S.L. 330.9 Art. 78Protection for security arrangements.

(1) Liabilities secured under a security arrangement shall be appropriately protected so as to prevent one of the following:

(a) the transfer of assets against which the liability is secured unless that liability and benefit of the security are also transferred;

(b) the transfer of a secured liability unless the benefit of the security are also transferred;

(c) the transfer of the benefit of the security unless the secured liability is also transferred; or

(d) the modification or termination of a security arrangement through the use of ancillary powers, if the effect of that modification or termination is that the liability ceases to be secured.

(2) Notwithstanding sub-regulation (1), where necessary in order to ensure 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.