S.L. 409.18 ст. 8The Fund.

(1) The Board shall set-up a fund, which fund shall be used to refund payments made by or on behalf of travellers insofar as the relevant services are not performed as a consequence of the organiser’s insolvency, including repatriation where applicable.

(2) All package travel organisers which are duly licensed by the Authority and which the Board deems as contributors, shall contribute to the Fund.

(3) All contributors are to annually submit audited financial statements to the Board.

(4) The Board and, or the Authority may request any contributor to submit audited financial statements more frequently than indicated in the previous sub-regulation and the Board and, or the Authority may request any contributor to provide them with any other documentation they may deem necessary.

(5) (a) When a Contributor fails to contribute and sustain the Fund when so requested by the Board, the provisions of regulation 10 shall apply.

(b) The Authority shall not renew the contributor’s licence for the following year on such failure of the contributor to contribute and sustain the Fund.

(c) The Authority may also take any such other action in accordance with the provisions of the Act and these regulations.

(6) The contributor shall pay the relative contribution, which shall be for such an amount and is to be paid in such a manner which the Board may decide from time to time.

(7) All contributors shall remain obliged to contribute to the Fund until they relinquish their licence with the Authority and settle all pending claims over the said Fund.

(8) The Fund shall at all times be kept at a minimum threshold of five hundred thousand euro (€500,000), or any other higher amount as shall be determined by the Ministry and the Authority from time to time.

(9) The Board shall be entitled to request any or all contributors to contribute further to the Fund, should the Fund be below the minimum threshold established in the previous sub-regulation or for any other reason whatsoever.

(10) Should the Board consider that accumulated funds are in excess of what it considers necessary to cover consumer exposure but not less than the minimum amount established under sub-regulation (8), any excess amounts may be distributed back to the contributors, subject that the approval of the Authority, on the advice of the Board, is obtained: Provided that the funds shall be distributed in such a manner as the Board shall deem fit.

(11) In the event that one of the contributors becomes insolvent, any claims made by the consumers of the insolvent contributor shall be paid first from the insolvent contributor’s share of the contributions made under the Fund:

Provided that should the insolvent contributor’s share not suffice in order to cover all claims, then the balance shall be paid from the net funds collected through the certification scheme: Provided further that the Board may request the other contributors to increase their bond to cover any shortfall of funds to settle the outstanding claims and ensure the minimum threshold is kept and this in accordance with the provisions of sub-regulation (8).