Article 1

The Bank is a legal entity focused on conducting of banking transactions in compliance with the provisions of this Law.

Article 2

The Bank can conduct the following banking transactions:

1. Acceptance of all types of money deposits of legal entities and natural persons;

2. Granting and obtaining of loans;

3. Conducting of payment transactions;

4. Purchase of checks and bills of exchange;

5. Transactions with foreign means of payment;

6. Issuance of securities and credit cards;

7. Purchase, sale and management of securities of domestic and foreign issuers;

8. Acceptance and issuance of collateral and guarantees and assumption of other obligations for its clients that can be fulfilled in money;

9. Purchase and redemption of claims;

10. Custody of securities and other valuables.

The Republic Secretary of Finance can, on the basis of the opinion by the Governor of the Bank of Slovenia, also specify other banking transactions that can be conducted by the Bank.

The Bank can conduct banking transactions in its own name and for its own account, in its own name and for someone else's account and in someone else's name and for someone else's account.

Article 3

The provisions of this Law shall not be applied for financial organizations established under a separate law.

Article 4

The Bank operation shall follow the principles of liquidity, security and profitability.

Article 5

The Bank shall be established as a joint stock company under the terms and conditions specified by this Law.

Article 6

The Bank shall be the holder of rights, obligations and responsibilities in legal transactions with respect to the funds and property at its disposal.

II. BANKS

1. Incorporation of the Bank

Article 7

The Bank shall be incorporated by domestic or foreign legal entities and/or natural persons (hereafter referred to as Shareholders).

Article 8

Irrespective of the provision of Article 7 hereof, a foreign bank may establish a branch as a legal entity, a business unit or a representative office.

The incorporation of a branch referred to in the first paragraph of this Article shall be subject to the foreign bank's acquisition of the consent of the Bank of Slovenia under Article 14 hereof.

The incorporation of a business unit or a representative office referred to in the first paragraph of this Article shall be subject to the foreign bank's acquisition of the consent of the Bank of Slovenia.

The business unit and the representative office referred to in the first paragraph of this Article shall not conduct banking transactions from Article 2 hereof. In legal matters they shall act within the scope of their powers entered into the Court Registry.

Article 9

The Memorandum of Association of the Bank shall specify the amount of the capital required for its incorporation and operation.

The incorporation of the Bank requires at least Dinars 35 million Tolars 680 million in monetary form.

The minimum amount of capital in monetary form mentioned in the preceding paragraph shall be adjusted by the 8ank of Slovenia in the way to preserve its real value.

Article 1 0

The Memorandum of Association shall specify: the Bank's trade name and registered office, the types of banking transactions to be conducted by the Bank, the amount of funds for the Bank's operation, the conditions and the mode of collection of these funds, the Shareholders' rights, the terms and conditions and the principle of identification and allocation of profit, the entity or the body in charge of the operations and matters that are vital for the incorporation of the Bank, as well as other issues that are important for its incorporation.

Article 1 1

The Bank shall be incorporated at the meeting of the Shareholders' Assembly that shall adopt the resolution of its incorporation and its Articles of Association, shall elect the Managing Board and the Supervisory Board and shall appoint the Managing Director of the Bank.

The acts referred to in the preceding paragraph shall be adopted by the Shareholders' Assembly with a two-third-majority of votes of all Shareholders.

Article 1 2

The Bank's Articles of Association shall include the provisions on:

1. The Bank's trade name and registered office,

2. The Bank's internal organization and the powers of organizational units in legal relations,

3. A detailed description of transactions to be conducted by the Bank,

4. The total amount of the equity, the type and amount of each Shareholder's contribution, the term and mode of payment and registration of contributions,

5. The terms and conditions and the mode of increasing the Bank's equity and the reserves as well as the procedure of transfer of securities to be received by the Shareholders in exchange for the funds permanently invested into the Bank.

6. The allocation and distribution of profits, the assumption of risks and the coverage of the Bank's loss,

7. The mode of Bank management, the formation of the Shareholders' Assembly, of the Managing Board and of the Supervisory Board, the specification of responsibilities and powers of the Managing Director and other Executives as well as the mode of their appointment and release from office,

8. The rules of internal control and audit in the Bank,

9. The procedure of modification of the Articles of Association and of other Bank's enactments,

10. The duration and the termination of the Bank,

11. Other matters that are important for the Bank's operation.

Article 1 3

The Bank shall become a legal entity when entered into the Court Registry.

The application for entry into the Court Registry shall be filed upon acquisition the Bank Operating License from the Bank of Slovenia.

The application for entry into the Court Registry shall be accompanied by:

1. The Memorandum of Association of the Bank,

2. The Articles of Association of the Bank,

3. The piece of evidence proving the payment of the amount in money referred to in Article 9 hereof,

4. The Operating License issued by the Bank of Slovenia on the basis of Article 15 hereof,

5. Other documents in compliance with the regulations on entry into the Court Registry.

Bank's branches, business units and representative offices shall also be entered into the Court Registry in compliance with the regulations on entry into the Court Registry.

The Bank of Slovenia may request in front of the competent court that the conducting of banking transactions be deleted from the Court Registry if discovering that the Bank is conducting banking transactions without the Operating License issued by the Bank of Slovenia.

1.1 Operating License

Article 14

The application for the Bank Operating License shall include:

1. The Memorandum of Association and the Articles of Association of the Bank,

2. A description of transactions to be conducted by the Bank and the Bank's operating plan for the next two years,

3. The data on the amount of the equity,

4. The information on mutual capital and management relations of the Shareholders and on their financial standing,

5. The names of natural persons to be involved in Bank management and the information proving their qualification for management of the Bank,

6. The documentation showing that the Bank will be capable, in terms of personnel, technical potential and organization, to conduct the transactions specified in the Memorandum of Association of the Bank.

A foreign bank's application for foundation of a branch on the territory of the Republic of Slovenia shall include:

1. The information on the legal form and the registered office of the parent bank and its Articles of Association and Rules of Procedure,

2. The information on the foreign bank's banking transactions and the indication of countries where they are conducted,

3. The parent bank's latest three annual reports;

4. A detailed description of the transactions to be conducted by the branch;

5. The amount of the capital at the disposal of the branch;

6. The names of natural persons to act as managing staff of the branch and the data on their professional qualification for conducting of banking transactions,

7. The Act on mutual relations between the parent bank and the branch.

Article 1 5

The Bank of Slovenia shall determine whether the terms and conditions of this Law relating to the operation of the Bank or of the foreign bank's branch have been fulfilled and it shall issue an unrestricted or restricted operating license at the latest within 12 months from the receipt of a complete application.

The restricted license referred to in the preceding paragraph shall allow for conducting of certain banking transactions on thc basis of the conditions and standards set forth by the Bank of Slovania.

The license referred to in the preceding paragraph shall allow for conducting of all or certain banking transactions on the basis of the conditions and standards set forth by the Bank of Slovenia.

Should the operating conditions fail to be met, the Bank of Slovenia shall pass a decision under which to refuse to issue the Bank's Operating License.

The decision referred to in the preceding paragraph shall be final in the administrative proceedings.

Article 1 6

The Bank can merge with some other bank, can join another bank or can split into several independent banks only on the basis of a license by the Bank of Slovenia.

The Bank of Slovenia shall issue the license referred to in the preceding paragraph if the changes in status do not create some monopolistic or oligopolistic structure of the banking market and/or if they do not jeopardize the depositors' security and if in its turn it does not create the possibility for activation of bank deposit insurances.

The standards for determination of monopolistic or oligopolistic structure of the banking market and the methods, procedures and delays for coordination of the banking structure shall be set forth by the Bank of Slovenia.

The changes in status referred to in the preceding Article shall be effected in compliance with the provisions of this Law which apply to the incorporation of the Bank.

1.2 Revocation of the License

Article 1 8

The Bank of Slovenia shall revoke the Bank's Operating License if the Bank fails to start its operation within six months from the License issue date or if the Bank discontinues its operation for more than one year.

The Bank of Slovenia may also revoke the Operating License if it discovers.

1. That the License was obtained under false pretenses,

2. That the Bank fails to meet the conditions for further operation,

3. That within six months upon replacement of the Managing Director the Bank has not obtained the consent of the Bank of Slovenia for appointment of a new Managing Director.

The Bank of Slovenia may further revoke the Operating License in the cases specified in the Law of the Bank of Slovenia and in the Law of Pre-Rehabilitation, Rehabilitation, Bankruptcy and Liquidation of Banks and Savings Banks.

The decision about revocation of the Operating License shall be the basis for initiation of the Bank liquidation proceedings.

1.3 Notification to the Bank of Slovenia

Article 1 9

The Bank shall notify the Bank of Slovenia of:

1. The changes in the Bank's status,

2. The changes in the Bank's Articies of Association,

3. The replacement of the Managing Director,

4. The capital participation in non-banking organizations,

5. Any occurrence of Bank's insolvency,

6. The foundation of a bank, branch, business unit or representative office abroad,

7. The total amount of loans to natural persons from Article 30 hereof which exceeds 1 per cent of the Bank's minimum capital from Article 9 hereof, and/or to Bank owners in the total amount exceeding 5 per cent of the Bank's capital from Article 9 hereof.

8. The granting of the large and the largest possible loan,

9. The Bank's daily foreign exchange position.

Article 20

The Bank shall notify the Bank of Slovenia of every Bank's founder Shareholder that has become the owner of more than 10 per cent of shares involving the Bank managing rights.

More than 15 per cent of shares involving the Bank managing rights may be acquired by individual Bank's founder Shareholder only with preliminary consent of the Bank of Slovenia.

A foreign person may become the Bank's Shareholder only with preliminary consent of the Bank of Slovenia.

On giving its consent referred to in the second and the third paragraph of this Article the Bank of Slovenia shall take into account the dispersed ownership of shares as well as the capital and management relations between the Shareholders.

2. Bank Group

Article 21

Banks constitute a bank group when one bank directly or indirectly participates in other bank's equity with at least a 40 per cent share or if it directly or indirectly controls the other bank.

The Bank that owns a part of another bank's capital shall consolidate financial statements in the way and in the terms prescribed by the Bank of Slovenia.

3. Bank's Capital

Article 22

In order to secure their obligations towards their creditors and the entrusted property the banks shall possess appropriate capital and shall adapt their operation to the standards specified herein and to the standards set forth by the Bank of Slovenia.

The Bank shall secure that its capital attains at least the amount of tha equity from Article 9 hereof.

Article 23

The Bank's capital shall cover:

- contributed equity,

- reserves,

- other forms of equity and other sources with which the Bank covers commercial risks and Bank loss without restriction.

A more detailed specification of individual types of capital and the standards for taking into consideration the proportions of these types in identifying the volume of capital shall be set forth by the Bank of Slovenia.

The Bank holding company shall consolidate the capital in the way and in the terms prescribed by the Bank of Slovenia.

Article 24

The equity is made up of Shareholders' contributions paid in money and invested in non-monetary form.

Additional and subsequent capital contributions shall be considered as equity.

Article 25

Bank reserves shall be created for covering of operating risks.

4. Bank's Investments

Article 26

The Bank shall coordinate the volume of its operations in the way that the amount of the total risk weighted assets and off-balance-sheet items does not exceed the 16 times value of the Bank's capital.

The Bank shall take into account the provisions of this Law regarding the large and the largest possible loan to a single borrower, the provisions on the total amount of all loans, other claims and warranties to a single borrower and the provisions on the total amount of large and the largest possible loans.

In the terms of this Law, a large loan is considered to be an individual loan and/or other individual claim and surety granted to a single borrower which exceeds 10 percent of capital.

In the terms of this Law, the largest possible loan is considered to be the loan from the preceding paragraph that amounts to 15 per cent of the Bank's capital.

The total amount of all loans, other claims and warranties to a single borrower shall not exceed 30 per cent of the Bank's capital.

The total amount of all large and the largest possible loans shall not exceed the Bank's capital.

Further details on the implementation of the provisions of this Article shall be set forth by the Bank of slovenia.

The Bank shall coordinate the volume of its operations in the way that the volume of capital attains at least 8 per cent of the amount of the total risk weighted assets and off-balance-sheet items.

The Bank shall take into account the provisions of this Law regarding the large loan to a single borrower, the provisions on the total amount of all loans, other claims and warranties to a single borrower and the provisions on the total amount of large loans.

In the terms of this Law, a large loan is considered to be any loan, other claim and warranty granted to a single borrower which exceeds 15 per cent of the Bank's capital.

The total amount of all loans, other claims and warranties to a single borrower shall not exceed 25 per cent of the Bank's capital.

The calculation of a large loan and of the total amount of all loans, other claims and warranties shall not include that part of loans, claims and/or insurances that are totally insured by the deposit, by securities or by a guarantee of the Republic of Slovenia and by securities of the Bank of Slovenia.

The total amount of all large loans shall not exceed the Bank's capital.

Further details on the implementation of the provisions of this Article shall be set forth by the Bank of Slovenia.

Article 27

On the request of an individual bank the Bank of Slovenia is obliged to provide information on large and the largest possible loans to a specific borrower. This information is considered as a business secrecy of the Bank. The terms and conditions, the method of taking records and providing information from the preceding paragraph shall be set forth by the Bank of Slovenia.

Article 28

The Bank's investments in land, buildings, business equipment, capital shares in other banks and non-banking organizations shall not exceed the Bank's capital.

The Bank's investments in land, buildings, business equipment, capital shares in banks and non-banking organizations shall not exceed 60 per cent of the Bank's capital, whereby the Bank's investments in capital shares in individual non-banking organization shall not exceed 15 per cent of the Bank's capital. With the permission of the Bank of Slovenia the Bank's investment in individual capital share of a non- banking organization may exceed 15 per cent of the Bank's capital.

Investments in land, buildings and capital shares in non-banking organizations gained by the Bank on the basis of collection of outstanding debts shall not count for investments reterred to in the preceding paragraph for the first three years after their acquisition.

On the request of the Bank of Slovenia, the Bank shall provide information on the Bank's investments into non-banking organizations that are required for supervision of the Bank's operation. The method of providing the information and the type of information shall be specified by the Bank of Slovenia.

Article 29

In order to secure safe operation, the Bank shall create provisions for protection against potential losses resulting from risky investments and the corresponding off- balance-sheet items as well as from the Bank's open foreign exchange position.

The amount and the method of creation of provisions referred to in the preceding paragraph shall be specified by the Bank of Slovenia, depending on the degree of risk involved in the investments and off-balance-sheet items as well as on the Bank's open foreign exchange position.

Article 30

The Bank may grant loans to owners of the Bank only on the basis of a unanimous decision of the body that grants loans subject to the mandatory preliminary opinion of the Bank's Supervisory Board.

The Bank may grant loans to the Managing Director and to other Bank Executives, to the members of the Managing Board, of the Supervisory Board and of other bodies of the Bank in compliance with the procedure from the preceding paragraph.

The resolution on granting of the loan referred to in the first and the second paragraphs of this Article shall specify the interest rate and the repayment method.

If the granting of loans from the preceding paragraphs fails to consider the prescribed procedure, the loan shall be repaid immediately.

5. Liquidity of the Bank and Open Foreign Exchange Position

Article 31

The Bank is obliged to operate in the way to preserve its liquidity.

The Bank of Slovenia shall prescribe the necessary measures for preservation of daily liquidity.

Article 32

The Bank is non-liquid if it has not settled the due obligations in the country or abroad or if the latter are instead settled by some other natural person or legal entity or by a socio-political community on the basis of a warranty.

Article 33

A non-liquid Bank may not effect payments, grant and renew loans, open letters of credit nor issue warranties.

Bank owners and Bank clients may not use the funds deposited with a non-liquid bank.

Irrespective of the provisions from the preceding paragraphs, a non-liquid bank may effect payments for which it has realized the warranties.

Article 34

An open foreign exchange position is the balance between the balance-sheet items on the assets and liabilities sides that are denominated in foreign currencies.

The Bank of Slovenia shall specify the procedure of calculation of the open foreign exchange position and of the ratio between the open foreign exchange position and the capital.

6. Operations With Savings Deposits

Article 35

Savings deposits are deposits for which the Bank issues a special savings document - a passbook. A passbook can be made out to a name, a password or to the bearer.

The Republic Secretary of Finance can specify the terms and conditions as well as the method of operation with savings deposits made out to the password and the method of identification of the owners of these savings deposits.

Legal entities except societies and charity organizations are not allowed to open passbooks.

Passbooks may only be issued by those banks that possess the corresponding license issued by the Bank of Slovenia.

Article 36

The Bank shall publish the valid interest rates, the general terms and conditions relating to the transactions with savings deposits and the type and extent of insurance for savings deposits at a prominent place in the deposit & disbursement premises.

7. Bank Deposit Insurance

Article 37

The Bank collecting savings deposits may insure bank deposits through an institution authorized for insurance of bank deposits.

Irrespective of the provisions from the preceding paragraph the Bank shall insure every bank deposit up to the amount prescribed by the Republic Secretary of Finance through the Agency of the Republic of Slovenia for Insurance of Deposits in Banks and Savings Banks.

The Bank that does not insure savings deposits in compliance with the preceding paragraph shall no longer conduct transactions with savings deposits.

8. Bank Management and Bank Bodies

Article 38

The Bank bodies are: the Shareholders' Assembly, the Managing Board and the Supervisory Board.

Article 39

The Shareholders' Assembly of the Bank consists of its owners and/or their representatives.

The Bank owners have the right of vote proponional to their contribution in compliance with the Bank's Memorandum of Association.

Article 40

The Shareholders' Assembly of the Bank shall perform the following tasks - it shall:

1. Adopt the Anicles of Association, the development plan, the basic principles of business policy, the annual financial statement and the annual report;

2.Decide on the allocation and use of profits, on coverage of loss, increase of Bank's equity, issuance of securities, on capital shares in banks and non-banking organizations as well as on changes in Bank's status;

3.Elect and release of office the members of the Managing Board, the members of the Supervisory Board and the Managing Director;

4.Decide on other issues imponant for the Bank's operation.

Article 41

The Managing Board shall perform the following tasks - it shall:

1. Adopt the Bank's business policy and its general enactments except those adopted by the Shareholders' Assembly;

2. Prepare the proposals for the Shareholders' Assembly and carry out its orders;

3. During the year, discuss and collect repons on Bank's operation;

4. Propose to the Shareholders' Assembly the candidates for the Managing Director;

5. Appoint Executives;

6. Submit the operation repon to the Supervisory Board;

7. Convene the Shareholders' Assembly;

8. Handle other maKers specified by the Bank's Articles of Association and the matters beyond the competence of the Shareholders' Assembly or the Supervisory Board.

Article 42

The Supervisory Board shall monitor and supervise the operation of the Bank, of the Managing Board, of the Managing Director and of other bodies of the Bank.

Article 43

The Managing Director, the Bank employees and the representatives of net debtors of the Bank shall not be members of the Managing Board nor members of the Supervisory Board.

Net debtors of the Bank shall be identified by the Shareholders' Assembly on approval of the annual statement of accounts by considering the average balance of their claims and obligations towards the Bank for the period relevant for the approval of the annual statement of accounts.

Article 44

The chief executive officer of the Bank is the Managing Director.

The conditions to be met by the candidate for the Managing Director shall be specified in the Bank's Anicles of Association.

The appointment of the Managing Director shall be subject to the consent of the Bank of Slovenia.

The Bank of Slovenia will issue the consent referred to in the preceding paragraph if on the basis of the submitted documents and from an interview with the candidate for the Managing Director it identifies his professional qualification for management of the Bank. The professional qualification shall include theoretical and practical knowledge of banking transactions and at least three years of experience in working in administrative or managing bodies of a bank of comparable size and operation.

Article 45

The Managing Director shall head the Bank's operation, shall represent the Bank and shall carry out the resolutions of the managing bodies.

The Managing Director shall be held responsible for the legality of the Bank's operation.

Article 46

The Managing Director and the Executives and/or the employees specified by the Articles of Association are prohibited to found a bank during their employment in the Bank and at least two years thereafter. This also applies to their spouses.

Should the entities referred to in the preceding paragraph act contrary to the terms and conditions specified in the Bank's Articles of Association and in the Labour Contract, the Bank may claim indemnity before a competent court and may file a suit for deletion of this Bank from the Court Registry.

Article 47

The Bank's Articles of Association shall specify in detail the competencies and the responsibilities of the Bank's bodies.

9. Interim and Annual Statements of Accounts and Auditing of Bank's Financial Statements

Article 48

The Bank shall compile the interim and the annual statements of accounts in compliance with the Law, the Accounting Standards and the respective instructions for use, such as specified by the Bank of Slovenia. The Bank's financial year is identical to the catendar year.

The Bank's annual statement of accounts shall be checked and evaluated by an authorized auditor. The authorized auditor shall meet the terms and conditions specified by the Law of Auditing and the terms and conditions specified by the Bank of Slovenia.

Article 49

If the authorized auditor discovers that the Bank is not capable to fulfill its obligations or if he is of the opinion that the Bank has violated the regulations, he shall immediately inform the Republic Secretariat of Finance and the Bank of Slovenia thereof in writing.

The authorized auditor shall funher repon if the Bank has not eliminated the deficiencies discovered at auditing or if the Bank's management failed to provide him with all information he had required.

Article 50

The authorized auditor shall check whether the annual statement of accounts has been made in compliance with the Law. In addition, it shall check and evaluate:

1. The actual correctness of evaluation of balance-sheet items,

2. The write-off and correction procedure applied to the value of balance-sheet items, creation of reserves, long-term provisions and capital in compliance with the Bank's enactments,

3. The obeyance of laws and regulations issued on the respective grounds.

Article 5 1

On the basis of his audit the authorized auditor shall draw up a report on the effected audit and shall forward it to the Bank's Supervisory Body, to the Bank's management, to the Bank of Slovenia and to the Republic Secretariat of Finance within five months upon the lapse of the calendar year.

Foreign bank's branches shall also submit the parent bank's annual report.

Article 52

The Bank is funher obliged to publish a summary of the annual statement of accounts.

Article 53

The Republic Secretary of Finance may in agreement with the Bank of Slovenia specify the form and the type of periodical financial statements and banks' reports.

10. Internal Control and Auditing in the Bank

Article 54

The Bank shall organize the Internal Control and Auditing Service which reports directly to the Managing Director.

The Internal Control and Auditing Service shall exercise continuous and comprehensive supervision over the legality, correctness and updatedness of the Bank's operation.

11. Supervision Over Banks

Article 55

The implementation of this Law shall be subject to the supevision by the Bank of Slovenia, the Republic Secretariat of Finance and the Agency of the Republic of Slovenia for Insurance of Deposits in Banks and Savings Banks, within the scope of their competence.

Article 56

The Republic Secretariat of Finance and/or the Agency of the Republic of Slovenia for Insurance of Deposits in Banks and Savings Banks may within the scope of its competencies in supervision of banks require:

1. The necessary repons and additional information to be submitted by the Bank on all Bank's business affairs;

2. The Audit Repon and additional information on the effected audit of the Bank;

3. Extraordinary examinations of the Bank.

Article 57

Should the supervision referred to in the preceding Article reveal that the Bank is violating the regulations, the Republic Secretariat of Finance and/or the Agency of the Republic of Slovenia for Insurance of Deposits in Banks and Savings Banks may in agreement with the Bank of Slovenia adopt the following measures:

1. Full or panial prohibition of conducting the transactions, imposed on the Executives;

2. Appointment of a supervisory person that may order the measures referred to in Article 56 hereof;

3. Delay in disbursement of profits and reduction of the Bank's equity.

Article 58

In case of identified failures in operation the costs of supervision shall be borne by the bank that has undergone the supervision.

Article 59

The Republic Secretariat of Finance shall, in view of supervision of banks within the scope of its competence, have access to the data bases within the information system of the Bank of Slovenia.

12. Business Secrecy

Article 60

The Executives and other Bank employees as well as other persons having access to and insight into the banking transactions, shall not disclose the data nor the information labelled by the Law and by the Bank's Articles of Association as Bank's business secret.

The data that the Bank is obliged to report to the Bank of Slovenia as well as to others in compliance with the Law and that involve the Bank's business secret shall be considered as official secret.

Article 61

The data on bank deposits shall be considered as Bank's business secret.

The data on bank deposits may be disclosed by banks only on a written request of the court in case of a legal action filed aaainst the owner of the bank deposit.

III. SAVINGS BANKS

Article 62

A Savings Bank is an independent financial organization offering the possibility of safe depositing of savings.

The collected funds shall be used by the Savings Bank for crediting its clients and for encouraging the activities in agriculture, trade and other private activities, as well as for crediting of small legal entities in compliance with the accounting regulations.

Article 63

The Savings Banks hereunder include:

1. Postal Savings Bank,
2. Savings Bank,
3. Savings & Loan Service

1. Postal Savings Bank

Article 64

A Postal Savings Bank is a financial and savings organization on the territory of the Republic of Slovenia. A Postal Savings Bank shall be founded by P.T.T. companies by adoption of its Memorandum of Association.

Article 65

A Postal Savings Bank is a legal entity with its rights and obligations arising out of this Law, the respective Memorandum of Association and the respective Articles of Association .

Article 66

The Postal Savings Bank may conduct the following transactions:

1. Collection of bank deposits, keeping of current and giro accounts of natural persons and civil legal entities, and conducting of payment transactions for citizens in compliance with the law;

2. Accounting and control of payments and disbursements of postal and telegraph money orders in internal monetary transactions;

3. International service involving the handling of money orders, postal cheques and postal savings;

4. Purchase of bank and travellers' cheques;

5. Purchase of foreign currency in compliance with the Law;

6. Redemption of securities in other countries in compliance with the World Postal Union Act on Redemption of Securities;

7. Payment transactions with foreign countries in compliance with the respective law;

8. Other transactions for legal entities on the basis of their powers of attorney.

Article 67

The transactions from Article 66 hereof shall be conducted in the name and for the account of the Postal Savings Bank of the P.T.T. in their post-offices, under the terms and conditions and in the way specified in the Articles of Association of the Postal Savings Bank.

Article 68

The Postal Savings Bank shall grant loans in compliance with their business policy and with the bank guarantee.

2. Savings Bank

Article 69

The Savings Bank may be founded for a specific area by socio-political communities with autonomous resources, by natural persons that are citizens of the Republic of Slovenia and by legal entities with registered office on the territory of the Republic of Slovenia.

The Savings Bank shall not be founded by the Bank.

Article 70

The Savings Bank can be founded as a limited liability company, an unlimited liability company or as a joint-stock company.

The Savings Bank shall be founded as an unlimited liability company in the absence of deposit insurance, issued either by a Savings Bank deposit insurance company or by a socio-political community and/or bank.

Article 71

A socio-political community shall found a Savings Bank by adopting the respective Memorandum of Association, the statement of irrevocable warranty for obligations of the Savings Bank and the Rules of Procedure of the Savings Bank.

Article 72

Whenever the Savings Bank is founded by other legal entities and/or by natural persons, at least ten Shareholders are required for its foundation.

The person to become the Shareholder of the Savings Bank shall not be subject to :

- the process of voluntary reorganization,

- the bankruptcy proceedings,

- the guardianship or shall not be convicted of a criminal offense against property.

Article 73

The persons referred to in the first paragraph of the preceding Article shall found a Savings Bank by concluding a written contract and by adopting the Rules of the Savings Bank.

Article 74

The lowest contribution required for foundation of the Savings Bank shall amount to Dinars 1,500,000 10 per cent of the amount from Article 9 hereof.

On foundation, at least 80 per cent of the contribution shall be paid in money.

Individual contribution shall not exceed 25 per cent of the total contribution, except if the Savings Bank is founded by a socio-political community.

Article 75

The contribution of a socio-political community and the Shareholders' shares shall be paid for a limited or an unlimited period of time. In this period the contribution and/or the Shareholders' shares shall be subject to the interest rates that apply to savings deposits.

If the contribution of a socio-political community and/or the Shareholders' shares are paid for a limited period of time, they are not recoverable as long as the reserves of the Savings Bank reach the prescribed level.

The method of creation of the Savings Bank's reserves shall be set forth by the Bank of Slovenia.

Article 76

The Savings Bank shall collect savings deposits of natural persons, societies and charity organizations, it shall keep current and giro accounts of natural persons, societies, charity organizations and private individual and shall conduct depost transactions for small legal entities, it shall grant insurance loans and shall conduct other banking transactions subject to the license of the Bank of Slovenia.

The Savings Bank shall collect savings deposits of natural persons, societies and charity organizations, it shall keep current and giro accounts of natural persons, societies, charity organizations and private entrepreneurs and shall conduct deposit transactions for small legal entities, it shall grant insured loans and shall conduct other banking transactions subject to the license of the Bank of Slovenia.

Article 77

The operation of the Savings Bank is subject to the license by the Bank of Slovenia.

The application for the Operating License of the Savings Bank shall include:

1. The Memorandum of Association and the Articles of Association of the Savings Bank,

2. The description of transactions to be conducted by the Savings Bank and the respective operating plan for the next two years,

3. The data on the amount of equity,

4. The information on reciprocal capital and management links of the Shareholders and on the Shareholders' financial standing,

5. The names of natural persons to be involved in the Savings Bank management and the information proving their qualification for management of the Savings Bank,

6. The documentation showing that the Savings Bank will be capable, in terms of personnel, technical potential and organization, to conduct the transactions specified in the Memorandum of Association of the Savings Bank,

7. The statement of irrevocable warranty for the Savings Bank's obligations, when the Savings Bank is founded as an unlimited liability company,

8. The statement by an insurance institution, a socio-political community or a bank of the irrevocable insurance of savings deposits, when the Savings Bank is founded as a limited liability company or a joint-stock company.

Article 78

The Savings Bank may insure its deposits through an institution that insures deposits in Savings Banks.

Irrespective of the provisions from the preceding paragraph the Savings Bank shall insure every bank deposit up to the amount prescribed by the Republic Secretary of Finance through the Agency of the Republic of Slovenia for Insurance of Deposits in Banks and Savings Banks.

The Savings Bank that does not insure savings deposits in compliance with the preceding paragraph shall no longer conduct transactions with savings deposits.

3. Savings & Loan Services

Article 79

The Savings & Loan Service referred to in the third item of Article 63 hereof is the Savings Bank founded with an agricultural or trade cooperative in the way and under the terms and conditions set forth by a separate law.

IV. MISCELLANEOUS

Article 80

The Bank and/or the Savings Bank shall conduct its payment transactions through its accounts with an organization authorized for payment transactions.

Article 81

Branches and business units of the Bank may, in compliance with the Bank's Articles of Association, also conduct payment transactions through a special account with an organization authorized for payment transactions.

The accounts referred to in the preceding paragraph shall make part of the Bank's giro account.

Article 82

Collection of savings under the form of savings deposits, keeping of current and giro accounts of natural persons within the company is prohibited.

Article 83

The name "Bank" or "Savings Bank" or any derivative of these words shall not be entered into the Court Registry if the legal entity is not registered in compliance with this Law.

Article 84

Banks and/or Savings Banks may cooperate in compliance with their interests.

V. PENALTY PROVISIONS

Article 85

The Bank or the Savings Bank shall be fined for economic offense with a minimum fine of Dinars 600,000 in the following cases:

1. If it fails to conduct the volume of its transactions with reference to the amount of the Bank's capital and if it fails to gradually adjust its operation to the terms and conditions laid down in Article 26 hereof, such as specified by the Bank of Slovenia (Articles 26 and 86);

2. If it fails to preserve its liquidity (Articles 31 and 33);

3. If it does not inform the Bank of Slovenia that a certain Shareholder has become the owner of more than 10 per cent of the Bank's equity (Article 20);

4. If the persons appointed for members of the Managing Board and/or the Supervisory Board are contrary to the provisions of Article 43 hereof;

5. If no general terms and conditions relating to the transactions with savings deposits are published at a prominent place in the deposit & disbursement premises (Article 36);

6. If it does not inform the Bank of Slovenia in the cases set forth in Article 19 hereof;

7. If it grants loans contrary to the provision of Article 30 hereof;

8. If it discloses busines~ secret contrarv to the orovisions of Articles 60 and 61 hereof.

A minimum fine of Dinars 45,000 shall also be imposed on the Managing Director and on some other Bank Executive who commits an economic offense referred to in the preceding paragraph.

The Managing Director or any other Bank Executive prosecuted for economic offense referred to in Items 1 and 2 of the first paragraph of this Article shall not be allowed to perform any managing tasks in the Bank or Savings Bank for two years after the effect of the final judgment.

Article 85a

A minimum fine of Tolars 500,000 shall be imposed on an economic company for an economic offense committed at collection of savings under the form of savings deposits and at keeping of current and giro accounts of natural persons within the scope of the company (Article 82).

A minimum fine of Tolars 15,000 shall also be imposed on the responsible person of the economic company that commits the act referred to in the preceding paragraph.

Vl. TRANSITIONAL AND FINAL PROVISIONS

Article 86

The Banks shall adjust their organization, operation and enactments to this Law at the latest by 30 June 1992.

Irrespective of the provision from the preceding paragraph, the Bank shall adjust is operation to the terms and conditions set forth in Article 26 hereof following the time schedule specified by the Bank of Slovenia, yet at the latest by 30 June 1996.

Should the Bank of Slovenia discover that the Bank fails to meet the terms and conditions specified herein within the term specified in the preceding paragraph, it may exceptionally extend the term for adaptation of operation, yet at maximum by 30 June 1996, or it may, in compliance with a special law, pass a decision on the introduction of the bankruptcy proceedings and/or a decision on identification of the terms and conditions for introduction of the liquidation proceedings.

Savings Banks shall adjust all their enactments and operations to the provisions of the changed Article 74 hereof by 31 December 1994.

Article 87

Other financial organizations founded under the Law of Banks and other financial organizations (Official Gazette of the SFRY no. 10/89, 40/89, 87/89, 18/90, 72/90 and 79/90) shall adjust their organization, operations and enactments to this Law at the latest by 30 June 1992.

Should these organizations fail to meet the obligations from the preceding paragraph, they shall lose the status of legal entity and shall be officially deleted from the Registry.

Article 88

The organizations dealing in deposits, foreign exchange, foreign currency and payment transactions, but not founded in compliance with the Law of Banks and Other Financial Organizations, shall get founded and shall arrange their operations in compliance with this Law at the latest by 30 June 1992.

Should these organizations fail to meet the obligations from the preceding paragraph, the Court shall by official duty cancel the transactions referred to in the preceding paragraph from the list of registered activities of the respective organization.

Article 89

Shareholding organiza~ions and the banks founded in compliance with the Law of Banks and Other Financial Organizations from the basic and/or associated banks, founded under the Law of Fundamentals of the Banking and Loan System (Official Gazette of the SFRY no. 70/85, 9/86, 34/86, 72/86 and 65/87) shall fully meet their obligations taken up with reference to Article 82.a of the Law of Banks and Other Financial Organizations.

Article 90

Mixed banks founded in compliance with the Law of Banks and Other Financial Organizations shall under the effect of this Law get the status of the Bank.

Article 91

The Postal Savings Bank, founded in compliance with the Law of Banks and Other Financial Organizations, shall be founded as a Bank or Savings Bank hereunder by 30 June 1992.

Article 92

This Law shall enter in force on the date of its publication in the Official Gazette of the Republic of Slovenia.

The provisions of Article 26 and the first and the third paragraph of Article 28 shall apply from 1 August 1994 onwards.

THE LAW OF BANKS AND SAVINGS BANKS COVERS THE PROVISIONS OF:

I. THE LAW OF BANKS AND SAVINGS BANKS
(Official Gazette of the Republic of Slovenia no. 1/91)

II. THE LAW OF MODIFICATIONS OF THE LAW OF BANKS AND SAVINGS BANKS
(Official Gazette of the Republic of Slovenia no. 38/92)

III. THE LAW OF MODIFICATIONS AND AMENDMENTS OF THE LAW OF BANKS AND SAVINGS BANKS
(Official Gazette of the Republic of Slovenia no. 46/93)

Any replaced and modified wording is crossed out.
Any new and added wording is written in italics.

LAW ON PRE-REHABILITATION, REHABILITATION, BANKRUPTCY AND LIQUIDATION OF BANKS AND SAVINGS BANKS

I. BASIC PROVISIONS

Article 1

This Law regulates the conditions and procedures for pre-rehabilitation, rehabilitation, bankruptcy and liquidation of banks and savings banks.

Article 2

Pre-rehabilitation measures may be introduced in banks and savings banks in the following cases identified by the Bank of Slovenia:

- Non-liquidity of a bank or savings bank;

- Bank's exess of individual multipliers, referred to in Article 26 of the Law of Banks and Savings Banks, by more then 20 percent in the last 6 months;

- Bank's failure, according to the latest data available, to attain 70 per cent of the prescribed ratio from the first paragraph of Article 26 of the Law of Banks and Savings Banks;

- Bank's excess of individual multipliers, specified in the Memorandum of Association ot the savings bank and/or in the Operating License by the Bank of Slovenia, by more than 20 per cent in the last six months;

- Potential losses arising from risky investments and off-balance sheet items on the assets side that represent more then 30 per cent of the amount of the capital;

- Failure of a bank or savings bank to fulfill other prescribed terms and conditions relating to operation or monetary policy measures, thus threatening the insurance of citizens' deposits.

Potential losses shall be identified by the Bank of Slovenia on the basis of a classification of the risk of items on the assets side of the balance sheet and of the corresponding off-balance-sheet items of a bank and savings bank (hereinafter referred to as Bank).

Article 3

The rehabilitation preceedings may be introduced in the Bank whenever due to the risk of investments and the off balance sheet items on the assets side the losses and potential losses represent more than 50 per cent of the Bank's capital.

The rehabilitation proceedings may be introduced in the Bank whenever, according to the latest data available, the Bank fails to attain 50 per cent of the prescribed ratio from the first paragraph of Article 26 of the Law of Banks and Savings Banks.

Article 4

The bankruptcy proceedings shall be introduced in the Bank for which the Bank of Slovenia ascertains that the rehabilitation is not economically justified.

Article 5

The liquidation proceedings shall be introduced in the Bank whenever the founders shareholders adopt the decision to close the Bank or whenever the Bank of Slovenia discovers that the Bank is no longer fulfilling the prescribed terms and conditions for further operation.

II. PRE-REHABILITATION MEASURES

Article 6

In the pre-rehabilitation proceedings the Governor of the Bank of Slovenia may introduce the following measures:

He may:

1. Prescribe deadlines for implementation of the measures referred to in the first paragraph of Article 2 of this Law;

2. Appoint the person to supervise the Bank operation directly in the Bank;

3. Check on the use of funds intended for insurance of bank deposits;

4. Check the costs and the making of payments from the Bank's giro accounts;

5. Check whether the Bank presents all payment orders for matured obligations;

6. Check on the approval and if necessary prohibit the approval of limits on overdrafts in the citizens' current accounts, or demand the revocation of the approved limits;

7. Prohibit the allocation and disbursement of profit;

8. Prohibit the granting of new loans, guarantees and letters of credit;

8. Prescribe the measures for approval of investments and warranties as well as for management of the open foreign exchange position of the Bank.

A more detailed procedure for implementation of the measures referred to in the preceding paragraph may, if necessary, be prescribed by the Bank of Slovenia.

The decision on the pronouncement of the measures referred to in the first paragraph of this Article shall be final in the administrative proceedings.

III. REHABILITATION PROCEEDINGS

Article 7

The proposal for introduction of the rehabilitation proceedings may be made by the Bank, the founders shareholders, the creditors of the Bank and by an authorized organization for payment transactions.

The Governor of the Bank of Slovenia shall pass a resolution on the introduction of a procedure for assessment of the Bank's financial standing as well as of the possibility and economic justification for its rehabilitation, on the proposal referred to in the preceding paragraph or at his own discretion.

The resolution referred to in the preceding paragraph may also serve for introduction of pre-rehabilitation measures in the Bank, such as referred to in Article 6 hereof.

Article 8

The assessment of economic justification of the Bank's rehabilitation shall primarily focus on the identification of:

1. The amount of loss and potential losses of the Bank;

2. The amount to be disbursed in the event of the Bank's bankruptcy by the Republic of Slovenia, the Bank of Slovenia or the Agency for Insurance of Deposits in Banks and Savings Banks in compliance with special provisions on the basis of bank deposit insurances;

3. The approximate amount of funds required for rehabilitation;

4. The offers by other banks to take over the Bank, the terms and conditions under which other banks would take over the Bank subject to rehabilitation, and the effects of the takeover on their financial standing;

5. The willingness of other entities to buy up the Bank;

6. The effect of the Bank rehabilitation on the national economy.

Article 9

The Governor of the Bank of Slovenia shall issue a decision on introduction of the rehabilitation proceedings in the Bank whenever on the basis of the findings referred to in the preceding paragraph he finds the rehabilitation of the Bank to be possible and economically justified.

The decision referred to in the preceding paragraph shall be final in the administrative proceedings.

Article 1 0

The decision on introduction of the rehabilitation proceedings in the Bank shall include:

1. The amount of losses and potential losses of the Bank subject to rehabilitation;

2. The amount of losses and potential losses of the Bank subject to rehabilitation that may be written off against the capital;

3. The amount with which a rehabilitator is buying shares in the Bank;

4. The amount of potential losses of the Bank bought by a rehabilitator temporarily or permanently;

5. The amount of potential losses of the Bank taken over by a rehabilitator together with the corresponding pan of liabilities;

6. The amount of additional capital paid into the Bank;

7. The amount of claims written off by creditors of the Bank;

8. The name and the registered office of the Bank that is taking over the Bank subject to rehabilitation, and the time by which the takeover is to be completed;

9. The amount of loan that the rehabilitator is granting to the Bank subject to rehabilitation or to the Bank that is taking over the Bank subject to rehabilitation, and the terms and conditions under which the loan is granted;

10. The obligations from which the Bank subject to rehabilitation, andlor the Bank taking over the Bank subject to rehabilitation, may be released, and the period for which it is released.

Article 1 1

The Bank facing the introduction of the rehabilitation proceedings shall write off its losses and potential losses against the capital.

Article 1 2

The functions of all managing bodies, the powers of managerial staff of the Bank and the founders' shareholders' rights based on the capital investments that were, in accordance with the provisions of the preceding Article, used for write-off of the Bank's losses and potential losses, shall cease on delivery of the decision on introduction of the rehabilitation proceedings in the Bank.

The decision referred to in the preceding paragraph shall also be sent to the coun where the Bank is entered into the Court Registry.

Article 1 3

The rehabilitation proceedings of the Bank shall be carried out through:

1. Additional payment of capital into the Bank involved in the rehabilitation proceedings;

2. Panial or complete write-off of claims against the Bank;

3. Takeover of potential losses together with the corresponding part of liabilities;

4. Temporary or permanent buying up of potential losses of the Bank subject to rehabilitation;

5. Another Bank's takeover of the Bank subject to rehabilitation;

6. Buying up of all shares or of a specified number of shares of the Bank subject to rehabilitation in compliance with Article 20 of the Law of Banks and Savings Banks;

7. Additional payment of capital into the Bank that is taking over the Bank subject to rehabilitation.

Article 1 4

The rehabilitation proceedings shall be carried out by an organization specified by the Executive Council of the Parliament of the Republic of Slovenia (hereinafter referred to as the Rehabilitator).

Article 15

The bank rehabilitation funds, made available in the budget of the Republic of Slovenia, shall be kept by the Rehabilitator under a separate balance-sheet of funds.

Article 1 6

In the rehabilitation proceedings the Rehabilitator shall carry out the following operations and/or tasks:

1. Temporary or permanent buying up of potential losses;

2. Takeover of potential losses together with the corresponding part of the liabilities;

3. Management of the potential losses bought;

4. Management of the potential losses taken over from the Bank subject to rehabilitation, together with the corresponding part of the liabilities;

5. Sale of permanently bought potential losses and/or of the potential losses taken over together with the corresponding pan of the liabilities;

6. Granting of loans to the Bank subject to rehabilitation and/or to the Bank that has taken over the Bank subject to rehabilitation;

7. Buying of shares of the Bank subject to rehabilitation;

8. Organizing of sale of the shares of the Bank subject to rehabilitation to other entities;

9. Organizing of the takeover of the Bank subject to rehabilitation by another Bank specified in the decision of the Bank of Slovenia on the introduction of the rehabilitation proceedings.

Article 1 7

The Rehabilitator shall assen its right of management and its right to the profits of the Bank subject to rehabilitation, in proportion to its share in the capital of the respective Bank.

Article 1 8

The Rehabilitator shall manage the potential losses, together with the corresponding part of the liabilities that it has taken over from the 8ank subject to rehabilitation, and the potential losses that it has bought permanently or temporarily from the Bank subject to rehabilitation.

Article 1 9

When the Rehabilitator takes over from the Bank subject to rehabilitation potential losses, together with the corresponding part of the liabilities, or permanently or temporarily buys potential losses from the Bank subject to rehabilitation, it shall notify the debtors and creditors of the Bank in respect of the taken over potential losses or liabilities.

Article 20

The Rehabilitator shall carry out the measures necessary to realize and sell the potential losses bought.

The funds created through realization and sale of permanently bought potential losses shall belong to the Republic of Slovenia, but the funds created through realization and sale of temporarily bought potential losses shall belong to the Bank subject to rehabilitation.

The funds made available by the Republic of Slovenia for rehabilitation of the Bank shall be returned by the Bank subject to rehabilitation to the Republic of Slovenia out of the funds created by the sale of permanently bought potential losses.

Article 21

If not all shares of the Bank subject to rehabilitation are sold, or if the specified number of its shares is not sold, in accordance with the decision on introduction of the rehabilitation proceedings, the Bank of Slovenia may resolve that the rehabilitation of the Bank be carried out by a different method or it may issue a decision on identification of the terms and conditions for introduction of the bankruptcy proceedings over the bank.

Article 22

If in the rehabilitation proceedings the Bank of Slovenia ascertains that the Bank cannot be rehabilitated, it shall issue a decision on identification of the terms and conditions for introduction of the bankruptcy proceedings over the bank.

The decision referred to in the preceding paragraph shall also regulate the operation of the Bank until the commencement of the bankruptcy proceedings.

IV. BANKRUPTCY PROCEEDINGS

Article 23

The decision on identification of the terms and conditions for introduction of the bankruptcy proceedings over the Bank shall be issued by the Governor of the Bank of Slovenia.

A petition for identification of the terms and conditions for introduction of the bankruptcy proceedings may also be filed by creditors, founders, shareholders of the Bank and by an authorized organization for payment transactions.

On the basis of the petition referred to in the preceding paragraph, the Governor of the Bank of Slovenia may introduce into the Bank pre-rehabilitation measures referred to in Article 6 hereof, reject the petition or issue a decision on identification of the terms and conditions for introduction of the bankruptcy proceedings.

The Bank or the petitioner referred to in the second paragraph of this Article may appeal against the decision on identification of the terms and conditions for introduction of the bankruptcy proceedings within eight days after its delivery. The appeal shall be subject to the decision of the Council of the Bank of Slovenia.

If the appeal referred to in the preceding paragraph is filed by the Bank, it shall be accompanied by the documentation proving that the prescribed terms and conditions for the bankruptcy have not been satisfied.

Article 24

The final decision on identification of the terms and conditions for introduction of the bankruptcy proceedings over a bank shall be delivered to the Bank that is subject to the bankruptcy proceedings, to the Bank that has taken over the transactions with bank deposits under the insurance of the Republic of Slovenia, the Bank of Slovenia or the Agency for Insurance of Deposits in Banks and Savings Banks, to the authorized organization for payment transactions and to the petitioners referred to in the second paragraph of the preceding Article, and shall be sent to the court where the bank is entered into the Court Registry.

Article 25

The competent court shall decide on the introduction of the bankruptcy proceedings at the latest within eight days after the receipt of the final decision referred to in the preceding Article.

There shall be no appeal against the decision of the court referred to in the preceding paragraph.

Article 26

The competent court shall keep the Rehabilitator currently informed of its activities and shall offer him the possibility of attending the meetings of creditors convened by the court.

Article 27

Within 10 days after the announcement of the introduction of the bankruptcy proceedings is published in the Official Gazette of the Republic of Slovenia, the bankrupt Bank and the Bank that takes over the operations of the bankrupt Bank shall make a written record of the state of all claims and obligations of the bankrupt Bank on the issue date of the resolution concerning the introduction of the bankruptcy proceedings over the Bank, and shall send the records to the Bank of Slovenia.

The records referred to in the preceding paragraph shall be sent by the Bank of Slovenia to the court that introduced the bankruptcy proceedings not later than 10 days after the receipt.

Article 28

The legal consequences of the introduction of the bankruptcy proceedings shall commence on the day when the Bank is delivered the court's decision about the introduction of the bankruptcy proceedings, and shall include the following:

1. Activation of insurances for citizens' bank deposits;

2. Activation of guarantees of the Bank of Slovenia and of the Republic of Slovenia for foreign loans;

3. Claims on the Bank relating to periodical contributions, except claims by foreign creditors under the guarantees of the Bank of Slovenia and of the Republic of Slovenia, shall be changed to non-recurrent claims;

4. Creditors' claims on the bank, except claims of foreign creditors under the guarantees of the Bank of Slovenia and of the Republic of Slovenia, shall be considered as matured;

5. The obligations from insurances of bank deposits shall be reduced by the money in hand;

6. The essential operating costs of the bankrupt bank shall be covered out of the advance payment demanded by the bankruptcy commission from the bankruptcy petitioner.

Article 29

Prior to the commencement of repayment of creditors, a part of the funds shall be deducted from the bankrupt's assets to cover the costs of the proceedings including those of the Bank that has taken over the bank deposit transactions of the bankrupt bank.

Article 30

Creditors' claims shall be disbursed out of the bankrupt's assets in the following order:

1. Claims on bank deposits insured by the Republic of Slovenia, by the Bank of Slovenia and by the Agency for Insurance of Deposits in Banks and Savings Banks;

2. Claims by the Bank of Slovenia;

3. Claims by creditors that are not Bank owners;

4. Claims by Bank owners.

Article 31

Unless otherwise provided for in this Law, the bankruptcy proceedings over the Bank shall be governed by the provisions of the law that regulates the bankruptcy of companies, except for the provisions concerning the voluntary reorganization.

V. LIQUIDATION PROCEEDINGS

Article 32

The decision on identification of the terms and conditions for introduction of the liquidation proceedings in the Bank shall be issued by the Governor of the Bank of Slovenia if he ascertains that the Bank no longer fulfills the prescribed terms and conditions for further operation or on the basis of the resolution by the Bank shareholders to close the Bank.

The decision referred to in the preceeding paragraph shall be final in the administrative proceedings.

The decision on identification of the conditions for introduction of the liquidation proceedings in the Bank shall be delivered to the Bank that has taken over the transactions of the bank subject to liquidation and to the authorized organizatin for payment transacton, and shall be sent to the competent court for introduction of the liquidation proceedings.

Article 33

Within 10 days upon receipt of the court decision on introduction of the liquidation proceedings, the Bank subject to liquidation and the Bank that has taken over the transactons of the Bank subject to liquidation shall make a written record of the state of all claims and obligations and shall send the record to the Bank of Slovenia.

The Bank of Slovenia shall send the records to the competent court within 10 days.

Article 34

The funds left over upon termination of the liquidation proceedings shall be allocated among the Bank owners in compliance with the BankÕs enactments.

Article 35

Unless otherwise provided herein, the liquidation proceedings in the Bank shall be governed by the provisions of the Law regulating the liquidation of companies.

Vl. TRANSITIONAL AND FINAL PROVISIONS

Article 36

The rehabilitation, bankruptcy and liquidation proceedings started under the regulations in force prior to the entry in force of this Law shall be completed under tne said regulations.

Article 37

The provision of Item 2 of Article 30 hereof shall be applicable till 30 June 1996.

Article 38

This Law shall enter in force on the date of its publication in the Official Gazette of the Republic of Slovenia.

THE LAW OF PRE-REHABILITATION, REHABILITATION, BANKRUPTCY AND LIQUIDATION OF BANKS AND SAVINGS BANKS COVERS THE PROVISIONS OF: I. THE LAW OF PRE-REHABILITATION, REHABILITATION, BANKRUPTCY AND LIQUIDATION OF BANKS AND SAVINGS BANKS
(Official Gazette of the Republic of Slovenia no. 1/91)

II. THE LAW OF MODIFICATIONS OF THE LAW OF PRE-REHABILITATION, REHABILITATION, BANKRUPTCY AND LIQUIDATION OF BANKS AND SAVINGS BANKS
(Official Gazette of the Republic of Slovenia no. 46/93)

Any replaced wording is crossed out.
Any new and added wording is written in ilalics.