Section 4: Measures to prevent and manage banking crises

I. – The following commitments may not be written down or converted, regardless of the legal regime applicable to them: 1° Covered deposits defined in application of 2° of article L. 312-16 or covered by an equivalent system; 2° Guaranteed commitments, including guaranteed bonds, and commitments in the form of financial instruments used for hedging purposes which form an integral part of the hedging pool and which are guaranteed in…

When implementing an internal bail-out measure, the collège de résolution shall comply with the provisions of Articles L. 613-55 and L. 613-55-1.

I. – The collège de résolution shall assess, on the basis of a valuation in accordance with Article L. 613-47, the cumulative amount: 1° Where applicable, the amount by which the value of the commitments usable for internal bail-in must be reduced so that the net asset value of the person subject to the resolution procedure is equal to zero ; 2° Where applicable, the amount by which the liabilities…

I. – When it implements an internal bailout measure referred to in I of Article L. 613-55 or a write-down or conversion measure pursuant to the provisions of sub-section 9 of this section, the resolution college shall take one or other of the following measures in respect of the holders of the equity securities referred to in Chapter II of Title I of Book II or other ownership securities: 1°…

I. – Notwithstanding any contractual clause providing for the reduction or conversion of the instruments mentioned in 1°, 2° or 3° below and subject to the exclusions mentioned in I and II of Article L. 613-55-1, the resolution college shall implement a write-down measure as part of the internal bail-in under the following conditions: 1° Tier 1 core capital instruments are written down in accordance with Article L. 613-48-3 ;…

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.