Deposits Covered by the Guarantee and Limits Thereof

FGCAM guarantees each depositor the repayment of deposits with the Central Mutual Agricultural Credit Bank or with associate agricultural banks, whenever that value does not exceed €100,000.

Pursuant to Article 4 of Decree-Law No 345/98, deposit shall mean any credit balance which a member institution must repay and which results from funds left in an account or from temporary situations deriving from normal banking transactions. The concept of deposit covers funds represented by certificates of deposit issued by the member institution, but not those represented by other debt securities issued by the same institution nor liabilities arising out of own acceptances or of promissory notes in circulation.

In the calculation of the limits of the guarantee (€100,000), the following criteria shall be observed:

• Account shall be taken of all the deposits held by the party concerned with the institution in question, regardless of their type;
• Interest due and payable up to the date on which the deposits become unavailable shall be included in the credit balances of deposits;
• The credit balances of deposits denominated in foreign currency shall be converted into euro at the exchange rate prevailing on the same date;
• Except where otherwise provided for, the credit balances of joint accounts, whether jointly or jointly and solidarily held, shall be considered as belonging in equal parts to the holders;
• Where the holder of the account is not entitled to the sums held in an account, the person who is absolutely entitled shall be covered by the guarantee, provided that that person has been identified or is identifiable before the date on which the competent authorities decide that deposits became unavailable;
• If several persons are entitled, the share of each shall be taken into account when the limits of the guarantee are calculated;
• Deposits in an account to which two or more persons are entitled as members of an association or a special committee, without legal personality, shall be aggregated and treated as if made by a single depositor and shall not be taken into account in the calculation of the limits applicable to each of these persons.

Repayment of amounts covered by the guarantee shall take place within the following time limits: one share up to the amount of €10,000, with a maximum payout delay of 7 days; the remainder up to the amount of €100,000, with a maximum payout delay of 20 working days. This time limit shall be counted as of the date on which deposits become unavailable, and the Fund, in exceptional circumstances and on a case-by-case basis, may apply to Banco de Portugal for an extension of the time limit, which shall not exceed 10 working days.

Pursuant to Article 78 of the Legal Framework of Mutual Agricultural Credit (RJCAM), obligations undertaken by associate agricultural banks are fully guaranteed by the Central Mutual Agricultural Credit Bank, as their guarantor.