Urgent Decree of the Minister of the Treasury, President of the CICR, No. 242631 of June 22, 1993

SECRETARIAT OF THE INTERMINISTERIAL COMMITTEE FOR CREDIT AND SAVINGS

MODULARIO T. - R.G.S. - 111

MOD. 211

242631

The Minister of the Treasury

HAVING REGARD TO Articles 2 and 3, paragraph 1, of Legislative Decree No. 481 of 14 December 1992, pursuant to which the acquisition of funds, with the obligation of repayment, is permitted, both in the form of deposits and in any other form, to all credit institutions;

HAVING REGARD TO Article 4, paragraph 1, of the same Legislative Decree, which recognizes the right of the general body of credit institutions to issue bonds, as well as paragraph 5 of the same article, according to which the Bank of Italy regulates the issuance of bonds, in conformity with the resolutions of the Interministerial Committee for Credit and Savings;

HAVING REGARD TO Article 22, paragraph 1, letter b), of the aforementioned Legislative Decree, which provides that the Bank of Italy, in conformity with the directives of the Credit Committee, shall issue to credit institutions instructions of a general nature aimed at containing risk in its various configurations;

HAVING REGARD TO the same Article 22, paragraph 3, which establishes that, until the entry into force of new regulations on the matter, the powers granted to credit authorities by Articles 32, 33, and 35 of the Banking Law for monetary policy purposes shall remain in effect vis-à-vis all credit institutions;

HAVING REGARD TO the resolution of the Credit Committee of 4 June 1976, which allowed credit companies to make deposits, even short-term, in various forms at special credit institutes, as well as the ministerial decree of 23 December 1981, which, in implementation of Article 10 of Law No. 23 of 10 February 1981, regulated for institutes and sections of special credit

---

special the forms of fundraising other than bonds;

HAVING REGARD TO the resolution of the Credit Committee of 21 May 1987, which regulates the operations beyond the short term of credit companies, and in particular the medium-term fundraising carried out by them through the issuance of deposit certificates and savings bonds;

HAVING REGARD TO the ministerial decree of 28 December 1992, which among other things regulated the controls exercisable by the Bank of Italy on the branches of Community credit institutions established in the territory of the Republic;

CONSIDERING that the aforementioned Legislative Decree of 14 December 1992, No. 481, in order to place all credit institutions on a level competitive playing field, has offered them the same operational possibilities also from the perspective of fundraising;

THEREFORE FINDING it necessary on the one hand to replace the previous provisions with a unified framework for the regulation of fundraising by credit institutions, and on the other hand to maintain instruments capable of safeguarding the orderly functioning of the market and the stability of credit institutions;

HEARD the Interministerial Committee for Credit and Savings in its meetings of 10 and 11 June 1993;

D E C R E E S

1. Bonds

The issuance of bonds is permitted to national credit institutions referred to in Article 1, paragraph 2, letter a), of Legislative Decree No. 481 of 14 December 1992.

The Bank of Italy sets a minimum duration limit for bonds consistent with their nature as a medium- and long-term fundraising instrument.

Furthermore, the Bank of Italy, in order to ensure the stability of intermediaries, defines generally

---

the requirements relating to the issuing entity, also with reference to the amount of equity funds.

2. Deposit Certificates

The fundraising of funds through the issuance of deposit certificates is carried out by national credit institutions in compliance with the general instructions issued by the Bank of Italy in order to protect their stability.

In issuing such instructions, the Bank of Italy takes into account the need to distinguish deposit certificates from bond securities.

3. Other Forms of Fundraising

In order to protect the stability of national credit institutions, the Bank of Italy has the authority to issue instructions to them concerning forms of fundraising other than bonds and deposit certificates.

4. Branches in Italy of Non-Community Credit Institutions

The Bank of Italy regulates the application of the provisions of this Decree to branches in Italy of non-Community credit institutions referred to in Article 1, paragraph 2, letter c) of Legislative Decree No. 481/92.

5. Orderly Functioning of the Market

In the formative phase of an orderly market with adequate depth, the Bank of Italy may exercise intervention powers regarding the issuance and placement of bonds, deposit certificates, and similar securities within the territory of the Republic.

---

6. Convertible Bonds

The provisions of point 1 of this Decree do not apply to bonds convertible into shares of the issuer.

7. Replaced Provisions

The following provisions are replaced by this Decree:

• those contained in the resolution of the Credit Committee of 4 June 1976, which allowed credit companies to make deposits, even short-term, in various forms at special credit institutes;
• those contained in the ministerial decree of 23 December 1981 - issued in implementation of Articles 7 and 10 of Law No. 23 of 10 February 1981 and Article 13 of Law No. 423 of 1 August 1981 - regarding deposit certificates, savings bonds, and advances to participants;
• contained in the resolution of the Credit Committee of 21 May 1987 and concerning the fundraising of credit companies through the issuance of savings bonds and deposit certificates.

The other provisions incompatible with the provisions of this Decree are also replaced.

Rome, 22 JUNE 1993

THE MINISTER