§ 4 The Guarantee Fund’s capital
(1) The Guarantee Fund’s total capital must, at all times, equal no less than the sum of 1.5 per cent of the total amount of guaranteed deposits held by members, plus 0.5 per cent of the total basis for the calculation of members’ capital adequacy (risk weighted assets), as stated in § 1(3)(a)(b). The Fund’s capital is procured through levies and guarantees in accordance with §§ 5 and 6.
(2) Calculation of members’ total guaranteed deposits, as mentioned in sentence 1 above, is based on an average of the members' deposits at the end of the third and fourth quarter of the calendar year two years before the payment year, and the first and second quarter of the calendar year one year before the payment year. The same method is used to calculate the total risk weighted assets.
§ 5 Membership levy
(1) Each year members pay a levy to the Guarantee Fund.
(2) The levy is calculated in accordance with Sections 19–6 and 19–8 of the Act and associated regulations.
(3) The board must notify individual members of the size of the levy to be collected. The deadline for payment is to be determined by the board.
(4) The levy payable by any new members of the Fund that were operational before joining, is determined by the MoF on a case by case basis.
§ 6 Member guarantees
(1) To the extent that the Guarantee Fund’s assets fall below the minimum required in § 4, the shortfall shall be covered by guarantees from its members. The amount guaranteed by each member shall be calculated on a pro rata basis in the same way as the levy set out in § 5.Calls for payments pursuant to guarantee liabilities in a single year may not exceed one-tenth of the Fund’s aggregate capital, cf. §4.
(2) The Fund’s board allocates the guarantee amounts and determines how
the guarantee liability shall be secured. The allocation of guarantee amounts shall be recalculated if the board so decides and when the MoF so requires.
(3) The board determines the wording of guarantee declarations from the members and ensures that the declarations are obtained.
§ 7 Investment of the Guarantee Fund's assets
(1) Within the frameworks pursuant to the rules below, the board determines the strategy and guidelines for management of the Guarantee Fund’s assets in order to ensure prudent management, necessary liquidity and ethical management.
(2) Investments must be made within the following parameters.
a. A minimum of two-thirds of the Fund's assets must be invested in Norwegian and foreign government and government-guaranteed bonds.
b. The Fund may not invest assets directly or indirectly in shares, equity certificates or other subordinated capital instruments issued by Norwegian banks or in a parent company of a financial group that includes Norwegian banks, unless such investments are a support measure pursuant to Section 19-11 of the Financial Institutions Act.
§ 8 Borrowings
(1) The board may decide that the Fund should borrow funds if this is deemed necessary to fulfil its objectives.