No C 53/74 Official Journal of the European Communities 28. 2. 91 
Amended proposal for a Council Regulation (EEC) on securities given by credit institutions or 
insurance undertakings 
COM(90) 567 final — SYN 180 
(Submitted by the Commission pursuant to Article 149 (3) of the EEC Treaty on 
31 January 1991) 
(91/C 53/11) 
Initial proposal Amended proposal 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 100a 
thereof, Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 100a 
thereof, 
Having regard to the proposal from the Commission, Having regard to the proposal from the Commission (*), 
In cooperation with the European Parliament, In cooperation with the European Parliament (2), 
Having regard to the opinion of the Economic and Social Having regard to the opinion of the Economic and Social 
Committee, Committee (3), 
Whereas the Treaty, in Article 59, enshrines the principle of 
freedom to provide services; Whereas the Treaty, in Article 59, enshrines the principle of 
freedom to provide services; 
Whereas many public authorities, when demanding 
guarantees, ask for guarantees issued by a resident of their 
national territory, which conflicts with that principle; Whereas many public authorities, when demanding a 
security, ask for a security given by a resident of their 
national territory, which conflicts with that principle; 
Whereas the Treaty principle of non-discrimination is 
directly applicable and does not require implementing 
legislation; Whereas the Treaty principle of non-discrimination is 
directly applicable and does not require implementing 
legislation; 
Whereas public authorities have a certain discretion in 
judging the acceptability of the guarantor; Whereas public authorities have a certain discretion in 
judging the acceptability of the guarantor; 
Whereas public authorities also have a particular 
responsibility for the establishment and functioning of the 
internal market; Whereas public authorities also have a particular 
responsibility for the establishment and functioning of the 
internal market; 
Whereas this responsibility calls for a limitation of the 
discretion of public authorities in the case of a specific 
financial service provided by institutions supervised on the 
basis of Community rules; Whereas, in the case of a specific financial service provided 
by institutions already supervised on the basis of Community 
rules, a positive measure is needed to limit the discretion of 
public authorities which accept a security; 
Whereas it does not appear reasonable for an authority to be 
subject without its consent to the law and jurisdiction of 
another Member State; 
(») OJ No C 51, 28. 2. 1989, p. 6. 
(2) OJ No C 159, 26. 6. 1989, p. 4. 
28. 2. 91 Official Journal of the European Communities No C 53/75 
Initial proposal 
Whereas the First Council Directive 77/780/EEC of 12 
December 1977 on the coordination of the laws, regulations 
and administrative provisions relating to the taking-up and 
pursuit of the business of credit institutions (1), as last 
amended by Directive 86/524/EEC (2), provides for a 
Community system for licensing and supervising credit 
institutions; 
Whereas the First Council Directive 73/239/EEC of 24 July 
1973 on the coordination of laws, regulations and 
administrative provisions relating to the taking-up and 
pursuit of the business of direct insurance other than life 
insurance (3), as last amended by Directive 87/344/EEC (4), 
provides for a Community system for licensing and 
supervising insurance undertakings; Amended proposal 
Whereas the First Council Directive 77/780/EEC of 12 
December 1977 on the coordination of the laws, regulations 
and administrative provisions relating to the taking-up and 
pursuit of the business of credit institutions (*.), as last 
amended by Directive 86/646/EEC (2), provides for a 
Community system for licensing and supervising credit 
institutions; 
Whereas the First Council Directive 73/239/EEC of 24 July 
1973 on the coordination of laws, regulations and 
administrative provisions relating to the taking-up and 
pursuit of the business of direct insurance other than life 
insurance (3), as last amended by Directive 87/357/EEC (4), 
provides for a Community system for licensing and 
supervising insurance undertakings; 
Whereas branches of credit institutions from non-Member 
States are authorized in the Community only in respect of 
national territories and therefore have no right to 
cross-border acceptance of their security; 
Whereas it appears inappropriate that authorities other than 
those in charge of prudential supervision of these institutions 
judge the credit-worthiness of credit institutions or insurance 
companies acting as guarantors, Whereas it appears inappropriate that authorities other than 
those in charge of prudential supervision of credit institutions 
or insurance companies judge the credit-worthness of such 
institutions when the latter are acting as guarantors; 
Whereas, given the operational requirements of the Single 
Market, this should apply to security from both the domestic 
Member State and other Member States, 
HAS ADOPTED THIS REGULATION: 
Article 1 HAS ADOPTED THIS REGULATION: 
Article 1 
Obligation to accept guarantees issued by credit institutions 
or insurance undertakings 
1. A public authority which requires to be secured for 
payment of an actual or potential debt or for respect of any 
other obligation shall be bound to accept a guarantee issued 
by any credit institution licensed according to Article 3 of 
Directive 77/780/EEC or by any insurance undertaking 
authorized for the class of suretyship insurance according to 
Articles 6 and 7 of Directive 73/239/EEC. Obligation to accept security given by credit institutions or 
insurance undertakings 
1. A public authority which requires to be secured for 
payment of an actual or potential debt or for respect of any 
other obligation shall be bound to accept security given by 
any credit institution licensed according to Article 3 of 
Directive 77/780/EEC or by any insurance undertaking 
authorized for the class of suretyship insurance according to 
Articles 6 and 7 of Directive 73/239/EEC unless 
— the public authority has reason to doubt the soundness of 
the guarantor, notably if facts are known that cast doubt 
1 on his continued solvency, 
— the offer does not meet the conditions normally required 
by that public authority; 
(>) OJ No L 322, 17. 12. 1977, p. 30. 
(2) OJ No L 309, 4. 11. 1986, p. 15. 
(3) OJ No L 228, 16. 8. 1973, p. 3. 
(4) OJ No L 185, 4. 7. 1987, p. 77. (*) OJ No 322, 17. 12. 1977, p. 30. 
(2) OJ No L 386, 30. 12. 1989, p. 1 
(3) OJ No L 228, 16. 8. 1973, p. 3. 
(4) OJ No L 172, 4. 7. 1988, p. 1. 
I 
No C 53/76 Official Journal of the European Communities 28. 2. 91 
Initial proposal Amended proposal 
2. Paragraph 1 shall not abbly to central banks in the 
context 6f their operations in the implementation of 
monetary policy. 
Article 2 
Applicable law and court of jurisdiction 
The legislation applicable to the security and the court of 
jurisdiction shall be determined by the debt secured unless the 
authority accepts another arrangement. 
Article 2 Suppressed because modified by Article 24 of Council 
Regulation (EEC) No 2726/90 of 17 September 1990 on 
Amendment of existing legislation Community transit 
Article 27 (3) of Council Regulation (EEC) No 222/77 of 13 
December 1976 on Community transit (1) is hereby replaced 
by the following: ' 
'3. Subject to Article 33 (2), the guarantee shall consist of 
the joint and several guarantee of either 
— a credit institution licensed according to Article 3 of 
Council Directive 77/780/EEC (2), or 
— an insurance undertaking authorized for the class of 
suretyship insurance according to Articles 6 and 7 of 
Council Directive 73/239/EEC (3), or 
— any other natural or legal third person established in the 
Community and approved as guarantor by the Member 
State in which the guarantee is provided.' 
Article 3 Article 3 
Entry into force Unchanged 
This Regulation shall enter into force on the first day of the 
month following the adoption. 
This Regulation shall be binding in its entirety and directly Unchanged 
applicable in all Member States. 
(') OJ No L 38, 9. 2. 1977, p. 1. 
(2) OJ No L 322, 17. 12. 1977, p. 30. 
(3) OJ No L 228, 16. 8. 1973, p. 3.