Ukraine:
Banks May Refuse To Return Deposits Prior To Their Maturity
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Pursuant to the amendments to the Civil Code of Ukraine, passed
by the Parliament of Ukraine on 14 May 2015 (the
"Amendments"), effective as of 6 June 2015, the bank
shall no longer be obliged to return the term deposit amount and
the accrued interest to the client upon first demand unless the
early withdrawal option is expressly provided in the deposit
agreement.
As opposed to the term deposits, call deposits can be withdrawn
by the client upon first demand. Any contractual waiver of the
right to withdraw the deposit under the call deposit agreement
shall be deemed void.
The Amendments shall not apply to the deposit agreements signed
before the Amendments effective date. The adoption of the
Amendments was welcomed by the market as a significant step forward
helping to overcome the ambiguity of the legislation concerning
early withdrawal of deposits.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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To The Point: Financial Regulation | 03/2024
Schoenherr Attorneys at Law
Welcome to our to the point newsletter. Every month, we are looking back at the most relevant developments in the area of financial regulation in the CEE region.