S.L. 330.9 Art. 68Exclusion of certain contractual terms in early intervention and resolution.

(1) A crisis prevention measure or a crisis management measure taken in relation to an entity in accordance with these regulations, including the occurrence of any event directly linked to the application of such a measure, shall not, in itself, under a contract entered into by the entity, be deemed to be an enforcement event within the meaning of Directive 2002/47/EC or as insolvency proceedings within the meaning of Directive 98/26/EC provided that:

(a) the substantive obligations under the contract, including payment and delivery obligations and the provision of collateral, continue to be performed;

(b) the contract is entered into by:

(i) a subsidiary, the obligations under which are guaranteed or otherwise supported by the parent undertaking or by any group entity; or

(ii) any entity of a group which includes cross-default provisions.

(2) Where third country resolution proceedings are recognised pursuant to regulation 94, or otherwise where the Resolution Committee so decides, such proceedings shall for the purposes of this regulation constitute a crisis management measure.

(3) Where the substantive obligations under the contract, including payment and delivery obligations, and provision of collateral, continue to be performed, a crisis prevention measure, a suspension of obligation under regulation 33B or a crisis management measure, including the occurrence of any event directly linked to the application of such a measure, shall not, in itself, make it possible for anyone to:

(a) exercise any termination, suspension, modification, netting or set-off rights, including in relation to a contract entered into by:

(i) a subsidiary, the obligations under which are guaranteed or otherwise supported by a group entity;

(ii) any group entity which includes cross-default provisions;

(b) obtain possession, exercise control or enforce any security over any property of the institution or the entity referred to in paragraphs (b), (c) or (d) of the definition "entity" in regulation 2(1) concerned or any group entity in relation to a contract which includes cross-default provisions;

(c) affect any contractual rights of the institution or the entity referred to in paragraphs (b), (c) or (d) of the definition "entity" in regulation 2(1) concerned or any group entity in relation to a contract which includes cross-default provisions.

(4) This regulation shall not affect the right of a person to take an action referred to in sub-regulation (3) where that right arises by virtue of an event other than the crisis prevention measure, the crisis management measure or the occurrence of any event directly linked to the application of such a measure.

(5) A suspension or restriction under regulations 33B, 69, or 70 shall not constitute non-performance of a contractual obligation for the purposes of sub-regulations (1) and (3) and of regulation 71(1).

(6) The provisions contained in this regulation shall be considered to be overriding mandatory provisions within the meaning of Article 9 of Regulation (EC) No 593/2008 of the European Parliament and of the Council of 17 June 2008 on the law applicable to contractual obligations (Rome I).

(7) The insolvency or resolution of a credit institution issuing covered bonds does not give the holder of the covered bonds the right to automatic acceleration of payment obligations attached thereto.