S.L. 330.9 Art. 101Use of the resolution financing arrangements.

(1) The financing arrangements established in accordance with regulation 100 may be used by the Resolution Committee only to the extent necessary to ensure the effective application of the resolution tools, for the following purposes:

(a) to guarantee the assets or the liabilities of the institution under resolution, its subsidiaries, a bridge institution or an asset management vehicle;

(b) to make loans to the institution under resolution, its subsidiaries, a bridge institution or an asset management vehicle;

(c) to purchase assets of the institution under resolution;

(d) to make contributions to a bridge institution and an asset management vehicle;

(e) to pay compensation to shareholders or creditors in accordance with regulation 75;

(f) to make a contribution to the institution under resolution in lieu of the write down or conversion of liabilities of certain creditors, when the bail-in tool is applied and the Resolution Committee decides to exclude certain creditors from the scope of bail-in in accordance with regulation 44(3) to (8);

(g) to lend to other financing arrangements on a voluntary basis in accordance with regulation 106;

(h) to take any combination of the actions referred to in paragraphs (a) to (g): Provided that the financing arrangements may be used to take the actions referred to in this sub-regulation also with respect to the purchaser in the context of the sale of business tool.

(2) The resolution financing arrangement shall not be used directly to absorb the losses of an institution or an entity referred to in paragraphs (b), (c) or (d) of the definition "entity" in regulation 2(1) or to recapitalise such an institution or an entity. In the event that the use of the resolution financing arrangement for the purposes of sub-regulation (1) indirectly results in part of the losses of an institution or an entity referred to in paragraphs (b), (c) or (d) of the definition "entity" in regulation 2(1) being passed on to the resolution financing arrangement, the principles governing the use of the resolution financing arrangement set out in regulation 44 shall apply.