Source: https://www.global-regulation.com/translation/denmark/609788/notice-on-borrowing-of-the-regions-and-the-granting-of-guarantees%252c-etc.html
Timestamp: 2019-04-22 08:06:04+00:00

Document:
Notice On Borrowing Of The Regions And The Granting Of Guarantees, Etc.
Original Language Title: Bekendtgørelse om regionernes låntagning og meddelelse af garantier m.v.
Overview (table of contents) Chapter 1 access to borrowing, etc.
Chapter 2 Cash credit and conditions for borrowing, etc.
Chapter 4 the date of entry into force of The full text of the Decree on the regions ' borrowing and granting of guarantees, etc.
§ 1. A region can only borrow after granted dispensation from the Welfare Minister.
1) Expense, excl. the nominal capital, by the construction or acquisition of regional General senior citizen pursuant to the law on social housing, etc., cost of remediation work, etc. in General older housing in accordance with the same article 91, paragraph 8 and section 92, paragraph 3, of the basic regulation. section 96, the cost of extraordinary renovation works in regional General senior housing in accordance with the same article 98, paragraph 2, and the cost of repairing the building damage in regional General senior housing in accordance with the same article 157, paragraph 1 and 2. For ældrebolig purposes may, notwithstanding section 9, paragraph 1, shall be included in credit and loans in the municipality of Credit in accordance with the rules of the law on public housing, etc.
2) the cost of investment in rolling stock for passenger traffic on rail (private railways) as well as the cost of investment in railway infrastructure, including station facilities and workshops, etc.
3) Loan, the proceeds of which entirely used for repayment of existing loans, including bridging loans and credits.
4) credit card features, see. § 8.
(3). Loans must be entered no later than 31 December. March this year after the fiscal year. By statement of loan access as specified in paragraph 2, no. 1 and 2, shall be taken into account only the costs incurred in the current financial year.
1) Loan, which alone absorbed by region, see. § 1.
2) the portion of the loans contracted by several regions of association which, according to the agreement shall be the responsibility of the region.
3) the portion of loans raised by partnerships, cooperatives, public limited companies, private limited companies, self-governing institutions and the like with regional participation, which can be attributed to the region.
4) Loans contracted by a private or self-governing institution, which, with the agreement of the region makes seats available in order to solve tasks in accordance with the law. The loan included pro rata in proportion to the seats that are available for the region.
5) Loans not covered by nr. 1-4, to the extent that the region shall notify the guarantee for the loan, and the loan is used to finance construction projects.
6) deposit priorities being delivered, and mortgages, issued to the seller, in connection with the acquisition of real estate.
7) the conclusion of agreements, including rent and lease agreements, concerning the use of buildings, premises, etc., or agreement on the operation of institutions whose value along with any related agreements exceeding the threshold, see. paragraphs 2 and 3.
8) that part of the agreements, including rent and lease agreements, concluded by partnerships, cooperatives, public limited companies, private limited companies, self-governing institutions and the like with regional participation, about the use of buildings, premises, etc., whose value along with any related agreements exceeds the threshold value, and which can be attributed to the region.
(2). Related agreements referred to in paragraph 1, no. 7 and 8, is the region's agreements relating to the same physical plant, which has been concluded within the past 2 fiscal years.
(3). The threshold referred to in paragraph 1, no. 7 and 8, make up 5 mio.kr.
§ 3. Loans are stated net of any capital losses. Borrowings are stated at market value of the bonds at the withdrawal of these, although the sale of the bonds have not yet occurred.
(2). Deposit priorities and sells pantebreve are assessed at the rate of 80. Loans with a residual maturity of 3 years or less will be summed up, however, the residual nominal amount of the debt.
(3). For bridging loans and, for companies with regional participation, bank overdrafts are included only loans which are not covered by the provision in section 8. Such loans shall be taken into account with the amount at the end of the year is deducted from the loan in addition to the amount drawn at the beginning of the year.
1) Construction cost/acquisition costs relating to occupied buildings, premises, etc. including VAT.
2) value of the type property, premises, etc., according to the latest public assessment carried out at the conclusion of the agreement.
(2). When a region is paying a continuous performance for the use of buildings, premises, etc. including VAT, which can be refunded pursuant to the notice of the VAT refund scheme for the municipalities and regions, the amount is calculated in accordance with paragraph 1, nr. 1 However, as the value of which, net of VAT.
(3). Conversion costs, as agreed in the contract with the landlord, to be included in the inventory.
(4). At the subsequent improvement in the form of extension, renovation or other recovery, which is not in the nature of general maintenance of the rented, are also included with an amount equivalent to the costs of borrowing.
(5). When a region terminates a rental agreement and enters into a new lease within the same fiscal year or no later than 31 December. March of the following financial year, the amount calculated in accordance with paragraph 1 shall be reduced by the value of the terminated leases also calculated in accordance with paragraph 1.
(6). When a region enters into an agreement, as mentioned in section 2 (1) (8). 7 or 8, about the use of buildings, premises, etc., at the time of the conclusion of the agreement is not listed, be assimilated to the region's borrowing agreement with an amount in the year of the contractual process and each of the subsequent years corresponds to construction costs, which will be held in the year in question.
§ 5. In section 2 (1) (8). 2-8, said loans and agreements not be assimilated into the region's borrowing if the region at the same time, deposits an amount in a separate account in a bank or deposit the bonds with a similar market value in a financial institution, a mortgage lender or in the municipality of Credit.
(2). The deposit is calculated on the basis of the valuation of loans under section 3 or rent and lease agreements, etc. pursuant to section 4.
(3). In the loan period or the period of the contract may be of the deposited amount or the deposited bonds after 10 years annual enforced or released a fifteenth. In addition, each year of the loan period or the period of the contract enforced or released to the deposited amount accrued interest. If the region in the years after the deposit is made, has free lending facility, can the region reduce the deposited amount by an amount equivalent to the available lending facility.
(4). At the termination of the contract/loan repayment can the region raise the remaining part of the deposited amount or the deposited bonds.
§ 6. At a sale of one of the region's real estate, including installations, for which the region has included loans to the region meet the relevant loan, unless the region according to the rules in section 5 at the same time with the sale shall deposit an amount equal to the amount by which the said loans can be met without prejudice. However, section 7.
§ 7. By a transfer of one of the region's real estate, including installations, for which the region has included loans to a company with limited liability, as the region is wholly or partly owns, to the region to reduce the loan in question with an amount equal to the sum of the transfer less the portion thereof that is paid with shares or similar in the company (relative). By a later sale of such shares or similar must the region reduce the relevant loan with an amount equal to the sales sum by the sale of shares or similar.
(2). The rules laid down in paragraph 1 shall not apply if the region according to the rules in section 5 while the transfer shall deposit an amount equal to the amount by which that loan should have been reduced in accordance with paragraph 1.
Line of credit and the conditions for borrowing, etc.
§ 8. In a region must average over the last 12 months of daily balances in the function 6.50.50, bank overdrafts and bridging loans, excluding. bridging loans, that as soon as after the construction works will be converted to long-term loans must not exceed the average of the daily balances during the same period on liquid assets, see. features 6.10.01-6.10.11 in ' budgetary and accounting system for the regions '.
(2). Overdraft for partnerships, cooperatives, public limited companies, private limited companies and the like with a dominant regional influence must apply a maximum of 125 DKK per capita. By works, that after completion can be financed by borrowings, however, can be carried out further drag on overdraft within an amount that equals the total proceeds of the expected final loan, provided that the conversion to take place as soon as possible after completion.
§ 9. Loans may be raised as annuity, serielån, or inflation-indexed loans. The annuity may not exceed 25 years. However, loans for the construction or acquisition of General older homes have longer maturity within the limit laid down in the law on public housing, etc.
(2). Loans can also be accepted as permanent loans or loans with a grace period. The maturity of such loans may not exceed 15 years and with an interest-only courses that most gives an average maturity of 10 years.
(3). By conversion to a series or annuity, it is a condition that the total funding to continually meet the requirements of paragraph 1. If the conversion is done from a standing loan or a loan with a grace period, it is furthermore a condition that the average duration of the total funding does not exceed 10 years. By conversion to a permanent loan or loans with a grace period, it is a condition that the total funding to continually meet the requirements of paragraph 2. If more loans are rescheduled at the same time to a new loan, the remaining maturity is calculated as a weighted sum of the individual loan maturity.
§ 10. A region may enter into forward contracts for the purpose of exchange rate and interest rate hedging in connection with borrowing and payment of interest and principal payments, if there is a specific obligation to pay interest and principal payments, respectively, to receive or pay an amount in foreign currency. A region should not be exposed in currency other than Danish kroner.
(2). A region can reschedule loans by means of swap agreements. For the purpose of exchange rate and interest rate hedging can be used in this context, forward transactions.
(3). A region may enter into sales and repurchase agreements relating to debt securities (REPO-transactions). A region may also issue certificates with maturity of less than 1 year. The proceeds of the agreements and issued certificates is included on common terms in the calculation of the regional cash discount opportunities pursuant to section 8.
§ 11. A Regional Council may not, without the approval of the Minister for welfare and enter into an agreement, including rental and leasing agreement on use of buildings, premises, installations, etc., equipment, operating funds, or appliances before the conclusion of the agreement has been in the region's own. Welfare Minister lays down the conditions for approval, including the terms and conditions of deposit.
§ 12. Guarantee for loans can be granted only if the loan meets the regional borrowing applicable conditions, see. § 9 (1) and (2).
(2). Guarantees for loans to property for social and educational purposes follows notwithstanding paragraph 1 maturity rules of the law on mortgages and mortgage bonds, etc.
(3). Guarantees for loans for purposes covered by the law on social housing, etc. Notwithstanding paragraph 1 follows the rules of the law on public housing maturity, etc.
§ 13. A Regional Council may not, without the consent of the supervisory authority offer undertakings for regular services and similar, as the region is not under the law are required to perform.
§ 14. A Regional Council may not, without the consent of the supervisory authority contracting region joint and several liability through entry into an association, an institution, a company, or the like. However, consent is not necessary if the region alone is liable with its deposits, and there not be incurred region obligations with regard to any additional deposits.
(2). A Regional Council may, however, without the consent in accordance with paragraph 1 take out loans in mortgage credit institutions and in the municipality of Credit, regardless of whether the region by borrowing occurs as a member of the lending Association, as well as liable for loans to finance leases, which the municipality Leasing record in the municipality of Credit.
(3). A Regional Council may furthermore without consent in accordance with paragraph 1, Contracting region joint and several liability through entry into an association, institution, company or similar after health law section 78, paragraph 3, which has been approved by the Minister of welfare.
§ 15. Resolution on the assumption of guarantees, including the decision of joint and several liability of the ship owner through entry into an association, an institution, a company, or the like, shall be taken by the Regional Council in a meeting.
(2). The Executive Committee may, however, be authorized to take the decisions referred to in paragraph 1, within the envelope and other conditions which the Council lays down.
(3). Decision on the conclusion of the rental and leasing agreements whose value along with any related agreements, exceed the threshold referred to in article 6. section 2, paragraphs 2 and 3 shall be taken by the Regional Council in a meeting.
§ 16. Welfare Minister can to use for submitting loan waivers for each fiscal year establish pools for specific purposes in order to delineate the extent of loan waivers. The Minister may also notify the general welfare waivers.
(2). Welfare Minister may also grant a derogation for the conclusion of agreements covered by article 2, paragraph 1, no. 7 and 8, in particular in cases where, in the case of short-term leases.
(3). Loans as provided for in paragraph 1, shall be recorded in the article 1, paragraph 3, the time limit specified.
§ 17. Welfare Minister may grant a derogation in specific cases, in addition to the cases referred to in article 16.
§ 18. The notice shall enter into force on the 22nd. November 2008.
(2). Executive Order No. 1345 by 11. December 2006 on the regions ' borrowing and granting of guarantees, etc. shall be repealed.

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