OREANDA-NEWS. March 26, 2013. According the Law on Banks of the Republic of Lithuania Siauliu bankas took over the liabilities to Ukio bankas to depositors clearly specified in the agreement on transfer of the part of assets and liabilities of Ukio bankas which existed on the day of Ukio bankas’ insurance event and not exceeded the maximum amount of LTL 345 280 (EUR 100 000) per depositor insured by the State.

The temporary Administrator of Ukio bankas Adomas Audickas confirmed that currently the final list of depositors who under the agreement will be transferred from Ukio bankas for administration in Siauliu bankas and who will be supposed to remain in Ukio bankas  is being verified  in compliance with the Law on Deposits and Liabilities to Investors of the Republic of Lithuania.

The Chief Executive Officer of Siauliu bankas Audrius Ziugzda states that "there some deposits in the list of depositors which do not meet the core of the deposit as the most conservative saving instrument bringing the least return.   The maturity of some deposits exceeds 50 years and the applicable interest is more than 10 per cent per year. There are certain odd cases when the depositor will turn 107 at the deposit maturity.

According to the terms applied by Ukio bankas it was allowed to supplement such deposits at any time, they were subject to those unreasonably high interest and the interest was calculated from the interest. We've also found some deposits when, for instance, the deposit of LTL 4000 grows  up to LTL 200 000 at the end of maturity and the client is willing to supplement it by a few million the origin of which is not clear. The number of such deposits is not high, however, we need to figure out their legitimacy. "

It will be verified if the all the deposits in compliance with the article 12 of the Law on Deposits and Liabilities to Investors of the Republic of Lithuania have  been subject to the deposit insurance. "The participation of the insurance company in funding of the transfer of the bank's assets, rights, transactions and liabilities is equalled to the payment of insurance benefit  to the bank's depositors and investors, therefore, those deposits that are subject to restriction of the insurance benefits ought to remain with Ukio bankas", - said the Head of the State undertaking "Deposit and Investment Insurance" Aurelija Mazintiene.

The restrictions of the pay outs of  insurance benefits are applied to the deposits the interest rate of which more than twice exceed the internet rate fixed to the adequate deposits at the same credit institution, also, to the bank's borrowers' deposits if the debts of these persons to the bank exceed the amount of deposits, to the deposits the funds of which are gained illegally, to the deposits transferred after the day of insurance event, etc.

If it appears that the deposit was uninsured, Siauliu bankas will have a right to return such deposits to Ukio bankas and if the competent authorities establish that such deposit was placed from the funds of the indefinite origin or there are suspicions of the illegal enrichment  - in extreme cases such funds can be constrained. It is expected that the list of transferable deposits can be corrected over the five coming months.

In this case the depositor could claim for his deposit amount alongside with other creditors of Ukio bankas after announcement of bankruptcy.

The Chief Executive Officer of Siauliu bankas Audrius Ziugzda emphasizes that "not only the insurance of the deposits shall be verified but also whether their conditions are legal and enforceable". It will be assessed if the conditions of the particular deposits do not contradict with the Law on Banks, the Civil Code and other legal acts as it provided the preferential conditions only to the part of the depositors which contradict with the core of deposits or if such conditions do not contradict with the public order or objectives of the bank's prudential performance, etc.  If the illegal deposit conditions were established, then it is planned to apply the law enforcement authorities for investigation of the circumstances of conclusion of agreements of such deposits (legacy of acquisition).