(1) The deposit guarantee scheme maintained under Regulation 7(1) shall cover depositors at branches set up by its member credit institutions in other Member States.

(2)Depositors at branches of such credit institutions referred to in paragraph (1) shall be repaid by the deposit guarantee scheme of the host Member State on behalf of the designated authority and the designated authority shall provide instructions to the deposit guarantee scheme of the host Member State as to how to make such repayments.

(3) The designated authority shall provide the necessary funding prior to repayment and shall compensate the deposit guarantee scheme of the host Member State for the costs incurred.