This is the 2004 amendment to Articles 2, 4, 7, 10 and 15 of the Deposit Insurance Law for Financial Institutions. The deposit fund (FOSEDE) is funded through the liquidity funds which financial institutions maintain to back their clients' deposits.
The use of these funds will be administered by the National Commission of Banks and Insurance. FOSEDE will be administered by an Administrative Board formed by an Executive President, a Central Bank Directive, and a representative of the Honduran Council for Private Enterprises.
Whenever a FOSEDE member institution decides to be liquidated, it can request the state for the full reimbursement of its contribution to the fund.
The Honduras Central Bank will maintain an emergency line of credit with FOSEDE. This line of credit may only be used in case FOSEDE runs out of funds to support its member institutions.