SUBJECT COMPOSITION OF LEGAL RELATIONS OF BANKS INSOLVENCY

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SUBJECT COMPOSITION OF LEGAL RELATIONS OF BANKS INSOLVENCY

Journal Title: «Приватне та публічне право» - Year 2017, Vol 2, Issue

Abstract

Actual and problematic issues of legal relationships subjects, including branch relationships, were the sphere of interests of many scientists dealing with the state and law theory and branch juridical sciences. However, the above mentioned issues need further general theoretical and branch research, as legal relationships subjects are the primary or basic element of legal relationships. However, the issues of subject matter of legal relationships of banks insolvency were studied in some scientific works. These scientific works dealt not only with the peculiarities of subject matter, but with some derivative or connected with them issues, particularly with the issue of concept definition. Legal relationships of banks insolvency – are relationships governed by the norms of law between the National Bank of Ukraine, the Physical Subjects’ Deposit Guarantee Fund and insolvent bank concerning the implementation and termination of temporary administration, that is the withdrawal of an insolvent bank from the market using legal means within the procedure of temporary administration or its liquidation as a result of recognizing it insolvent. The subjects of legal relationships of banks insolvency are individualized or specific law subjects of insolvency that act as corresponding legal personality in legal relationships and a power “implementator“. Despite the existence of common features and relationship between the subject of insolvency law and the subject of bank insolvency legal relations, they cannot be deemed as equivalent. The subject of insolvency law, empowered with legal opportunity to enter into legal relationships of banks insolvency, transforms this opportunity into legal reality and gain a new quality – the subject of legal relationships. Legal opportunity (legal personality) is inseparably connected with legal reality (legal relationships), being its “product” and development consequence. Legal opportunity characterizes the status of the legal reality – legal relationships of banks insolvency in their development; it is an intermediate between existing reality (legal relations) and its future status. Legal personality as an abstract legal opportunity has certain probability of realization and under certain conditions it is transformed into this reality in consequence of its implementation by subjects. On the other hand, abstract legal opportunity in the absence of conditions can disappear, but at the same time under relevant preconditions (legal norms) and grounds of its implementation (juridical facts) it is transformed into legal reality. The development of legal relationships transforms abstract legal opportunity (legal personality) into concrete legal reality (legal relationships) which changes it, thereupon the subject of law of banks insolvency is transformed into the subject of legal relations of banks insolvency, simultaneously being the subject of law. The subjects of legal relationships of temporary administration of banks is the National Bank of Ukraine, the Physical Subjects’ Deposit Guarantee Fund, the State Commission on Regulation of Financial Services, the National Commission on Securities and Stock Market, banks, depositors and other bank creditors, investors and others. In legal relationships of banks insolvency a depositor as the subject of these relationships can be only natural person (including natural person-entrepreneur), who entered into a deposit contract, banking account contract or possesses registered deposit certificate. Juridical or legal persons with documentary confirmed claims to the bank concerning its property liability acquire the status of creditors of the insolvent bank. The investor as the subject of these legal relationships can be the person who expressed an intention and provided the Physical Subjects’ Deposit Guarantee Fund with written commitment to purchase the shares of the insolvent bank or transition bank in the process of the insolvent banks’ withdrawal from the market.

Authors and Affiliations

В. Д. Чернадчук

Keywords

Bank National Bank of Ukraine legal insolvency of banks bank insolvency legal entity authorized person of the Fund Fund guarantee deposits of natural persons.

EP ID EP444400
DOI -
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