Section XI - Postponement of Maturity

Art. 25

1. Banks that are exposed to continued and excessive withdrawals may ask the Federal Council to grant them a postponement of maturity.

2. The postponement of maturity can be granted only where it is established by a special auditing report that the creditors' claims are fully covered and that the payment of interest can be maintained during the postponement.


Art. 26

The postponement of maturity can be granted for all liabilities of the bank or for certain kinds only with the exception of the interest on funds deposited by third persons; the postponement can be granted either for the total or partial amount of the liabilities.


Art. 27

The Federal Council decides on the postponement of maturity alter consultation with the National Bank and the Banking Commission. The necessary measures are taken on a case-by-case basis by applying Articles 29-35 in an analogous manner. The duration of the postponement must be limited.


Art. 28

Where it appears subsequently that the bank no longer fulfils the conditions for the postponement, the Federal Council will annul the postponement; the bank can initiate proceedings under Article 29 or Article 35, paragraph 2.

Prepared by: M. J. Wharton.

KPMG Fides unofficial translation of Swiss Federal Law - Banks And Savings Banks.
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