S.L. 330.9 Art. 76Safeguard for counterparties in partial transfers.

(1) Where the Resolution Committee transfers some but not all of the assets, rights or liabilities of an institution under resolution to another entity or, in the exercise of a resolution tool, from a bridge institution or asset management vehicle to another person, and where the Resolution Committee or the European resolution authority exercises the powers specified in regulation 64(1)(f), the provisions of this regulation shall apply.

(2) The following arrangements and the counterparties to the following arrangements shall be appropriately protected in the circumstances set out in sub-regulation (1):

(a) security arrangements, under which a person has by way of security an actual or contingent interest in the assets or rights that are subject to transfer, irrespective of whether that interest is secured by specific assets or rights or by way of a general hypothec, floating charge or similar arrangement;

(b) title transfer financial collateral arrangements under which collateral to secure or cover the performance of specified obligations is provided by a transfer of full ownership of assets from the collateral provider to the collateral taker, on terms providing for the collateral taker to transfer assets if those specified obligations are performed;

(c) set-off arrangements under which two or more claims or obligations owed between the institution under resolution and a counterparty can be set off against each other;

(d) netting arrangements;

(e) covered bonds;

(f) structured finance arrangements, including securitisations and instruments used for hedging purposes which form an integral part of the cover pool and which according to Maltese law are secured in a way similar to the covered bonds, which involve the granting and holding of security by a party to the arrangement or a trustee, agent or nominee: Provided that the form of protection that is appropriate, for the classes of arrangements specified in paragraphs (a) to (f) is further specified in regulations 77 to 80, and shall be subject to the restrictions specified in regulations 68 to 71.

(3) The requirement under sub-regulation (2) applies irrespective of the number of parties involved in the arrangements and of whether the arrangements:

(a) are created by contract, trusts or other means, or arise automatically by operation of law;

(b) arise under or are governed in whole or in part by the law of another Member State or of a third country.