No C 161/4 Official Journal of the European Communities 19.6.87 
II 
(Preparatory Acts) 
COMMISSION 
Amended proposal for a Council Directive on the freedom of establishment and the free supply 
of services in the field of mortgage credit (') 
COM(87) 255 final 
(Submitted by the Commission to the Council pursuant to the second paragraph of Article 149 of 
the EEC Treaty on 27 May 198 7) 
(87/C 161/04) 
O OJ No C 42, 14. 2. 1985, p. 4. 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
Title 
Proposal for a Council Directive on the freedom of 
establishment and the free supply of services in the field 
of mortgage credit Title 
Proposal for a Council Directive on the freedom of 
establishment and the freedom to supply services in the 
field of mortgage credit 
The preamble and first five recitals unchanged 
Sixth recital 
Whereas the elimination of such obstacles can be 
achieved by making it possible to grant mortgage credit 
secured on real property situated in a Member State 
other than the home Member State and by making it 
possible to operate mortgage credit in a host Member 
State in accordance with the specific lending and funding 
techniques authorized in the home Member State; Sixth recital 
Whereas the elimination of such obstacles can be 
achieved by making it possible to grant mortgage credit 
secured on real property situated in a Member State 
other than the home Member State and by making it 
possible to operate mortgage credit in a host Member 
State in accordance with the financial techniques 
permitted by the law of the home Member State; 
Seventh and eighth recitals unchanged 
Ninth recital 
Whereas, pending the achievement of complete freedom 
of capital movements, Member States may require 
matching between assets and liabilities of the currencies 
related to mortgage credit operations; whereas they must 
at all events allow the possibility of conducting such 
operations in ECU; Ninth recital 
Whereas, during a transition period, Member States may 
require matching between assets and liabilities of the 
currencies related to mortgage credit operations; 
whereas they must at all events allow the possibility of 
conducting such operations in ECU; 
Tenth recital 
Whereas, at all events the effective exercise of the 
activities mentioned in the Directive requires the removal 
of some of the existing restrictions on capital 
movements; whereas a specific directive will deal with 
such restrictions: Tenth recital 
Deleted 
Eleventh to fifteenthrecitals unchanged 
19.6. 87 Official Journal of the European Communities No C 161/5 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
Sixteenth recital Sixteenth recital 
Whereas the provisions in the Directive apply without 
prejudice to the provisions relating to capital movements; 
whereas the effective exercise of certain activities 
mentioned in the Directive awaits the removal of existing 
restrictions on capital movements; whereas a directive 
based on Article 69 of the Treaty will deal with these 
restrictions. 
TITLE I 
Definitions and scope 
Article 1 TITLE I 
Definitions and scope 
Article 1 
This Directive applies to the credit institutions falling 
within the ambit of Directive 77/780/EEC, the activities 
of which consist in receiving funds from the public 
collected in the form of deposits or the proceeds from 
mortgage bonds or reimbursable shares and in granting 
loans to the public secured by mortgage on real property 
for the purpose of acquiring or retaining property rights 
in building land or in existing or projected buildings or 
for renovating or improving buildings. This Directive applies to the credit institutions falling 
within the ambit of Directive 77/780/EEC all or part of 
whose activities consist of receiving funds from the public 
collected in the form of deposits or the proceeds from 
the issuing of mortgage bonds or other bonds or 
securities or reimbursable shares and in granting loans to 
the public secured by mortgage on real property for the 
purpose of acquiring or retaining property rights in 
building land or in existing or projected buildings or for 
renovating or improving buildings. 
Article 2 Article 2 
For the purposes of this Directive: 
— 'home Member State' shall mean the Member State 
where a credit institution as referred to in Article 1 
has its head office, 
— 'host Member States' shall mean the Member State 
where a credit institution as referred to in Article 1 
has a branch or into which it supplies services. For the purpose of this Directive: 
— 'home Member State' shall mean the Member State 
where a credit institution as referred to in Article 1 
has its head office, 
— 'host Member States' shall mean the Member State 
where a credit institution as referred to in Article 1 
has a branch or into which it supplies services, 
— 'designated credit institutions' shall mean the credit 
institutions referred to in Article 1, 
— 'mortgage credit activities' shall mean the activities 
referred to in Article 1, 
— 'mortgage' shall mean a mortgage or other legal 
instrument having equivalent legal effect. 
Article 2a 
Nothing in this Directive shall reduce any existing rights 
of designated credit institutions to undertake mortgage 
credit activities in their home Member State or in any 
other Member State. 
No C 161/6 Official Journal of the European Communities 19.6.87 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
TITLE II 
General provisions to facilitate exercise of the right of 
establishment and the right to supply services 
Article 3 
Member States shall authorize credit institutions as 
referred to in Article 1 to grant mortgage credit secured 
by mortgages on real property situated in another 
Member State. TITLE II 
General provisions to facilitate exercise of the right of 
establishment and the right to supply services 
Article 3 
Home Member States shall authorize designated credit 
institutions to undertake mortgage credit activities in any 
other Member State in respect of real property situated 
anywhere in the Community. 
Furthermore, they shall not restrict the use in another 
Member State of any financial technique permitted for 
mortgage credit activities in the home Member State. 
Article 4 
Member States shall repeal all legal or administrative 
provisions preventing or obstructing a credit institution, 
as referred to in Article 1, having its head office in their 
territory, from operating mortgage credit in another 
Member State in accordance with techniques specifically 
authorized within its home Member State, or shall so 
amend such provisions as to make the operation of such 
techniques possible. Article 4 
1. Host Member States, subject to the exception 
contained in paragraph 3, shall repeal all legal or 
administrative provisions preventing or obstructing a 
designated credit institution having its head office in 
another Member State, from undertaking mortgage 
credit activities in their territory in accordance with 
financial techniques permitted under the law of its home 
Member State, or shall so amend such provisions as to 
make the operation of such techniques possible. 
Article 5 
1. Each Member State shall allow within its territory a 
credit institution, as referred to in Article 1, having its 
head office in another Member State, to fund and, in 
particular, refinance itself subject to the provisions of 
paragraph 2, according to the techniques of financing 
which are authorized in its home Member State, in order 
to grant loans secured by mortgage for the purposes 
referred to in Article 1. 
Where the introduction of such new techniques in a 
Member State gives rise to distortion of the conditions of 
competition in that Member State, that Member State 
shall authorize all credit institutions established in its 
territory to adopt similar techniques or take equivalent 
measures. 
2. Pending coordination relating to bonds secured by 
mortgage, the host Member State may require that issues 
of such bonds on its territory shall be in conformity with 
the relevant provisions in force in that Member State. Article 5 
(delete Article number and first subparagraph) 
2. Where the introduction of new financial techniques 
alters the conditions of competition in a Member State, 
that Member State shall authorize all designated credit 
institutions established in its territory who are adversely 
affected by the change to adopt similar techniques or 
take equivalent measures. 
3. unchanged 
Article 6 
The host Member State may require that both funding 
and lending transactions be in its currency; the 
institution in question may however always use the ECU 
as an alternative. The home Member State may require 
matching between assets and liabilities in each national 
currency; the institution in question may however always 
choose to meet the matching requirement in ECU. Article 6 
1. For a maximum period of seven years after the 
adoption of this Directive, the host Member State may 
require that both funding and lending transactions be in 
its currency, or, where it allows transactions to be in 
another national currency, that assets and liabilities in 
each national currency be matched; the institution in 
question may however always use the ECU as an alter­
native. 
19.6.87 Official Journal of the European Communities No C 161/7 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
2. Paragraph 1 shall not apply to mortgage credit 
activities between a designated credit institution and a 
national of its home Member State. 
3. For a maximum period of seven years after the 
adoption of this Directive, the home Member State may 
require matching between assets and liabilities in each 
national currency; the institution in question may 
however always choose to meet the matching 
requirement in ECU. 
Article 7 Article 7 
In cases of State intervention or other public assistance 
of any type in the field of mortgage credit related 
activities, including the saving of funds with and the 
granting of mortgage credits by credit institutions as 
referred to in Article 1, similar measures shall apply to 
transactions undertaken within the scope of this 
Directive. Such measures shall be non-discriminatory as 
between nationals of Member States. State or other public assistance measures of any type, 
including tax benefits, in the field of mortgage credit 
activities undertaken by designated credit institutions 
shall apply to transactions undertaken within the scope 
of this Directive. There shall be no discriminatory or 
restrictive treatment based either on nationality or on the 
fact that a designated credit institution is not established 
in the Member State where the services are provided. 
TITLE III 
Provisions relating to the freedom of establishment 
Article 8 TITLE III 
Provisions relating to the freedom of establishment 
Article 8 
Until the conditions for home country control are 
fulfilled, supervision of any form of establishment in 
another Member State of a credit institution, as referred 
to in Article 1, shall be exercised by the supervisory 
authority of that host Member State in close cooperation 
with the supervisory authority of the home Member 
State. Until other appropriate provisions for control are made 
by a further directive, supervision of any form of 
establishment in another Member State of a designated 
credit institution shall be exercised by the supervisory 
authority of that host Member State in close cooperation 
with the supervisory authority of the home Member 
State and according to the legal provisions in the host 
Member State which are not inconsistent with this 
Directive. 
TITLE IV TITLE IV 
Provisions relating to freedom to supply services 
Article 9 Provisions relating to the freedom to supply services 
Article 9 
1. A credit institution, as referred to in Article 1, 
wishing to extend its activities by way of the exercise of 
freedom to supply services in the field of mortgage credit 
into the territory of another Member State, shall give 
notification thereof to the supervisory authority of the 
home Member State which has granted the authorization 
pursuant to Article 3 of Directive 77/780/EEC. 
2. Member States shall require the notification to be 
accompanied by the following information from the 
credit institution concerned: 1. A designated credit institution wishing to exercise 
the freedom to supply services in the field of mortgage 
credit activities into the territory of another Member 
State for the first time shall give notification thereof to 
the supervisory authority of the home Member State 
which has granted the authorization pursuant to Article 
3 of Directive 77/780/EEC. 
2. Member States shall require the notification to be 
accompanied by the following information from the 
designated credit institution concerned: 
No C 161/8 Official Journal of the European Communities 19.6.87 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
(a) the Member State into whose territory it intends to 
supply services; 
(b) the types of business it intends to carry out on the 
territory of that host Member State; 
(c) the general and specific conditions under which 
funds will be received and loans granted. 
3. Where the supervisory authority of the home 
Member State confirms the financial soundness of the 
credit institution concerned, it shall, within three months 
of the notification referred to in paragraph 1, send the 
information mentioned in paragraph 2 to the supervisory 
authority of the host country together with a declaration 
assessing the financial situation of the credit institution. 
4. Where the supervisory authority of the home 
Member State refuses to confirm the financial soundness 
of a credit institution reasons shall be given to the 
institution concerned within three months of receipt of 
the information mentioned in paragraph 2. 
5. Before the credit institution commences its activities 
the supervisory authority of the host country shall, 
within a period of three months following receipt of the 
information and of the declaration mentioned in 
paragraph 3, prepare for the constant supervision of the 
credit institution pursuant to Article 10. 
Article 10 
1. A credit institution exercising freedom to supply 
services into the territory of another Member State shall 
report quarterly on its operation in the host Member 
State to the supervisory authority of that Member State. 
2. If the supervisory authority of a host Member State 
ascertains that an institution providing services into its 
territory is not complying with the legal provisions in 
force in that Member State which are justified on the 
grounds of the general good, that authority shall request 
the institution concerned to put an end to the irregular 
situation. (a) the Member State into whose territory it intends to 
supply services; 
(b) the types of business it intends to carry out on the 
territory of that host Member State; 
(c) the general and specific conditions under which 
funds will be received and loans granted; 
(d) the address in the host Member State where 
documents may be served upon it. 
3. Unless the supervisory authority of the home 
Member State has reason to doubt the financial 
soundness of the designated institution concerned on the 
basis of the information already in its possession and/or 
any further information which it reasonably requires from 
the institution, or which it obtains from other sources, it 
shall within three months of the notification referred to 
in paragraph 1, send the information mentioned in 
paragraph 2 to the supervisory authority of the host 
Member State. 
4. Where the supervisory authority of the home 
Member State decides that there is reason to doubt the 
financial soundness of a designated credit institution it 
shall refuse to send the information mentioned in 
paragraph 2 to the supervisory authority of the host 
Member State and shall give reasons to the institution 
concerned within three months of receipt of the infor­
mation mentioned in paragraph 2. Such refusal shall have 
the effect of suspending the right of the institution to 
supply services in the field of mortgage credit activities 
into the Member State named in the notification. 
5. Before the designated credit institution commences 
its activities the supervisory authority of the host 
Member State shall, within a period of three months 
following receipt of the information mentioned in 
paragraph 2, prepare for the supervision of the institution 
pursuant to Article 10. 
6. A designated credit institution wishing to change 
any of the matters notified pursuant to paragraph 2 shall 
give written notice of the proposed change to the 
supervisory authorities in the relevant home and host 
Member States at least one month before making the 
change. 
Article 10 
1. A designated credit institution exercising freedom 
to supply services into the territory of another Member 
State shall report quarterly on its operations in the host 
Member State to the supervisory authority of that 
Member State. 
2. unchanged 
19.6.87 Official Journal of the European Communities No C 161/9 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
3. If the institution concerned fails to take the 
necessary steps, the supervisory authority of the host 
Member State shall inform the home Member State 
accordingly. The authority of the home Member State 
shall take all appropriate measures to ensure that the 
institution concerned puts an end to the irregular 
situation. .The nature of those measures shall be 
communicated to the authority of the host Member 
State. 
4. If, despite the measures taken by the home Member 
State pursuant to paragraph 3, or because such measures 
prove inadequate or are lacking in the Member State in 
question, the institution persists in violating the legal 
rules referred to in paragraph 2 in force in the host 
Member State, the latter State may, after informing the 
supervisory authority of the home Member State, take 
appropriate measures to prevent further irregularities 
including, in so far as it is strictly necessary, the 
prevention of the further conclusion of mortgage 
contracts by that institution by way of provision of 
services within its territory. The Member States shall 
ensure that within their territory it is possible to serve the 
legal documents necessary for these measures. 
5. Any measure adopted pursuant to paragraphs 2, 3 
and 4 involving penalties or restrictions on the provision 
of services must be properly justified and communicated 
to the institution concerned. Every such measure shall be 
subject to the right to apply to the courts in the Member 
State in which the authorities adopted it. 
6. In the event of withdrawal of authorization the 
supervisory authority of the host Member State shall be 
informed of such action and shall take appropriate 
measures to prevent the institution concerned from 
continuing to conclude mortgage contracts by way of 
provision of services within the territory of that State. 
7. Every two years the Commission shall submit to the 
Council a report summarizing the number and type of 
cases in which in each Member State decisions recording 
non-confirmation of financial soundness have been 
communicated under Article 9 or measures have been 
taken in accordance with the provisions of paragraph 4. 
Member States shall cooperate with the Commission by 
providing it with the information required for this report. unchanged 
4. If, despite the measures taken by the home Member 
State pursuant to paragraph 3 or because such measures 
prove inadequate or are lacking in the Member State in 
question, the institution persists in violating the legal 
provisions referred to in paragraph 2 in force in the host 
Member State, the latter State may, after informing the 
supervisory authority of the home Member State, take 
appropriate measures to prevent further irregularities 
including, in so far as it is necessary, the prevention of 
the further conclusion of mortgage contracts by that 
institution by way of provision of services within its 
territory. The Member States shall ensure that within 
their territory it is possible to serve the legal documents 
necessary for these measures. 
5. unchanged 
6. In the event of withdrawal of authorization the 
supervisory authority of the host Member State shall be 
informed of such action and shall take appropriate 
measures to prevent the institution concerned from 
continuing to conclude mortgage contracts by way of 
provision of services within the territory of the relevant 
host Member State. 
7. Every two years the Commission shall submit to the 
Council and to the European Parliament a report 
summarizing the number and type of cases in each 
Member State in which there has been a refusal pursuant 
to Article 9 or measures have been taken in accordance 
with the provisions of paragraph 4. Member States shall 
cooperate with the Commission by providing it with the 
information required for this report. 
TITLE V 
Transitional and final provisions 
Article 11 
The home Member State may, for a maximum period of 
five years after notification of this Directive, limit the 
transactions of a credit institution in the field of 
mortgage credit carried on either through branches in 
other Member States or by way of the provision of 
services to 25 % of the total mortgage lending of the 
relevant credit institution. TITLE V 
Transitional and final provisions 
Article 11 
The home Member State may, for a maximum period of 
seven years after the adoption of this Directive, limit the 
transactions of a designated credit institution in the field 
of mortgage credit activities carried on either through 
branches in other Member States or by way of the 
provision of services to 25 % of the total domestic 
mortgage lending of the relevant credit institution in the 
previous year. 
NoC 161/10 Official Journal of the European Communities 19.6.87 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
Article 12 
1. Member States shall bring into force the measures 
to comply with this Directive by They shall 
forthwith inform the Commission thereof. 
2. Member States shall communicate to the 
Commission the texts of the main laws, regulations and 
administrative provisions which they adopt in the field 
covered by this Directive. Article 12 
1. Member States shall bring into force the measures 
to comply with this Directive within two years of its 
adoption. They shall forthwith inform the Commission 
thereof. 
2. unchanged 
Article 13 
This Directive is addressed to the Member States. Article 13 
unchanged 
Alteration of the proposal for a Council Directive amending Directive 77/62/EEC relating to 
the coordination of procedures on the award of public supply contracts and deleting certain 
provisions of Directive 80/767/EEC (') 
COM(87) 233 final 
(Submitted by the Commission to the Council pursuant to the second paragraph of Article 149 of 
the EEC Treaty on 1 June 1987) 
(87/C 161/05) 
A new recital is added between the fourth and fifth recitals: Articles 2 and 3 become Articles 3 and 4. 
'Whereas it is necessary to amend these Directives in 
order to incorporate the changes in the GATT 
Government Procurement Agreement agreed in 
December 1986.' Alteration of Article 4 
Article 4 (2) (d) is replaced by the following: 
New Article 2 
Article 1 (a) is replaced by the following text: 
'(a) "public supply contracts" shall be contracts for 
pecuniary interest concluded in writing involving the 
purchase, lease, rental or hire purchase, with or 
without option to buy, of products between a 
supplier (a natural or legal person) and one of the 
contracting authorities defined in (b) below. The 
delivery of such products may in addition include 
siting and installation operations.' 
0) OJ No C 173, 11. 7. 1986, p. 4. '(d) The contracting authorities shall prepare a report in 
writing on each contract awarded under the 
restricted or the negotiated procedure. They shall 
ensure that each report contains the name of the 
contracting authority, the value and nature of goods 
purchased, the country of origin as indicated by the 
address of the supplier, and a statement of the 
conditions referred to in Article 6 (1) and (2) which 
prevailed at the time when the contract was 
awarded. The report shall remain with the 
contracting authority concerned. If needed, this 
information shall be supplied to the authorities 
responsible for the contracting authority in order 
that it may, if required, be used by the Commission 
and, through the Commission, by the Advisory 
Committee for Public Contracts.'