Activities Permitted to Institutions and Prohibited Business

(1) Outside the limits of subsections (2) and (3) and of its licence under section 10(1), first sentence or section 11(1), first sentence, an institution may not accept deposits or other repayable funds from the public on a commercial basis or on a scale requiring a commercially organised business undertaking.
(2) An e-money institution must without delay convert into e-money any funds it receives for the purpose of issuing e-money. Such funds are not deemed deposits or other repayable funds from the public within the meaning of section 1(1), second sentence, no. 1 of the Banking Act, provided that
1. the issuance of e-money takes place simultaneously with, or without delay after, the receipt of the funds to be paid in exchange for the issued e-money, and
2. neither the e-money nor the credit balance arising from the issuance of the e-money bears interest and the holder is not otherwise granted any advantage related to the length of time the e-money is held.
(3) Insofar as an institution operates payment accounts for payment service users within the scope of its licence under section 10(1), first sentence or section 11(1), first sentence, it may use those payment accounts exclusively for the settlement of payment transactions. Credit balances on payment accounts held with the institution may not bear interest. Funds received by an institution from payment service users exclusively for the purpose of executing payment transactions are not deemed deposits or other unconditionally repayable funds from the public within the meaning of section 1(1), second sentence, no. 1 of the Banking Act, or e-money.
(4) An institution may, within the scope of its licence under section 10(1), first sentence or section 11(1), first sentence, grant payment service users credit within the meaning of section 1(1), second sentence, no. 2 of the Banking Act in connection with payment services under section 1(1), second sentence, no. 4 or 5, only on condition that
1. the credit is granted as an ancillary activity and exclusively in connection with the execution of a payment transaction,
2. the credit agreement provides for a term of no more than twelve months and the loan is to be repaid in full within twelve months, and
3. the credit is not granted out of funds received or held for the purpose of executing a payment transaction or of issuing e-money. The first sentence applies correspondingly to the issuance of e-money, save that the credit also may not be granted out of the funds accepted in exchange for the issuance of e-money. The granting of credit by an institution within the meaning of this Act that satisfies the conditions of the first sentence is not deemed lending business within the meaning of section 1(1), second sentence, no. 2 of the Banking Act. In that case, before concluding a consumer credit agreement or an agreement for a financial accommodation for consideration, the institution must assess the creditworthiness of the consumer; section 18a(1) to (10) of the Banking Act applies correspondingly. The institution must in particular have appropriate strategies and procedures under section 18a(8b) of the Banking Act.