Home / CY AIF Law of 2018 / PART ΙΙ: PROVISIONS REGARDING THE ALTERNATIVE INVESTMENT FUNDS / Chapter 6: AIF depositary / [30] Depositary liability.

30. Depositary liability.

(1) The Depositary of an AIF not subject to the Alternative Investment Fund Managers Law shall be liable, in accordance with the laws of the Republic, towards the AIF or the unitholders of the AIF or the external manager of the AIF, for any loss suffered by any breach of its obligations.

(2) Liability to the unitholders of the AIF may be invoked either directly, or indirectly through its external manager or the AIF, in case it is internally managed, depending on the legal nature of the relationship between the depositary, the investors and the external manager or the AIF, in case it is internally managed∙ in case the external manager of the AIF fails to initiate any claims against the depositary within three (3) months from the submission of a written demand by a unitholder to the external manager, the unitholder may initiate a claim against the depositary himself.

(3) The depositary’s liability shall not be affected by any delegation of the safekeeping task, either of the total or part of the assets of the AIF under its custody, to a third party∙ the depositary shall be jointly and severally liable with the third party for any loss caused by the third party to the persons referred to in section (1).

(4) The depositary may discharge itself from liability in accordance with the articles 27(4) and (5) of the Alternative Investment Fund Managers Law, which shall apply proportionately.