Ordinance No 33 on the Assignee’s in Bankruptcy Remuneration

Ordinance No 33 1
Ordinance No 33 on the Assignee’s in Bankruptcy Remuneration (Published in the Darjaven Vestnik, issue 102 of 21 November 2003; amended; Darjaven Vestnik, issue 87 of 2015, amended; Darjaven Vestnik, issue 102 of 2023; amended; Darjaven Vestnik, issue 97 of 2024)
Chapter One
General Provisions
Article 1. (1) This Ordinance shall establish the mechanism for determining
monthly remuneration of persons appointed as assignee in bankruptcy in bankrupt banks and the procedure for reducing their remuneration. (2) Persons appointed as assignee in bankruptcy in bankrupt banks shall receive equal monthly remuneration.
Article 2. (1) The amount of the monthly remuneration for the persons appointed
as assignee in bankruptcy shall be determined by a decision of the Management Board of the Deposit Insurance Fund (the Fund) as follows:

1. (amended; Darjaven Vestnik, issue 102 of 2023) for the period of the date of
   the assignee’s appointment until the initiation of the liquidation procedure provided for in the approved plan for liquidation of the bankruptcy estate’s property the remu￾neration shall be a fixed amount that shall not be smaller than ten times the minimum monthly salary or greater than 30 times the minimum monthly salary in Bulgaria;
2. (amended; Darjaven Vestnik, issue 102 of 2023) following the expiration of the
   period under item. 1, the monthly remuneration shall be determined as a percentage of the total amount of property of the bankruptcy estate liquidated by the assignee in bankruptcy for the respective month and the collection of claims, except for cases under Article 4, paragraph 12. (2) The determined monthly remuneration for the persons appointed as assignee in bankruptcy may, by a decision of the Management Board of the Fund, be reduced upon the occurrence of the circumstances under Article 30, paragraph 4 of the Law on Bank Bankruptcy. (3) The decision under paragraph 1, item 1 shall be made along with the decision for appointment of an assignee in bankruptcy. (4) (amended; Darjaven Vestnik, issue 102 of 2023) The decision under paragraph 1, item 2 shall be taken after submission by the assignee in bankruptcy of monthly reports and information sheets under Ordinance No 32 of 2003 on Reporting Requirements and Assignee’s in Bankruptcy Budget (Darjaven Vestnik, issue 102 of 2003). (5) (repealed; Darjaven Vestnik, issue 102 of 2023)

2 Ordinance No 33
(6) (amended; Darjaven Vestnik, issue 102 of 2023) The decision under para￾graph 2 shall be subject to appeal pursuant to the procedure provided for in the Law on Bank Bankruptcy. In case of suspension of the decision, the Management Board of the Fund shall settle the issue on its suspended part within a seven-day period fol￾lowing the receipt of the Court notification.
Chapter Two
Method for Determining the Assignee’s Monthly Remuneration
Article 3. (1) (amended; Darjaven Vestnik, issue 102 of 2023) The assignee’s
monthly remuneration for the period of the date of his appointment until the initia￾tion of the liquidation procedure provided for in the approved plan for liquidation of the bankruptcy estate’s property shall be determined on the basis of:
1. the amount of bankruptcy estate;
2. the type and variety of rights included in the bankruptcy estate and occurrence
of disputable circumstances associated with the establishment of these rights;
3. other circumstances associated with preserving or replenishing the bankruptcy
estate, as well as with initiating necessary measures for liquidating rights from the bankruptcy estate in case of a threat of their destruction or devaluation. (2) Upon ruling on the decision under Article 2, paragraph 1, item 1 the Manage￾ment Board of the Fund shall determine the remuneration within the limits set in
Article 30, paragraph 2 of the Law on Bank Bankruptcy by evaluating individually
and in general all circumstances related to the criteria specified in paragraph 1. (3) (amended; Darjaven Vestnik, issue 102 of 2023) The determined fixed remu￾neration may be increased to the amount specified in Article 2, paragraph 1, item 1, provided it has been established that the assignee in bankruptcy exercises with due care his powers under Article 31, paragraph 1 of the Law on Bank Bankruptcy and has achieved significant results in preserving or replenishing the bankruptcy estate.
Article 4. (1) (amended; Darjaven Vestnik, issue 87 of 2015, amended; Darjaven
Vestnik, issue 102 of 2023) The assignee’s monthly remuneration for the period un￾der Article 2, paragraph 1, item 2 shall be determined as a percentage of the total amount of property of the bankruptcy estate liquidated by the assignee in bankruptcy and the collection of claims owed to the bankrupt bank for the respective month de￾pendant on the type of assets included in the said total amount and within the speci￾fied limits, as follows:
1. for collecting claims on bank accounts with operating banks (0 per cent),
2. (amended; Darjaven Vestnik, issue 102 of 2023) for liquidating and collecting
claims on securities:
a) with an established stock-exchange price (0.01 – 0.05 per cent); b) other (0.05 – 0.1 per cent);
3. for liquidating or collecting claims (loans):
а) (amended; Darjaven Vestnik, issue 102 of 2023) to financial institutions under
Article 3 of the Law on Credit institutions and entities from the non-bank financial

Ordinance No 33 3 sector within the meaning of § 1, item 81 of the additional provisions of Law on Mar￾kets in Financial Instruments (0.01 – 0.05 per cent); b) to other operating legal entities (0.1 – 0.5 per cent); c) to physical persons (0.2 – 0.5 per cent); d) to entities in liquidation (0.3 – 0.5 per cent); e) to entities in bankruptcy (0.3 – 0.7 per cent);
4. (amended; Darjaven Vestnik, issue 102 of 2023) for liquidating and collecting
claims on holdings (0.1 – 0.5 per cent);
5. for liquidating long-term tangible or intangible assets (0.5 – 0.7 per cent);
6. other (0.01 – 0.7 per cent).
(2) The remuneration determined under this procedure shall apply to all persons appointed as assignee in bankruptcy and shall be equally distributed between them. (3) (amended; Darjaven Vestnik, issue 102 of 2023) Upon ruling on the decision under Article 2, paragraph 1, item 2 the Management Board of the Fund shall deter￾mine a particular percentage within the limits provided for in paragraph 1 by evalu￾ating both funds obtained from the liquidation of property in the respective month and the total amount of collected funds until that time. In determining the assignee’s monthly remuneration the Management Board of the Fund shall take into account the information on compliance with the set time frames, approved claims for replenishing the bankruptcy estate, as well as other actions and circumstance associated with the liquidation and collection of property. (4) (amended; Darjaven Vestnik, issue 87 of 2015, amended; Darjaven Vestnik, issue 102 of 2023) Where the liquidated right or collected claim was a subject of a legal dispute and the dispute was settled by a court decision on the basis of which liquidation or collection has been initiated, the percentage for a particular asset de￾termined under paragraph 1 shall be added to 0.1 per cent. (5) The percentages specified in paras. 1 and 4 shall apply to the amount realized from liquidating a right or collecting a claim for a particular month. (6) The Management Board of the Deposit Insurance Fund may, by a decision, raise the determined percentage but it shall not exceed the upper limit specified in paragraph 1. (7) (amended; Darjaven Vestnik, issue 87 of 2015) In case of a sale of the bank as an enterprise under Articles 91 and 92 of the Law on Bank Bankruptcy, the assignee in bankruptcy has the rights to remuneration amounting from 0.01 to 0.1 per cent of the amount of liabilities assumed by the buyer under the transaction approved by the Court. (8) (amended; Darjaven Vestnik, issue 102 of 2023) The Management Board of the Fund shall take into account that the assignee in bankruptcy will receive an ad￾ditional percentage of the total amount formed as a result of applying paras. 1 to 7 in respect of liquidated property upon conclusion of bankruptcy proceedings, unless the circumstances under paragraph 9 have occurred. The additional remuneration together with the remuneration which has been already paid to the assignee in bank￾ruptcy, including under paragraph 12 may not exceed 100 per cent of the total amount

4 Ordinance No 33 formed as a result of applying the maximum percentage rates under paragraph 1 or 7 in respect of liquidated property. (9) Where the assignee in bankruptcy has been removed from office pursuant to
Article 29, paragraph 1, items 2, 4 or 5 of the Law on Bank Bankruptcy, the persons
appointed as assignee in bankruptcy or their successors may, upon conclusion of the bankruptcy proceedings, receive additional remuneration under paragraph 8 if the said person has significantly contributed to the successful conclusion of the bank￾ruptcy proceedings. Additional remuneration may be also paid to persons, who have been removed from office prior to the conclusion of the bankruptcy proceedings, pursuant to Article 29, paragraph 1, items 1 or 3 of the Law on Bank Bankruptcy provided that:

1. they have been removed from office upon a request based on a cogent reason
   in the cases under Article 29, paragraph 1, item 1;
2. they have not been found fault with for the occurrence of the ground for re￾moval in the cases under Article 29, paragraph 1, item 3;
   (10) The Fund shall carry out at least in six months examinations on the compli￾ance with the procedure provided for in the preceding paragraphs for determining the remuneration of the persons appointed as assignee in bankruptcy in banks declared in bankruptcy. (11) The assignee in bankruptcy shall inform the Fund on the remuneration to be received in the respective month, on its elements and the manner of its formation in the monthly reports prepared under Article 32, paragraph 2 of the Law on Bank Bankruptcy. (12) (new; Darjaven Vestnik, issue 102 of 2023) Where in three consecutive months the assignee’s remuneration formed under paragraph 1 has been lower than the minimum monthly salary, the Fund may, in addition to the remuneration under paragraph 1, determine a fixed remuneration for the assignee in bankruptcy for the last month in the amount of three minimum monthly salaries. (13) (new; Darjaven Vestnik, issue 102 of 2023) The remuneration under para￾graph 12 may be determined for the persons exercising the powers of assignee in bankruptcy not more than twice in the course of bankruptcy proceedings. (12) (new; Darjaven Vestnik, issue 102 of 2023; amended; Darjaven Vestnik, issue 97 of 2024) Where the assignee’s remuneration formed under paragraph 1 has been lower than three minimum monthly salary, the Management Board of the Fund may, in addition to the remuneration under paragraph 1, determine an additional remuneration for the assignee in bankruptcy for the month so that the amount is up to five minimum monthly salaries. This additional remuneration shall be paid only if there are amounts remaining after applying lower than the maximum percentage rates under paragraph 1 in respect of property liquidated so far, collected claim respectively. (13) (new; Darjaven Vestnik, issue 102 of 2023; amended Darjaven Vestnik, is￾sue 97 of 2024) The remuneration under Article 12 may be determined for each of the persons exercising the powers of assignee in bankruptcy.

Ordinance No 33 5
Chapter Three
Procedure for Reducing the Assignee’s Remuneration
Article 5. (1) The Fund may, by a unilateral decision of the Management Board,
reduce the remuneration for the persons appointed as assignee in bankruptcy for a certain period under the conditions provided for in the Law on Bank Bankruptcy and following the proceedings for reducing the remuneration (proceedings) under the procedure prescribed in this Ordinance. (2) The proceedings shall be instituted by a report containing:
1. the names and the position of the person who has prepared the report;
2. the date of the report;
3. the name of the person appointed as assignee in bankruptcy against whom the
proceedings have been instituted, and the bank in which he performs the functions of an assignee in bankruptcy;
4. a description of the established circumstances under Article 30, paragraph 4 of
the Law on Bank Bankruptcy;
5. evidence based on which the circumstances under Article 30, paragraph 4 of
the Law on Bank Bankruptcy have been established;
6. the amount and period for which a reduction of assignee’s remuneration is proposed.
(3) A copy of the report, on the basis of which a reduction of the monthly remu￾neration is proposed, shall be submitted to the assignee in bankruptcy. Within three days following the receipt of a copy of the report, the assignee in bankruptcy may raise objections in writing and enclose evidence to them. (4) Within 14 days following the receipt of the objections or the expiry of the term under paragraph 3 the report together with the objections and the enclosed evidence, as well as with the statement of opinion of the person who has prepared the report on the objections shall be filed for consideration by the Management Board of the Fund. Prior to taking a decision on the proposal made, the Management Board may, at its discretion, require collection of additional evidence. (5) The Management Board of the Fund shall consider the evidence provided for in paragraph 4 and shall take a decision after having assessed whether the established circumstances in the report are available, if they are deemed a violation under Arti￾cle 30, paragraph 4 of the Law on Bank Bankruptcy, if the violation was a result of default behaviour by the persons appointed as assignee in bankruptcy, if the proposal for reducing the remuneration corresponds to the severity of the violation. (6) Based on the decision under the preceding paragraph, the Management Board of the Fund may:
1. reduce the remuneration of the persons appointed as assignee in bankruptcy
in accordance with the proposal in the report after it has been established that all circumstances under paragraph 5 are available;
2. reduce the remuneration of the persons appointed as assignee in bankruptcy to an
amount and for a period other than those proposed in the report, where inconsistency has been established between the reduction proposed in the report and the severity of the violation;

6 Ordinance No 33
3. refuse to reduce the remuneration of the persons appointed as assignee in bank￾ruptcy after it has assessed that none of the circumstances under paragraph 5 are
available.
(7) The decision under paragraph 6, items 1 and 2 shall include:
1. the number, date and place of issue;
2. the number and date of the report on the basis of which the proceedings have
been instituted;
3. the names of the persons appointed as assignee in bankruptcy against whom the
proceedings have been carried out;
4. a description of the violation, its qualification and the evidence used to establish it;
5. the amount and the period for which the remuneration of each person appointed
as assignee in bankruptcy is reduced;
6. an opportunity to appeal the decision, specifying a term and Court.
(8) The total reduction of the remuneration of the persons appointed as assignee in bankruptcy may not exceed:
1. the amount of improperly incurred expenses – in the cases under Article 30,
paragraph 4, item 1 of the Law on Bank Bankruptcy;
2. the total balance sheet value of the items and rights the assignee in bankruptcy
has disposed thereof in violation of the procedures established by law – in the cases under Article 30, paragraph 4, item 2 of the Law on Bank Bankruptcy;
3. the sum total under items 1 and 2 – in the cases the grounds under Article 30,
paragraph 4, items 1 and 2 of the Law on Bank Bankruptcy are available. (9) A copy of the decision for reducing the remuneration shall be handed against a signature to the persons appointed as assignee in bankruptcy against whom the proceedings have been carried out. Additional Provision § 1. (repealed; Darjaven Vestnik, issue 102 of 2023). Transitional and Final Provisions § 2. This Ordinance is issued on the grounds of § 3 in relation to Article 30, para￾graph 7 of the Law on Bank Bankruptcy. § 3. (1) This Ordinance shall apply in respect of remuneration of the persons exercising the powers of assignee in bankruptcy in a bank declared in bankruptcy by the moment of enforcement of this Ordinance. (2) The provisions of Article 1, paragraph 2 of this Ordinance shall not apply provided only one of the persons appointed as assignee in bankruptcy is paid a remu￾neration under Article 2, paragraph 1, item 1. (3) In cases under paragraph 1 and in compliance with prerequisites and condi￾tions specified below, the Management Board of the Fund may determine the follow￾ing remuneration under Article 4:

Ordinance No 33 7

1. in case of a sale of a bank as an enterprise under Articles 91 and 92 of the Law
   on Bank Bankruptcy – up to 4 per cent of the amount of liabilities assumed by the purchaser according to the terms of the deal approved by the Court;
2. in case of a public sale at an auction of the property and property rights of the
   bank as a whole – up to 4 per cent of the price paid by the purchaser for the property and property rights as a whole. § 4. This Ordinance is adopted by Resolution No 85 of 23 October 2003 of the Governing Council of the Bulgarian National Bank. Ordinance on Amendment of Ordinance No 33 of 2003 on the Assignee’s in Bankruptcy Remuneration (published in the Darjaven Vestnik, issue 87 of 10 November 2015) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transitional and Final Provisions § 2. This Ordinance shall also apply in determining assignee’s remuneration in bankruptcy proceedings against a bank opened prior to its enactment. § 3. This Ordinance is adopted by Resolution No 101 of 29 October 2015 of the Governing Council of the Bulgarian National Bank. Ordinance on Amendment of Ordinance No 33 of 2003 on the As￾signee’s in Bankruptcy Remuneration (published; Darjaven Vestnik, issue 102 of 2023) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . § 5. This Ordinance is issued on the grounds of Article § 3 in connection with Article 30, paragraph 3 of the Law on Bank Bankruptcy, and is adopted by Resolution No 501 of 22 November 2023 of the Governing Council of the Bulgarian National Bank. Ordinance on Amendment of Ordinance No 33 of 2003 on the Assignee’s in Bankruptcy Remuneration (published; Darjaven Vestnik, issue 97 of 15 November 2024) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Final Provision § 2. This Ordinance is issued on the grounds of Article § 3 in connection with
   Article 30, paragraph 3 of the Law on Bank Bankruptcy, and is adopted by Resolution
   No 509 of 31 October 2024 of the Governing Council of the Bulgarian National Bank.