Law of 2 January 1991 on the market for public debt securities and monetary policy instruments

Title

1991003038

2 JANUARY 1991. - Law on the market for public debt securities and monetary policy instruments (NOTE: Consultation of versions prior to 21-09-1991 and updated as of 15-01-2024)

Source: Finances

Publication: 25 January 1991

Number: 1991003038

Page: 1524

File Number: 1991-01-02/52

Entry into force:
1 January 1991 (ART. 27) (ART. 32) (ART. 33)
29 January 1991 (ART. 1 - ART. 35)
4 February 1991 (ART. 36 - ART. 38)

This text has modified the following texts:

1962091103 1948072802 1955080207 1939082450 1944100653 1868061651 1945051806 1935061350 1944100654

24 archived versions

225 implementing decisions

TITLE I. - The market for public debt securities and monetary policy instruments.
CHAPTER I. - (Securities of public sector debt). <L 1998-07-15/38, art. 18, 010; En vigueur: indéterminée> Art. 1-12, 12bis, 13, 13bis CHAPTER II. - Amending provisions relating to the National Bank of Belgium. Art. 14-22 CHAPTER III. - Provisions relating to repurchase agreements (and transfers of ownership as security). <L 1998-07-15/38, art. 26; En vigueur: 09-09-1998> Art. 23-25, 25bis CHAPTER IV. - Fiscal provisions. Art. 26-28 CHAPTER V. - Miscellaneous provisions, repealing provisions, entry into force. Art. 29-35 TITLE II. - Provisions relating to the Belgian-Luxembourg Exchange Institute. Art. 36-38

Text

TITLE I. - The market for public debt securities and monetary policy instruments.

CHAPTER I. - (Securities of public sector debt). <L 1998-07-15/38, art. 18, 010; En vigueur: indéterminée >

Article 1. <L 2005-12-14/31, art. 35, 016; En vigueur: 01-01-2014> The debt of the State, the Communities, the Regions, the provinces, the municipalities, other public bodies, public establishments, bodies of public interest, and the National Bank of Belgium, as well as other persons whom the King assimilates, for the application of this law, to the aforementioned public sector persons, is represented by:
1° registered entries in a debt ledger of the issuer; 2° dematerialized securities which are exclusively registered in accounts; 3° individual or collective bearer securities, provided that they are exclusively issued abroad or subject to foreign law. The issuing decree or the loan agreement determines the form or forms of the securities representing the debt. If the issuing decree or the loan agreement specifically provides for the form of the dematerialized securities, the securities of the loan may only be registered in accounts and transferred from account to account in that form.

Art. 2. The King determines the arrangements for the organization and maintenance of (the debt ledgers of the issuers referred to in Article 1), the formalities required for obtaining a registration, the manner in which registrations may be transferred, pledged or converted into (securities of another form), and the arrangements for the payment of interest and matured capital. <L 1998-07-15/38, art. 20, 010; En vigueur: indéterminée > The King may impose restrictions concerning the number of holders per registration, the pledging and the creation of other real rights, the stipulations by holders of registrations regarding the free disposal or destination of their rights, and the stipulations by the principals regarding the extent of the powers of the agents. The transfer and pledging of a registration are valid and enforceable against third parties without any other formalities than those determined by the King, in accordance with the first paragraph.

Art. 3.<L 2004-12-15/39, art. 18, 015 ; En vigueur: 27-03-2006> § 1. The amount of dematerialized securities is registered in an account by category of securities having the same characteristics, in the name of the owner or holder, with an account-keeper, thereby conferring a right of co-ownership, of an intangible nature, on the universality of securities of the same category registered. [2 The account-keeper referred to in the first paragraph may maintain accounts within or by means of secure electronic recording devices, including distributed electronic recording devices. The King may determine the conditions to which these secure electronic recording devices must comply.]2 § 2. The following establishments are recognized as account-keepers and may therefore hold dematerialized securities in Belgium for the account of third parties:
1° legal persons under Belgian law who are approved for this purpose by the [1 National Bank of Belgium]1; 2° branches established in Belgium of credit institutions or investment firms constituted in accordance with the law of a Member State of the European Economic Area, which have been authorized in their home State to hold securities for the account of third parties; 3° branches established in Belgium of legal persons constituted in accordance with the law of a third State which are approved for this purpose by the [1 National Bank of Belgium]1; 4° the National Bank of Belgium. ---------- (1)<AR 2011-03-03/01, art. 94, 018; En vigueur : 01-04-2011> (2)<L 2021-06-27/09, art. 408, 023; En vigueur : 19-07-2021>

Art. 4.<L 2004-12-15/39, art. 19, 015 ; En vigueur: 27-03-2006> § 1. [1 The National Bank of Belgium in its capacity as a central securities depository or any other central securities depository approved or recognized under Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories, amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 ("Regulation 909/2014") are the central securities depositories which may be charged by the issuer with the safekeeping of the dematerialized securities covered by this law and the settlement of transactions in these securities.]1 [2 The central securities depositories referred to in the first paragraph may maintain accounts within or by means of secure electronic recording devices, including distributed electronic recording devices. The King may determine the conditions to which these secure electronic recording devices must comply.]2 § 2. The King may adopt specific rules relating to:
1° the maintenance in account, by account-keepers, of dematerialized securities denominated in foreign currencies or in units of account; 2° the mandatory maintenance in account by the establishment holding accounts in connection with the management of an international system for the settlement of securities, and which relate to the maintenance in account of securities with another similar establishment, in order to facilitate the transfer of securities between these securities settlement systems. § 3. [1 ...]1 ---------- (1)<L 2018-07-30/10, art. 20, 022; En vigueur : 20-08-2018> (2)<L 2021-06-27/09, art. 409, 023; En vigueur : 19-07-2021>

Art. 5. The account-keeper may not carry out transactions for its own account with the securities it holds for the account of investors. Breach of this provision may not be invoked against third parties acting in good faith.

Art. 6. Dematerialized securities are transferred by account-to-account transfer.
Operations on dematerialized securities may, by the issuing decree or the loan agreement, be limited or regulated in more detail.

Art. 7.[1 A pledge on dematerialized securities is constituted in accordance with the Law of 15 December 2004 on financial collateral and containing various fiscal provisions on agreements constituting real security and loans on financial instruments.]1 (paragraph 3 repealed) <L 2004-12-15/39, art. 20, 015; En vigueur: 01-02-2005> (The pledgor is presumed to be the owner of the dematerialized securities given as pledge. The validity of the pledge is not affected by the lack of ownership right of the pledgor on the securities pledged, without prejudice to the liability of the pledgor towards the true owner of the securities pledged. If the pledgor has previously and in writing warned the pledgee that he is not the owner of the securities pledged, the validity of the pledge is subject to the authorization of the owner of these securities to pledge them.) <L 2004-12-15/39, art. 20, 015; En vigueur: 01-02-2005> ---------- (1)<L 2016-12-25/12, art. 65, 021; En vigueur : 01-01-2018>

Art. 8.The claim for the amount of dematerialized securities of which an account-keeper is debtor, is exercised on the total amount of securities of the same category registered in its name with other account-keepers or [2 with the central securities depository]2. [3 In the event of bankruptcy or any other situation of insolvency of the account-keeper or the central securities depository, this claim is exercised collectively through the curator or the liquidator, as the case may be.]3 If the total amount of these securities is insufficient to ensure the full restitution of the dematerialized securities due, it will be shared among the owners in proportion to their rights. The subdivision of securities accounts into sub-accounts according to the categories of beneficiaries is not taken into consideration. [1 When owners have authorized the account-keeper, in accordance with the applicable law, to dispose of their dematerialized securities, and provided that such disposal has taken place within the limits of this authorization, they shall be attributed, in the event of bankruptcy of the account-keeper or any other situation of insolvency, only the securities that remain after the total amount of securities of the same category belonging to other owners has been returned to them.]1 If the account-keeper is itself the owner of an amount of dematerialized securities, it shall be attributed, during the application of the previous paragraph, only the amount of securities that remains after the total amount of securities of the same category received by it in deposit has been able to be returned. The restitution of dematerialized securities takes place by transfer to a securities account with another account-keeper designated by the depositor. ---------- (1)<L 2010-06-02/10, art. 33, 017; En vigueur : indéterminée > (2)<L 2018-07-30/10, art. 21, 022; En vigueur : 20-08-2018> (3)<L 2023-12-20/08, art. 5, 025; En vigueur : 25-01-2024>

Art. 9.The owner for whose account an intermediary has registered dematerialized securities in its name or in the name of a third party may exercise its claim for restitution against the account-keeper (or [1 with the central securities depository ]1) on the balance registered in the name of this intermediary or this third party. This claim is exercised according to the rules defined in the previous article. <L 1998-07-15/38, art. 23, 010; En vigueur: 27-03-2006> ---------- (1)<L 2018-07-30/10, art. 22, 022; En vigueur : 20-08-2018>

Art. 10. No garnishment is admissible on securities accounts opened in the name of an account-keeper.
(Without prejudice to the application of Articles 8 and 9, in the event of bankruptcy or any other situation of insolvency, the creditors of the owner of the securities may assert their rights on the available balance of securities registered in the name and for the account of their debtor, after deduction or addition of securities which, by virtue of conditional commitments, commitments with an uncertain amount, or forward commitments, have, if applicable, entered a separate part of this securities account, on the day of the bankruptcy or insolvency, and whose inclusion in the available balance is deferred until the fulfillment of the condition, the determination of the amount or the maturity of the term. The conditional commitments or commitments with an uncertain amount, or forward commitments, referred to in the previous paragraph, are limited to commitments arising from a legal relationship between the holder of the concerned securities account and the keeper of this account.) <L 1995-04-04/39, art. 38, 007; En vigueur: 02-06-1995>

Art. 11.<L 1998-07-15/38, art. 24, 010; En vigueur: 01-02-2005> The owners of dematerialized securities are only admitted to assert their (rights of co-ownership referred to in Article 3, first paragraph) against the account-keeper with whom these securities are registered in an account or, if they maintain these securities directly [1 with the central securities depository, against that depository]1. By exception, they may however: <L 2004-12-15/39, art. 21, 015; En vigueur: 01-02-2005>

exercise a right of restitution in accordance with the provisions of Articles 8 and 9 of this law, as well as of Article 9bis, paragraphs 2 to 4 of the Royal Decree No 62 of 10 November 1967 promoting the circulation of securities;
exercise, if necessary, their associational rights directly with the issuer;
in the event of bankruptcy or any other situation of insolvency of the issuer, exercise their rights of recourse directly against it.
[1 Payment to the central securities depository]1 of the interest and matured capital of dematerialized securities is discharging for the issuer. [1 The central securities depository]1 retransfers these interest and capital to the participants of the securities clearing system in proportion to the amounts of securities registered in their name at maturity. These payments are discharging for [1 the central securities depository]1. In the event of bankruptcy or any other situation of insolvency of the issuer of dematerialized securities, all rights of recourse against it are exercised upon production of a certificate issued by the account-keeper or [1 or the central securities depository]1, certifying the number of dematerialized securities registered in the name of the owner or its intermediary on the date required for the exercise of these rights. ---------- (1)<L 2018-07-30/10, art. 23, 022; En vigueur : 20-08-2018>

Art. 12. The King may, for the application of Articles 3 to 11, fix arrangements concerning the granting and withdrawal of approval, the organization of the accounting of account-keepers, the operation of accounts, the statements and records that must be issued to securities account holders, the payments by account-keepers of interest and matured capital of securities registered in accounts, the aggregate data to be communicated by account-keepers for statistical or control purposes, the control of compliance by approved account-keepers with the applicable legal and regulatory provisions and, on the proposal of the National Bank of Belgium, the arrangements for the remuneration due to it by the members of its securities clearing system. It may convert global bearer certificates and global registered certificates representing the "linear bond" loans, issued prior to the entry into force of this chapter, into dematerialized securities. This conversion may not prejudice the substance of the rights that these securities represent for investors.

Art. 12bis. <inserted by L 1995-04-04/39, art. 39, 007; En vigueur: 02-06-1995> No garnishment is admissible on the right to delivery of dematerialized securities of public debt to which subscription has taken place, from the banking business day preceding the day provided for the delivery of the securities and the payment of the subscription price.

Article 13bis

§ 1. The [Belgian National Bank][1] is responsible for monitoring compliance by the establishments referred to in Article 3, § 2, 1° to 3°, with the rules and obligations provided for in this chapter, as well as those provided for in its implementing decrees.

§ 2. For the exercise of the supervision provided for in § 1, for the imposition of administrative sanctions, and for other measures taken against the establishments referred to in Article 3, § 2, 1° to 3°, the [Belgian National Bank][1]:

1° uses, with respect to credit institutions referred to in Article 3, § 2, 1° to 3°, the competencies attributed to it [by the law of 25 April 2014 on the status and supervision of credit institutions and stock exchange companies][2];

2° uses, with respect to investment firms and other establishments referred to in Article 3, § 2, 1° to 3°, the competencies attributed to it [by Book XII of the law of 25 April 2014 on the status and supervision of credit institutions and stock exchange companies][3] and by the decrees and regulations adopted for its implementation.

The corresponding provisions that criminally sanction non-compliance with the aforementioned provisions are applicable.

§ 3. When an establishment no longer meets the conditions necessary to maintain its authorization as a securities depository, the [Belgian National Bank][1] may:

1° compel the said establishment to remedy the identified breaches within the time limit it sets;

2° revoke or suspend entirely or partially the authorization of the said establishment.

§ 4. The [Belgian National Bank][1] may impose an administrative fine on any person established in Belgium who holds dematerialized securities accounts for third parties and who does not comply with Article 3;

The administrative fine may be imposed in a single payment or per calendar day. In the latter case, it may not be less than 2,500 euros nor more than 2,500,000 euros. In total, a fine imposed for the same act or set of acts may not exceed 12,500,000 euros.

The fine is collected, for the benefit of the Treasury, by the Land Registry, Registration, and Domain Administration.

(1)<AR 2011-03-03/01, art. 94, 018; En vigueur : 01-04-2011> (2)<L 2014-04-25/09, art. 32, 019; En vigueur : 07-05-2014> (3)<L 2016-10-25/05, art. 74, 020; En vigueur : 01-12-2016>

Article 13bis

[Inserted by L 2005-12-14/31, art. 36; Effective: 23-12-2005] [Article 3.28 of the Civil Code applies][1] to dematerialized public debt securities.

(1)<L 2020-02-04/16, art. 19, 024; En vigueur : 01-09-2021>

CHAPTER II. - Amending provisions relating to the National Bank of Belgium.

Article 14

[Amending provision of Article 11 of Royal Decree No. 29 of 24 August 1939]

Article 15

[Amending provision of Article 12 of Royal Decree No. 29 of 24 August 1939]

Article 16

[Amending provision of Article 13 of Royal Decree No. 29 of 24 August 1939]

Article 17

[Amending provision of Article 14 of Royal Decree No. 29 of 24 August 1939]

Article 18

[Repealing provision of Article 15 of Royal Decree No. 29 of 24 August 1939]

Article 19

[Repealing provision of Article 16 of Royal Decree No. 29 of 24 August 1939]

Article 20

[Amending provision of Article 18 of Royal Decree No. 29 of 24 August 1939]

Article 21

[Amending provision of Article 20 of Royal Decree No. 29 of 24 August 1939]

Article 22

1° [Amending provision of Article 3, paragraph 1, b) of Law of 28 July 1948] 2° [Amending provision of Article 3, paragraph 1, c) of Law of 28 July 1948]