diff --git a/MicroDexed.ino b/MicroDexed.ino
index 42ce98d..9000e73 100644
--- a/MicroDexed.ino
+++ b/MicroDexed.ino
@@ -2190,7 +2190,7 @@ void check_and_create_directories(void)
       }
     }
 
-    // create directories for confgiuration files
+    // create directories for configuration files
     sprintf(tmp, "/%s", VOICE_CONFIG_PATH);
     if (!SD.exists(tmp))
     {
@@ -2228,18 +2228,44 @@ void check_and_create_directories(void)
       SD.mkdir(tmp);
     }
 
-    /*
-        for (uint8_t i = 0; i < MAX_BANKS; i++)
-        {
-          sprintf(tmp, "/%s/%d", FAV_CONFIG_PATH, i);
-      #ifdef DEBUG
-          Serial.print(F("Creating directory "));
-          Serial.println(tmp);
-      #endif
-          if (!SD.exists(tmp))
-            SD.mkdir(tmp);
-        }
-    */
+    //check if updated Fav-System is ready or if setup has to run once.
+
+    sprintf(tmp, "/%s/fav-v2", FAV_CONFIG_PATH);
+    if (!SD.exists(tmp)) {
+
+      // Clear now obsolte marker files from Favs.
+      // Only needs to run once.
+      for (uint8_t i = 0; i < MAX_BANKS; i++)
+      {
+        sprintf(tmp, "/%s/%d/hasfav", FAV_CONFIG_PATH, i);
+#ifdef DEBUG
+        Serial.print(F("Delete Marker File"));
+        Serial.println(tmp);
+#endif
+        if (SD.exists(tmp))
+          SD.remove(tmp);
+      }
+
+      // Remove empty Folders. rmdir will only remove strictly emtpy folders, which is the desired result.
+      // Only needs to run once.
+      for (uint8_t i = 0; i < MAX_BANKS; i++)
+      {
+        sprintf(tmp, "/%s/%d", FAV_CONFIG_PATH, i);
+#ifdef DEBUG
+        Serial.print(F("Delete empty folder"));
+        Serial.println(tmp);
+#endif
+        if (SD.exists(tmp))
+          SD.rmdir(tmp);
+      }
+
+      sprintf(tmp, "/%s/fav-v2", FAV_CONFIG_PATH);
+      if (!SD.exists(tmp))
+        SD.mkdir(tmp);  // Set Marker so that the Cleanup loops only run once.
+    } else
+      Serial.println(F("Favs-V2 ready. "));
+
+
   }
 #ifdef DEBUG
   else
diff --git a/UI.hpp b/UI.hpp
index 9275eb8..a931459 100644
--- a/UI.hpp
+++ b/UI.hpp
@@ -6263,7 +6263,7 @@ bool quick_check_favorites_in_bank(uint8_t b, uint8_t instance_id)
 
   if (sd_card > 0)
   {
-    sprintf(tmp, "/%s/%d/hasfav", FAV_CONFIG_PATH, b);
+    sprintf(tmp, "/%s/%d", FAV_CONFIG_PATH, b);
 #ifdef DEBUG
     Serial.print("check if there is a Favorite in Bank: ");
     Serial.print(tmp);
@@ -6298,12 +6298,14 @@ void save_favorite(uint8_t b, uint8_t v, uint8_t instance_id)
   b = constrain(b, 0, MAX_BANKS - 1);
   v = constrain(v, 0, MAX_VOICES - 1);
   char tmp[18];
+  char tmpfolder[18];
   File myFav;
   uint8_t i = 0, countfavs = 0;
 
   if (sd_card > 0)
   {
     sprintf(tmp, "/%s/%d/%d.fav", FAV_CONFIG_PATH, b, v);
+    sprintf(tmpfolder, "/%s/%d", FAV_CONFIG_PATH, b);
 #ifdef DEBUG
     Serial.println("Save Favorite to SD card...");
     Serial.println(tmp);
@@ -6311,21 +6313,14 @@ void save_favorite(uint8_t b, uint8_t v, uint8_t instance_id)
 
     if (!SD.exists(tmp))
     { //create Favorite Semaphore
-      SD.mkdir(tmp);
+      if (!SD.exists(tmpfolder))
+      {
+        SD.mkdir(tmpfolder);
+      }
       myFav = SD.open(tmp, FILE_WRITE);
       myFav.close();
       Serial.println("Favorite saved...");
 
-      sprintf(tmp, "/%s/%d/hasfav", FAV_CONFIG_PATH, b);  //for quick search, bank contains at least 1 favorite
-      if (!SD.exists(tmp))
-      {
-        myFav = SD.open(tmp, FILE_WRITE);
-#ifdef DEBUG
-        Serial.println("write hasfav file to:");
-        Serial.print(tmp);
-#endif
-        myFav.close();
-      }
       lcd.setCursor(13, 0);
       lcd.write(2); //fav symbol
 #ifdef DEBUG
@@ -6338,17 +6333,18 @@ void save_favorite(uint8_t b, uint8_t v, uint8_t instance_id)
 #ifdef DEBUG
       Serial.println("Removed from Favorites...");
 #endif
-      for (i = 0; i < 32; i++) { //if no other favs exist in current bank, remove quick search semaphore
+      for (i = 0; i < 32; i++) { //if no other favs exist in current bank, remove folder
         sprintf(tmp, "/%s/%d/%d.fav", FAV_CONFIG_PATH, b, i);
         if (SD.exists(tmp)) countfavs++;
       }
       if (countfavs == 0) {
-        sprintf(tmp, "/%s/%d/hasfav", FAV_CONFIG_PATH, b);
-        SD.remove(tmp);
+        sprintf(tmp, "/%s/%d", FAV_CONFIG_PATH, b);
+        SD.rmdir(tmp);
+
 #ifdef DEBUG
         Serial.println("Fav count in bank:");
         Serial.print(countfavs);
-        Serial.println("Removed hasfav file since no voice in bank flagged as favorite any more");
+        Serial.println("Removed folder since no voice in bank flagged as favorite any more");
 #endif
       }
       lcd.setCursor(13, 0);