Uncovered deposits and recognition of EU / BRRD bail-in and other aspects of Resolution Legislation
Deposits can be attracted by and/or placed with Rabobank and a number of its branches. Deposits include credit balances which result from funds left in an account or from temporary situations deriving from normal banking transactions and which a credit institution is required to repay under the conditions applicable, including a fixed-term deposit and a savings deposit. Such deposits may be wholly or fully ineligible or otherwise uncovered or uninsured by any coverage by a deposit insurance scheme. Should Rabobank become failing or likely to fail, any uncovered or uninsured amount may in turn also be subject to statutory EU bail-in powers and other aspects of the EU Bank Recovery and Resolution Directive (BRRD), subject to certain statutory conditions and exclusions, and which powers are recognized and agreed by each depositor when placing such deposits with Rabobank or any of its branches, as further detailed in the document below titled “Agreement with respect to the recognition of EU Bail-in Powers and other aspects of Resolution Legislation".
This Agreement applies to any deposit placed with Rabobank’s Head Office Branch in Utrecht and its London Branch and to which none of the following is applicable:
1) the deposit falls under the scope of Rabobank’s General Banking terms (“Algemene Bankvoorwaarden”) and as such is governed by Dutch law;
2) the deposit falls under the scope of an agreement with Rabobank other than as mentioned under 1) above, and it follows from that other agreement that the deposit is governed by Dutch law or the laws of another Member State of the European Union (EU) or European Economic Area (EEA);
3) the deposit falls under the scope of an agreement with Rabobank other than as mentioned under 1) above, and it follows from that other agreement that the deposit is governed by the laws of a non-EEA jurisdiction, provided that this other agreement already contains an express contractual provision for the recognition of EU Bail-in powers in relation to the deposit.
Furthermore, please note that under the BRRD, the absence of a contractual recognition provision of EU bail-in powers or other powers in relation to a deposit placed with Rabobank or any branch of Rabobank does not it itself preclude resolution authorities from applying such powers to an uncovered and/or uninsured deposit.
In summary:
· Money or funds placed with Rabobank may qualify as a deposit above and within the meaning of the agreement.
· All or part of that deposit may not be protected by a deposit guarantee scheme.
· In addition, that deposit may be subject to EU bail-in or other measures under the BRRD in case Rabobank should become failing or likely to fail.
By placing and maintaining the deposit, the depositor acknowledges and accepts the application of EU bail-in and other measures under the BRRD.