S.L. 330.9 Art. 77Protection for financialcollateral, set off and netting agreements.

(1) Title transfer financial collateral arrangements and set-off and netting arrangements shall be appropriately protected so as to prevent the transfer of some, but not all, of the rights and liabilities that are protected under a title transfer financial collateral arrangement, a set-off arrangement or a netting arrangement between the institution under resolution and another person and the modification or termination of rights and liabilities that are protected under such a title transfer financial collateral arrangement, a set-off arrangement or a netting arrangement through the use of ancillary powers: Provided that such rights and liabilities shall be treated as protected under such an arrangement if the parties to the arrangement are entitled to set-off or net those rights and liabilities.

(2) Notwithstanding sub-regulation (1), where necessary in order to ensure the availability of the covered deposits, the Resolution Committee may:

(a) transfer covered deposits which are part of any of the arrangements mentioned in sub-regulation (1) without transferring other assets, rights or liabilities that are part of the same arrangement; and

(b) transfer, modify or terminate those assets, rights or liabilities without transferring the covered deposits.