Deposits of securities
Grounds for execution of guarantees
The Fund will reimburse secured amounts of securities and financial instruments that are eligible for cover, with a charge to the securities guarantee compartment, in the following circumstances:
- A court judgement has been issued declaring the credit institution insolvent and suspending the return of the securities or financial instruments; however, these amounts will not be paid if, within the stipulated return period, the aforementioned suspension is lifted.
- The Bank of Spain declares that the credit institution cannot fulfil its obligations to investors because of events the Bank of Spain has been made aware of and for reasons directly related with the credit institution's financial position.
The following circumstances will need to prevail for the Bank of Spain to issue such as declaration:
- The investor requested the credit institution return the securities or financial instruments deposited with it but they have not been returned within twenty working days.
- The credit institution is not in the situation described in paragraph a), section 1, article 8 of Royal Decree 2606/1996 of 20 December.
- The credit institution has a chance to be heard.