8 July 1997 bankruptcy proceedings were instituted against "Tauras" bank.

The Fund promptly prepared "Regulations on Calculation and Payment of the Deposit Indemnities", which were approved by the Fund Council in a meeting of 26 September 1997. For the payment of insurance indemnities the Fund chose the most efficient way, also popular in a practice of foreign countries, whereby current accounts for the deposit holders of the failed bank are opened in another operating bank. The Fund Council in its meeting decided to choose the Savings Bank of Lithuania. A software was promptly devised, whereby the Fund processed the data on individuals' deposits supplied by "Tauras" bank, made the lists of depositors indicating insurance indemnities due to be paid, opened personal accounts of depositors at the Savings Bank of Lithuania were insurance indemnities were transferred.

3 October 1997 the Fund transferred 4 278 thousand LTL to 7 branches of the Savings Bank of Lithuania for the payment of insurance indemnities. Insurance indemnities were paid to 1645 depositors. A fee in the amount of LTL 17.000 was paid to the Savings Bank of Lithuania for entering the indemnities to the accounts of depositors.

For the payment of insurance indemnities the Fund used a portion of collected insurance premiums. For 1 October 1997 the Fund's accumulated insurance premiums amounted to 13.291 thousand LTL, in which the insurance premium of "Tauras" bank was 192 thousand LTL.

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