If someone has to make a payment or other remittance to another, he/she has the right, under certain conditions, to deposit money, securities or other documents with the Regional State Administrative Agency. The deposit discharges you from the obligation of payment or documentary remittance, and the obligation to pay interest is also discontinued.
The deposit can be made with the Regional State Administrative Agency if the party on whose behalf the deposit is made
- refuses to accept the payment or other remittance; or
- cannot accept it due to absence, illness or any other reason; or
- the depositor does not know, and is not required to know, to whom the payment or other remittance should be made, or which of two or more parties claiming the payment or other remittance is entitled to it.
The deposit is made with the Regional State Administrative Agency within whose operating area the payment or other remittance should or could be made. The competent Regional State Administrative Agency is generally determined based on the domicile of the recipient (entitled to the deposit), the location of the property or the registered office of the company.
With payment deposits based on an expropriation procedure, the expropriation proceedings are carried out by the National Land Survey of Finland. In the proceedings, it may be stipulated that the compensation for expropriation must be deposited with the Regional State Administrative Agency.
The Regional State Administrative Agency charges a service fee for the receipt of the deposit and securities.
The decisions issued by the Regional State Administrative Agency regarding payment deposits may be appealed with the administrative court, and the decisions of the administrative court further with the Supreme Administrative Court. An appeal of a decision must be submitted to the administrative court indicated in the directions of appeal within 30 days of the receipt of the decision.
Making a deposit
Once the application has been received and the funds have been deposited into the account of the Regional State Administrative Agency, the Agency will investigate the matter and make a decision on the receipt of the deposit. The agency will send the decision to the depositor. A separate bank account will be opened for the deposited funds and the funds will be transferred there to accrue interest. The interest will be paid to the party withdrawing the deposit.
The depositor must notify the party entitled to withdraw the deposit about the deposit.
Withdrawing the deposit
Withdrawal of the deposit must be requested from the Regional State Administrative Agency with a written, free form application or a form. The agency will examine the application and decide whether the applicant has the right to withdraw the deposited funds.
For ten (10) years following the deposit, the party on whose behalf the deposit was made is entitled to withdraw it. The depositor is also entitled to withdraw the funds during this time if the depositor has retained the right of withdrawal to the deposit.
Once it has been ten years since the deposit was made, the depositor may take back the funds that have not been withdrawn without having to have retained the right of withdrawal. However, the depositor must submit a withdrawal application to the Regional State Administrative Agency within one year of the end of the 10 year deadline.
Once it has been eleven (11) years since the deposit was made, the funds that have not been withdrawn will be credited to the state.