Deposit Insurance Regulations, 1998

DEPOSIT NSURANCE
THE DEPOSIT INSURANCE ACT
REGULATIONS
(under section 25)
(Made by the Minister on the 13th day of October, 1998) A~JI.. LN 81/98 LN 107/2002 Preliminary

1. These Regulations may be cited as the Deposit Insurance Regulations,

2.--41) In these Regulations, unless the context otherwise requires- "applicant" means a financial institution that makes an application for deposit insurance pursuant to these Regulations; "company" means a body corporate whether incorporate under the laws of Jamaica or of any other country; "control" in relation to the activibes of a financial institution or other company means the power of a person to secure by means of the holdmg of shares or the possession of voting power in or in relation to that financial institution or other company, or by any agreement or by virtue of any other powers conferred by the articles of association or other document regulating the management of the affairs of the financial institution or other company, that the affairs of the financial institution or other company are conducted in accordance with the wishes of that person; and for the purposes of these Regulations a person who controls a policyholder is considered to control any other policyholder that is controlled by the policyholder; "financial statement" includes a balance sheet, profit and loss account, statement of retained earnings, income statement and a statement of changes in financial position; "officer" in relation to a policybolder means a director, manager, secretary or other similar officer of the policyholder or any person acting in that capacity; "policy" means the policy of deposit insmce issued pursuant to
section 14 of the Act;
[The inclusion of this page is authorized by LN. 135i2003 ]

THE DEPOSIT LVSURANCE REGUJATIONS, J 998
"regulatory authority" in relation to an applicant, means any authority that is empowered to supervise or regulate financial institutions, capital markets or securities transactions; and that has jurisdiction over the applicant; "relevant year" means the year 1997; "Return of Insurable Deposits" means the form of return specifted by the Corporation from time to time for insurable deposits as defined in section 2 of the Act; "subsidiary" where used to indicate a relatiowhip between one company and another means a company that is controUed by the other. (2) For the purposes of these Regulations the following persons shall be treated as being connected with a particular financial institution (T) and the financial institution with them, and shall be so treated notwithstandmg that at the relevant time any of the persqns in question (not being individuals) had not yet come into existence or had ceased to exis(-- a holding company or subsidiary of F; a subsidiary of a holding company of F; a holding company of a subsidiary of F; any company of which F has control; any company of which F and persons comected with F togethea have control; any company which together with F constitute a gn)up; an individual who is a director, manager or a person who has control of F or any partner or any immediate relative of such director, manager or person as aforesaid; any company of which any of the persons referred to in sub￾paragraph (g) is a director, manager or has control. (3) "group" in relation to an interconnection between ow cornplany ("X') and any other company, means X and- (a) any other company which is its holding company or subsidiary; (6) any other company which is a subsidiary of the holding company; (c) any company which dhctly or iodirecty conbols or is con￾trolled by any company @erred to in sub-parageaph (a) or (6); [The inclusion of this page b ~~ by LN. 13912003 ]

THE DEPOSIT 155 L'RiLVCE REG LW TIO02'S. 1998
(4 any company which is controlled by a person who directly or indirectly controls a company referred to in sub-paragraph (a). (b) or (c). (4) For the purposes of these Regulations a company is a holding company of any company that is its immediate. intermediate or ultimate subsidiary. Application,for Deposit Insurance
3. An application for deposit insurance pursuant to subsection (1) of
section 12 of the Act shall be in the form set out as Form 1 in the Schedule. Schedule
Form l
4. Where the applicant for deposit insurance was canying on the
business of talung deposits during the relevant year a Return of Insurable Deposits in the form set out as Form 2 in the Schedule shall accompany the application. Policy and Certificate of Deposit Insurance
5. Subject to the provisions of Part IV of the Act the Corporation
shall upon approval of an application made under regulation 3, issue a policy of deposit insurance in the form set out as Form 3 in the
Schedule and a certificate to that effect in the form set out as Form 4 F0m4
in the Schedule.
Premiums
6. The initial premium to be paid to the Corporation pursuant to
section 14 of the Act by a financial institution whose application for
deposit insurance has been approved, and which has carried on the business of taking deposits during the relevant year, shall be a rate equivalent to 0.15 per cent of the total value of the insurable deposits held by the financial institution on the 31st December of that year.
7. The annual premium to be paid to the Corporation pursuant to
section 14 of the Act by a policyholder shall be a rate equivalent
to 0.15 per cent of the total value of insurable deposits held by the policyholder on the 31st December of the year immediately preceding.
8. The annual premium payable under section 14 of the Act shall
be payable on or before the policy due date; however, the policy￾holder may with the prior written consent of the Corporation pay the annual premium in two equal instalments, the first such instalment being due on the policy due date and the second instalment being due not later than six months after the policy due date. [l%e inclusion of this page is authorized by L.N. 13512003 ]

6 THE DEPOSIT NSURANCE REGUU TIONS, 1998
Financial Statements
9. Financial statements submitted by Qr on behalf of an applicant sr
policyholder, as the case may be, shall be-
(a) prepared in the manner prescribed by the enactment under which the operatiom of that institution are licensed or, failing such prescription, in accordance with the accounting standards and guidelines established by the Institute of Chartered Accountants of Jamaica; and (b) audited in accordance with the auditing standards and guide￾lines established by the Institute of Chartered Accountants of Jamaica. Updated and Additional Information
10. Where the Corporation considers it to be necessary or desirable in
furtherance of its principal objects, the Corporation may require an applicant or policyholder, as the case may be, to provide or cause to be provided to the Corporation any additional information cancerning the business and affairs of the applicant or policyholder, or of any of its directors or officers. or of any person connected with or exercising control over the applicant or policyholder.
SCHEDULE (Regulations 3,4 and 5)
Form 1
THE DEPOSIT INSURANCE ACT
APPLICATION FOR DEPOS~I' INSURANCE
(Pursuant to section 12(1) )
NOTE: Where additional space in which to answer is required, the applicant shall camplete the answer on a separate page that shall be marked as an attachment and cross￾referenced to tho item to which it pertains. Each such separate page shall be initialled by the signatories to this application or such 0th persons authorized in their place.
Section A: General Applicant Information

1. Corporate name of the applicant.. ....................................................................
2. (a) Date of incorporation 1 registration of the applicant.. ................................... , ....
   (b) Date on which applicant commenced business ...............................................
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THE DEPOSIT INSURANCE REGULATIONS, 1998
SCHEDULE, conrd.
Form 1, con!d.
Country of incorporation of the applicant ..........................................
If incorporated in Jamaim, give address, telephone and facsimile numbers of
the roghred ow of @he applicant ...................................................
Address, telephone and facsinlile numbers of the principal phce of business
if different from paragraph 4 above ......................................................
Information in respect of the officer who is authorized to represent applicant with respect to this application :
Full name .........................................................................................
Job title ............................ ..............................................................
Address. ............................................................................................
Telephone number (s). .........................................................................
Facsimile number (s) ...........................................................................
If the applican't is incorpolgted outside of Jamaica:
(a) Address of the head o5ce ............................................................
................................................................................................
(6) Address of the principal ofice in Jamaica .......................................
...............................................................................................
(c) Name of one of its officers who is the authorized agent in Jamaica
................................................................................................
(4 Name of one of its afficers who is alternate authorized agent in Jamaica Submit certified copies of applicant's Meanomndum of Associ,ation, Articles of Association, Certificate of Incorpora~on or other opnsti,tuting documents flocally incorporated applicants only). SwKt certified capies of applicant's constituting documents and copies of the powers of attorney of the authorized agents (if the applicant is incorpod outside Jamaica). me inclusion of this page is authorized by L.N. 54/2OOfX

THE DEPOSIT INSURANCE REGULATIONS, 1998
SCHEDULE, contd.
Form 1, contd. information in respect of each direobr of the applicant:
Name Addreas
(Home or Business)
Informtation in respeot of 6he Ohid Examtive Officca and otlher senior officers of hhe applicant:
Name Designation me inclusion of this page is authorized by L.N. 54120001

THE DEPOSIT INSURANCE REGULATIONS, 1998
SCHEDULE. contd.
Form 1, contd.
12. Name and address of each branah of the applican~t in liamaica:
Name Address
13. Information in respa% of the &kmal dtor(s) of sbe applicant:
(a) Name ........................................................................................
(6) Address .....................................................................................
(c) Telephone wmbr (s) .....................................................................
(d) Flacsimile number (s). .....................................................................
(e) Cbntaot person (s) ..........................................................................
14. Name and add,ress of banker (s) of the applicant ....................................
15. The app1icant must attach a copy of its la~teslt audited balance sheet and
profit and loss accounts in resm of all business transacted by it in the previous Woial year and prepared in the manner prescribed in its governing statute or any regulations made under the Bank of Iamaiaa Aot. Ssdion B: lnfonmtion and Corporate Stnrhre
16. InfornraQion on persons wi.th at least 20% of voting shares of the applicant:
Number and type if
Name Occupahion Address %ares held and
(Home and Business) JS Arnounit
-.
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THE DEPOSIT INSURANCE REGULATIONS, 1998
SCHEDULE, contd.
Form 1, contd.
17. If the appli-4 is the subsidiary of another ampany, name, address and
nature of business of that other mpany:
18. Name and address, and nature of business of all rubsidiariea d tbe
applicant :
19. Where applicable, attach a wrpo- organizational dhamt, showing dldy,
the relationd~ip of the applicant bo &ex mmpnk with which it form6
part of a group.
20. AttafSr the certified wpy of the lateat Annual Return of the applicant reqwsd under sections 121 and 122 of Ihe Ompmie8 Act, or the ineorma￾tion required pursuant to those sections which has not been requested herein.
21. Has the applicant, its holding company, mbsidiarica or any of heir officem
ever under the laws of any juriddioa-
(Tick the appropriane box. Submit details separately, where "yd' ir indicated). Yea No

• *
  (a) been refused doposit insurance? 1 1 I 1
  (b) heId deposiit insurance &at has been 811s￾pended, revoked, or been the subjeot of imaiigation? 11 11 (c) been &used a licence to accapt deposits? I] [ 1 (4 had its licence as a deposit-lhkhg financial insti!tution suspended, revoked, or the mbjeot of an investigation? [ 1 -- -. - - -- (The inclusion of this page is authorized by L.N. 54/2000)

THE DEPOSIT NSURAhCE REGULATIONS, 1998
SCHEDULE, conrd.
Form 1. contd.
(e) been found guilty of fraud, misappropriation of fiinds, or violation of laws regulating the provision of financial services or securities trading? 11 11 r , 22. Give details of any pending litigation to which the applicant is a party that might
Ll materially affect the capital bnse ofthe applicant. .................................................
............................................................................................................
Signed by Authorized Signat ory... ................................. Date.. ............................
Print Full Name ........................................................ Title. .............................
Signed by Authorized Signatory.. .................................. Date ..............................
Print Full Name ....................................................... Title.. ............................
AiEx Corporate Seal
Section D: Documents Submitted (Tick os appropriate)
(I) Certified copy of Certificate of Incorporation (2) Certified copy of Memorandum of Association and Articles of Association or document certifying incorporation. (3) Copy of latest audited financial statement. (4) Certified copies of the last Annual Return required under sections 12 1 and 122 of the Companies Act. (5) Corporate Organizational Chart. (6) Other @lease specrfl)). [The inclusion of this page is authorized by L.N. 135/2003 1

THE DEPOSIT INSURANCE REGULATIONS. 1 998
(Name of Institution)
SCHEDULE, conrd.
Form 2
THE DEPOSIT INSURANCE ACT
I. Total Deposit Liabilities as at December 31,
2. Deduct: Deposits not insurable
3. Total Amount of Insurable Deposits
4. Premiums Payable (0.1 5 per cent of
total value of insurable deposits) JS
NOTE: The conversion rate for insurable deposits &nominated in foreign currencies should be the applicable rate of exchange on December 3 1 of the preceding year. TOTAL DEPOSIT LIABILITIES AS REFLECTED IN THE FINANCIAL STATEMENTS AS OF DECEMBER 31 OF THE YEAR PRECEDING THE POLICY DUE DATE Deposlt LIabLUttes whlch qualify for Deposit Insurance.

1. Demand and savings deposits.
2. Tie deposits and certificates of deposits of all
   maturities
3. Shares in a building society (i.e. other than capital
   shares, deferred shares or preference shares)
4. Foreign currency deposits
5. Managers' cheques
6. Money orders
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THE DEPOSIT INSURANCE REGULATIONS, 1998
~~PDULP~, contd. om 2, conrd.
8. Tmvdlers oheques issuad by the pdicyhddar
9. Prepaid l&tm of credit
10. CFedit balances of daposit instrumeats in bransit
1 I. Intuest amed andlor payable on dl dbpoaits other than the daposik of other psticyholdm, htubry bodies or Government companies
12. ANY O'ITHER DEPOSIT LllAHWITEB
QA'L?rAW AS A 9CHiEDU'L.E TO THE
RETURN) #
TOTAL
DEQUCTWNS OF IXPOSTT LIABILFITUS
WHICH DO NOT QUALIFY FOR IN-rn

1. Deposits from other policyholders
2. Deposits from statutory bodies or Government umgdes
   TOTAL
   DEik:
   AutQorized Sigmatory Print Full Norme Tie me inclusion of thin page in authorizad by L.N. 54/20001

THE DEPOSIT INSURANCE REGULATIONS, 1998
SCHEDULE, contd.
Form 3
THE DEPOSIT INSURANCE Am
POLICY OF DEPOSIT INSURANCE
(Pursuant to section 12 (2) )
Effective Date of the Poky and Amendments

1. 'Ibis policy shall take effect-
   (a) in the case of a 6nami.al institution duly licensed to carry on the business of accepting deposits and which has been approved by the Conpowtion for deposit insuraoce pursuant to seation 14 of the Ad, but has not yet. accepted its fi,mt insurable deposit, on the day on which the mstnltutaon accepts such a deposl; and (h) in the case of a financiat institution wing on bhe business of accepting deposits during the oalendar year immediately preceding the 31st day of August, 1998, upon the approval of its application for deposit msuance. 2.-(1) Thb palicy is dm& to be amended consequentially or replaced when the legidation prcsfibhg thc form and provisions of this poliay is ameaded or replaced. (2) 'In the circumstances described in sub-paragraph (I), the Cmpration may issue to the policyholder new pollicies in accordance wi,th the amendment or ~eplacement of the said legidation and suoh new policy shall take effect from the date bhe amendment or replacamat mes into effat. Term
2. Subject to the satisfactory compliance wi& the requiremenb of the Act,
   and Le enactment under wbi& fhe polioqitplder, is licensed, this piay is renemub!e annually, and shall wntlnue In eff'eot untll ~ts cancellation in accord￾ance with ssdions 15 end 16 of the Ad or any amcndmtnts thermf. Conditions
3. Afl provisions of this policy shall be considered to be conditions of this
   policy￾5. The policyholder shd my with the Aot, its governing statute, any appiioable regulations, its incorporaGing instrument, and any undertaking that it has given b the Corpora~on, the Bank of Jamaica or any rmlatory authority having jurisdiation over the policyholder or any as(peot of its business, and with any wmpliance order, cease and desist order, dihve, iestriotion or ather similar dooument issued ad any time by the Oonporation, the Bank of Jamaica or any regulaby authority wPlldh has juridotion over the ap~licanlt. Premiums
4. This policy is ren-ble on the merit of the annual premiwn in
   accord~snce with the prov.sions of the Act and my regulations made thereunder. 7.-41) l3.m polioyhokier shall colnplde and certify a Return of Insurable Deposits in the fom prescribed and shall submit d~aR Rerturn to the Corporation at such times as the Coriporatim may require before the policy due date. - -- - - - -- - [The inclusion of rhis page is authorized by L.N. 54120001

THE DEPOSIT INSURANCE REGULATIONS, 1998
SCHEDULE, contd.
Form, 3, contd.
(2) For &e purpose of making the calculation of annd premium policyholder shall detenrune the total value of insurable deposats by using tbe method set out im the Re- of Insurable Dmts.
8. Where the policyholder fails to pay the presdhd pdm at pm
scribed time the policyholder shgll pdy the pen* smMed in 8cch 14 (9 of the Act. 9.--(I) Where the poliicyblder, the Coprahn or a Bank of Jdc8 representative who is making an examiinaith or inspedion under the Bank of Jamaica Aat, discovers an emr in the Return of ImunaMe Depits and the polioyholder has been notified thereof, the pdbyhdder sbdl Mwith mete and file wiah the Corporr;~tion an amended Return of Iorrmde Deposits wtified by an authorized signatory of the policyholdm. (2).Where, Fsed on an aqepded Rebuin of Insurabk Daposits, the Conporat~on determw that an amount of initial premium or annual premium should hve beem paid, the palicydmlda shall pay to the CorporsriOn- (a) 'the additional amount forthwith in aomdmce with the relevant pro- visiuns of the A& and (6) any interea on that amount bat is charged by the Oprpodom in accordance with section 14 (5) of the Ad, which interest &al ecorue fran and including the due date until the day immediately before the date of payment. Information to. The policyholder shall pwide- (a) lists of persons with whom be polic~older fome a group; and (b) lists of the manes, addresses, tel-e smmbem, occupatimr nod titlea of the directors and ofim of the policyholder and of each of its holding companies and subsidiaries.
11. The Comahion for the purpose of monitoring or assessing the mm￾plhnce of the policybalder with the conditions of this poky or where the
Conpomhon mnsiders it to be necessary or deaieable in hutherance of its abjeots as set out in section 4 of the Aat, may by notice in writing quest the policyhdder to provide the following information wifhin such period as may be specified in the no'tio8- (a) its ihandai statements and suoh returns, stataneats and including those required under sedan 16 of the Banling Au, don 16 of the Finand Insthtioas Act or regulation 44 of tbe Bank d Jamaica (Building Societies) Regulw 1995, as he my 'm for .the peaid specified. peed on a maalidated or uncomxd basis, plus those where appllbbble, of its holdlng oonrpony sad r&- sidiaries; (b) a statement centified by an authorized dgnamy af the pdricyhotde, that Bets out- (i) a pde of imuralble depdts in the format req-ed; (ii) a prcdile of insured deposits in the fomt request&; (iii) a ddailed description of the system that is used by fie policy￾holder to compile inhm&on on Ps dqposdt &bilities; and (iv) a dedailed listing of the amounts, statue and d9aa of mw af loans that are naade and ob &her as&g, and of mlped that are issued and that are not insured under the Act, and other lhtdities. lThe i-xlusion of thk page is authortcd by L.N. 54/m1

THE DEPOSlT INSURANCE REGULATIONS, 1998
SCHEDULE, contd.
Form 3, confd.
12.--(1) The policyholder shall, forthwhh, provide a copy of- (01 any 00"- &a, - and deaist. order, directive, resthtkm, or atfier slmlar document ~ssued at any me m respeat of the i.n&tution by or on the application of any regulatory authority; and (2) T& pdicyholder hall, forthwith, notify the Corpomthn in writing of- (a) any actual or pending ahange in the wnml af the policyholder or itn mhidiariea; (b) any act.ua1. or pending amalgamation, merger, amnganat or other ~rgilIlaaaCron that involves the policyQdda or a sign- portion af its asaets or Wilitiea or &at involvea itts subsidia~ies; (c) any acW or pending change of address of its registered or head oilkc; ~d (d) any in inRormathn given in furtherance of its qjplicraltion for @sit ~~.
13. The polc$oldah &all keep fh~ Cbqomtioa advised of any maam
change to any mformation provided prsuant to ~g~s 10 to I2 hw.
14. The paPlicyholder hereby consents to the relegst to any regulatory authority which directly rsgt&&s the pki@mlder's activities and to the Minister respon￾sible for fUlancc of any information pro16ded by be policyholder to the
0mpOmtic)n.
IS. The policyholder shall caw its o5cae, auditorr, and fomer auditon to furnish wcb infordon and explamtions that pembin to its adfain as Phe Oorpora4ion or any penoa decimted by the Oo~porution may require.
16. The policylvdder dd1 notify the Copra4ion in writing of any actual or pea* of its auditors.
18. Thc policyholder shall not im to any person my instnumnt evidencing a be policyholder h received or is holding money from or on behalf of
a paron to a trPnrsrtlon dh3 dues nqt constitute a dapDsit or part of a dbpoat insured under the A& unless the mstnment bears ahc following mRQollitsfac6- 'Tbe d&,t to wBich this instnuncut rdata is not insured under Phe Dclpoadt Insugnce Ad". Records 19-41) The poliayhol+x +ll prspare and a -9 . tbrat a.COLltrilbdy and fully describe and &dose rts assets, daposlt lrahhtaea aonslsbng of insurable and innved d;apoeik other adud or contingent k~bikirties, revenue, exrpawr and shwdmldars' equity.

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me inclusion of thu page is authorized by L.N. 54/20001

THE DEPOSIT lNSURANCE REGULATIONS, 1998
(2) Subjoot fo sub- (3). tbe policy6oWer re recror& of deposit l'&il%ies referrad to m eub?pamm (1) for a penod of at least fifteen years after Ule~r creation and dmg such mod nd remove them from Jdca except with the &r &en conseat ot tbe Corprotp8011. (3) Where the policyholder amalgma~ or merge% with amdha policy￾bolder or squires all or aubsbaathlly ad1 of tbe aseta of another policyhdda. the i,netinution that results fm the amalgamath or ~cquisition &dl retain the reaords of deposit liabilities of predco*~por po€kyh~Idcr for a period of at Least fifteen years following the Lte of the arrt&lgamaRion, merger or acquisitioa.
20. Subject .to $e @aiona of don 15 (1) of the Act, tbe Corponation
m;y. by notnx m wnbg to the pdlcybddsr, cad bbe poiicy of dopit insuranct in accordance with sections 15 and 16 of the Aot or any amendmeat thereof. Obligaffons Following Cancelldbn
21. Natwithsrandbg the ancellation of a @icy, tb muot of any hued
deposits m the of cancallr;lhn, less any subsequent vdhdrararalr fmm mtch id amounts, shall continue to be so insured tior a period of eigbten mods

THE DEPOSlT INSURANCE REGULATIONS, 1998 I
IThe inclusion of thu ppe b aulhorized py L.N. W/Z000]