S.L. 330.9 Art. 96Resolution of Union branches.

(1) The Resolution Committee shall have the power to act in relation to a Union branch that is not subject to any third-country resolution proceedings or that is subject to third-country proceedings and one of the circumstances referred to in regulation 95 applies:

Provided that regulation 68 shall apply in the exercise of such powers.

(2) The powers required in sub-regulation (1) may be exercised by the Resolution Committee where it considers that action is necessary in the public interest and one or more of the following conditions are met:

(a) the Union branch no longer meets, or is likely not to meet, the conditions imposed by Maltese law for obtaining its licence and operation within Malta and there is no prospect that any private sector, supervisory or relevant third-country action would restore the branch to compliance or prevent failure in a reasonable time-frame;

(b) the third-country institution is, in the opinion of the Resolution Committee, unable or unwilling, or is likely to be unable, to pay its obligations to Union creditors, or obligations that have been created or booked through the branch, as they fall due and the Resolution Committee is satisfied that no third-country resolution proceedings or insolvency proceedings have been or will be initiated in relation to that third-country institution in a reasonable time-frame;

(c) the relevant third-country authority has initiated third-country resolution proceedings in relation to the third-country institution, or has notified to the Resolution Committee its intention to initiate such a proceeding.

(3) Where the Resolution Committee takes an independent action in relation to a Union branch, it shall have regard to the resolution objectives and take the action in accordance with the following principles and requirements, insofar as they are relevant:

(a) the principles set out in regulation 34;

(b) the requirements relating to the application of the resolution tools in regulation 36.