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DANMARKS NATIONALBANK Terms and Conditions for Accounts 17 November 2019 DANMARKS NATIONALBANK Terms and Conditions For Accounts

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DANMARKS NATIONALBANK Terms and Conditions for Accounts 17 November 2019 DANMARKS NATIONALBANK Terms and Conditions For Accounts DANMARKS NATIONALBANK Terms and conditions for accounts 17 November 2019 DANMARKS NATIONALBANK Terms and conditions for accounts Documentation for monetary-policy instruments and settlement of payments in DKK and EUR CONTENT 4 GENERAL 24 SETTLEMENT OF PAYMENTS IN DANISH KRONER AND MONETARY-POLICY INSTRUMENTS 147 FAX FORMS FOR CONTINGENCY PROCEDURES IN RELATION TO DANISH KRONER 158 SETTLEMENT OF PAYMENTS IN EURO General Contents 1. General Terms and Conditions for Monetary Policy Instruments and Settlement of Payments in Danish Kroner at Danmarks Nationalbank 2. Banking Days of Danmarks Nationalbank 3. Payment for Use of Kronos2 and Coverage of Danmarks Nationalbank's Costs 4. Request for Connection to Kronos2 at Danmarks Nationalbank 5. Authorisation of Security Officer to Appoint Users in Kronos2 and Assign User Profiles, etc. 6. Revocation of Authorisation of Security Officer to Appoint Users in Kronos2 and Assign User Profiles, etc. 7. Changes to Security Officer's Contact Details General Terms and Conditions for Monetary Policy Instruments and Settlement of Payments in Danish Kroner at Danmarks Nationalbank These "General Terms and Conditions for Monetary Policy Instruments and Settlement of Payments in Danish Kroner at Danmarks Nationalbank" apply to any relationship for the following types of account holders and accounts in connection with monetary policy instruments and settlement of payments in Danish kroner at Danmarks Nationalbank. 1. Definitions • A "settlement account" (in Kronos2 "LOM account") is a settlement account in Danish kroner established and linked to the settlement of payments in payment systems or securities settle- ment systems at Danmarks Nationalbank. • A "user profile" is a user profile as defined by Danmarks Nationalbank at any time, giving a user access to various Kronos2 functionalities as described at Danmarks Nationalbank's website (www.nationalbanken.dk). • The "collateral list" is a statement of the collateral value of the account holder's aggregate col- lateral available at any time (pledged VP-registered assets, certificates of deposit held, SCP cur- rency deposit, deposit in the pledged cash account and VP-registered assets for which collat- eral has been registered under the automatic collateralisation arrangement). • A "current account" is a current account in Danish kroner. The current account is split into two: a settlement account, to which incoming and outgoing payments are entered and for which the balance can be positive or 0, and a loan account, in which any intraday loans are registered and for which the balance can be negative or 0. Transfers between the two accounts take place individually and instantly. The settlement and loan accounts are jointly referred to as the cur- rent account. • The "current account limit" is the ceiling applying at any time to a monetary policy counterpar- ty's aggregate deposit at 4:45 pm in the current account, the pledged cash account and other accounts, which will usually be emptied at 4:45 pm. The aggregate current account limit of the monetary policy counterparties is equal to the sum of the individual current account limits. • "Account holders" are credit institutions or branches thereof, as well as others who have estab- lished current accounts at Danmarks Nationalbank, and banks, mortgage banks and branches thereof which Danmarks Nationalbank has also granted access to the monetary policy instru- ments, cf. "Terms and Conditions for a Current Account at Danmarks Nationalbank". • "Credit institutions" are institutions as defined in Directive 2006/48 of the European Parliament and of the Council (relating to the taking up and pursuit of the business of credit institutions). • "Banks" are commercial banks, savings banks and cooperative banks authorised by the Danish Financial Supervisory Authority to conduct banking activities pursuant to the Danish Financial Business Act. • "Monetary policy instruments" are interest-bearing deposits in current accounts, monetary pol- icy loans and certificates of deposit. • A "monetary policy counterparty" is an account holder that has access to use the monetary policy instruments. • A "mortgage bank" is an institution authorised by the Danish Financial Supervisory Authority to conduct mortgage credit activities pursuant to the Danish Financial Business Act. • A "regular custody account" is a custody account in T2S, created at VP Securities A/S in the name of the account holder, used in connection with the raising of intraday loans in Kronos2 for redemption of T2S Auto-collateralisation loans and pledged to Danmarks Nationalbank by the account holder. • A "receiving custody account" is a custody account in T2S, created at VP Securities A/S in the name of the account holder, used in connection with the raising of T2S Auto-collateralisation loans and pledged to Danmarks Nationalbank by the account holder. • A "transaction" is any transaction involving the current account, a settlement account, an SCP account or relating to monetary policy loans and certificates of deposit, accounts linked to cash depots and the release, placement and substitution of collateral. Transactions take place via Kronos2. • A "T2S Auto-collateralisation loan" (loan against automatic pledging of collateral) is an intraday loan in Danish kroner provided by Danmarks Nationalbank in T2S if an account holder has in- sufficient funds in the Dedicated Cash Account (DCA) for settlement of trades or execution of periodic payments in T2S, for which collateral is pledged in the form of the securities pur- chased or securities transferred from one of the collateral providing custody accounts desig- nated by the account holder to the account holder's receiving custody account pledged to Danmarks Nationalbank. • "Kronos2" is Danmarks Nationalbank's real-time gross settlement (RTGS) system in Danish kro- ner. The terms and conditions for connection to and use of Kronos2 can be found at Danmarks Nationalbank’s website (www.nationalbanken.dk). • A "pledged cash account" (in Kronos2 an "interim account") is an account held by an account holder who participates in the Express Clearing and which is used solely as collateral for the Express Clearing. • A "PM account" is an account held by an account holder who participates in Target2 and which is used to execute payments in euro in Target2. • "CLS" is Continuous Linked Settlement, a clearing and settlement system for foreign exchange transactions in a number of currencies. • "SCP" is Scandinavian Cash Pool (in Kronos2 "Regional Cash Pool, RCP"), a system for cross- border pledging of collateral between Danmarks Nationalbank, Norges Bank and Sveriges Riksbank. • A "security officer" is a person authorised by the authorised signatories of an account holder. • "T2S" is the trans-European platform (the T2S platform) for securities settlement; it is based on a shared technical infrastructure to which central securities depositories outsource their set- tlement. 2. Right of signature and power of attorney and authorisation of security officer a) Right of signature and power of attorney When establishing an account in Danish kroner, the account holder shall document who is legally entitled to sign on behalf of the account holder ("authorised signatories"). Specimens of the signatures of the authorised signatories shall be enclosed. Changes in the au- thorised signatories of the account holder shall be notified in writing to Danmarks Nationalbank, Banking and Markets. If the account holder's firm is not registered with the Danish Business Authority, the account hold- er shall, in a manner that is satisfactory to Danmarks Nationalbank, prove the legal validity etc. of the right of signature and power of attorney under the legislation of the home country. The ac- count holder shall inform Danmarks Nationalbank of all changes to their legal capacity and of rele- vant legislative amendments affecting the circumstances included in any capacity opinion provided regarding legislation in the country in question. The account holder shall inform Danmarks Nationalbank, Banking and Markets, in writing if per- sons other than the authorised signatories are to be granted power of attorney to carry out trans- actions, etc. on the basis of a written request ("holders of power of attorney") in connection with contingency procedures or notifications of changes concerning conditions relating to the account holder's day-to-day operations. If the account holder has access to use the monetary policy instruments, the notification should be made on the form "Power of Attorney to a Current Account and Monetary Policy Transactions at Danmarks Nationalbank, etc.". If the account holder only holds a current account at Danmarks Na- tionalbank, the notification shall be given on the form "Power of Attorney to a Current Account at Danmarks Nationalbank, etc.". Power of attorney to request the withdrawal of securities from a pledged VP account is given on the form "Guidelines for Withdrawal of Assets from and Placement of Assets in a VP Account Pledged for Credit Facilities in Danish Kroner at Danmarks Nationalbank in connection with Contingency Procedures". These forms must include the names of the holders of power of attorney, as well as specimens of their signatures. The notification must be signed by the authorised signatories. Changes to the powers of attorney granted by the account holder shall be notified in writing to Danmarks Nationalbank on the forms stated. b) Authorisation of security officer Kronos2 includes a number of predefined
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