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Československé úvěrní družstvo payout – summary of the most important information for clients

The Financial Market Guarantee System (hereinafter also the “ "Guarantee System“) ") received in accordance with Article 41d(1) of Act No 21/1992, on banks, as amended (hereinafter also the "Act on Banks") on 02/08/2021 the Czech National Bank Notification (hereinafter also the "CNB Notification") on the inability of Československé úvěrní družstvo (hereinafter "ČSÚD") to meet its obligations to eligible persons under statutory and contractual conditions.

The Guarantee System will pay the following type of deposit compensation from the Deposit Insurance Fund:

  • Basic, to natural and legal persons who were depositors of ČSÚD, as at the record date, up to 100% of the sum of their deposits, but no more than CZK 2,547,500 per depositor (the equivalent of EUR 100,000 at the exchange rate of CZK 25.475/EUR published by the CNB on 02/08/2021; the exchange rate list for 02/08/2021 can be found on the CNB website.

Procedure for obtaining compensation for deposits

Payouts will be made through selected branches of Komerční banka, a.s. (hereinafter "KB, a.s.") during the opening hours of individual branches over a period of three years from the payout start date.

Obtaining basic deposit compensation

To exercise a claim for the payout of basic compensation for insured deposits, it is not necessary to fill in any form or to contact or register with the Guarantee System. Once the Guarantee System starts making deposit compensation payouts through KB, a.s. (i.e. from 11/08/2021 in the case of basic compensation), you can collect your compensation at a counter of the KB, a.s. branch designated for the payout according to the List of the payout bank branches. that you select. All you have to do here is submit a document proving your entitlement to collect the compensation, and choose the account onto which you want the deposit compensation to be transferred, or indicate that you want the compensation to be paid out in cash.

  • If you do not have another account onto which you want to have the funds transferred, you can open an account at a counter of the KB, a.s. branch. The actual process for the transfer to another bank takes place within standard deadlines for interbank payments, i.e. usually by the second business day.
  • If you would prefer to receive your deposit compensation in cash, we recommend you read the rules for cash transactions in force at the selected KB, a.s. branch.
  • According to the Act on Banks, the payout of basic compensation for deposits will take place over a period of 3 years, i.e. until 12/08/2024.

Documents required to obtain compensation

  • Natural person = citizen – valid proof of identity (an ID card or passport).
  • Natural person = entrepreneur (self-employed person) – a valid identity document (an ID card or passport) and an extract from the Trade Register.
  • Legal person (company, civic association, etc.) – the original, an officially certified copy, or an electronically signed valid extract from the Commercial Register or from another public register not older than 3 months, and proof of identity for the individual acting on behalf of the legal person (a valid ID card or passport). Payouts to legal entities will be made in non-cash form only.
  • In the case of an heir or legal successor from another title, a document (the original or an officially certified copy) proving acquisition of the claim in question will be required.

The complete list of documents can be downloaded here

Complaints

If a client believes he/she has not been awarded the right amount of compensation, he/she may use the complaint procedure. The complaint form which, once completed, you can send to the postal or e-mail address of the Financial Market Guarantee System, can be downloaded here: Complaint form.

Frequently asked questions

HOW IS THE DEPOSIT COMPENSATION AMOUNT CALCULATED?

For the purposes of deposit compensation payouts, all the insured deposits of a depositor at Československé úvěrní družstvo are added up, including interest calculated as at 02/08/2021. The amount of deposit compensation paid out is 100% of this aggregate sum of deposits, but a maximum of CZK 2,547,500.

AT WHAT EXCHANGE RATE ARE DEPOSITS CONVERTED TO ESTABLISH THE EQUIVALENT OF THE EUR 100,000 LIMIT?

The Czech crowns equivalent of the limit is calculated using the foreign exchange rate published by the Czech National Bank as at the record date (02/08/2021)

DOES DEPOSIT INSURANCE ALSO COVER INTEREST ACCRUED ON DEPOSITS? I.E. WILL I BE REFUNDED THE AMOUNT SAVED INCLUDING INTEREST ON THE DEPOSIT?

This insurance also covers interest on deposits, which is calculated as at the record date (02/08/2021). However, if the interest was paid by the financial institution in advance upon opening the account for the entire duration of the deposit, the part of the interest that would otherwise accrue after the record date (02/08/2021) is, of course, not subject to deposit compensation. For the purposes of payment of the deposit compensation, the principal of the deposit will be reduced by these interest already paid, which would otherwise accrue only after the record date.

I HAD A FOREIGN CURRENCY ACCOUNT WITH A BANKRUPT BANK. IN WHAT CURRENCY WILL I RECEIVE MY COMPENSATION?

The compensation is paid out in the currency of the country in which the relevant account is situated. In the case of an account maintained in the Czech Republic, the compensation will be disbursed only in Czech crowns. The conversion will be made using the rate published by the Czech National Bank as at the record date (02/08/2021).

WHERE CAN I COLLECT MY COMPENSATION?

You can collect your deposit compensation at selected branches of the payout bank. These branches are listed here.

WHAT DOCUMENTS DO I NEED IF I WANT TO COLLECT MY COMPENSATION?

If you are a natural person (citizen), you will only need an ID card or passport. A natural person who is an entrepreneur (a self-employed person) must also furnish an extract from the Trade Register. If you want to collect compensation as a representative of a legal person, you must, in addition to an identity document, furnish an extract from the Commercial Register or other register not older than 3 months.

WHAT IS THE DEADLINE FOR COLLECTING MY COMPENSATION?

Deposit compensation will be paid out over a period of three years following the payout start date, i.e. for basic compensations from 11/08/2021 to 12/08/2024. You can collect your compensation at any time during this period. Once this period expires, it will no longer be possible to make the payout.

HOW WILL MY COMPENSATION BE PAID?

The money will be transferred to another account you own (i.e. by bank transfer) or paid out in cash.

CAN THE PAYOUT BANK DIVIDE THE COMPENSATION OVER SEVERAL BANK ACCOUNTS OR ONLY TO ONE ACCOUNT?

After identifying the client, the payout bank will pay the compensation either in cash or by bank transfer to the account specified by the client. In this case, it is not possible to divide the compensation and send it to several accounts; the compensation may only be sent in full to a single account. The client will receive appropriate proof of the payout made at a branch of the payout bank.

WHAT SHOULD I DO IF I GO TO A BRANCH OF THE PAYOUT BANK AND I AM NOT ON THE LIST OF ELIGIBLE PERSONS ENTITLED TO RECEIVE DEPOSIT COMPENSATION? OR IF I AM ON THE LIST BUT I DO NOT AGREE WITH THE COMPENSATION AMOUNT TO BE PAID OUT?

In both these cases, you will need to use the complaint process - more information can be found here.

CAN I AUTHORIZE SOMEONE ELSE TO COLLECT THE COMPENSATION?

Yes, you can grant another person power of attorney, which will be issued exclusively for the payout of compensation for deposits. A sample power of attorney can be found here. The principal’s signature on the power of attorney must be officially certified. In the case of power of attorney issued abroad, its translation into Czech must be officially certified.

CAN THE COMPENSATION BE COLLECTED BY ANY PERSON AUTHORIZED TO DISPOSE OF THE FUNDS ON THE ACCOUNT OF THE BANK FOR WHICH THE PAYOUT IS TO BE MADE? (I.E. THE SO-CALLED DISPONENT)?

No, the only person who may collect the deposit compensation is the one in whose name the account is kept (in special situations stipulated by law, the compensation may be also collected by the owner of the funds on the account). Authorization to dispose of the funds on the account (e.g. in the case of the so-called ‘disponents’), without the person concerned being the person in whose name the account is kept, does not in and of itself establish the right to collect deposit compensation.

WHEN IS IT POSSIBLE TO COME FOR THE PAYOUT OF COMPENSATION FOR A DEPOSIT FOR WHICH THE MATURITY DATE WAS ARRANGED AFTER THE COMPENSATION PAYOUT START DATE?

In terms of the payout of deposit compensation, it is irrelevant whether the maturity date of the deposit was arranged for a date after the start date of the deposit compensation payout. The compensation will be provided from the first day when the payout starts according to the status as at the record date (02/08/2021), regardless of whether the maturity date of the deposit was arranged for a later date.

IS THE CLAIM FOR THE SETTLEMENT SHARE OF A FORMER COOPERATIVE CREDIT UNION MEMBER AN INSURED DEPOSIT?

The claim for so-called settlement share of a former cooperative credit union member is not an insured deposit claim under the Act on Banks, as it is a settlement of a member´s investments in the capital of the cooperative credit union (i.e. basic member’s investments and subsequent member’s investments) and in respect of such a claim, under the current regulation, compensation cannot be provided from the Deposit Insurance Fund administered by the Financial Market Guarantee System.