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EFTA01381436

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(1) A compensation event within the meaning of this Act occurs if BaFin determines that 1. a CRR credit institution is unable for the time being, for reasons that are directly related to its financial circumstances, to repay deposits that are due and 2. the CRR credit institution has no current prospect of being able to do so. (2) BaFin shall determine that a compensation event has occurred without undue delay, but in any event no later than five working days after becoming aware that a CRR credit institution is unable to repay deposits that are due. It shall also determine that a compensation event has occurred if it has ordered measures under section 46 (1) sentence 2 numbers 4 to 6 of the Banking Act in respect of the CRR credit institution and these measures last for more than six weeks. (3) Objections to and appeals against the determination of the compensation event do not have suspensory effect. Section 11 Announcement that the compensation event has been determined; notification of the deposit guarantee scheme (1) BaFin shall without undue delay announce in the Federal Gazette that the compensation event has been determined. (2) BaFin shall without undue delay notify the deposit guarantee scheme of which the CRR credit institution is a member that the compensation event has been determined. Chapter 3 Compensation procedure Section 12 Notification of the depositors that the compensation event has been determined The deposit guarantee scheme shall notify the depositors of the CRR credit institution without undue delay about the occurrence of the compensation event and shall inform them that claims under section 5 in conjunction with section 8 (2) must be substantiated in accordance with section 8 (5). Depositors may be notified at the time compensation is paid. Section 13 Languages to be used in the compensation procedure (1) Any correspondence between the deposit guarantee scheme and the depositor shall be drawn up in one of the

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