Ársskýrsla Landsbankans - Landsbankinn

Notes to the Consolidated Financial Statements
36. Litigation (continued)
7. The District Court of Reykjavik has in its ruling from 23 February 2011, established in the case of NBI hf. versus bankrupt estate of Motormax ehf.,
that certain foreign currency loan agreements to companys are in fact loan agreements in Icelandic kronas which fall under the scope of Act. No.
38/2001, on interest and indexation. The indexation of such ISK denominated loans to the exchange rate of foreign currencies constitutes indexation
which is not authorised by the Act. The Bank has appealed the ruling of the District Court of Reykjavik to the Supreme Court of Iceland.
8. EFTA Surveillance Authority has decided to open a formal investigation into potential unlawful state aid in the winding up of investment funds
operated by fund management companies linked to the three failed Icelandic banks. It is alleged that the Icelandic authorities intervened in the
market shortly after the collapse by influencing decisions of the newly created banks to purchase bonds from these investment funds. If EFTA
Surveillance Authority comes to the conclusion that the intervention by the Icelandic authorities constitutes state aid it is not unlikely that a
recovery claim will be made on Landsvaki. Landsvaki has formally protested these allegations and has submitted its views and arguments to the EFTA
Surveillance Authority.
37. Pledged assets
On 12 October 2010 the Bank and Landsbanki Íslands hf. signed a pledge agreement according to which the Bank pledged certain pools of loans to
customers as collateral for the secured bonds issued on 12 October 2010 (see Note 19) and the contingent bond that the Bank might issue to
Landsbanki Íslands hf. (see Note 20). The Bank must maintain a cover ratio of 127.5% (ISK 333,174 million) for the secure bonds and 118% (ISK
31,281 million) for the contingent bond. Pledged assets added to the pledged pool must comply with certain eligibility criteria.
In addition, the Bank has pledged assets, in the ordinary course of banking business, to the Central Bank of Iceland in the amount of ISK 5,500
million as at year-end 2010 (2009: ISK 5,500 million) to secure settlement in the Icelandic clearing systems. Further pledges have been placed in the
ordinary course of banking business for netting and set-off arrangements in the total amount of ISK 7,123 million as at year-end 2010 (2009: ISK
1,200 million).
38. Leasing
Operating lease commitments where the Group is lessee
In cases where the Group is a lessee, the future minimum lease payments under non-cancellable operating leases were as follows on 31 December:
2010 2009
No later than 1 year 29 169
Later than 1 year and no later than 5 years 172 55
Later than 5 years 271 267
Total 473 491
Operating lease commitments where the Group is legal lessor
The Group acts as the legal lessor, through its subsidiary SP-fjármögnun hf., whereby tools and equipment are purchased and leased to third parties
under arrangements that in substance are loans and advances accounted for under IAS 39 in the consolidated financial statements of the Group.
The future minimum lease payments expected to be received under non-cancellable operating leases were as follows on 31 December:
2010 2009
Less than 1 year 3,356 5,281
More than 1 year and less than 5 years 3,570 6,945
More than 5 years 407 985
Total 7,333 13,211
NBI hf. Consolidated Financial Statements 2010 45
All amounts are in ISK million
Allar upphæðir eru í milljónum króna Ársreikningur 2010 145