S.L. 330.9 Art. 106Borrowing between financing arrangements.

(1) Financing arrangements may make a request to borrow from all other financing arrangements within the European

Union, in the event that:

(a) the amounts raised under regulation 103 are not sufficient to cover the losses, costs or other expenses incurred by the use of the financing arrangements;

(b) the extraordinary ex-post contributions provided for in regulation 104 are not immediately accessible; and

(c) the alternative funding means provided for in regulation 105 are not immediately accessible on reasonable terms.

(2) Financing arrangements shall have the power to lend to other financing arrangements within the European Union in the circumstances specified in sub-regulation (1).

(3) Following a request under Article 106(1) of the BRRD, the financing arrangement in Malta shall decide whether to lend to the financing arrangement which has made the request. The decision shall be taken after consulting or with the consent of, the Ministry responsible for Finance. The decision shall be taken with due urgency.

(4) The rate of interest, repayment period and other terms and conditions of the loans shall be agreed between the borrowing financing arrangement and the other financing arrangements which have decided to participate. The loan of every participating financing arrangement shall have the same interest rate, repayment period and other terms and conditions, unless all participating financing arrangements agree otherwise.

(5) The amount lent by the resolution financing arrangement shall be to the amount of covered deposits in Malta, with pro rata respect to the aggregate of covered deposits in Malta. The rates of contribution may vary upon agreement of the resolution financing arrangement with the other participating financing arrangements.

(6) An outstanding loan to the resolution financing arrangement of another Member State under this regulation shall be treated as an asset of the resolution financing arrangement in Malta and may be counted towards that financing arrangement’s target level.