Just the Rules in Korean are formal. This English translation of this Rules is maybe not formal and it is given to informational function just. The Ministry of Strategy and Finance just isn’t in charge of the correctness with this English interpretation, and also the audience is recommended to refer to your documents that are original Korean. If this English interpretation differs from the others from or inconsistent using the initial Korean papers, the first Korean papers will be managing.
Rules for the State Guarantee of External Debt of Korean Banking institutions (the В“RulesВ”)
Article 1 (Function)
The objective of these guidelines would be to established the range of qualified financial obligation, the scope associated with guarantee, the procedures for the guarantee as well as other information on the continuing state guarantee system pursuant to your В“Approval associated with the State Guarantee associated with Foreign Currency Debt of Domestic Banks owed to Non-ResidentsВ” passed by the National Assembly (the В“ system В”, together with state guarantee under such Program, the В“ State Guarantee В”), relative to the nationwide Finance Act, Enforcement Decree regarding the nationwide Finance Act as well as the Rules when it comes to handling of State Guarantees.
Article 2 (Definitions)
(1) | В“ Domestic Bank В” means some of the after banks: (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 Development Bank established beneath the Korea developing Bank Act; (iii) Industrial Bank of Korea established underneath the Industrial Bank of Korea Act; (iv) the Export-Import Bank of Korea established underneath the Export-Import Bank of Korea Act; (v) National Agricultural Cooperative Federation established beneath the Agricultural Cooperatives Act; and (vi) National Federation of Fisheries Cooperatives established under the Fisheries Cooperatives Act. В“Domestic BankВ” includes international branches of a 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 for the forex Transactions Act. |
(3) | В“ Guarantee Obligation В” means the responsibility regarding the Republic of Korea (the В“RepublicВ”) incurred as a consequence of their state Guarantee associated with the Eligible forex financial obligation as defined in Article 3 of this Rules. |
Article 3 (Qualified Debt)
Financial obligation denominated in foreign exchange, granted or lent (including extensions of readiness) by way of a Domestic Bank between October 20, 2008 and June 30, 2009 and owed to a Non-resident (the В“ Eligible Foreign Currency Financial obligation В”) are going to be entitled to the State Guarantee. Foreign exchange deposits and debt that is subordinated not 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 Debt of Domestic Banks up to your maximum that is aggregate quantity of US$100 billion or very same thereto (the В“ Aggregate optimum Guarantee Amount В”). |
The Minister of Strategy and Finance shall make sure the guarantee that is outstanding for every single Domestic Bank shall maybe maybe 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 regarded as necessary after consideration of domestic and international monetary and money market conditions, performance of covenants by Domestic Banking institutions as set forth within the guarantee that is applicable Notices issued pursuant to Article 3 for the guidelines for the handling of State Guarantees along with other appropriate facets; provided further that the aggregate outstanding level of State Guarantee for many Domestic Banking institutions shall maybe perhaps not surpass the Aggregate Maximum Guarantee Amount after such modification.
(3) | For purposes of determining if the outstanding level of guarantees will not meet or exceed 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 www.hookupdates.net/find-sugar-usa several Domestic Banking institutions as well as 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 level of Guaranteed financial obligation (as defined below) and accrued interest (including any default interest and relevant costs) on such major amount. |
Article 5 (Term for the Guarantee)
(1) | The Minister of Strategy and Finance can set the word for the State Guarantee, which will be within 36 months from the original effective date regarding the Eligible Foreign Currency Debt (in the event of an expansion of maturity, the effective date of these expansion). |
(2) | The State Guarantee shall succeed just regarding the re re payment responsibilities underneath the Guaranteed financial obligation that are payable (at readiness, on planned repayment dates, by acceleration or elsewhere) on or before June 30, 2012. |
Article 6 (Application when it comes to Guarantee)
(1) | A Domestic Bank applying for the State Guarantee (the В“ В” that is applicant can make an application for their state Guarantee within the Individual optimum Guarantee Amount applicable to such Applicant. |
So that you can 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 form connected hereto as Form 1 and submit it towards the Minister of Strategy and Finance; supplied , however , that the Applicant may finish and submit the В“Monthly Application for Guarantee ApprovalВ” within the type connected hereto as Form 2 for applications relating to short-term loans, instantly loans, commercial paper along with other financial obligation which can be determined become perhaps maybe not ideal for single-debt application (A Monthly Application for Guarantee Approval for any thirty days will probably be submitted no later than the 25 th time of this preceding thirty days; supplied, nevertheless, that the Minister of Strategy and Finance may set another type of deadline for the very very first Monthly Application for Guarantee Approval).