Only the Rules in Korean are formal. This English translation for the Rules is maybe not formal and it is given to informational function just. The Ministry of Strategy and Finance is certainly not accountable for the correctness with this English interpretation, as well as the audience is preferred to mention towards the initial documents in Korean. If this English interpretation is significantly diffent from or inconsistent with all the initial Korean papers, the first Korean papers will probably be controlling.
Guidelines when it comes to State Guarantee of External Debt of Korean Banking institutions (the В“RulesВ”)
Article 1 (Purpose)
The objective of these guidelines would be to established the range of qualified financial obligation, the scope associated with the guarantee, the procedures for the guarantee as well as other information on the continuing state guarantee system pursuant into the В“Approval regarding the State Guarantee associated with Foreign Currency Debt of Domestic Banks owed to Non-ResidentsВ” passed by the National Assembly (the В“ system В”, therefore the state guarantee under such system, the В“ State Guarantee В”), relative to the National Finance Act, Enforcement Decree for the nationwide Finance Act therefore the Rules when it comes to handling of State Guarantees.
Article 2 (Definitions)
| (1) | В“ Domestic Bank В” means some of the banks that are following (i) Kookmin Bank, Shinhan Bank, Woori Bank, Hana Bank, Korea Exchange Bank, Citibank Korea, Standard Chartered First Bank Korea, Pusan Bank, Daegu Bank, Kwang Ju Bank, Kyongnam Bank, Jeonbuk Bank and Jeju Bank, each founded beneath the Banking Act; (ii) the Korea developing Bank established underneath the Korea developing Bank Act; (iii) Industrial Bank of Korea established beneath the Industrial Bank of Korea Act; (iv) the Export-Import Bank of Korea established beneath the Export-Import Bank of Korea Act; (v) nationwide Agricultural Cooperative Federation established underneath the Agricultural Cooperatives Act; and (vi) National Federation of Fisheries Cooperatives established under the Fisheries Cooperatives Act. В“Domestic BankВ” includes international branches of the Domestic Bank. |
| (2) | В“ Non-resident В” means В“non-residentВ” (including branches of international banks situated in Korea) as defined in Article 3, Paragraph 1, Subparagraph 13 of this forex Transactions Act. |
| (3) | В“ Guarantee Obligation В” means the responsibility for the Republic of Korea (the В“RepublicВ”) incurred because of hawaii Guarantee associated with Eligible forex financial obligation as defined in Article 3 associated with the Rules. |
Article 3 (Eligible Debt)
Financial obligation denominated in foreign exchange, given or borrowed (including extensions of readiness) by a Domestic Bank between 20, 2008 and June 30, 2009 and owed to a Non-resident (the В“ Eligible Foreign Currency Debt В”) will be eligible for the State Guarantee october. Foreign exchange deposits and subordinated financial obligation shall never be entitled to the State Guarantee.
Article 4 (Maximum number of Guarantee)
| (1) | The Minister of Strategy and Finance may issue their state Guarantee for the Eligible Foreign Currency https://hookupdate.net/nl/tinychat-recenzja/ Debt of Domestic Banks up into the maximum that is aggregate quantity of US$100 billion or even very same thereto (the В“ Aggregate optimum Guarantee Amount В”). |
The Minister of Strategy and Finance shall make sure the outstanding guarantee quantity for every single Domestic Bank shall perhaps perhaps not meet or exceed the relevant limitation for such Domestic Bank as established in Schedule 1 hereto (the В“ Individual optimum Guarantee Amount В”); supplied , but , that the Minister of Strategy and Finance may adjust the in-patient optimum Guarantee Amount for Domestic Banking institutions if
such modification is viewed as necessary after consideration of domestic and international economic and money market conditions, performance of covenants by Domestic Banking institutions because set forth into the applicable Guarantee Approval Notices issued pursuant to Article 3 for the guidelines for the handling of State Guarantees along with other appropriate facets; supplied further that the aggregate outstanding number of State Guarantee for many Domestic Banking institutions shall perhaps perhaps not surpass the Aggregate Maximum Guarantee Amount after such modification.
| (3) | For purposes of determining if the outstanding quantity of guarantees will not surpass the Aggregate Maximum Guarantee Amount and Individual optimum Guarantee Amount because set forth in Paragraphs (1) and (2) above, correspondingly, the aggregate outstanding guarantee quantity for several Domestic Banking institutions plus the outstanding guarantee quantity for every single Domestic Bank shall be determined in line with the day-to-day stability associated with amount of the main number of Guaranteed Debt (as defined below) and accrued interest (including any default interest and associated costs) on such amount that is principal. |
Article 5 (Term regarding the Guarantee)
| (1) | The Minister of Strategy and Finance can set the definition of for the State Guarantee, which will be within 3 years through the initial date that is effective of Eligible Foreign Currency Debt (in the event of an expansion of readiness, the effective date of these expansion). |
| (2) | The State Guarantee shall succeed just regarding the re re payment responsibilities under the Guaranteed financial obligation that are payable (at readiness, on scheduled due dates, by acceleration or elsewhere) on or before June 30, 2012. |
Article 6 (Application for the Guarantee)
| (1) | A Domestic Bank applying for the State Guarantee (the В“ В” that is applicant can submit an application for hawaii Guarantee inside the Individual Maximum Guarantee Amount applicable to such Applicant. |
To be able to submit an application for the State Guarantee prior to Paragraph (1) above, the Applicant shall finish the В“Application for Guarantee Approval (solitary Debt)В” within the type connected hereto as Form 1 and submit it towards the Minister of Strategy and Finance; offered , however , that the Applicant may finish and submit the В“Monthly Application for Guarantee ApprovalВ” into the type connected hereto as Form 2 for applications associated with short-term loans, instantly loans, commercial paper as well as other financial obligation which are determined become perhaps maybe not suited to single-debt application (A Monthly Application for Guarantee Approval for just about any thirty days will be submitted no later on than the 25 th time regarding the preceding thirty days; supplied, but, that the Minister of Strategy and Finance may set an unusual deadline when it comes to very very very first Monthly Application for Guarantee Approval).