TERMINOLOGY

DEPOSIT

For the purposes of Deposit Insurance Act, a deposit shall mean any credit balance of funds that a credit institution has the obligation to repay to a creditor under the laws or contractual arrangements, and it shall comprise any funds left in bank accounts and any temporary situations in connection with the normal operations of the credit institution.

Deposit shall also mean any liability of the credit institution under a savings passbook and other relevant written certificates of deposit issued as securities under special regulations, unless these documents are to bearer or to order.

CREDIT INSTITUTION

Credit institution shall mean: any bank, savings bank or building society established in the Republic of Croatia and duly licensed by the Croatian National Bank in accordance with the law regulating the operations of credit institutions, and credit institution branch with the seat outside the Republic of Croatia (non-resident credit institution) providing bank services in the Republic of Croatia.

DEPOSIT-GUARANTEE EVENT

Occurrence of a deposit-guarantee event occurs when the Croatian National Bank delivers resolution on deposit unavailability or on resolution of the competent judicial authority on initiating bankruptcy proceedings

COMPENSATION  RIGHT

Upon the occurrence of a deposit-guarantee event, the creditors of the credit institution affected by the deposit-guarantee event shall be entitled to compensation from the Agency in accordance with the provisions except exclusions as stipulated by Deposit Insurance Act.

EXCLUSIONS:

1. other credit institutions for deposits held on their own behalf and for their own account,
2. creditors of credit institutions for funds and instruments included in the liable equity capital of the credit institution,
3. financial institutions,
4. insurance companies operating under private or public law, including voluntary and compulsory pension funds,
5. companies for the management of open-end investment funds and the separate assets managed by them, as well as closed-end investment funds,
6. governments, local and regional self-government authorities and legal entities entrusted with State Administration affairs pursuant to special laws,
7. the parent company and the dependent companies forming a group together with the credit institution,
8. management board members, supervisory board members and parties holding at least 5% of the equity capital of the credit institution,
9. the auditor of the last audited financial statements of the credit institution,
10. creditors in respect of deposits that are not registered deposits, but deposits to an anonymous bearer of an encrypted password,
11. creditors in respect of deposits arising out of transactions for which criminal convictions have been pronounced against certain persons for concealment of illicit proceeds,
12. companies regarded under the Accountancy Act as medium-sized or large companies being subject to the application of the said Act,
13. creditors who directed made arrangements for high interests with the credit institution and acquired thereby material benefits, which caused the financial difficulties of the credit institution or contributed to the significant deterioration of the financial position of the credit institution, and
14. creditors having acquired a deposit or portion thereof upon the withdrawal of the credit institution’s authorization by the Croatian National Bank.