Kuntien TakauskeskusKommunernas GaranticentralMunicipal Guarantee Board

Standing Orders

STANDING ORDERS OF THE MUNICIPAL GUARANTEE BOARD

Section 1 General

Provisions on the purpose and operations of the institution under public law called the Municipal Guarantee Board, hereinafter the Guarantee Board, are laid down in the Act on the Municipal Guarantee Board (487/96), hereinafter the Guarantee Board Act.

In the administration of the Guarantee Board, the provisions of these Standing Orders shall be applied, in addition to what has been laid down with respect to it.

The registered office of the Guarantee Board is the City of Helsinki.

Section 2 Permanent disqualification of a member of the Council

If a Council member or deputy member dies, loses their eligibility or is released from the position, the Association of Finnish Local and Regional Authorities shall be informed of this immediately for the purpose of proposing a new member to be elected in their place.

Section 3 Permanent disqualification of the Chair and Deputy Chair of the Council

If the Chair or Deputy Chair of the Council dies, loses their eligibility or is released from their position, another person shall be elected in their place for the remaining term of office.

Section 4 Council's presence of a quorum

The Council constitutes a quorum when the Chair or Deputy Chair and not less than half of the other members are present. Matters shall be decided on by a majority of votes. In the case of a tie, the Chair's vote shall decide.

At elections, the person who receives the majority of votes shall be regarded as elected. However, a meeting of the Council can decide prior to the election that the person receiving more than half of the votes cast shall be elected. In the case of a tie, the election shall be decided by lot.

The members of the Board of Directors and the Managing Director shall be entitled to be present at the Council's meetings and participate in discussions, albeit not in decision-making.

Section 5 Meetings of the Council

The Council shall be convened by the Chair of the Council. The first meeting in a new Council's term of office shall be convened by the Chair of the previous Council.

The Council shall assemble for its ordinary meetings twice a year: the spring meeting in April at the latest and the autumn meeting in November at the latest.

An extraordinary meeting of the Council shall be held whenever the Council's Chair or the Board of Directors deems it necessary or whenever not less than one-quarter of the Council's members have made a proposal in writing to the Chair for the dealing with a matter announced.

Section 6 Summons to the Council's meetings

A summons to the Council's meeting shall be sent to members in writing not less than seven days prior to the meeting. The agenda and, whenever possible, the reports, memoranda and proposals concerning matters to be dealt with, shall be attached to the summons.

If a member is prevented from attending a meeting, they shall without delay inform thereof their deputy, who shall in the member's place participate in the meeting, in case the deputy member is not prevented from attending the meeting. The member shall also inform the Chair of their excuse. The Chair shall also be entitled to call the deputy of the prevented member to attend the meeting.

Section 7 Urgent matters

On the basis of a unanimous decision, the Council can take up a matter not mentioned in the summons, if the urgency of the matter calls for it.

Section 8 Duties of the Council

The Council shall be responsible for the activities and finances of the Guarantee Board.

The Council shall be assigned, for example, to the following:

1) decide on the key targets of the Guarantee Board's activities and finances

2) approve the budget for the Guarantee Board

3) elect the members of the Board of Directors in the first meeting of the Council's new term of office

4) decide on the remuneration and other compensations of the Guarantee Board's fiduciary persons

5) decide on the amount of assets to be transferred to the Fund

6) approve the financial statements and decide on the discharging from liability of the members of the Board of Directors and the Managing Director

7) deal with claims for correction lodged against the Guarantee Board's decisions

8) decide on other matters laid down and prescribed to be decided by the Council.

Section 9 Minutes of the Council

At the meetings of the Council, minutes shall be kept; these shall be signed by the Chair of the Council's meeting and confirmed by the minutes-keeper. The minutes shall be scrutinized in the manner decided by the Council.

Minutes shall be consecutively numbered and reliably archived.

Section 10 Board of Directors

The Board of Directors of the Guarantee Board shall consist of not less than five and not more than seven members.

The Board of Directors shall elect the Chair and Deputy Chair from among themselves.

The term of office of the members of the Board of Directors shall be four years. The term of office shall continue until the next Board of Directors is elected.

If the Chair, Deputy Chair or a member of the Board of Directors dies, loses their eligibility or is released from their position, another person shall be elected in their place for the remaining term of office.

Section 11 Presence of a quorum of the Board of Directors

The Board of Directors shall constitute a quorum whenever more than half of the members of the Board are present. Matters shall be decided on by a majority of votes. In the case of a tie, the Chair's vote shall decide.

At elections, the person who receives the majority of votes shall be regarded as elected. However, a meeting of the Board of Directors can decide prior to the election that the person receiving more than half of the votes cast shall be elected. In the case of a tie, the election shall be decided by lot.

The Chair and Deputy Chair of the Council and the Managing Director of the Guarantee Board shall be entitled to be present at the meetings of the Board of Directors and to participate in discussion, albeit not in decision-making.

Section 12 Meetings of the Board of Directors

The Board of Directors resolves the matters to be decided by it upon presentation. Matters shall be presented to the Board of Directors by the Managing Director or, at the Director's order, by the Deputy to the Managing Director or, should the Managing Director or their Deputy be prevented from attending to this duty, by the Chair of the Board of Directors.

Section 13 Duties of the Board of Directors

In addition to that provided in the Guarantee Board Act, the Board of Directors shall be assigned to:

1) grant guarantees and to decide on the guarantee commissions to be collected on these, unless the Board of Directors has transferred these powers to the Managing Director

2) decide on the establishment of stand-by credit facility arrangements

3) decide on the disposal and investment of the funds' assets and stand-by credit facility arrangements, and implementation of ownership steering, unless the Board of Directors has transferred the powers to the Managing Director

4) ensure that the members of the Council or Board of Directors do not have affiliations that would prevent them from acting as a member of the Council or Board of Directors.

Section 14 Minutes of the Board of Directors

At the meetings of the Board of Directors, minutes shall be kept; these shall be signed by the Chair of the Board's meeting and confirmed by the minutes-keeper. The minutes shall be scrutinized in the manner decided by the Board of Directors.

Minutes shall be consecutively numbered and reliably archived.

Section 15 Managing Director

The Managing Director of the Guarantee Board shall be in charge of the current administration of the Guarantee Board in accordance with the guidelines and regulations issued by the Board of Directors. The Managing Director is allowed to take measures, which are exceptional or far-reaching taking into account the extent and nature of the Guarantee Board's activities, only if the Board of Directors has authorized him to do it, or if the Board of Directors' decision cannot be waited for without causing essential harm to the activities of the Guarantee Board. In the last-mentioned case, the Board of Directors shall be informed of the measure as soon as possible.

The Managing Director shall have sufficient expertise in municipal and financial matters, as well as a higher university degree suitable for the position.

In the event that the Managing Director is disqualified or prevented from attending to their duties, a deputy designated by the Board of Directors shall act in their stead.

Section 16 Financial statements

The financial statements and the annual report for the accounting year shall be prepared and submitted to the auditing corporation by the end of February of the following year.

Section 17 Budget

The Council shall approve the budget for the Guarantee Board for one calendar year.

An operational and financial plan for a period exceeding one year shall be attached to the budget.

Section 18 Follow-up of finances

The Managing Director shall report regularly to the Board of Directors and the Council on developments in the financial status.

Section 19 Auditing corporation

The auditing corporation shall issue an auditor's report to the Council for each accounting period. The report shall be submitted to the Board of Directors of the Guarantee Board at the latest two weeks prior to the ordinary spring meeting of the Council.

Section 20 Decisions on the granting of guarantees

The granting of guarantees shall be decided by the Board of Directors or, authorized by the Board of Directors, the Managing Director.

Section 21 Granting of guarantees

Sufficient security shall be required to be provided for guarantees. From the perspective of healthy and cautious business principles and the interest of the member communities of the Guarantee Board, sufficient security shall primarily consist of securities based on receivables. Covenants can be used to the extent that is justified for the purposes of the operations.

Section 22 Purpose of the Fund and asset accumulation

The disposal of the Fund's assets shall be decided by the Board of Directors or by the Managing Director by virtue of powers conferred by the Board of Directors.

Section 23 Investment of the Fund's assets

When investing, attention shall be paid to the safety, returns and liquidity of investments. Investment of the Fund's assets shall be decided by the Board of Directors or the Managing Director by virtue of powers conferred by the Board of Directors.

Section 24 Stand-by credit facility arrangements

The establishment of stand-by credit facility arrangements shall be decided by the Board of Directors. Whenever necessary, the Managing Director can resort to stand-by credit facility arrangements by virtue of powers conferred by the Board of Directors.

Section 25 Financial operating principles

Guarantee commissions to be collected on the guarantees granted shall be assessed so that they suffice to cover the expenses incurred from the Guarantee Board's activities and to adequately accrue assets into the Fund, taking into account the extent of the activities of the Guarantee Board.

Section 26 Member organizations' responsibility arrangements related to guarantees

The Guarantee Board shall start collection measures without delay against the credit institution and the member organization which has failed its pecuniary obligation, in order to recollect its claim together with penalty interest payments pursuant to Section 4 or 4 a of the Interest Rates Act (633/1982).

Section 27 Hiring, resignation and dismissal of personnel

The Managing Director shall decide, in accordance with the Board of Directors guidelines, on the hiring, resignation and dismissal of other personnel.

Section 28 Signing of documents

The agreements to be concluded on behalf of the Guarantee Board, and the guarantees, proxies and other commitments made in its name shall be signed by the Chair of the Board of Directors and the Managing Director, both of them separately, or by two members of the Board of Directors together, or by the person(s) separately authorized by the Board of Directors to do it.

Section 29 Receipt of summonses

In addition to the Chair of the Board of Directors, the Managing Director shall be entitled to receive summonses and other notifications on behalf of the Guarantee Board.

Section 30 Entry into force of Standing Orders

These Standing Orders shall enter into force on 23 November 2018.

The Standing Orders issued on 16 March 2018 pursuant to section 7 of the Guarantee Board Act are revoked by these Standing Orders.

 


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