Common use of General limits of coverage Clause in Contracts

General limits of coverage. If a customer cannot access his/her money because the bank cannot meet its financial obligations, the customer will be compensated by the deposit guarantee scheme. The maximum compensation is 100,000 EUR. This amount represents the sum of all the customer’s funds deposited at that bank. For example, if a customer holds 90,000 EUR in a savings account and 20,000 EUR in a current account, only 100,000 EUR will be paid out as compensation. For accounts held in currencies other than Euro, amounts will be converted at the mean rate of exchange of the date on which the bank became insolvent. In certain cases, deposits higher than 100,000 EUR will be covered up to an amount of 500,000 EUR. The following conditions apply: (1.) The deposits a) result from real estate transactions relating to private residential properties, or b) fulfil legally stipulated social purposes and are linked to specific life events of the customer, such as marriage, divorce, retirement, dismissal, redundancy, disability or death, or c) are based on the payout of insurance benefits or compensation for bodily injuries resulting from criminal offences or for wrongful criminal conviction, and (2.) the payout event occurs no later than twelve months after the deposit was credited to the account or after the date when such deposits become legally transferable. The customer must apply to the deposit guarantee scheme for repayment of the amount over 100,000 EUR within twelve months of the payout event.