37d           Treatment of Deposited Valuables

 

(1) In case of liquidation of the bank, the deposited valuables in the meaning of Article 16 are separated from the amount in liquidation for the benefit of the depositor, subject to the rights of the bank against the depositor.

(2) If the bank in liquidation is a depositor to a third party, the deposited valuables shall be presumed to be those of its clients; then they shall be separated from the amount in liquidation in conformity with al. 1.

(3) The liquidator of the bank must fulfill against the third party trustees the obligations related to the deposit and the obligations resulting from the operations intended in Article 16, ch.3.

 

              Article 37e           Distribution and End of the Procedure

              Article 37f           Coordination with the Procedures Overseas

              Article 37g           Approval of Bankruptcy Decisions and Foreign Measures

 

Chapter Thirteen        Guarantee of the Deposits

 

              Article 37h          Principle

 

(1) The banks shall take cares to guarantee the privileged deposit in the meaning of Article 37b under their Swiss syndicates.  Those holding such deposits shall have to adhere to the self-regulation system of the banks for that end.

(2) The self-regulation system shall be submitted to the Banking Commission for approval.

(3) It will be approved if it:

  a. permits to assure the payment of the guaranteed deposits within the period of three months after introduction of the measures intended in Article 26, al. 1, let. e to h, or after the commencement of the liquidation procedure intended in Articles 33 to 37g;

  b. limits the total sum of the due contributions to 4 billion francs at maximum;

  c. [not translated]

(4) [not translated]

(5) If the self-regulation system does not satisfy the requirements intended in al. 1 to 3, the Federal Council shall regulate the guarantee of the deposits by way of ordinance.  It shall appoint, particularly, the bodies for guarantee and decide the amount of the contributions of the banks.

 

              Article 37i            Legal Cession

 

              Article 39

 

(1) The responsibility of the founders of a bank, that of the organs in charge of the management, of the direction general, of the supervision and of the control of the bank and that of the liquidators and of the organs of revision appointed by the bank shall be stipulated by the provisions of the joint stock corporation law (Article 752 to 760 of the Code of Obligations).

(2) [not translated]

 

              Articles 40 to 45 [Repealed]

              Article 47, ch. 1 [not translated]

 

II.                [Not Translated]

III.             [Not Translated]

IV.              Referendum and Going into Effect

 

(1) This law is subject to the referendum.

(2) The Federal Council shall decide the effective date.

 

*This is just an unofficial translation of a part of the law.  For an original, complete text, visit the government’s site.

 

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English Translations of Swiss Banking Laws

  Swiss National Bank Regulation  Swiss Banking Law  Swiss Money Laundering Ordinance

English Translations of Luxembourg Financial Laws

  Trust and Fiduciary Contracts Law  Amended Collective Investment Organization Law  Investment Services Law  Collective Investment Organization Law

 

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