Kyiv's business court of appeals on October 19, 2017 established that the contract, according to which assets of Delta Bank in the amount of UAH 459 million were transferred as collateral to Oschadbank, was signed in violation of the legislation and restrictions imposed in the period when Delta Bank was declared a bank with troubles.

The Individuals' Deposit Guarantee Fund said in a press release that the contract was declared invalid by the court.

According to the report, on February 25, 2015, Delta Bank and Oschadbank signed a contract and ownership rights under loan agreements signed by the bank with large borrowers were used as collateral for it.

The contract had signs of voidness described in Part 3 of Article 38 of the law on the system of guaranteeing deposits of individuals. A person authorized by the fund filed a claim to Kyiv's business court against Oschadbank seeking to declare the contract void.

"The case was heard in different courts. However, on October 19, 2017, after the repeated hearing Kyiv's business court of appeals issued a ruling upholding the bank's counterclaim in full: the collateral contract dated February 25, 2015 (No. 293) was declared invalid, and the implications of the invalidated transaction were enforced," the fund said.

According to the report, the court ruling confirmed that over UAH 459 million belonged to Delta Bank, which allows implementing liens under credit agreements to satisfy claims of creditors.

Some other collateral contracts were signed between Delta Bank and Oschadbank, which are considered void. The lawsuits regarding them are being heard in business courts of Ukraine.