Law Advices and Legal Tips

1. What financial products, “Deposits” are not covered by the FGD?

* Financial products made by other credit institutions on their own and in your own name as well as those made by insurance companies, securities dealers, real estate investment trusts, venture capital, etc …
* The debt securities issued by the credit institution, including promissory notes and negotiable.
* Certificates of Deposit to the carrier, the repurchase agreements and financing with subordination clause.
* Deposits made by companies belonging to the same economic group that the credit institution.
* Deposits made by the government.
* Deposits made by those who hold administrative or management positions in the state.

2. What if the bank deposit account or have more than one owner?

The deposited amount is divided by the number of holders, who will each receive up to 100,000 euros per person in each account. That is, if there are three account holders, the total guarantee is 300,000 euros. 5 Is there any difference according to the relationship to maintain the headlines? No. It does not matter whether the owners are family relationships, friendship, business or otherwise.

3. How long does it take to receive compensation?

Usually within three months of the crisis. This period may be extended up to one year for exceptional reasons and permission of the Bank of Spain.

4. What if the guarantee funds do not have enough money?

In the case of DGF, the Bank of Spain or other financial institutions may enter additional funds.

5. What about the mortgage?

You have to continue paying it, but now is managed by another institution, or has been absorbed by another bank or box. The bankruptcy of an entity does not cancel the debts that may be owed to it.

6. “I can repay the mortgage with the deposits?

In principle, no. Many of the mortgages granted by banks have been securitized (resold) and purchased by other investors. In the list of creditors, these third party investors have a preference for recovery over you. However, there are some court decisions have led at times to make this compensation.

7. What happens if I have deposited shares or other securities?

In principle, nothing would happen because the bank only acts as trustee for the shares (the owner is the client). In the event that the bank can not return to savers such securities (for example because it came to enforcing the purchase of securities), the FGD will offset a maximum of 20,000 euros.

8. And with pension plans or mutual funds?

These products are protected because the entity that manages the money is not the same as that custody.