Occurrence and determination of the compensation event

(1) A compensation event within the meaning of this Act occurs where BaFin determines that 1. a CRR credit institution is, for reasons directly connected with its financial position, for the time being unable to repay deposits that are due, and 2. there is currently no prospect that the CRR credit institution will be able to do so in the future.
(2) BaFin must determine the compensation event without delay, but at the latest within five working days after becoming aware that a CRR credit institution is unable to repay deposits that are due. It must also determine the compensation event where it has ordered measures against the CRR credit institution under section 46(1), second sentence, nos. 4 to 6 of the Banking Act and those measures continue for longer than six weeks.
(3) An objection and an action for annulment against the determination of the compensation event have no suspensive effect.