Chapter III: Provisions specific to credit institutions, finance companies, investment firms, electronic money institutions, payment institutions and central counterparties

The resolution college shall exercise impairment and conversion powers in respect of a liability arising from a financial contract or derivative within the meaning of Article 2(5) of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 only on or after the liquidation of positions relating to such financial contracts or derivatives. Upon commencement of the resolution procedure, the resolution college may terminate…

When implementing a conversion measure pursuant to I of Article L. 613-48-1 or I of Article L. 613-55, the resolution board may apply different conversion rates to the various categories of own funds instruments and commitments. These conversion rates are determined taking into account the hierarchy of liability instrument categories.

I. – In the month following the implementation of an internal bailout measure in respect of a person mentioned in I of Article L. 613-34 for the purposes indicated in 1° of I of Article L. 613-55, the persons mentioned in Article L. 511-13 or in 4 of Article L. 532-2, after deliberation by their board of directors, their supervisory board or any other body exercising equivalent supervisory functions, or…

I. – Within one month of the date of transmission of the business reorganisation plan referred to in Article L. 613-55-8, the resolution board shall assess the ability of the plan to restore the long-term viability of the person or persons concerned. This assessment is carried out in agreement with the supervisory board. The plan is approved if the assessment is positive. II. – If the collège de résolution considers…

By way of derogation from Articles L. 613-55-8 and L. 613-55-9, where the collège de résolution directly supervises the person subject to a resolution procedure pursuant to the provisions of paragraph 1 of this sub-section, it shall draw up with the collège de supervision the plan for the reorganisation of that person’s activities provided for in Article L. 613-55-8.

I. – When the collège de résolution implements a measure in application of the provisions of sub-section 9 of this section, of I of Article L. 613-55, of 1° of I of Article L. 613-55-4, of I of Article L. 613-56 and of Article L. 613-56-1, notwithstanding any provision or stipulation to the contrary, the measures to reduce the principal or the sums due, to convert or to cancel shall…

The conversion of eligible liabilities or additional tier 1 or tier 2 capital instruments into equity securities as referred to in Chapter II of Title I of Book II or into other forms of property is effected ipso jure, without the benefit of any governing provision of the Articles of Association or any stipulation that would prevent such conversion or make it subject to a specific procedure.

I. – Where a commitment governed by the law of a third country is not excluded under I of Article L. 613-55-1 or does not constitute a deposit mentioned in the first indent of 6° of I of Article L. 613-55-5, the persons mentioned in I of Article L. 613-34 include in the contract governing this commitment a clause stipulating that the creditor acknowledges that the commitment may be converted…