Subsection 9: Provisions relating to the adoption and implementation of a measure to reduce and convert own funds instruments

I. – The nominal value of additional Tier 1 capital instruments and Tier 2 capital instruments or eligible commitments referred to in VII issued by a person referred to in I of Article L. 613-34 may be reduced. These instruments may also be converted into equity securities mentioned in Chapter II of Title I of Book II or into other forms of ownership. This reduction and conversion take place under…

I. – The resolution board shall take the measures referred to in I of Article L. 613-48 when it considers that one or more of the following conditions are met: 1° It has been established, prior to the implementation of a resolution measure, that the conditions for triggering a resolution procedure mentioned in II of Article L. 613-49 or, where applicable, in I, II and V of Article L. 613-49-1…

I. – The determination that a person referred to in I of Article L. 613-34 or a group is in the situation referred to in 3° of I of Article L. 613-48-1 shall be made by the collège de résolution with the assent of the collège de supervision and, where applicable, jointly with the appropriate authorities in the form of a joint decision where: 1° The supervisory college is the…

I. – The reduction in the nominal value or conversion of the own funds instruments referred to in I of Article L. 613-48 or, where applicable, of eligible commitments referred to in VII of the same article shall be preceded, in the event of losses being incurred, by a reduction in the amount of such losses in Tier 1 core capital instruments. It is implemented under the conditions set out…

Without prejudice to the application of III of Article L. 613-55-3, the reduction referred to in I of Article L. 613-48 in the nominal value of an own funds instrument or an eligible commitment is definitive. With the exception of obligations that have already matured, the obligations of the person concerned attached to an equity instrument or eligible commitment that has been reduced shall survive only in proportion to its…

The resolution college shall require, where necessary to carry out a conversion measure referred to in I of Article L. 613-48, that the person concerned issue Tier 1 core capital instruments to holders of additional Tier 1 capital instruments or eligible commitments referred to in VII of Article L. 613-48 or Tier 2 capital instruments. The resolution college shall also ensure that the following conditions are met: 1° The Tier…