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Amendment of section 3 of Act of 2009
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8. Section 3 of the Act of 2009 is amended by designating the section as subsection (1) and inserting after subsection (1) the following:
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“(2) The Bank shall establish, hold and administer a fund, referred to in this Act as the ‘legacy fund’, consisting of funds transferred in accordance with subsection (3).
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(3) Where a credit institution maintains covered deposits, those funds relating to that credit institution standing to the credit of the deposit protection account to the amount of 0.2 per cent of covered deposits at a date determined by the Bank shall be transferred by the Bank to the legacy fund.
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(4) The balance of funds relating to a credit institution that remain in the deposit protection account on the date of the transfer referred to in subsection (3) shall be returned by the Bank to the credit institution concerned.
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(5) The legacy fund shall cease to operate on the occurrence of one of the following events:
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(a) when the amount of funds in it stand at zero as a result of compensation payments under section 5A;
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(b) on the expiry of 3 years after the commencement of Part 3 of the Finance (Miscellaneous Provisions) Act 2015, in which case any remaining funds shall be returned by the Bank to the credit institutions concerned.
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(6) Where a credit institution has not maintained sufficient funds to enable the transfer referred to in subsection (3) of 0.2 per cent of covered deposits to the legacy fund, the Bank shall direct that institution to pay into the deposit protection account sufficient funds to enable that transfer to take place.”.
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